Bombardier’s 2016 annual report, the company reported that it made a provision for onerous contracts, specifically “Onerous contracts provision - C Series aircraft program.” What was it? Read the annual report and conduct independent research to find out what it is.

 

2. Conduct google research on Bombardier C Series, and its troubled history and later triumphs, and what happened to it at the end. Report your finding.

 

3. Boeing saw Bombardier’s C series as a mortal enemy and did everything it could to destroy the program, including filing an anti-dumping complaint with the US Commerce Department. What did the disclosure of the onerous contract provision in the 2016 annual report have to do with Boeing’s case against Bombardier?

 

4. What is your opinion of companies having to make provisions for onerous contracts under IFRS and ASPE? Given your answers to the previous three questions, how might the requirement impact companies’ strategic and competitive positions?