Maple Leaf Gardens Case Study

Concepts:

Ai) There are several different people that would use the financial statements of Maple Leaf Gardens. Investors, whether they are existing or potential, would use the financial statements to help make a decision on how much or if they want to invest in the company. Lenders would use the statements to determine if they are going to lend financial assistance to the company. Government bodies review the statements to make sure they comply with all regulations and to make sure no ethical issues are present. Obviously the upper management uses the financial statements to gain a prospective on how the company is doing. Competitors may use the financial statements as a way to improve their own …show more content…

An example of Gains from Maple Leaf Garden's financial statements is the Gain from discontinued operations.

Cix) Losses are defined as decreases in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period except those that result from expenses or distributions to owners. There was no example of losses on the financial statements for Maple Leaf Gardens.

Cx) Comprehensive Income is defined as the change in equity (net assets) of an entity during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. There was no Comprehensive Income example on the financial statements for Maple Leaf Gardens.

Di) Cash is measured at fair value.

Dii) Accounts receivable is measured at Net Realizable Value.

Diii) Land is measured at current book value.

Div) National Hockey League Franchise is measured by the costs of purchase of the predecessor hockey club.

Dv) Accounts Payable is measured at fair value.

E) Due to the