McCain Foods Limited is a large multinational private company with sales in excess of $10 billion. It produces both frozen and non-frozen food products and is the world’s largest manufacturer of frozen potato products. It has manufacturing operations on six continents and sales operations in over 160 countries, and employs more than 22,000 people. Most private companies in Canada have chosen to follow ASPE; however, some private companies like McCain have chosen to follow IFRS. “We believe that we are exactly the type of company for whom IFRS was developed,” McCain told the IASB in a letter of comment responding to the IASB’s preliminary views on financial statement presentation.

Instructions 

a. Other than the owners of McCain, who might be the users of McCain’s financial statements? 

b. McCain has numerous subsidiaries located throughout the globe. How would this type of multinational structure motivate McCain to follow IFRS? 

c. What are the benefits to the users of its financial statements of McCain reporting under IFRS?