Posted by & filed under Accounting Careers, Accounting Theory, Advanced Accounting, Canadian Government, Cost Accounting.

Description: Canadian banks  have improved their disclosures since the financial crisis. But these improvements may not have gone far enough. For instance, many investors may know that bankers have lobbied our federal government concerning its attention to transaction fees on credit cards. Yet, because of the banks’  disclosure practices, many  of these same investors would have no means of determining what might be the financial impact of fee regulation on the banks’ earnings.

Source: The Globe and Mail.com

Date: November 9, 2014

Link: http://www.theglobeandmail.com/report-on-business/despite-progress-banks-remain-secretive-in-many-ways/article21514882/

 

Discussion Points:

1) To what extent do you agree with the banks that some disclosures should not be made because of competitive or proprietary reasons?

2) From an accounting theory perspective, how might you approach the discussion of the needs of the investors versus the banks’ need to protect certain information?

3) If you were a cost accountant in the bank charged with assembling costing information on credit card transaction fees, what might be some of the costs you would consider under an Activity Based Costing model?

 

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