Access the financial statements of Magna International Inc. for the companys year ended December 31, 2017. These
Question:
Access the financial statements of Magna International Inc. for the company’s year ended December 31, 2017. These are available at www.sedar.com or the company’s website. Review the information that is provided and answer the following questions about the company.
Instructions
a. What business is Magna International in?
b. Identify the types of tangible capital assets that Magna reports and indicate whether these assets form a significant portion of the company’s total assets at December 31, 2017. Also explain why these assets are classified as property, plant, and equipment, and what conditions must exist before Magna reports them on its financial statements.
c. Identify all the accounting policies disclosed in the notes to the financial statements that explain how the company determines the cost of its property, plant, and equipment.
d. How much did Magna spend on new capital asset acquisitions in 2016 and 2017 (excluding business acquisitions)? Identify where the company obtained the funds to invest in these additions.
e. Explain how the company accounts for government assistance.
f. Compare the percentage increase in fixed asset additions from 2016 to 2017 with the percentage increase in sales. Taking the point of view of an investor or a potential investor, comment on the results of your analysis.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy