Posted by & filed under eCommerce.

Description: With traditional news media in decline, Facebook is joining with Ryerson University to encourage start-up innovation in this industry. The program will target five startup companies to see how these new players might innovate within this important tech space. It will be interesting to see how this incubation experience might lead to genuine breakthroughs to deal with the disruption in the media space.

Date: November 28, 2017

Source: financialpost.com

Link: http://business.financialpost.com/technology/as-conventional-media-flounders-facebook-ryerson-and-dmz-team-up-to-back-news-startups

Discussion Points:

1) If you were proposing an idea to be funded in this partnership what would it be?

2)  Wiley’s Financial Accounting: Tools for Business Decision Making, notes that investors purchase Facebook shares “with the hope that the share price will increase in value and they will realize a gain when they sell their shares” (see page 597). Given this situation, what financial ratios would these investors be interested in?

3)  In Wiley’s Financial Accounting: Tools for Business Decision Making, you can read about how Brian Fernandez used Facebook to start a movement in favour of French’s ketchup. Find this reference and discuss the reasons Mr. Fernandez succeeded.

Posted by & filed under eCommerce.

Description: Cyber Monday has now overtaken Black Friday as the biggest day on the holiday shopping calendar. The online phenomenon has grown so huge that actually the Tuesday after Cyber Monday is now the second largest holiday purchase day in the United States. Accounting firm Deloitte indicated that 50% of consumers now seem to prefer online shopping as their favoured method versus 36% who like the old bricks and mortar over the cyber shopping solution.

Date: November 28, 2017

Source: thestreet.com

Link: https://www.thestreet.com/amp/story/14363909/1/how-cyber-monday-got-bigger-than-black-friday.html

Discussion Points:

1) Were you a Cyber Monday shopper? Why or why not?

2) Why do you think Cyber Monday has grown so huge? Did it surprise you to learn that it has overtaken Black Friday?

3)  In Wiley’s Auditing: A Practical Approach you can learn about risk assessment on audits. If you were the auditor of an online retailer what might be some risks associated with Cyber Monday?

Posted by & filed under Financial Accounting.

Description: Bitcoin, perhaps the most widely known of the crypto-currencies, has been all over the map in terms of value, with many highs and lows over its relatively short life. But in recent days Bitcoin has been soaring in value, rising over $11,000 per unit last week. Despite this possible bubble, central bankers are providing reassurances that the amount of Bitcoin available is too small to endanger economic stability, should there be a sudden crash.

Date: November 29, 2017

Source: theguardian.com

Link: https://www.theguardian.com/technology/2017/nov/29/bitcoin-world-economy-bank-of-england-jon-cunliffe-price

Discussion Points:

1) On  page 367 of Wiley’s Financial Accounting: Tools for Business Decision-Making, you will see a short discussion titled What is Cash? Do you think Bitcoin should be accounted for as cash on a company’s statement of financial position?

2)  Why do you think Bitcoin is soaring so high these days?

3)  Would you be interested in investing in Bitcoin is you had a few thousand?

Posted by & filed under Auditing.

Description: Well, that’s one way to handle your backlog of calls: simply drop them. This past week the Auditor General of Canada reported his Office’s findings regarding the poor job that the Canada Revenue Agency does in handling calls from Canadian citizens. In addition, the report said that there is no quick fix in sight for the beleaguered Pheonix payroll system.

Date: November 21, 2017

Source: cbc.ca

Link: http://www.cbc.ca/news/politics/auditor-report-highlights-2017-1.4411984

 

Discussion Points:

1) Have you or any of your classmates had a summer job with the federal government? What have the experiences been like? That is, have any of you had a bad experience with the Phoenix system?

2)  Have you ever tried to phone the CRA about your tax return? What was your experience like?

3)  How do you think the Auditor General’s work can be used to improve government services?

Posted by & filed under Accounting Careers, Canadian governments.

Description: Meanwhile, in Nova Scotia, Premier Stephen McNeil questioned the findings of provincial Auditor General Michael Pickup regarding a shortage of physicians in Nova Scotia. The Premier appeared to be saying that Mr. Pickup had strayed into the policy field in his audit of doctor shortages in Nova Scotia. He noted that if the Auditor General wanted to make policy, he was free to run in the next provincial election. The opposition parties did not appear to see things quite the same way.

Date: November 23, 2017

Source: cbc.ca

Link: http://www.cbc.ca/news/canada/nova-scotia/auditor-general-michael-pickup-health-reform-doctors-shortage-1.4416152

Discussion Points:

1) In Wiley’s Auditing: A Practical Approach, Section 1.3 discusses a variety of assurance services. In which category would Mr. Pickup’s discussion of the doctor shortage fit?

2)  Do you think Mr. Pickup may have strayed into the policy area with this audit? In other words, are the Premier’s comments justified?

3)  Would you be interested in being an auditor general at some point in your accounting career?

Posted by & filed under Accounting Careers, Canadian Economy.

Description: Last week this blog noted how Montreal is moving ahead with the aerospace industry. This week, Montreal is in the spotlight again. RBC is investing in an AI (artificial intelligence) laboratory in Montreal, building on its business efforts with this technology in Edmonton and Toronto.

Date: November 21, 2017

Source: ctvnews.ca

Link: http://montreal.ctvnews.ca/rbc-looks-to-get-smart-with-montreal-artificial-intelligence-lab-1.3687375

Discussion Points:

1) What examples of AI are you familiar with?

2)  Why has Montreal become such a valuable centre of AI?

3)  How do you think AI will impact employment in the accounting field?

Posted by & filed under eCommerce.

Description: About a month ago, this blog addressed Loblaws plans to cut costs by laying off 500 administrative staff. This week Loblaws took another step down the cost-cutting road by announcing that it would close 22 money losing stores. But, it’s not a total retreat.  The company also announced it was starting up a delivery service for online orders. It seems that the grocery business is bracing for change with Amazon’s acquisition of Whole Foods.

Date: November 15, 2017

Source: cbc.ca

Link: http://www.cbc.ca/news/business/loblaw-store-closure-1.4402838

Discussion Points:

1) In Appendix B, Wiley’s Financial Accounting: Tools for Business Decision Making contains specimen financial statements for Loblaw’s competitor Sobeys. Take a look at those financial statements. What jumps out at you in your initial review?

2)  How would a CEO decide which stores to close? How could accounting information help with this decision?

3)  What do you think may be some of the rewards and challenges in moving into the e-commerce field in a grocery chain?

Posted by & filed under Canadian Economy, Sustainable Development.

Description: In the same week Loblaws  announced that it was starting up a delivery service for online orders, it also surprised us with another future looking move by stating an intention to purchase Tesla’s electric trucks. The trucks are expected to hit the road in 2019 and will help move the giant grocer ahead in efforts to reduce carbon emissions. Walmart also announced that it will be adding Tesla trucks to its fleet. The  Tesla truck battery will store  98% of the kinetic energy from the truck’s braking process.

Date: November 17, 2017

Source: financialpost.com

Link: http://business.financialpost.com/news/retail-marketing/loblaw-says-it-ordered-25-tesla-electric-trucks-wants-fully-electric-fleet-by-2030

Discussion Points:

1) What do you think about this move by Tesla into the heavy truck line?

2)  What do you think may have prompted Loblaws and Walmart to commit to these Tesla trucks?

3)  How do you think more businesses could be encouraged to pursue vehicles that do not burn carbon-based fuels?

Posted by & filed under Accounting Careers, Financial Accounting.

Description: Not that long ago Bombardier appeared in some trouble and was cutting staff. But this week Bombardier disclosed plans to hire 1,000 additional workers over the next 18 months. And it’s not just Bombardier with good news for Quebec workers. Aerospace Montreal, an industry promoter, predicted over 30,000 aerospace jobs would need to be filled over the next several years.

Date: November 17, 2017

Source: financialpost.com

Link: http://business.financialpost.com/pmn/business-pmn/bombardier-to-hire-1000-workers-in-montreal-for-global-7000-business-jet

1) In Wiley’s Financial Accounting: Tools for Business Decision Making, contains an interesting comparison of Bombardier and two other companies in terms of their operating cycles. Check out “Keeping an Eye on Cash” on page 240 and determine the differences between the three organizations.

2)  Wiley’s Financial Accounting: Tools for Business Decision Making, also contains a chapter-opening vignette on how WestJet accounts for its aircraft. Go to the start of chapter 9. How does Westjet depreciate its aircraft?

3)  Would you be interested in an accounting career in the aerospace industry in Montreal given the growth prospects? Why or why not?

Posted by & filed under Financial Accounting, Student life.

Description: If you are a dedicated points saver, you are probably carrying an array of plastic cards in your wallet or apps or your phone to ensure you don’t miss out on opportunities to earn free stuff from participating merchants. This week you may have welcomed the announcement that Loblaws and Shoppers Drug Mart are going to make your life a little easier by combining their PC Plus and Optimum programs in February 2018. Some observers had been expecting something like this ever since Loblaws acquired the pharmacy chain a couple of years ago.

Date: November 8, 2017

Source: thestar.com

Link: https://www.thestar.com/business/2017/11/08/loblaw-merging-shoppers-optimum-and-pc-plus-loyalty-programs-in-february.html

Discussion Points:

1) Are you a dedicated points saver for PCPlus, Optimum, or both? How does the programs help you with your living expenses as a student?

2)  How would a company like Loblaws account for unredeemed points on their financial statements?

3)  Where can you read about Loblaws and its acquisition of Shoppers Drug Mart in Wiley’s Financial Accounting: Tools for Business Decision Making?