Big student loans write-off

Posted by & filed under Canadian Government, Financial Accounting.

Description: The Government of Canada is writing off about $300 million in student loans, most of which was defaulted on before 2009. The details were revealed in supplementary spending estimates tabled in Parliament on February 19. Jessica McCormick of the Canadian Federation of Students commented that the amount of the defaults points to a need… Read more »

Pension woes

Posted by & filed under Advanced Accounting, Canadian Economy, Financial Reporting and Analysis.

Description: Interest rates continue to fall, signalling bad times for pension funds and pension recipients. As rates fall, the present value of the liabilities in defined benefit pension plans increase. An increase in liablities, often means that a company must contribute more cash to the pension plan. Source: Globe and Mail.com Date:  February 20, 2015… Read more »

SNC-Lavalin charged for bribery

Posted by & filed under Auditing, Ethics.

Description: SNC-Lavalin, the Canadian engineering giant, has been charged by the RCMP for bribery. These charges stem from SNC-Lavalin’s alleged bribes to Libyan officials of at least $47.7 million. The company could also face additional charges according to the Globe and Mail. Source: Globe and Mail.com Date:  February 19, 2015 Link:  http://www.theglobeandmail.com/report-on-business/snc-lavalin-faces-rare-corporate-fraud-and-bribery-charges/article23108284/ Discussion Points: 1)… Read more »

Fines not enough

Posted by & filed under Ethics, Executive Compensation, Taxation.

Description: It seems that even big fines are not enough to prevent financial institutions from helping their clients hide from tax authorities. The International Consortium of Investigative Journalists recently released  various details about HSBC’s Swiss operation, where “piles of cash” were hid from taxing authorities. Britain appears to have generated roughly $200 million in revenue… Read more »

Really, really, really smart t.v.

Posted by & filed under Data security, Ethics.

Description: Many were perhaps shocked this past week when Samsung revealed that while you are watching television, your television may be listening to you. While perhaps no one is quite sure what is going on in the mysterious cloud, Samsung’s new terms of use for its smart t.v. alerts users that spoken words and personal… Read more »

Target’s compensation timing

Posted by & filed under Advanced Accounting, Ethics, Executive Compensation.

Description: In yet another story on Target’s decision to leave Canada, regulatory filings have revealed that a number of executives and board members received in total 113,298  performance share units on the same day the board voted to end the Canadian experiment. Although the timing of the compensation appears to be consistent with Target’s established… Read more »

Long-form problems

Posted by & filed under Canadian governments, Managerial Accounting, Marketing & Strategy.

Description: Since the Canadian government cancelled the long-form census in 2010, we have heard a number of criticisms of the move. Now business leaders and economists are coming forward to add that the cancellation of the long-form census has robbed them of decision-making capacity. Without the information the census would have generated, businesses lack important… Read more »

Chip Wilson Exits

Posted by & filed under Corporate Governance, Ethics.

Description: This past week, Lululemon founder Chip Wilson left the board of the popular clothing retailer. Wilson has joined the a competitor clothing company founded by Shannon, his wife, and J.J., his son. This new company, Kit and Ace, appears set to compete with Lululemon in the high-end clothing market. Source: Globe and Mail.com Date: … Read more »

Disappointment on Target

Posted by & filed under Accounting Principles, Marketing & Strategy, MD&A.

Description: Target began its liquidation of inventory in its Canadian stores this past week. And it seems that in some respects the retailer which disappointed Canadians is continuing to disappoint in its exit from the country. Empty shelves and slim discounts were on the minds of shoppers. One shopper told the Globe and Mail that… Read more »