Hidden in Tax Expenditures

Posted by & filed under Accounting Principles, Canadian governments.

Description: If a government plans to spend money through grants or other expenditures, it is normally clearly disclosed as part of the budget process. But there is another class of “hidden” expenditures known as tax expenditures, a combination of various measures that don’t show up in the financial statements. This week the New Brunswick government… Read more »

SEC Investigating Under Armour’s Accounting

Posted by & filed under Financial Reporting and Analysis.

Description: Clothing company Under Armour has admitted it is under investigation by the Securities and Exchange Commission (SEC). The investigation has been ongoing since 2017. Speculation is that the investigation may be looking at revenue recognition issues. Date:  November 4, 2019 Source:  baltimoresun.com Link: https://www.baltimoresun.com/business/bs-bz-under-armour-invetigation-five-things-20191105-3a7dwxt3ujgabbitgq7rcjxwhu-story.html Discussion points:  1) Are you a user of Under Armour’s… Read more »

The Colonel Opts for Bamboo

Posted by & filed under Marketing & Strategy.

Description: Going for an environmentally friendly move, Kentucky Fried Chicken (KFC) is experimenting with a bamboo container for its poutine. If the trial is successful, the Colonel plans to go “all in” on bamboo, using it for its famous chicken. Bamboo is a bit more expensive than the traditional plastic-coated paper packaging, but it is… Read more »

Google Buys Fitbit

Posted by & filed under Financial Accounting, Marketing & Strategy.

Description: Google’s parent company has purchased Fitbit for approximately $2.1 billion. This puts Google back into the wearables game as it squares off with Apple. Rumours of the purchase drove Fitbit shares up over 40% in the days preceding the sale, making it a nice week for Fitbit shareholders. Date:  October 28, 2019 Source:  cbc.ca… Read more »

Tim’s profit is down

Posted by & filed under Marketing & Strategy.

Description: The folks at Burger King and Popeye’s are happy, but over at that other RBI food company, Tim Horton’s, profits this quarter are down. The RBI company CEO, Jose Cil, said “Our results at Tim Hortons were not where we want them to be.” There is some speculation that Tim’s new reward program may… Read more »

Bad loans at ACOA

Posted by & filed under Financial Accounting.

Description: Ten percent or more of loans are in trouble at the Atlantic Canada Opportunities Agency (ACOA). That doesn’t sound like a very positive use of our taxpayer dollars. Banks typically have a loss rate of about one percent on business loans. Another federal government agency, the Business Development Bank of Canada, reports that only… Read more »

Tale of the Tape

Posted by & filed under Financial Accounting.

Description: The government of New Brunswick is taking steps to reduce red tape for business. The Business Navigators program will begin as a pilot project, where government provides business owners with a special phone line and email they can use to ask for assistance in navigating the regulatory framework. New Brunswick’s initiative is getting positive… Read more »

Amazon profits fall

Posted by & filed under Accounting Careers, Managerial Accounting.

Description: Amazon profits fell in the latest quarterly results. The decrease has come from Amazon’s efforts to deliver parcels even faster for its Prime customers. Looking for one day delivery to Amazon Prime members is causing problems for Amazon. An analyst said the average one day order is for only $8.32. The problem is it… Read more »

Sneaker Art?

Posted by & filed under Financial Accounting.

Description: You may have heard of customers lining up to purchase a new pair of high end running shoes. But have you ever thought about people who buy, sell and collect sneakers as works of art? One Canadian collector reportedly paid in excess of $1 million dollars to Sotheby’s for 99 pairs of classic running… Read more »

GM Strike Over?

Posted by & filed under Managerial Accounting.

Description: GM and the striking United Auto Workers seem to have reached a deal, ending the first strike against GM in over ten years. Financial analysts have estimated that the strike has cost GM roughly $2 billion. Getting the workers to ratify the agreements may prove challenging, with many of them upset that the automaker… Read more »