Description: Friday the United States released its latest inflation data, showing that prices had climbed 6.8 percent over November 2020 This places inflation at rates not seen in about 40 years. Canadian results are expected to be somewhat similar. Canadians carrying debt need to take a look at their finances in the face of what are almost certain to be rising interest rates from the Bank of Canada.
Date: December 10, 2021
1) Are you carrying any debt? Does your personal budget have any flexibility built in to help you deal with rising interest rates?
2) What do you think that Canadians can do to cope with rising prices?
3) Page 2-25 of Wiley’s Financial Accounting: Tools for Business Decision-Making deals with the fair value basis of accounting. Do you think a time of rising prices might influence the choice between the historical cost model versus the fair value basis of accounting?