Description: Apple’s product announcement on Tuesday brought some nice price news to consumers with the release of the latest SE version of the iPhone. This scaled-down iPhone SE is to be priced at $429 when it hits stores on March 18. Though this version of the SE has a faster processor than the previous version, the fact that it can run on a 5G network is a key attractive feature. Reaching more users through a cheaper unit gives Apple a growing subscriber base for some of its other services.
Date: March 8, 2022
1) What price point do you have in mind when you replace your smartphone?
2) Are you an iPhone user? If so, do you think you might be switching models soon?
3) The inset box “Target Costing at Apple” on page 9-4 of Wiley’s Managerial Accounting: Tools for Business Decision-Making discusses Apple’s target costing approach. Conduct some research with your classmates to see if you can determine the estimated cost of materials for the SE.
Description: Craft brewers Beau’s and Steam Whistle, two well-known producers with popular brands, have joined forces. Last year the two companies had engaged in some cooperation on the distribution side. This latest move allows Beau’s co-founder Tim Beauchesne to transition into retirement, a sometimes tricky issue for entrepreneurs. Steam Whistle’s marketing expertise will also help to introduce Beau’s to other parts of Canada..
Date: March 2, 2022
2) Are craft brews available on your campus or in your university town? If so, what are some of the popular choices?
1) What role can accountants play in helping entrepreneurs transition to retirement?
3) Chapter 12 in Wiley’s Financial Accounting: Tools for Business Decision-Making provides a chart in Illustration 12.4 to illustrate the degree of influence one company exercises over another. Which of the three categories of influence will Steam Whistle likely have over Beau’s?
Description: Tracy Kitch has been found guilty of fraud over $5,000 for her misuse of a corporate credit card at the IWK Children’s Hospital in Halifax, Nova Scotia. Kitch was formerly the CEO of the well-known institution, and following allegations of misconduct in 2017, she repaid the IWK for personal items charged to the card. The charges against Kitch came in 2018 after a former chair of the IWK reported suspicious findings to the police.
Date: February 28, 2022
1) As an exercise, do some research to see if you can find out what annual salary Tracy Kitch was earning at the IWK. How does the total amount of the credit card charges compare to her salary?
1) What do you think might cause a CEO to misuse a corporate credit card?
3) Page 7-3 in Wiley’s Financial Accounting: Tools for Business Decision-Making tells us about 5 primary categories of control activities. Which of these five categories do you think would be key to encouraging proper behaviour by executives in the use of corporate credit cards?
Description: Regulators in both Canada and the United States have slapped roughly $1 million in fines on auditing giant PricewaterhouseCoopers (PWC) for an internal cheating scandal in which 1,200 employees were implicated. Last year, PWC Australia faced a similar problem that resulted in over $600,000 in fines. One certainly hopes that the cheating did not occur on any ethics courses. The firm might not appreciate that degree of irony.
Date: February 28, 2022
1) Do you or any of your classmates have job offers from PWC? Does this story have any impact on your career plans?
2) If you were a senior advisor at PWC, what strategies would you recommend for addressing this situation?
3) On page 1-24 in Wiley’s Auditing: A Practical Approach the section titled “Assurance Providers” gives the names of a number of the leading assurance providers in Canada. Do a bit of research to determine if any of these other firms have had ethical issues that have emerged in recent years.
Description: Toronto Star columnist Armine Yalnizyan argues that a lot of Canadians will be picking up the tab for the truckers protest that surrounded Parliament Hill for over three weeks. Just one shopping location, the Rideau Centre, has been estimated to have lost $3 million a day in retail sales. With the federal government offering up to $20 million in total to businesses impacted by the blockade, it looks like all Canadian taxpayers will feel some of the pain. Add to this extra policing and cleanup costs and you’ll quickly see the residents of Ottawa will be picking up a few million in costs on their own. And this doesn’t begin to account for the cost to the Ottawa residents who had to deal with blaring horns and diesel fumes while living close by the site.
Date: February 23, 2022
1) Do you know anyone who was directly impacted by the Parliament Hill blockade?
2) How do you feel knowing that some of your tax dollars will be funding some of the costs associated with the situation?
3) Chapter 13 of Wiley’s Financial Accounting: Tools for Business Decision-Making deals with the Statement of Cash Flows. Which section of this statement would a business use to account for any assistance received from the federal government under this $20 million program?
Description: Many were gripped this past week by news of the Russian invasion of Ukraine. While provincial governments in Canada might not have many levers to pull in terms of protest, one thing a number of them have done is to remove Russian vodka off of their liquor corporation shelves. The Nova Scotia government has also pledged $100,000 in humanitarian aid to the Ukraine in addition to its move against the Russian alcohol.
Date: February 25, 2022
1) Are there any public reactions on your campus to the invasion of Ukraine?
2) How can businesses exercise corporate social responsibility in the face of this aggression by Russia against Ukraine?
3) Page 1.10 in Wiley’s Managerial Accounting: Tools for Business Decision-Making discusses an approach known as the triple bottom line. What are the three elements in this approach? How might a triple bottom line reflect a company’s action in this time of crisis?
Description: While delivering a verdict in a tax fraud case on Thursday, Nova Scotia Supreme Court Justice Robin Gogan said “What was being baked here was a scam of epic portions.” Four women from Cape Breton were found guilty of fraud and a variety of violations under the Excise Tax Act. The scheme consisted of creating fictional sales, and then claiming rebates of the related GST and HST. While the group did manage to work the system for about $275,000, another $3 million in requested rebates were prevented by the auditors from Canada Revenue Agency who became suspicious. Sentencing will take place in May.
Date: February 25, 2022
1) What caught your attention in this story?
2) Do you think the outcome might have been different if the defendants had been able to secure legal representation?
3) Illustration 7.2 in Wiley’s Financial Accounting: Tools for Business Decision-Making provides a graphic called the Fraud Triangle. One of the elements of the fraud triangle is rationalization. How do you think the participants may have rationalized their behaviour in this matter?
Description: Suzanne Bergeron Stonehouse said “You just want to scream,” after she found out that Georges ‘Tiger’ Samman was handing out thousands of dollars to truckers participating in the protest in Ottawa. She and her husband have been trying for months to recover thousands of dollars they had paid on deposit to a contractor that never completed the contracted work. Samman had served as a vice-president of the firm, but has now moved on to become a social media personality – and a fund raiser of some renown – having raised over $100,000 for the truckers protest.
Date: February 18, 2022
1) Do you know anyone who has ever had a bad experience with a contractor on home repairs or rennovations?
2) What lessons does a story like this teach us for protecting our assets?
3) Illustration 7.2 in Wiley’s Financial Accounting: Tools for Business Decision-Making provides a graphic called the Fraud Triangle. What are the three elements of the Fraud Triangle?
Description: Supply chain problems are starting to get personal for some snack lovers. Frito-Lay has apparently stopped shipping the treats consumers love, like Doritos and Lays brand potato chips, to Loblaw. Its all due to the fact that Loblaw has been refusing Frito-Lay’s requests to pump up its prices to cover its rising costs in this time of growing inflation. Given that Loblaw controls 35 percent of the food retail market, no wonder some are calling Frito-Lay’s move the “nuclear option.”
Date: February 18, 2022
1) Has the Frito-Lay’s shortage impacted snacking on your campus?
2) Imagine yourself as an accountant at Frito-Lay. What advice would you provide senior management as it pursues this “nuclear option?”
3) Page 5-5 of Wiley’s Financial Accounting: Tools for Business Decision-Making tells us a reason Loblaw uses a perpetual inventory system. What is the explanation given?
Description: Non-fungible tokens – or NFTs, as they are popularly called – are unique digital artworks protected through blockchain technology. As the interest in NFTs has grown, art galleries and museums have started to show these digital works as part of their collections. These crypto assets are subject to hacking and cyber crime, however, adding a whole new dimension to art theft.
Date: February 19, 2022
1) Does your campus art gallery display any NFTs?
2) Does your university have a fine arts program? Do any of the students in the program sell NFTs?
3) Chapter 8 of Wiley’s Understanding Financial Accounting tells us about the various categories of Long-Term Assets. How would you recommend classifying NFTs on a balance sheet?