1. Find and read Aeroplan's revenue recognition policies from their 2010 annual report(available on Mycourse) and answer the following question:
a) Identify the different points in time that Aeroplan recognizes revenue.
b) What estimates are involved in their revenue recognition policies?
c) How could these estimates be misused by manager?
d) If you see an increase of Aeroplan's revenue, why it is important to figure out whether this revenue is driven by more miles redeemed or by more "breakage"?
2. Read Canadian Tire's 2010 financial statements and answer the following questions:
a) Calculate the FCFF and FCFE for 2009 and 2008
b) Use the CFO to calculate, 1) debt coverage ratio, 2) dividend payment ratio, and 3) investing and financing ratio.
c) Calculate Altman's Z for 2009 and 2008
d) Post 2011, will the Z score under IFRS comparable to Z score from 2001 to 2009? List the reasons.
Attachment:- WR_Question.zip