Description: A few months ago, Canada Post was crying poor, predicting it would lose over $270 million before taxes. In this climate of loss, Canada Post announced an end to home delivery of mail in an effort to cut costs. This past week, however, Canada Post announced it has income of over $80 million for the first three quarters of the fiscal year. In light of this positive news, Canada Post employees and the general public might well be asking whether home delivery needs to end.
Date: November 27, 2014
1) What is your opinion on the decision to cut home mail delivery in the light of these financial results?
2) What happens when a budget is so far from the actual results? What sort of accountability mechanism would you recommend?
3) What role could accountants play in improving estimates in publicly disclosed budget figures for organizations such as Canada Post?