Question: Shoppers Drug Mart's financial statements can be found in Appendix 5B. Instructions Refer to the company's financial statements and accompanying notes to answer these questions.

Shoppers Drug Mart's financial statements can be found in Appendix 5B.
Instructions
Refer to the company's financial statements and accompanying notes to answer these questions.
(a) What were the company's gross revenues for the fiscal years 2011 and 2012? What is the percentage change? Why has the company seen this result?
(b) Based on your findings in (a), comment on the company's net income/loss over the period.
(c) Review the notes to the financial statements co determine the company's revenue recognition policy. Discuss the policy, considering the nature of the business and the industry.
(d) On transition to IFRS from Canadian GAAP, adjustments co revenues were required to restate revenue. Explain why the company had to make these adjustments and the amounts required.

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