Part A

Non-IFRS financial measures reported by public companies to its financial statement users may be helpful in decision-making but caution must be exercised because

a) of the independence issue, given that the same auditors audit the financial statements and the non-IFRS financial measures.

b) management defines the measures based on their expertise, judgement and financial reporting needs.

c) tax rules affect the non-IFRS financial measures.

d) the criteria established in the accounting standards for the purposes of calculating non-IFRS financial measures are open to interpretation.

Part B

Eats Inc. issues 100,000 shares at $11 / share in January 2010. Later that year the company is able to repurchase 9,000 of these shares at $10 per share. The effect of this is

a) a decrease to the share capital account of $90,000.

b) an increase to the contributed surplus account of $9,000.

c) a decrease to total shareholders' equity of $99,000.

d) an increase in retained earnings by $9,000.