Loblaws Annual Report Analysis Term Paper Example | Topics and Well Written Essays - 2000 words

Loblaws Annual Report Analysis - Term Paper Example Such misstatements can arise from either an error or fraud. according to the auditor’s opinion, the consolidated financial statements presented fairly, in all material respects, the consolidated financial position of Loblaw Companies Limited as at January 1, 2011 and were in accordance with the Canadian generally accepted accounting principles. 3. Loblaw is Canada’s largest grocery retailer and has taken several initiatives to ensure it sustains the environment. They practice sustainable seafood and have set up salmon farms. In order to prevent the detrimental impacts of excessive fishing, Loblaw is committed to sourcing 100% of their sold seafood from sustainable sources by the end of 2013. In addition to this, they have a campaign against the plastic bag consumption in their stores and were successful in reducing 2.5 billion plastic bags since 2007. Moreover, Loblaw gave a gift of $3 million to invest in researching sustainable means of food production. They also have initiated solar energy projects in partnership with Northland Power Inc. to help reduce their carbon footprint. Consequently, they have been awarded accolades and are ranked in top 50 Canadian sustainable companies list. 4. A) According to the matching principle, the company recognizes its revenue at its VIE and corporate stores at the time the sale is made to its customers and also at the time of delivery of its inventory to the associated and franchised stores B) When it comes to fixed assets they are recorded at cost which includes capitalized interest while depreciation starts once the asset has been put into use. The depreciation is recognized on a straight-line basis and is depreciated over the estimated useful life of the asset which ranges from 20-40 years for buildings, up to 10 years for building improvements and from 3 to 10 years for equipment and fixtures. C) Goodwill at Loblaw is assessed for impairment at a minimum on an annual basis. It is done by comparing the fair value of a reporting unit to its carrying value. A goodwill impairment charge is recognized to the extent that the carrying value of goodwill exceeds the impaired fair value in operating income. D) The company assesses intangible assets to determine if their useful life is definite and in cases where it is they are amortized over their useful lives up to a maximum of 17 years. The intangible assets with indefinite useful lives are annually assessed for impairment. 5. Loblaw generated a higher profit per dollar of sales in the fiscal year 2010 compared to 2009. This is visible by two ratios namely Gross Profit per sales and Operating Margin. Operating Margin is calculated by dividing the Net Operating Income for a period with the Sales. The Operating Margin increased in 2010 to 4.1% from 3.9% in 2009. This is primarily attributed to the subsequent increase in gross profit and the impact the acquisition of T & T. Likewise, the Gross Profit as a percentage of Sales went up from 23.4% in 2009 to 24.5% in 2010 and was caused by factors such as strong Canadian dollars, improved control label, continued buying synergies and more disciplined vendor management. 6. The interest coverage ratio measures the interest payment of the company compared to its Earnings before Income and Taxes. The greater the Interest coverage ratio the better the chances of the company in paying its debt

READING Assignment Example | Topics and Well Written Essays - 1000 words

READING - Assignment Example Of great interest is the position that Kal Raustilia and Chris Sprigman (2012) take, contrary to conventional knowledge and mainstream belief. Raustilia and Sprigman are of the persuasion that it is not possible to quantify losses attributed to piracy and copyright violations and that statistical provisions by proponents of Stop Online Piracy Act (SOPA) and Protect IP Act (PIPA) which show that copyright infringement costs the US 200 billion dollars and 750,000 jobs annually, cannot be relied upon. Raustilia and Sprigman (2012) cite Tim Lee’s assertion that statistical figures should neither be taken at face value, nor unquestionably relied upon since such figures are almost always prone to approximations, double and triple counting. Raustilia and Sprigman continue that in some instances, music piracy may serve as substitute for legitimate transactions, and that the same can also trigger increased savings, since, instead of money being spent to purchase music, music is downloa ded on the one hand. On the other hand, increased savings may catalyze economically significant initiatives and undertakings, and thereby covering for the supposed loss of jobs and revenue which piracy may have caused. Nevertheless, a critical look at factors that underpin legislation which proscribe the infringement of copyright rules and logical reasoning leave the proposition which Raustilia and Sprigman advance as too impractical to be effected. In the same vein, it is most probable that Raustilia and Sprigman had not thought deeply about the implications that would come with the violation and collective disregard of copyright laws. In the first place, Gorski (2011) illustrates that the need to safeguard creativity and originality defeats the standpoint that Raustilia and Sprigman (2012) advance. It must be realized that the Digital Millennium Copyright Act, Title 17 of the United States Code, the NET Act and the Copyright Act of 1909 do not merely seek to ensure that all who ac cess music buy them, but to actually protect originality and creativity. Always, music is a culmination of training and creativity which are valuable resources. It is preposterous to argue that the training and creativity which an individual uses to earn a living should be treated as valueless. In this case, Raustilia and Sprigman’s proposition that music piracy can help generate financial or economic value does not suffice since such an arrangement alienates the original thinker, creator and director of an original piece from his work. The kind of advancement which Raustilia and Sprigman make is tantamount to robbing Peter to pay Paul, if not worse. In a separate wavelength, it is important to note that legislative pieces such as the Copyright Act of 1909, the Digital Millennium Copyright Act, Title 17 of the United States Code and the NET Act are the very provisions which created the existence of the Recording Industry Association of America (RIAA) and mandates RIAA to disc harge its duties and responsibilities. RIAA shows clearly that the music industry alone have forfeited millions of dollars to piracy. RIAA further divulges that in 2002, music revenue fell by 7% since the sale of CDs declined from 882 million to 803 million units. The report that RIAA provides in this case may be used to vindicate the statistical provisions that the proponents of SOPA and PIPA advance