PART (A) INTERIM FINANCIAL STATEMENT OF MARY LYNN & FLAY AWAY IS ANNUAL MD & A .

In Column B, place an X next to the four items that would be required under IFRS to be disclosed in the interim financial statements.

	A	B
1	Disclosure items	Four required (X)
2	Detailed information on all accounting policies
3	Preferred dividends paid year to date
4	Issuance of debt since the end of the last fiscal year
5	Information about the composition of the goodwill balance that did not change in the quarter
6	The significant components of deferred income tax assets and liabilities
7	Details of a material class action lawsuit filed subsequent to quarter end but prior to the interim statements being released
8	Details of the acquisition of a controlling interest in the shares of a national supplier of in-flight meals that occurred since the end of the last fiscal year
9	Continuity schedule for intangible assets year to date

PART (B)

Consider which of the statements below are most likely to be included in FlyAways annual MD&A.

	In Column B, select three statements that the company would MOST likely include in its MD&A by placing an X next to the three MOST valid items.
	A	B
1	Possible MD&A inclusions	Three most likely (X)
2	The company provides scheduled air travel primarily to the leisure traveller to and from Canada from select airports within North America.
3	The company expects to have revenues of $200 million in the next fiscal year.
4	The company prices its fares based on an algorithm that factors current capacity and time until flight date. The formula is provided below.
5	A key objective of the company is a focus on cost containment to provide competitive fares to customers.
6	The company may be subject to large liability claims arising out of any aircraft accidents that occur. The company has a chief safety officer as part of the key management team.
7	The company was served with a $100,000 lawsuit during the year and has provided $50,000 in the current-year statements (something not likely).

Simulation (15 minutes) Mary Lynn Summer is a new corporate accountant with FlyAway Inc., a Canadian discount airline. FlyAway has revenues of approximately $150 million and focuses on the leisure traveller. FlyAway offers flights to select airports within North America. FlyAway has just completed an initial public offering on the Toronto Stock Exchange. Mary Lynn has been asked to investigate additional reporting that will be required now that FlyAway is a public company. She is considering interim reporting as well as the management discussion and analysis (MD&A). Complete the tasks in the Excel Task file. Simulation (15 minutes) Mary Lynn Summer is a new corporate accountant with FlyAway Inc., a Canadian discount airline. FlyAway has revenues of approximately $150 million and focuses on the leisure traveller. FlyAway offers flights to select airports within North America. FlyAway has just completed an initial public offering on the Toronto Stock Exchange. Mary Lynn has been asked to investigate additional reporting that will be required now that FlyAway is a public company. She is considering interim reporting as well as the management discussion and analysis (MD&A). Complete the tasks in the Excel Task file