Description: Rat infested: It’s a headline that kind of gets your attention eh! When it comes to a description of our Prime Minister’s official residence, it’s a sad summary statement on the state of a public building. Justin Trudeau has not occupied 24 Sussex, his childhood home, since he was elected in 2015. And his statement that “No prime minister wants to spend a penny of taxpayer dollars on upkeeping that house” seems to signal that continued decay may be in the future for this facility. But, one might ask, is that any way to treat an asset that belongs to the Canadian public?
Date: September 9, 2023
1) As a student, a taxpayer, and a part owner of this historic asset, 24 Sussex Drive, what do you propose should be done about the situation?
2) Put yourself in the position of a senior financial officer within the government of Canada. Can you think about how decisions to maintain this asset might avoid the negative optics of a prime minister spending public money on his or her own house?
3) Page 9-6 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses the classification of expenditures during the useful life of long-lived assets. If 24 Sussex Drive does receive a major renovation, would you classify the expenditures as operating or capital in nature?