Refer to the 2011 year-end financial statements and accompanying notes of Shoppers Drug Mart Corporation at the end of this volume or on the company's website and then answer the following questions about the company.
Instructions
(a) Review the notes and determine how Shoppers Drug Mart accounts for its leasing transactions. Is Shoppers the lessor or lessee? What types of leases does it have?
(b) Identify all accounts on the consolidated statements of financial position and the consolidated income statement, along with their dollar amounts, that relate to any lease agreements that the company is a party to.
(c) Identify the line account(s) on the consolidated statements of cash flows where the cash lease payments are reported. Explain your answer.
(d) Calculate Shoppers' return on total assets and total debt to equity ratios for 2011.
(e) Assume the IASB develops a revised lease accounting standard using the contract-based approach. Would there be any impact to the financial statement of Shoppers Drug Mart? If so, what would the impact be?