RA11.7 Real World Emphasis Air France-KLM Group and Air Canada Air France-KLM Group and Air Canada are both global airline companies. Both companies report under IFRS. Access the financial statements of Air France-KLM for its year ended December 31, 2017, and Air Canada for the same period, from each company's website. Instructions a. What amounts are reported on the statements of financial position for capital assets for Air France KLM and for Air Canada at December 31, 2017? What percentage of total assets does each company invest in these types of assets? What else might be considered in developing and interpreting these ratios? b. For Air France-KLM: What types of capital assets does the company report? What does it include in costs? Is interest capitalized? What depreciation methods are used by the company? How are resid- ual values estimated for aircraft? c. For Air Canada: What types of capital assets does the company report? What is included in costs? Is interest capitalized? What depreciation methods are used by Air Canada? How are residual values estimated for aircraft? d. Compare the above accounting policies for the two companies. Where are there significant differ- ences between them? What is the likely impact of these differences on the balance sheet and net earnings? e. For Air France-KLM, how are the assets tested for impairment? Were any impairment losses re- corded for the year, and if so, how much? What did these relate to? Was there any reversal of impair- ment losses from previous years