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  "documentTitle": "Canadian Tire Corporation (CTC.A)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-12-05 00:00:00",
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  "notes": "The slide uses a red flag callout to highlight the contradiction between the stated accounting change and the later EPS benefit.",
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      "text": "CTC made two credit related accounting changes and realized an EPS benefit from the adjustments",
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      "text": "Key Change In Accounting Standards: IAS 39 (180 days) -> IFRS 9 (90 days)",
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      "text": "To understand the reversal in Q3 2018, it is important to understand the change of IFRS standards in Q1 2018. As part of the adoption of IFRS 9 in January 2018, CTC is required to report higher credit card provisions earlier in the life of the loan. IFRS 9 requires provisions to be based on the expected credit loss over the life of the loan rather than as losses occurs. CTC made a $584m catch-up adjustment to account for the change but this adjustment did not impact net income or EPS.",
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      "text": "Understanding The Change in Accounting Standards For Recognition of Credit Losses",
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