Posted by & filed under Auditing, Student life.

Description: Canada’s economy lost over 60,000 jobs in December. This was the first drop in employment Canada experienced since April, a month when the early days of the Covid crisis hit especially hard. The service sector – not surprisingly given the various public health restrictions – took the largest hit.

Date:  January 8, 2021

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/jobs-december-statscan-1.5865905

Discussion points:

1) Do you know anyone who lost their job in December?

2) How do you think the current Covid-19 trends may impact on your plans for a job after school ends in April or May? How about your classmates?

3) In Wiley’s Auditing: A Practical Approach we learn various things an auditor must consider in planning an audit approach (in particular, see Chapter 3). What would auditors have to factor into their analysis this year as they look at economic conditions like higher unemployment?

Posted by & filed under Taxation.

Description: It doesn’t pay to not pay your taxes; at least not in this case. A Halifax hotelier and restaurant owner has been fined $113,223, the same amount as the sales tax he withheld from paying the Canada Revenue Agency (CRA). The businessman, Pantelis Panagiotis Giannoulis, will also have to repay the taxes he failed to remit to the CRA, of course, along with any interest and penalties.

Date:  January 6, 2021

Source:  ctvnews.ca

 Link: https://atlantic.ctvnews.ca/halifax-businessman-fined-113-000-for-sales-tax-evasion-cra-1.5256258

Discussion points:

1) Do you think this fine will act as a deterrent to others?

2) Besides fines, what strategies can the government employ to help ensure compliance with its requirements to file taxes owing?

3) In Chapter 10 of Wiley’s Financial Accounting: Tools for Business Decision-Making we learn about how companies should account for sales taxes, like the GST. What are the standard journal entries a company should use to collect and remit sales taxes?

Posted by & filed under Financial Reporting and Analysis.

Description: Elon Musk has now moved past Jeff Bezos for the number one spot on a list of the richest people in the world. With shares of Tesla climbing towards $800 each, Musk benefited enough to push him into the number one spot. Tesla’s sky-high valuation comes despite the fact that it manufactures far fewer cars than the mainline auto companies.

Date:  January 7, 2021

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/elon-musk-jeff-bezos-1.5864594

Discussion points:

1) How many names in this top ten list were you familiar with?

2) Do you see any trends or similarities in this list of names? For example, are some from the same industry?

3) In the article we read that Tesla is worth more than several of the top auto makers combined. How is this figure of market capitalization calculated? (See page 11-7 of Wiley’s Financial Accounting: Tools for Business Decision-Making).

Posted by & filed under Canadian Government, Ethics.

Description: An analysis by CBC of 53 Canadian public companies shows that over half of them have paid out dividends to shareholders while collecting the federal government’s Canada Emergency Wage Subsidy (CEWS). The point of the CEWS was to help these and other companies to keep their staff working while facing the economic crush of the corona virus. McGill University accounting professor Preetika Joshi pointed out that in other countries, such as the Netherlands and Spain, businesses that accepted government financial help during the pandemic were forbidden from paying dividends.

Date:  December 10, 2020

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/montreal/cews-wage-subsidy-jobs-covid-1.5834790

Discussion points:

1) What is your reaction to this article?

2) Do you think Canada should have prevented companies receiving wage subsidies from paying dividends?

3) In Wiley’s Financial Accounting: Tools for Business Decision-Making we learn the Canada Business Corporations Act does require a company to meet two conditions before it can pay cash dividends (page 11-15). What are those conditions?

Posted by & filed under Financial Reporting and Analysis.

Description: The Disney+ streaming service has only been available in Canada for about a year, but the price is going up from $8.99 to $11.99 on Feb 23, 2021. It’s not as bad as it sounds though as Disney will be adding its Star service as one of the options included in the package. Star has a well-stocked catalogue of shows to pick from, giving consumers a parcel of programs for the extra $3.

Date:  December 11, 2020

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/disney-price-set-to-rise-3-a-month-next-year-1.5837615

Discussion points:

1) What’s your go-to streaming service?

2) Would this $3/month increase impact your decision to subscribe to Disney+?

3) On page 14-24 of Wiley’s Financial Accounting: Tools for Business Decision-Making we see an Accounting Matters text box discussing the relationship between Netflix’s Gross Profit and its share price. Conduct a search with some of your classmates to determine if there is a similar relationship for Disney+.

Posted by & filed under Cost Accounting, Managerial Accounting.

Description: Apparently there’s a bit of a run on really, really cold freezers. With the world looking to begin vaccinating populations against Covid-19, and the need to store Pfizer’s new vaccine in very cold temperatures, businesses like 360 Medical are looking to supply health care users. A freezer about the size of a dorm-room fridge will run you about $8,500, if you’re in the market that is.

Date:  December 7, 2020

Source:  thestar.com

 Link: https://www.thestar.com/business/2020/12/07/as-world-prepares-for-covid-19-vaccines-ultra-low-temperature-business-couldnt-be-hotter.html?source=newsletter&utm_content=a01&utm_source=ts_nl&utm_medium=email&utm_email=760BE779956395955CFBBA5C497D22A3&utm_campaign=sbj_38502

Discussion points:

1) Do you know when students at your university will start receiving the vaccines?

2) Freezers are one thing required for distribution and administration of a vaccine. If you were managing a health centre where Canadians are going to be vaccinated, what are some other assets you would need to have in place for such a program?

3) Early on in Wiley’s Managerial Accounting: Tools for Business Decision-Making we learn about the concept of supply chain management (pages 14,19 ). What does this article about these unique freezers teach us about supply chain management?

Posted by & filed under Contemporary Business Issues, Marketing & Strategy.

Description: This may never have been seen in Canada before: a mortgage rate below 1%. CanWise Financial’s President, James Laird, stated that the 0.99% figure HSBC placed on offer is “definitely eye catching.” And that may just be the point. Samantha Brookes, the CEO of Mortgages of Canada observed that “banks are being aggressive in trying to keep their numbers up”

Date:  December 6, 2020

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/mortages-covid-hsbc-1.5828934

Discussion points:

1) Does that 0.99% rate grab your attention?

2) Do you see this as a unique marketing strategy?

3) On page 10-15 of Wiley’s Financial Accounting: Tools for Business Decision-Making, you find an “Accounting Matters” text box with an interesting discussion of personal mortgages and debt rates of Canadians. What is your personal debt to income percentage?

Posted by & filed under Financial Accounting.

Description: Exxon, the giant oil company, seems ready to write down between $17 billion and $20 billion in assets. With collapsing oil prices, Exxon’s natural gas deposits in the Americas are over-valued. About 10 years ago Exxon acquired XTO Energy for about $35 billion, and with it, XTO’s gas fields. In the rear-view mirror, one might second guess this decision.

Date:  December 1, 2020

Source:  thestar.com

 Link: https://www.thestar.com/business/2020/12/01/exxon-faces-historic-writedown-after-energy-markets-implode.html?source=newsletter&utm_content=a04&utm_source=ts_nl&utm_medium=email&utm_email=760BE779956395955CFBBA5C497D22A3&utm_campaign=sbj_37933

Discussion points:

1) How do you wrap your mind around a write-down of $20 billion?

2) What have other energy producers been doing with their asset values in the time of the Corona virus?

3) Chapter 9 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses depreciation, including depreciation for natural resources. What is depreciation called when you are dealing with natural resources?

Posted by & filed under Canadian Economy.

Description: Job gains announced last week were three times higher than expected. Statistics Canada was way off on its call of quarterly results for Gross Domestic Product. If Covid-19 hadn’t already thrown enough curve balls already, now you can include the notion that the economic results are even confusing the economists. The deputy chief economist at CIBC, Benjamin Tal, noted “My head is spinning, too. . . . we’ve never seen anything like this.”

Date:  December 5, 2020

Source:  cbc.ca

 Link: https://www.cbc.ca/news/bsiness/economy-covid-economists-numbers-1.5829332

Discussion points:

1) Have you been confused about the economic news too? What did you learn from reading this article?

2) Have you been discussing any of these factors in your classes as part of your studies?

3) In Wiley’s Auditing: A Practical Approach we learn a number of important things to consider in planning an audit. Chapter 3, (page 3-10 ), tells us “when gaining an understanding of a client, an auditor assesses how economy-level factors affect the client.” How might audit planning be affected in the midst of the pandemic?

Posted by & filed under Financial Accounting.

Description: Rogers Communications has contradicted some initial reporting that the Rogers Centre – the building originally called the Skydome – is not going to be torn down; well, at least not for now. Earlier on Friday the Globe and Mail reported the building would be razed. The notion was that Rogers and Brookfield Capital Management would construct a smaller stadium, leaving land for retail, office, and residential space, as well as additional parkland. The Centre, with its famous retractable roof, has perhaps been best known as the home of the Toronto Blue Jays.

Date:  November 27, 2020

Source:  huffingtonpost.ca

 Link: https://www.huffingtonpost.ca/entry/rogers-stadium-toronto_ca_5fc12b73c5b61d04bfa9674e?guccounter=1&guce_referrer=aHR0cHM6Ly9kdWNrZHVja2dvLmNvbS8&guce_referrer_sig=AQAAAKYym1lbY98XZH31X7ieIjFeOgTOUJ1wsxpABxRP4PRE15Vk_bRM3wL6mtMeHfYDujHiaN3mlfc69sd7s3N4ElMrdkDRQYtCwMi3IBL8jbfEbajcWCigp3CY0-sYSqDSDUUS6XOsDvUSdcjMFOlnZoginLr1mj1CgZmujv56exHO

Discussion points:

1) Have you ever visited the Rogers Centre? What event did you attend?

2) What do you think of this plan to build a new stadium with a grass field and to develop a number of other facilities?

3) Chapter 9 of Wiley’s Financial Accounting: Tools for Business Decision-Making talks about accounting for property, plant, and equipment, including the subject of depreciating capital assets. Do some research to determine if you can find out how many years the Rogers Centre is being depreciated over. Is the building nearing the end of its estimated useful life?