Access the annual report of Canadian Tire Corporation for its year ended December 31, 2017, from the company's website or SEDAR (www.sedar.com). According to Note 1 to the financial statements, the company operates in three main segments: retail, a real estate investment trust, and financial services. Note 6 to the financial statements, as well as the Management Discussion and Analysis report, provides additional details about each of these segments. 

Instructions 

a. From the Management Discussion and Analysis sections that deal with risk management and from Note 5 to the financial statements, identify and summarize the various business and financial risks that the company is exposed to. Explain how these risks stem from the underlying nature of the business (that is, the business model). 

b. How does the company manage its foreign currency and interest rate risks? 

c. What derivatives are used by the company? What does the company use hedge accounting for? 

d. From various notes to the financial statements, identify the fair values of the derivatives at the year end and where they were reported. Indicate how these fair values were determined by the company, and what level in the fair value hierarchy their measurement was attributed to. Explain briefly what this level represents.