Posted by & filed under Accounting Theory, Managerial Accounting, Sustainable Development.

Description: Recent research from the journal Science Advances has given us an interesting breakdown of the sources of our obvious plastic pollution problem. Using data gathered from over 1,500 events over the period 2018-2022, researchers at Dalhousie University found four big brands contributed 20 percent of the problem, with Coca-Cola leading with 11 percent and Pepsi following at five percent. Given that less than 10 percent of plastic is recycled, co-author Tony Walker indicated that it will take far more than consumer recycling to solve the problem.

Date:  April 24, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/climate/plastic-study-canada-1.7182609

Discussion points:

1) Did you use a plastic container today? What brand was it? Where did the empty container end up?

2) What would have to change in our accounting theory to make the costs of the plastic pollution a cost of the manufacturers and vendors?

3) In Chapter 5 of Wiley’s Managerial Accounting: Tools for Business Decision-Making we learn about activity-based costing. Can you think of how a company might track the costs of having to deal with its plastic waste?

Posted by & filed under Marketing & Strategy, Student life.

Description: Ontario has announced a ban on cellphones in the classroom. It’s an attempt by the Ford Government to remove learning distractions. The bans will start in the fall, and, as well, the government is imposing restrictions on vaping at schools. Those in Grade Six or below, will have to keep their phones put away and silent for the entire day at school, while those in later grades will not be able to look at their phones during their class time. Teachers will be given training to support these efforts.

Date:  April 28, 2024

Source:  globalnews.ca

 Link: https://globalnews.ca/news/10455818/ontario-schools-restrictions-cellphone-use-vaping/

Discussion points:

1) What do you think of this ban?

2) Have you ever been distracted from learning during class because of cellphone use by you or others?

3) On page 4-4 of Wiley’s Understanding Financial Accounting we read about Rogers Communications and its diverse business interests. If you were a financial executive at Rogers, how would you advise your colleagues to respond to this cellphone ban?

Posted by & filed under Canadian governments, Ethics.

Description: Does personal example from our executives and leaders matter? This past week in New Brunswick people were talking about the spending of the Province’s Deputy Minister of Tourism, Yennah Hurley, and her $77,710 in travel expenses. Though details in the online record of Hurley’s spending – and that of Tourism Minister Tammy Scott-Wallace – were somewhat scant, Hurley’s total for the year exceeded that of the Premier, Blaine Higgs. Some New Brunswickers might take umbrage that the Tourism officials stayed at the Trafalgar St. James, an expensive hotel in London. Further, the fact that the public purse picked up Hurley’s bill for tours of Versailles and Stonehenge may not have set the best of examples. Since the government stated that “the purpose of the mission was to discuss opportunities with international tour operators for visits to New Brunswick,” one would hope that someone is keeping track of the return on investment.

Date:  April 22, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/new-brunswick/yennah-hurley-tourism-deputy-largest-expense-1.7179159

Discussion points:

1) Why do you think stories like this one seem to grab headlines?

2) As a citizen and a taxpayer, what impact does this story have for you?

3) In section 3.7 of Wiley’s Auditing: A Practical Approach we read about how an auditor is to appraise an auditee’s corporate governance. Would you see having clear rules and processes around executive travel as part of effective governance?

Posted by & filed under Financial Accounting, Marketing & Strategy, Student life, Sustainable Development.

Description: Starbucks has announced that in a bid to reduce waste associated with its popular cold drinks, it is coming out with a new cup with that will cut its plastic footprint by roughly 20 per cent. The company sees this as an industry leading practice and it maintains that the cups will still be sturdy. As a bit of a longer term goal, Starbucks aims to have all of its cups to be reusable, recyclable, or suitable for composting by 2030.

Date:  April 18, 2024

Source:  ctvnews.ca

 Link: https://www.ctvnews.ca/business/starbucks-will-roll-out-a-redesigned-plastic-cup-in-canada-this-month-in-a-bid-to-reduce-plastic-waste-1.6853358

Discussion points:

1) Do you have a Starbucks on your campus? How much plastic waste do you think these cups might generate?

2) What else might the company do to reduce plastic waste?

3) Page 6-4 of Wiley’s Financial Accounting: Tools for Business Decision-Making tells us about an important part of accounting for inventory (like cups and other supplies) that is usually done when the store is closed. What is this important activity, and, why do you think it is usually done when the facility is closed?

Posted by & filed under Financial Accounting, Personal Tax, Student life.

Description: If you are a student, you should be filing a T-1 Canadian income tax return, even if you don’t think you have earned money in the last year. Tax credits like the GST/HST credit and the Carbon Rebate have the unique feature of being dropped directly into your bank account, versus serving to reduce your overall tax owing on your income. As well, even if you don’t need the tuition credit for this year, file anyway. This will make it much easier for you to back track and make claims when you are earning more income.

Date:  April 16, 2024

Source:  thecanadianpressnews.ca

 Link: https://www.thecanadianpressnews.ca/business/students-benefit-from-filing-a-tax-return-even-if-they-dont-make-a-lot-of/article_bb100e66-8a3b-5bfe-978e-0f3dee37fe0f.html

Discussion points:

1) Did you file a return last year? Are you planning to do so this April?

2) What did you learn from this article?

3) In Chapter 10 of Wiley’s Financial Accounting: Tools for Business Decision-Making we can see how companies account for the income tax they withhold from our pay cheques. What is the journal entry a company would make to record the eventual forwarding of our deductions to the Canada Revenue Agency?

Posted by & filed under Fraud, Internal control.

Description: On April 14, 2024, the CBC ran a story noting how the big 400 kg gold heist from Pearson Airport was hitting a one-year anniversary with no word of arrests https://www.cbc.ca/news/canada/toronto-pearson-gold-heist-anniversary-1.7169898 . Almost as if on cue, came news this week that a number of individuals were being charged for their parts in the $22.5 million gold theft. As might have been suspected, a couple of those sought by the Peel Regional Police were from the inside. Detective -Sargeant Mike Mavity of the Peel Police said “They needed people inside Air Canada to facilitate this theft.”

Date:  April 17, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/toronto/pearson-airport-heist-arrests-1.7176041

Discussion points:

1) Why do you think the public is often fascinated by such stories as this one on a big heist?

2) Why would a theft like this one have required inside help?

3) In Chapter 7 of Wiley’s Financial Accounting: Tools for Business Decision-Making tells us a number of important things about internal control. Which of these do you believe would be most important in terms of hiring trusted help who would protect a company’s assets?

Posted by & filed under Accounting Careers, Canadian Economy, Student life.

Description: In the early days of the Covid-19 pandemic when air travel was heavily disrupted, Canadians directed their vacation spending towards things that would allow them to spend time outdoors; purchases such as travel trailers, RVs, ATVs, and camping gear. But a combination of the bounce-back from Covid travel restrictions and a decline in discretionary spending due to the uptick in inflation, has hit so-called “pre-trip expenses” fairly hard. Economist Eric Desjardins of Statistics Canada said last year saw a decline of over 10 percent in spending on “major durable goods for outdoor recreation.” For RVs in particular, a decline in sales of 20 percent has placed buyers in a very strong position.

Date:  April 14, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/calgary/new-rv-sales-down-1.7168266

Discussion points:

1) Did you or your family develop a new interest in outdoor vacations during the pandemic? Did you purchase any additional gear?

2) If you were an executive with a company specializing in the outdoor vacations market, what strategies might you recommend to deal with this downturn in demand?

3) In Chapter 6 of Wiley’s Financial Accounting: Tools for Business Decision-Making we see a section “Valuing Inventory at the Lower of Cost and Net Realizable Value” for Learning Objective 5. If you were an accountant at a dealer of RVs, how might this section impact your valuation of inventory on the lot, given today’s market?

Posted by & filed under Financial Reporting and Analysis, Marketing & Strategy, Student life.

Description: The April 8 solar eclipse was certainly good for business. Niagara Falls, with locations on both sides of the Canada-U.S. border, anticipated a million visitors https://www.theweathernetwork.com/en/news/lifestyle/travel/a-million-solar-eclipse-enthusiasts-expected-at-niagara-falls-canada . About 100 Super 8 motels in the path of totality sold out. Occupancy rates on AirBnB trended upwards and no doubt some in the tourism industry had a small windfall owing to the law of supply and demand.

Date:  April 8, 2024

Source:  businessinsider.com

 Link: https://www.businessinsider.com/solar-eclipse-tourism-boost-local-economies-hotels-glasses-skydiving-2024-4?op=1

Discussion points:

1) Was your university in the path of the eclipse? Did your campus have special events or class cancellations?

2) If you were in the tourism industry, what strategy might you adopt to take advantage of this once-in-a-lifetime opportunity?

3) In Wiley’s Financial Accounting: Tools for Business Decision-Making we often read about note disclosures in the financial statements. Do you think that an unusual rise in business activity associated with an eclipse is something that should be disclosed?

Posted by & filed under Financial Accounting, Student life.

Description: For those of you getting set to graduate and enter the workforce, do you see a house purchase in your immediate future? If so, you may want to take a look at this handy tool CBC news reported on this week. This simple to use tool gets you to fill in a simple four corner dashboard looking at your key financial information, such as income before taxes and your expected mortgage interest rate. Out comes a suggestion on how much of a home you probably can afford.

Date:  April 10, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/what-s-the-most-expensive-home-you-could-afford-1.7151065

Discussion points:

1) Do you want to purchase a home soon after graduating? How about your classmates?

2) Using the CBC tool, how much of a home can you afford?

3) In Illustration 2-12 of Wiley’s Financial Accounting: Tools for Business Decision-Making we read about the three main classifications of financial ratios. Which of these classifications is most applicable to the personal finances of a home owner with a mortgage?

Posted by & filed under Accounting Careers, Sustainable Development.

Description: Under pressure from the City of New York’s pension funds, RBC has agreed to reverse course and start reporting on the ratio of its green investments to its investments in fossil fuels. The move will help RBC avoid the potential embarrassment of losing a vote on the issue at its upcoming annual meeting of shareholders. Environmental groups may see this as a moral victory of sorts. Last year it was reported that RBC was the largest financier of fossil fuel developments in the world. https://www.cbc.ca/news/business/royal-bank-oil-and-gas-1.6809011

Date:  April 6, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/rbc-green-energy-nyc-pensions-1.7165467

Discussion points:

1) Do you feel that this enhanced reporting will help reduce overall carbon emissions?

2) Are you interested in studying about, and perhaps eventually working in, the area of improved corporate reporting around environmental impacts?

3) In the What’s New? section of Wiley’s Financial Accounting: Tools for Business Decision-Making we read on page vii that this edition of the text has a new feature on “Accounting and the Environment.” This new section is featured in three different chapters. Which of the three do you find the most interesting? Why?