RA$18\mathrm{.}2$ Real World Emphasis Maple Leaf Foods Inc.

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 $31,2020.$ Answer the following

questions.

a$.$ Review the consolidated statements of net earnings and other comprehensive income for $2020$ and $2019.$ What was the income tax expense $($benefit$)$ for each year? Did the company

apply intraperiod tax allocation in $2020$ or $2019?$ Why or why not? How much does the company show as income taxes payable on the consolidated statements of financial position at

the $2020$ and $2019$ fiscal year ends? What was reported regarding cash flows of current income taxes in $2020$ and $2019?$ Where did you find this information?

b$.$ What was the company's effective tax rate for $2020?$ For $2019?$ 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 $31,2020$ consolidated SFP$,$ explain what underlies the balance that is reported. For each temporary difference, identify the SFP

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 $31,2020?$ Explain how Maple Leaf Foods has treated any such

items, and why.