Access the annual report for Canadian Tire Corporation, Limited for the year ended January 2, 2010, from SEDAR (www.sedar.com).
Instructions
(a) Reviewing the Consolidated Statement of Changes in Shareholders’ Equity, discuss whether Canadian Tire reported any accounting changes in the years presented. Which accounts were impacted and by how much?
(b) Identify and explain each accounting change that the company implemented in 2009. How was each accounting change applied? If the change was due to an amendment of the standards, provide the details of the effective date of the changes. Classify each change as being one of the following:
1. A change in accounting policy mandated by a change in a primary source of GAAP
2. A voluntary change in accounting policy
3. A change in estimate
(c) For each change reported in (a) above, explain whether the change was retrospectively or prospectively applied. What was the impact of each change on the financial reports of Canadian Tire in each year presented?
(d) The company also provides details for future accounting changes. Describe the note disclosure provided for these.
(e) In the Management Discussion and Analysis, the company has also provided details on its adoption of IFRS. Explain the different phases that the company has developed to adopt IFRS.
Summarize the relevant accounting standards and preliminary findings as to their impact on Canadian Tire’s financial statements.