RSM320 : Intermediate Accounting. Question 1
Financial reporting for PAEs may be thought of as a system, in particular as a network of participants and institutions, each with particular roles and also each with strengths and
weaknesses in fulfilling their particular roles. Explain the role(s) of each of the following actors in the financial reporting system and at least one threat to each participant in fulfilling that/those role(s). (1 mark for each of parts (a) to (f)):
(a) The PAE’s leadership (CEO, etc.)
(b) Users (choose one important “user”)
(c) External independent auditor
(d) Board of Directors
(e) Audit committee of Board of Directors
(f) Compensation committee of Board of Directors
The financial statements and other components of financial reporting of Teck Resources Ltd will be used at various points in the course.
(a) Explain how income taxes are accounted for in the “Operating activities” part of Teck Resources Limited’s 2017 Consolidated Statements of Cash Flows.
(b) Identify and explain all the places that income taxes appear on Teck Resources Limited’s 2017 Consolidated Balance Sheets.
(c) Teck reports the following on its December 31, 2017 balance sheet (in CAD$ in millions): In your supported opinion, is this balance sheet amount a liability, according to the Conceptual Framework?
(d) Note 3 of Teck Resources Limited’s 2017 Consolidated Financial Statements includes the following:
Explain how changes in technology has affected financial accounting, over time.
In 2017 CPA Canada published a document entitled “Blockchain Technology and Its Potential Impact on the Audit and Assurance Profession”; a copy has been posted to the Assignment #1 folder on Quercus. Two excerpts from the document follow (footnotes omitted):