Description: Your federal government has decided to hand out approximately $12 million of our tax dollars for more efficient fridges: the problem Canadians are having with that is that the cheque is going to Loblaw, Canada’s largest grocery chain. Oh, did I mention Loblaw made about $800 million last year? To be fair, Loblaw did win a competitive bid process to come up with the cash, and improving the refrigeration will give the same carbon reduction as taking 50,000 cars off of the road. But for the average Canadian who may have just repaired their own fridge because they couldn’t afford a new one, it may seem like a bit too much.
Date: April 9, 2019
1) Were you aware of this part of the federal government’s carbon reduction plan?
2) Do you think this type of financial incentive should be given to large corporations to encourage sustainable development?
3) In Appendix B of Wiley’s Financial Accounting: Tools for Business Decision-Making you can see specimen financial statements for Loblaw’s major competitor Sobeys. If Sobeys were to receive a similar amount of aid for their fridges, what parts of the financial statements would change?