Problem:
Shoppers Drug Mart Corporation is a public firm listed in Toronto Stock Exchange. Mr. Brian Cooper is interested in investing in this firm and would like a critical assessment of the firm's 2013 Annual Report (attached). He approached Smart Consulting Co. and asked if the firm can prepare a report for him. You are a newly hired intern of the consulting firm. The manager asked you to prepare a section of the report that is related to the disclosure quality of debt, equity and other financial reporting issues.
The manager told you the following points:
1. Mr. Cooper is a busy business person, and he does not like a super long report.
2. He likes a report that is precise, concise and to the point.
3. Mr. Cooper only has basic accounting knowledge and your report should cater for his level and needs.
4. Mr. Cooper is more familiar with ASPE than IFRS.
5. Specifically Mr. Cooper would like to know the following two aspects: (1) if the firm has disclosed all information imposed by IFRS; (2) in what aspects the existing presentation and disclosure differ from those in ASPE.
6. Mr. Coopers likes a report that starts with an executive summary showing the gist of your main findings followed by an Appendix that lists more detailed information, in case he needs more details on the matter, with the Appendix ideally in a table format. If necessary, he would also like a reference to page number and/or note disclosure number in the annual report, in case he needs to refer back to the annual report.
7. The manager suggests the following for the Executive Summary
a. Overview (hint: What is the firm's main business and how the financial reporting practices are related to these business activities? That is, what's the scope of your report?)
b. Strengths (hint: in what areas the presentation and disclosure made by the firm are exceptional)
c. Weakness (hint: in what areas the presentation and disclosure made by the firm are not satisfactory or can be done better?)
d. IFRS/ASPE comparison (i.e. What are incremental or removed presentation/disclosure requirements in IFRS as compared to ASPE, for this given firm?)
e. Conclusion
8. Since your report would eventually be complied by the manager with the reports prepared by other persons, the manager asks you to comply with the following format:
a. Typed, 1.5 line spacing, font 12, Times New Roman for executive report.
b. Typed, Times New Roman, font 10 for Appendix Table.
c. Use the following table to construct the Appendix
9. There is no page limit on your report. However, a rule of thumb is no more than 6 pages for the Executive Summary, and no more than 10 pages for the Appendix table, unless you deem absolutely necessary.
10. Regarding the ASPE/IFRS comparison, Mr. Cooper is only interested in key differences. He has no interest in the detailed differences that are time-consuming for him to understand.
You personally know that the manager is assessing you through this report whether you have mastered comprehensive knowledge and communication skills to be eligible to become a full-time employee. You know the manager pays attention to both breath and depth, as well as the clarity of your report. You also know Smart Consulting has high reputation in the industry, and hence you would like to give your best to finish the report.
Note: Please find the Financial Report of Shoppers Drug Mart Corporation attached along with this document.
Total Word Limit: 2497 Words