Posted by & filed under Financial Reporting and Analysis, Student life.

Description: It’s probably no surprise that with inflation cranking up the food prices in the grocery stores that it would also cost us more to eat out. According to Restaurants Canada, we will see the cost of dining out increasing by 7.8 per cent by the time we say “goodbye” to 2022. Rising costs for food and fuel, as well as a shortage of labour, are eating away at restaurateurs’ bottom line.

Date: September 15, 2022

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/british-columbia/restaurant-menu-prices-increase-1.6584574

Discussion points:

1) Have you noticed the cost of eating out rising in your university town?

2) Have you and your friends changed your habits in eating out to deal with these costs?

3) Page 5-24 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses the use of the gross margin in financial ratio analysis. What do you think would be a target gross margin for a sit-down restaurant?

Posted by & filed under Financial Reporting and Analysis, Student life.

Description: Canadians are taking on more debt with Statistics Canada telling us that debt per household in Canada is now 181.7 per cent of income. This figure is up from just under 180 per cent in the previous quarter. According to Ksenia Bushmeneva, an economist with TD Bank, “the selloff in financial markets earlier this year combined with a decline in house prices manifested in the largest drop in household wealth on record.”

Date: September 12, 2022

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/statscan-household-balance-sheet-1.6579776

Discussion points:

1) Do you know your own ratio of debt to disposable income?

2) Why do you think the debt ratio is rising?

3) On page 2-16 of Wiley’s Financial Accounting: Tools for Business Decision-Making we learn about an important measure of a company’s ability to handle debt. What is this measure and what does it tell us?

Posted by & filed under Personal Tax, Student life.

Description: The Government of Canada is directing financial relief to citizens with lower income to help them deal with this current inflationary environment. One measure is the doubling of the Goods and Service Tax Credit (GSTC) for those with family incomes under $39,826 in 2021. A second measure, the Canada Dental Benefit, will provide cash to assist children in families with income under $90,000 and no other dental plan. Finally, the Canada Housing Benefit is designed to help families earning under $35,000 with their rental costs.

Date: September 14, 2022

Source:  financialpost.com

 Link: https://financialpost.com/personal-finance/taxes/ottawa-inflation-relief-benefit-programs-qualify

Discussion points:

1) Will you qualify for any of these programs?

2) Which of these do you see as the most helpful measure for students at your university?

3) Chapter one of Wiley’s Auditing: A Practical Approach discusses several different types of audits. What type of audit would the Canada Revenue Agency perform to verify the income of applicants for these programs?

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

Description: It’s September, and that means there’s going to be some sort of product announcement heading out of Cupertino California, Apple’s HQ. This past Wednesday, Apple introduced four new iPhone models, updated AirPods Pro, and, an Ultra Apple Watch oriented towards extreme sports types. Unfortunately, f you are a user who enjoys a smaller screen, bad news: Apple cut the iPhone Mini from its lineup.

Date: September 7, 2022

Source:  wired.com

 Link: https://www.wired.com/story/everything-apple-announced-september-2022-iphone-14/?bxid=5bd6743724c17c104800c5b3&cndid=33552549&esrc=MC_load&mbid=mbid%3DCRMWIR012019%0A%0A&source=EDT_WIR_NEWSLETTER_0_DAILY_ZZ&utm_brand=wired&utm_campaign=aud-dev&utm_content=WIR_Deals_090722_Special_Apple&utm_mailing=WIR_Deals_090722_Special_Apple&utm_medium=email&utm_source=nl&utm_term=P1

Discussion points:

1) Do you use an iPhone? What percentage of your classmates are Apple fans?

2) What do you think of the strategy of making product announcements at a set time each year?

3) Page 5-26 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses costing of an iPhone. Conduct some research to see if you can find any cost estimates for the new models of iPhone announced last week.

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

Description: If you’re heading down to a Rogers store to look for a new phone, you might just find the door remains locked until you provide proof of identity. Rogers says the policy, which will apply to only some of it stores, is intended to prevent theft and fraud. That’s a bit of a problem for surprised customers like Oriol Ramirez who, when trying to replace a stolen phone, had to return home to pick up his ID before gaining admittance to a Rogers store.

Date: September 8, 2022

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/toronto/rogers-door-screening-id-1.6574730

Discussion points:

1) Have you ever had to show ID to be allowed entry to a store?

2) What do you think of this policy from Rogers? What are the benefits and what are the costs to consider?

3) Page 9-26 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses accounting for research and development costs (R&D). How much does Rogers usually spend on R&D each year?

Posted by & filed under Personal Tax.

Description: With the increased use of the tap of debit/credit cards during the pandemic, it’s interesting to see what the Canada Revenue Agency (CRA) has to say about electronic tipping. Many restaurant and bar patrons have become used to seeing the electronic tip option as part of their transaction in paying their bill by card. A restaurant in Halifax was working under the assumption that those electronic tips belonged to the wait staff, and therefore were not considered wages for the purpose of calculating the employer’s portion of Canada Pension and Employment Insurance. The CRA took a different view, however, and has had its position confirmed by a recent court ruling

Date: September 9, 2022

Source:  financialpost.com

 Link: https://financialpost.com/personal-finance/taxes/cra-servers-electronic-tips

Discussion points:

1) Have you worked as a waiter/waitress and had a percentage of your compensation flowing from electronic tipping?

2) What do you think of this court decision? What will be the impact on the restaurant business?

3) Page 7-12 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses electronic receipts from debit/credit card transactions. What does this section tell us about the internal control over these electronic receipts?

Posted by & filed under Accounting Careers.

Description: Have you heard of this trend called “quiet quitting?” Workers don’t actually leave their jobs, but they adopt a sort of work-to-rule mentality, setting up boundaries on things like working overtime. Melissa Nightingale, a management trainer, says employees are, in effect, saying “We don’t want to work in the same way we’ve always worked, and we’re looking for something a little bit different.”

Date: August 29, 2022

Source:  thestar.com

 Link: https://www.thestar.com/business/2022/08/29/quiet-quitting-an-opportunity-for-employers-to-help-reshape-the-workplace.html?source=newsletter&utm_content=a04&utm_source=ts_nl&utm_medium=email

Discussion points:

1) Were you aware of this trend called quiet quitting? Did you see any instances of it in your summer employment?

2) How might you use the advice of career coach Emily Rezkalla, as quoted in the article, to help you in upcoming job interviews?

3) Page 1-4 of Wiley’s Financial Accounting: Tools for Business Decision-Making introduces the subject of ethical behaviour. What might be some ethical issues for both the employer and the employee with quiet quitting?

Posted by & filed under Accounting Careers, Student life.

Description: With Labour Day in the rear-view mirror, many employers are calling for their employees to return to their offices, following the Covid-19 work from home phenomenon. Banks and large legal firms seem to be leading the way on this front, insisting that employees spend a certain number of days in the office, despite the failure of some earlier initiatives to get staff back in the building. Employers talk about the office location as an important part of building workplace culture, while employees have a natural reluctance to give up some of the flexibility over their schedules that has been present during two plus years of work from home.

Date: September 2, 2022

Source:  thestar.com

 Link: https://www.thestar.com/business/2022/09/02/remote-work-debate-intensifies-as-companies-mandate-return-to-office-after-labour-day.html?source=newsletter&utm_content=a07&utm_source=ts_nl&utm_medium=email

Discussion points:

1) What percentage of your work moved online during the pandemic?

2) Do you think that remote work has created difficulties in building workplace culture?

3) Page 1-16 & 17 of Wiley’s Managerial Accounting: Tools for Business Decision-Making discusses accounting careers in Canada. As you think about a career following graduation, how might prospects for remote work arrangements influence your decisions?

Posted by & filed under Student life.

Description: School is starting once again. And perhaps your most important financial skill in these inflationary times could be learning to budget. A budget is simply a plan where you determine what is coming in (like your part-time earnings, student loans, summer savings, and help from parents) and then deduct all your expenses (housing, food, phone bill, etc.) Of course, don’t forget to add a little bit in there for fun.

Date: August 22, 2022

Source:  thestar.com

 Link: https://www.thestar.com/business/personal_finance/2022/08/22/heres-how-to-manage-money-well-this-school-year.html

Discussion points:

1) Do you use a budget to manage your finances at school?

2) What percentage of your classmates are using a budget this year? Do a little in-class survey to get a better feel for this topic.

3) Illustration 7.12 in Wiley’s Financial Accounting: Tools for Business Decision-Making provides six principles for managing cash. How many can be adapted from the business world to help you with your personal finances?

Posted by & filed under Accounting Careers, Financial Reporting and Analysis.

Description: With word this week that Netflix reported its first drop in subscribers since 2011, and with streaming service CNN+ shutting down only one month after launch, https://www.cbc.ca/news/business/cnn-streaming-1.6426163, it’s no wonder some are speculating about challenges ahead for streaming services. Rising inflationary pressures may be part of the reason for Netflix’s declines, as the video giant loses some budget conscious subscribers. Netflix is looking at a number of means to generate additional revenues by offering cheaper tiers of membership and addressing the sharing of passwords.

Date: April 21, 2022

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/future-of-streaming-1.6426016

Discussion points:

1) What percentage of your classmates are regular Netflix users? Have any of them dropped Netflix in recent months?

2) If you were an accounting official at Netflix, what recommendations would you provide for dealing with the problem of password sharing?

3) Page 13-1 of Wiley’s Financial Accounting: Tools for Business Decision-Making mentions Netflix in a the chapter-opening vignette discussing the importance of the statement of cash flows. Do a bit of research in your class to see if you can determine how the drop in the number of subscribers may have impacted the statement of cash flows at Netflix.