Metro Inc. is one of Canadas leading food retailers and distributors. It owns and operates a network
Question:
Metro Inc. is one of Canada’s leading food retailers and distributors. It owns and operates a network of supermarkets and pharmacies in Quebec and Ontario under banners including Metro, MetroPlus, Super C, Food Basics, Adonis, Brunet, and Jean Coutu. Exhibit 8.28 shows Metro’s notes on significant accounting policies for intangible assets and goodwill accompanying its 2020 financial statements.
Required
a. What major intangible assets does Metro own? Why does the company distinguish between the ones with definite lives and those with indefinite lives?
b. What method does Metro use to amortize its intangible assets? Are they amortized over their legal lives or useful lives? Explain why the treatment is appropriate.
c. Explain what the customer relationships might be related to. How are these related to Metro’s major operations?
d. What is the source of the goodwill that Metro recognizes? Is the goodwill amortized? Explain how Metro determines and recognizes any impairment loss on the goodwill.
Step by Step Answer:
Understanding Financial Accounting
ISBN: 9781119715474
3rd Canadian Edition
Authors: Christopher D. Burnley