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

Description: Furniture favourite Ikea is cutting prices on over 1,000 items. This is excellent news for Canadians battling rising prices, and perhaps particularly so for students struggling to furnish their apartments while off at university or college. One helpful move for students will see the BILLY Bookcase moving to $199 from its previous $249. And should you need something to sit on, the STRANDMON Armchair will drop $349, a $50 reduction to help the pocketbook.

Date:  January 26, 2024

Source:  msn.com

 Link: https://www.msn.com/en-ca/money/other/ikea-canada-to-cut-prices-on-more-than-1k-items-here-s-what-you-could-save/ar-BB1hfVRh

Discussion points:

1) When you think of your friends and classmates on your campus, how many have at least one piece of IKEA furniture?

2) If you were an accountant at IKEA, what type of information might your bosses have been looking for as they made this pricing decision?

3) Illustration 9.1 of Wiley’s Managerial Accounting: Tools for Business Decision Making shows us the four key factors that impact pricing decisions. Which of these factors do you think would have been the most influential in the IKEA decision?

Posted by & filed under Ethics, Fraud.

Description: Canadian Kyle Tsui pleaded guilty in an American court last week on charges that he had bilked $6 million dollars from approximately 88,000 customers. Tsui’s Allergy Testing Company offered these customers allergy and food sensitivity tests based on a small hair sample. But, as U.S. Attorney Damian Williams said, the company “didn’t even attempt to test the samples his paying customers sent in, instead directing others to throw the samples in the garbage.” Clients were sent bogus reports, telling them what foods to steer clear of.

Date:  January 26, 2024

Source:  ctvnews.ca

 Link: https://www.ctvnews.ca/canada/ontario-man-pleads-guilty-in-brazen-fraud-scheme-in-the-u-s-1.6744564

Discussion points:

1) Do you think you could have been lured in by a scheme like this?

2) Tsui will be sentenced in May. What kind of sentence would you be looking for in such a case?

3) Page 1-26 of Wiley’s Understanding Financial Accounting speaks of codes of professional conduct that accounting organizations have developed. Do you think a code of conduct can prevent this type of fraud from being perpetrated on customers?

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

Description: It’s probably not the type of “leadership” position Rogers Communications was looking for; the news that Rogers has replaced Bell as the most complained about service provider in the telecommunications space in Canada. The Commission for Complaints for Telecom-television Services reports that Rogers racked up approximately 20% of all the complaints registered for the year ended 31 July 2023. The Commission noted that “the purpose of our annual report is to consolidate all that data so that service providers can see where their customers’ pain points are.” One would hope that the companies are all listening.

Date:  January 16, 2024

Source:  msn.com

 Link: https://www.msn.com/en-ca/news/other/rogers-overtakes-bell-in-annual-report-on-telecom-complaints-as-wireless-issues-rise/ar-AA1n4gsX

Discussion points:

1) How many of your classmates have ever launched a complaint about your cell service?

2) If you were an accounting officer with Rogers, what information would you recommend that would help marketing see the cost of the complaints?

3) Page 4-4 of Wiley’s Understanding Financial Accounting tell us Rogers is involved in a broad range of business interests. What might be some of the challenges this poses in dealing with “pain points” reported by the customers?

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

Description: Prime Minister Justin Trudeau has said that the time is up and there will be no more extensions for those business who had borrowed money under the Canada Emergency Business Account (CEBA). During the Covid-19 lockdown days, the federal government offered eligible businesses and not-for-profit agencies up to $60,000 in loans to help ride out the decline in business traffic. These organizations took out $48 billion in loans, and after January 18 the loans will start to accumulate interest at a 5% annual rate. Businesses that pay back or refinance their loans by that date are eligible for up to $20,000 of loan forgiveness.

Date:  January 17, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/ceba-loan-not-extended-1.7085696

Discussion points:

1) Do you know any small business owners who took advantage of the CEBA program?

2) If you were an accountant advising a small business owner, would you advise them to refinance the CEBA at a financial institution?

3) Section 8.3 of Wiley’s Financial Accounting: Tools for Business Decision Making discusses the concepts associated with notes receivable, including the various terms that are part of the promissory note. Do a little research with your classmates to see what type of standard documentation the Government of Canada required the borrowers of the CEBA to complete.

Posted by & filed under Accounting Careers, Fraud, Internal control.

Description: The Financial Transactions and Reports Analysis Centre of Canada – often referred to as Fintrac – is reporting that money from illegal activities is being laundered through online gambling. Fintrac uses “big data” searches of millions of transactions as part of its investigative toolkit. Fintrac’s report focuses on gambling online in Canada between 2016 and 2023. As had been abundantly clear for anyone who watches sports on television, Canada’s sports betting industry has exploded in recent years.

Date:  January 18, 2024

Source:  halifax.citynews.ca

 Link: https://halifax.citynews.ca/2024/01/18/online-gambling-sites-being-used-by-money-launderers-financial-intelligence-agency/

Discussion points:

1) How many of your classmates have used online sports betting? How do your fellow students feel about the industry?

2) Have you ever considered a career with an agency like Fintrac following your graduation? What type of skill set do you think Fintrac would be looking for?

3) Page 7-3 of Wiley’s Financial Accounting: Tools for Business Decision Making lists the five primary components of good internal control systems. Which of these components do you believe would be the most crucial in helping to prevent or detect money laundering ?

Posted by & filed under Accounting Principles, Sustainable Development.

Description: It’s that time of year again: time to have a look at the highlights of the annual Consumer Electronics Show (CES) in Las Vegas. One big breakthrough was a tent with a built-in solar panel, set for mounting on a truck bed, bringing you enough wattage to run a portable refrigerator for 45 hours in your outdoor adventure. Another hit was a zero-emission front-end loader. Less environmentally-friendly were all the plastic Frisbees given away by companies at their booths to advertise their brands to the attendees.

Date:  January 11, 2024

Source:  winnipegsun.com

 Link: https://winnipegsun.com/auto-news/auto-shows/2024-ces-hits-misses-highlights

Discussion points:

1) Have you or any of your classmates ever attended the CES?

2) Can you think of a more environmentally-friendly freebie than another plastic freebie?

3) Page 9-29 and 9-30 of Wiley’s Financial Accounting: Tools for Business Decision Making tell us about the accounting rules for determining when expenditures can be capitalized as development costs, as opposed to charging them ass research expenses. What are these rules?

Posted by & filed under Accounting Careers, Managerial Accounting, Student life.

Description: Google might be a cash generator, but that doesn’t stop the tech giant from cutting hundreds of staff loose in an effort to satisfy shareholders or some other objectives. Google framed the move as “responsibly investing in our company’s biggest priorities and the significant opportunities ahead.” The employee union used different language, characterizing the job losses as “another round of needless layoffs.”

Date:  January 11, 2024

Source:  ctvnews.ca

 Link: https://www.ctvnews.ca/business/google-lays-off-hundreds-in-hardware-voice-assistant-teams-amid-cost-cutting-drive-1.6720973

Discussion points:

1) What percentage of your classmates are users of Google’s hardware?

2) Does news of job cuts by large employers like this one have any impact on your career choices as you move towards graduation?

3) In the article on Google from ctvnews.ca, we read that the layoffs will “target hardware, voice assistance and engineering teams.” According to a study referred to on page 2-4 of Wiley’s Managerial Accounting: Tools for Business Decision Making what percentage of product costs can be attributed to direct labour?

Posted by & filed under Accounting Careers, Accounting Principles, Ethics.

Description: Are you a Canadian consumer who has ever felt tricked by a cereal box? Ken Bennett was looking for a high-protein cereal choice, so when he spotted Kellog’s Vector in the cereal aisle with its claims of 13 grams of protein, he dropped a box into his shopping cart. On closer examination at the breakfast table, however, Mr. Bennett learned less than 6 grams of protein come from Vector; the rest comes from the recommended serving of milk poured over his “meal replacement.” Apparently that wording “meal replacement” gives Vector the legal right to make its 13 gram claim. Bennett offered “I felt tricked. I felt duped.”

Date:  January 9, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/cereal-packaging-confusion-1.7076730

Discussion points:

1) Have you or your classmates ever “felt duped” by a packaging issue like this one?

2) If you were an official with Kellog’s, and you were asked to respond to Mr. Bennett’s concerns, what would you say?

3) Page 14-1 of Wiley’s Financial Accounting: Tools for Business Decision Making provides a vignette about the Sobeys grocery chain. How does this page characterize the margins in the grocery business?

Posted by & filed under Personal Tax.

Description: It didn’t take long for many Canadian CEOs to earn more in a few hours than regular Canadians take all year long to earn: it took a bit over eight hours for them to surpass the average Canadian’s annual salary of $60,606. The Canadian Centre for Policy Alternatives released a study showing the top 100 business executives in Canada earned an average of $14.9 million in 2022, up from $14.3 million in 2021. The report calls on the government to introduce tax changes to address the income inequality problem.

Date:  January 2, 2024

Source:  thestar.com

 Link: https://www.thestar.com/business/canadian-ceos-gilded-age-top-100-executives-saw-their-pay-packages-skyrocket-in-2022/article_8bbec820-a4fb-11ee-be71-bf6a68a60cd1.html?source=newsletter&utm_email=760BE779956395955CFBBA5C497D22A3

Discussion points:

1) How much do you think a CEO should be paid in comparison to other workers in the company?

2) The article notes tax measures might be one way to reduce wealth inequality. What is your opinion on this matter?

3) Page 1-3 of Wiley’s Financial Accounting: Tools for Business Decision Making tells us about a number of Canadian accountants with successful business careers. Are any of these on the list of Canada’s highest paid executives?

Posted by & filed under Accounting Careers, Financial Accounting.

Description: Air Canada ranked tenth – i.e. last – for on-time performance among ten North American airlines. Westjet came in at seventh place, while Delta finished first overall. Industry watcher John Lawford of the Public Interest Advocacy Centre suggested this poor result “would seem to be a good wake up call for Air Canada.”

Date:  January 2, 2023

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/air-canada-performance-on-time-1.7072663

Discussion points:

1) Do you have any personal experience with Air Canada failing to meet their promised arrival time?

2) If you were in a financial career at Air Canada, what information could you provide to senior management that might help them address this apparent problem?

3) Page 9-38 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses Return on Assets and Asset Turnover for Cargojet and Air Canada for the years 2020 and 2021. What were Air Canada’s results on these ratios for 2022?