Refer to the financial statements and the Notes to Consolidated Statements for Aritzia Inc., which are reproduced

Question:

Refer to the financial statements and the Notes to Consolidated Statements for Aritzia Inc., which are reproduced in Appendix A. 


Instructions 

a. For each type of property and equipment that Aritzia reports in note 6 to its consolidated statement of financial position, identify the following amounts at March 1, 2020: 

(1) Cost 

(2) Accumulated depreciation 

(3) Net carrying amount. 

b. For each intangible asset and goodwill that Aritzia reports in note 7 and in its consolidated statement of financial position, identify the following amounts at March 1, 2020: 

(1) Cost, 

(2) Accumulated amortization 

(3) Net carrying amount

(4) Impairments. 

c. Refer to note 6 again and identify the amount of disposals for the fiscal year ended March 1, 2020.

d. What total amount did Aritzia report for depreciation and amortization expense? 

e. Note 3 includes additional details regarding property, plant, and equipment accounting policies. Read the note and answer the following questions: 

1. Does Aritzia use the cost model or revaluation model for property and equipment? 

2. What depreciation method does Aritzia use for these assets? 

3. For each property and equipment asset, identify the estimated useful life ranges used by Aritzia for depreciation. 

4. Aritzia does not report depreciation expense separately on the consolidated statement of operations. Instead it is included in other line items on the statement. Where is depreciation expense reported? How much depreciation expense is included in cost of goods sold?  

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Accounting Principles Volume 2

ISBN: 9781119786634

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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