Refer to the notes to the consolidated financial statements for Aritzia Inc. in Appendix A at the end of the textbook.

Instructions

a. Refer to Note 1 and the statement of compliance. What measurement method does Aritzia use in its financial statements? Is the same measurement method used for all elements or are there some elements that are measured using a different basis? If the latter, prepare a list of those elements and the corresponding measurement used.

b. Note 2, Revenue Recognition, describes Aritzia’s revenue recognition policy. Aritzia provides information about four revenue recognition situations. Prepare a list of each source of revenue, when it is recognized, and at what amount. These statements are prepared using the earnings approach to revenue recognition. What revenue recognition criteria must be met using this approach?

c. Note 23, Subsequent Event, discloses that Aritzia was authorized to purchase 5,429,658 subordinate shares from the public in 2018 and 2019. What will Aritzia do with these shares once purchased? Do you think this additional disclosure was necessary? Explain why or why not, referring to the appropriate concepts or items from the conceptual framework of accounting in your answer.

d. Aritzia’s independent auditor’s report is provided in Appendix A with the company’s fi nancial statements. What is the purpose of an independent audit? What opinion did Aritzia’s auditors provide in the auditor’s report?