Gain access to the 2014 financial statements of Potash Corporation of Saskatchewan from the company's website (www.potashcorp.com) or www.sedar.com. The company, also known as PotashCorp, indicates prior to Note 1 to the financial statements that it has made changes to the structure and content of its financial statements since its 2013 Annual Integrated Report.
(a) What reason is given for the changes made in the structure and content of PotashCorp's financial statements? What are the major changes that have been made? Review several of the notes to the financial statements. What common features are presented in each note? What is your opinion of the changes?
(b) Note 2 provides information on the principles of consolidation that PotashCorp applies. What does the company mean by "control"? Does any judgement have to be applied in determining whether control over another entity exists? Explain briefly.
(c) Does PotashCorp apply IAS 39 or IFRS 9 in accounting and reporting its financial asset investment assets?
(d) Refer to Note 14 Investments. Identify, by name, the investee companies of PotashCorp. For each, identify the classification of investment, the percentage of voting rights held by PotashCorp, the method of accounting for the investee, its carrying amount, and its fair value.
(e) What additional information is provided in Note 14 about the investments accounted for using the equity method? Explain in general terms only why the income reported on the Statement of Income from associates and joint ventures differs from the $172 million of dividends received from them as reported in this note.
(f) Explain the impairment assessment policy for PotashCorp's available-for-sale investments discussed in Note 14. Include information about the event that triggered the impairment assessment in 2014.