Examine Notes 3 and 22 to Canadian Tire's financial statements on provisions and answer the following questions:

Question:

Examine Notes 3 and 22 to Canadian Tire's on provisions and answer the following questions:
a. What is a provision and why are they necessary under IFRS?
b. What are site restoration and decommissioning costs and why are they necessary?
c. What was the balance in the site restoration and decommissioning provision on January 1, 2011 and on December 31, 2011? What caused the balance to change during the year? What are the current and long-term portions on December 31, 2011?
d. Why is part of the balance current and part long-term?
e. Do you think it's easy or difficult to determine the amount of this provision? Explain.
f. Do you think information about the asset retirement obligation is important and useful to ? Explain.

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