Ivey Publishing

Product Details

Air Canada: Bond Ratings and Off-balance Sheet Operating Leases
Product Number:
9B03B009
Publication Date:
08/06/2003
Revised Date:
10/15/2009
Length:
18 pages (5 pages of text)
Product Type:
Case (Library)
Source:
Ivey
An investor is considering investing in Air Canada bonds after reading an article on the attractiveness of the bonds. Trading at US$0.80 on the dollar, the bonds are yielding approximately 14 per cent. The investor must conduct some financial analysis on her own to assess whether the company's financial position has improved or deteriorated since a bond rating downgrade eight months ago. She must also evaluate how off-balance sheet operating leases would affect the analysis. The case illustrates how financial statement users can use lease disclosures to restate financial statements to fully reflect liability arising from operating leases.
Issues:
Disciplines:
Accounting
Industries:
Transportation and Warehousing
Setting:
Canada, Large, 2002
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
Associated Materials
Supplements: 7B03B009 (165 KB)
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