Dexlux Ltd. (DL) is a vertically integrated manufacturer and retailer of moderately priced high-fashion footwear, leather goods, and accessories. DL’s common shares are listed on the Toronto Stock Exchange. DL has stores in over 180 major Canadian shopping malls and operates over 50 “boutiques” in larger retail stores. Until the current year, DL had three retail stores in the United States. In general, operating results in 20X9 have been disappointing, with lower same-store sales trends and higher costs across the board.
Exhibit 1 shows preliminary operating results for 20X9. Exhibit 2 shows details of accounting issues that must be resolved before the financial statements can be finalized. No accounting recognition has been given to stock options outstanding or granted during the year, as valuation estimates were not complete when the draft financial statements were prepared. This information has recently been obtained.

Required:
Analyze the accounting issues as identified, and prepare a revised draft statement of comprehensive income, including earnings per share.

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EXHIBIT 1 DEXLUX LIMITED Draft Statement of Comprehensive Income (in thousands of Canadian dollars) For year ended 31 December Revenue Sales Investment and other revenue Expenses Cost of sales, selling, and administrative Amortization Closure costs, U.S. operations Interest, net Operating earnings, before tax Income tax Net earnings and comprehensive income 20X9 $164,960 4,320 169,280 142,860 11,940 1,450 2,230 158,480 10,800 2,700 $ 8,100