Locate the audited consolidated (including the accompanying notes) of Kirkland Lake Gold Ltd. for its year ended December 31, 2017 (available at www.sedar.com).
Instructions
Refer to the statements and notes to answer the following questions.
a. What type of income statement format does the company use: single- or multiple-step? Comment.
b. What business(es) is the company in during 2017? (Hint: Look at Note 1 to the financial statements.)
c. How are these businesses reflected in Kirkland Lake Gold’s and income statement?
d. Is the income statement presented by function or nature? Why?
e. Explain what makes up any reported amount for discontinued operations for the year ended December 31, 2017. Why is it important to disclose this information separately from other results for the year? The company also disclosed a loss on disposal of plant and equipment as part of Other Income, above “Earnings from continuing operations” and not included in the loss on disposition of discontinued operations. Why was this loss not included in the loss on discontinued operations?
f. What is included in other comprehensive income and what is the total of comprehensive income for the current year?
g. How has the EPS been calculated? How many EPS figures are presented and why? Where is the EPS disclosed?
