Posted by & filed under Accounting Principles, Canadian Economy.

Description: Canada’s inflation rate was down to 1.9% in December. One big factor appears to be a slow down in gasoline price increases. Another was a short price war on cellphone plans sparked by Shaw cutting consumer costs on some of its offerings. When other large carriers followed suit, consumers benefitted, as long as they didn’t mind standing in line for the new rates.

Date: January 26, 2018

Source: cbc.ca

Link: http://www.cbc.ca/news/business/inflation-rate-december-1.4505086

1) Did you get to take advantage of any of the reductions in cellphone plan rates?

2)  Check out the comparison of inventory costing methods in Illustration 6.6  of Wiley’s  Financial Accounting: Tools for Business Decision Making. Which inventory costing method gives the “best” figure for ending inventory when prices are rising?

3) Canada’s inflation rate is low. But countries can face situations where inflation rises dramaticaly. This is known as hyperinflation. Search for this term in Wiley’s  Advanced Accounting  where you can read about special provisions for handling this situation when translating foreign currency in preparing financial statements.

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