Description: The federal government might well be asking the question “where are they?” when it comes to large Canadian companies seeking government assistance in this Corona world. In order to assist in the economic troubles associated with the virus, the government created the Large Employer Emergency Financing Facility (LEEFF) . But so far only about a dozen companies have even bothered to apply, with a minuscule total of two companies having actually received the loans.
Date: October 15, 2020
1) Are you surprised by the low uptake on the LEEFF? Why do you think the participation is so low?
2) If you were an accountant working for this program, what recommendations would you make to help improve the results?
3) The story tells us that Air Canada did not respond to The Star‘s request for a response on this story. On page 4-18 of Wiley’s Financial Accounting: Tools for Business Decision-Making, we can read about how Air Canada accounts for cash it receives from ticket sales prior to the time of the actual flight. What do you think might be going on with this number on the financial statements during the Covid times?