Note 30 lists “Return obligation liability and provision for leased aircraft and other provisions” (hereafter, “other provisions”).

a. Do the beginning and ending balances of total provisions shown in Note 30 for fiscal 2019 tie to the balance sheet? By how much has the total amount of AF’s

“other provisions” increased or decreased during fiscal 2019?

b. Write journal entries for the following changes in the litigation provision that occurred during fiscal 2019, assuming any amounts recorded on the income statement are recorded as “provision expense” and any use of provisions is paid for in cash. In each case, provide a brief explanation of the event your journal entry is capturing.

i. New provision.

ii. Use of provision.

iii. Reversal of unnecessary provisions

c. Is AF’s treatment of its litigation provision under IFRS similar to how it would be treated under U.S. GAAP?