The Implementation of IAS 16 and IAS 41 at Andrew Peller Limited

Abstract

This case asks students to play the role of Doug Grodeckie, Manager of Financial Reporting at Andrew Peller Limited (APL). Doug was asked to prepare a report analyzing Andrew Peller Limited's current tangible long-lived assets disclosures and making recommendations on how best to comply with International Accounting Standard (IAS) 16 Property, Plant and Equipment and IAS 41 Agricultural Property by APL's Chief Financial Officer (CFO), Peter Patchet, and Controller, Gary Laufman. Students are provided with background information on APL, the Canadian wine industry, the implementation of International Financial Reporting Standards (IFRS) in Canada and the implementation of IFRS at APL. The case is based on field research from interviews with Doug Grodeckie, Gary Laufman and Peter Patchet, and on publicly available information from various sources.

Keywords:

• IAS 16
• IAS 41
• IFRS
• implementation
• winery
• capital assets

Acknowledgements

The authors wish to thank workshop participants at the 2011 Administrative Sciences Association of Canada Annual Conference and the 2011 North American Case Research Conference, and anonymous reviewers for their useful comments and suggestions. All errors remain our responsibility.

Notes

Source: APL's 2010 annual report and APL's 2010 Proxy Circular, both available at www.sedar.com.

Source: APL's 2011 Financial Statements, Note 9. Available at www.sedar.com.

Source: APL's 2011 Proxy Circular. Available at www.sedar.com.

Source: Canadian Financial Markets Research Centre closing market price as of 31 March 2011.

Source: Nesbitt Burns and Agriculture and Agri-Food Canada.

Source: The CICA's Guide to IFRS in Canada 2006.

Source: CSA Staff Notice 52-320 – Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial Reporting Standards 2008.

Source: APL's Management Discussion & Analysis for the three months and year ending 31 March 2010, and the year ending 31 March 2011. Available at www.sedar.com.

They would have to immediately disclose the breakdown and carrying values under the Canadian equivalent of Regulation FD if they provided this information in the case, and they do not wish to make this information public.