Maple Leaf Foods Inc. is a Canadian company that produces food products such as prepared meats, ready-to-cook and ready-to-serve meals, and fresh pork and poultry. While most of Maple Leaf Foods' business is conducted in Canada, it also generates revenues in the United States, the United Kingdom, and Japan.

Instructions

Through SEDAR (www.sedar.com) or the Maple Leaf Foods' website, obtain a copy of the company's financial statements for its year ended December 31, 2014. Answer the following questions.

(a) Review the consolidated statements of net earnings and other comprehensive income for 2014 and 2013. What was the income tax expense (benefit) for each year? Did the company apply intraperiod tax allocation in 2014 or 2013? Why or why not? How much does the company show as income taxes payable on the consolidated statements of financial position at the 2014 and 2013 fiscal year ends? What was reported regarding cash flows of current income taxes in 2014 and 2013? Where did you find this information?
(b) What was the company's effective tax rate for 2014? For 2013? What was the statutory rate in each of these years? What caused the differences? Be specific about whether the effective rate increased or decreased as a result of each cause that you identify.
(c) For each deferred tax account reported on the December 31, 2014 consolidated statement of financial position, explain what underlies the balance that is reported. For each temporary difference, identify the statement of financial position asset or liability where the tax base and carrying amount differ.
(d) Does the company have any unrecognized deferred tax assets or unrecognized deferred tax liabilities as of December 31, 2014? Explain how Maple Leaf Foods has treated any such items, and why.