Porto Waste Facilities Inc. (PWF) is a large, diversified Canadian-controlled private company

Question

with several Canadian and US subsidiaries, operating mainly in the waste management and
disposal industry. PWF was incorporated in 1955 and has grown to become one of the top four
waste management firms in Canada. The business was started by the Porto family, but currently
no family members are actively involved in the management of the company. The shares are
owned by family members, family trusts, and a limited number of friends. In 2017, the Porto
family decided to sell the company to a third party within the next two or three years to realize
the value of their shareholdings. PWF has an August 31 year end. The company has elected to
report using International Financial Reporting Standards (“IFRS”).
It is now October 18, 2019.
You, CPA, work for Hoa LLP. You are currently in charge of the audit of Porto. You had a
meeting with PWF’s management and staff and have collected the following information. The
partner on the engagement has asked you to identify any financial accounting issues and discuss
them using IFRS and conclude on the appropriate treatment that you would expect PWF to follow
in preparation of its financial statements.
3. During 2019, PWF lost a decision in the Federal Court of Appeal in a lawsuit brought by
Waste Systems Integrated Limited for patent infringement. In an unusual award, the court
ordered PWF to pay $18 million for 100% shares of Waste Systems Integrated Limited, a
private company, which had been in some financial difficulty. PWF has decided not to
appeal the decision to the Supreme Court, and the shares were purchased before year end.
Since PWF now owns the patent, PWF is now considering how to best protect this
technology going forward and the board is interested in understanding the accounting
implication for this patent.
4. PWF purchased shares of a private company that is PWF’s equipment supplier. After the
purchase, PWF owned 18% of the shares outstanding. PWF invested in the company due to a
long-standing relationship with the company’s management, as well as the access to any new
equipment technologies that can help to enhance the nature of PWF’s future business. PWF
is able to appoint one out of five board members but PWF has not done so yet.
Required:
Prepare the report as required by your Partner. In discussing key financial issues, please make
sure to quote the proper section from the CPA handbook that is relevant to your discussion,
As the Porto family plans to sell the business in the future, you are also asked to assess and
address any issues regarding the integrity of their financial reporting. Any obvious management
biases in their financial reporting should be reviewed in your report.

The case had 9 parts but I am not able to find much on these two points. Could anyone help?