Chorus Aviation Inc. is a Canadian aviation holding company that provides, through Jazz Aviation LP, a "significant part of Air Canada's domestic and transborder network." Chorus indicates in Note 1 to its financial statements that it is both economically and commercially dependent on Air Canada and one of its subsidiaries. Part of this dependency relates to the fact that Air Canada is responsible for almost all of Chorus's revenue and for purchasing most of Chorus's (and Jazz's) fleet capacity. Chorus Aviation's shares trade on the Toronto Stock Exchange.
Through SEDAR (www.sedar.com) or the company's website, access the financial statements of Chorus Aviation Inc. for its year ended December 31, 2015. Refer to the financial statements (including the notes to the financial statements) and answer the following questions.

Instructions
(a) Identify all lease arrangements that are indicated in the company's financial statements, including the notes. Indicate, and briefly explain, any balances related to these leases that are reported on the income statement and statement of financial position.
(b) Calculate the following ratios for Chorus Aviation based on the 2015 published financial statements:

1. Debt to total assets ratio
2. Capital asset turnover ratio
3. Asset turnover ratio
4. Rate of return on assets

(c) Assume that the company adopted the contract-based approach as set out in IFRS 16 on December 31, 2015. Assuming an interest rate of 6% and that lease payments are made at the end of each year, estimate the impact of the adoption on the statement of financial position. Also, estimate the effect on the 2015 income statement. List any additional assumptions that you make.
(d) Using your estimate of the amount to capitalize for Chorus Aviation, recalculate the debt to total assets and total asset turnover ratios in part (b) above. Compare the recalculated ratios with the original results and comment on the differences.
(e) IFRS requires companies to provide certain information about their capital management objectives, strategies, and compliance with covenants related to their capital,among others. Locate Chorus Aviation's capital management note to its financial statements. Does managementinclude operating leases in what it manages as its capital? Comment on your findings.