Posted by & filed under Student life.

Description: The Corona virus crisis has been bad news for certain business sectors, but you can’t say that about real estate. The market continues to be red hot with the Canadian Real Estate Association’s declaration that home prices are up 17% in this past year. Some have suggested that with the virus keeping more families at home for work and school, a desire for more living space may be one reason for the sharp rise.

Date:  October 15, 2020

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/crea-september-1.5763101

Discussion points:

1) Are you planning to buy a home after you finish university? How will this rise in price impact you?

2) Has your university community seen an increase in cost for student rentals given this rise in real estate prices?

3) In Wiley’s Financial Accounting: Tools for Business Decision-Making, we know that normally a long-term asset like a house would be treated as property, plant and equipment. If you were a home builder, however, and you had several homes for sale, where would these be found on your statement of financial position?

Posted by & filed under Student life.

Description: New Brunswick and its Maritime cousins, PEI and Nova Scotia, have been the envy of other parts of Canada due to their deft handling of the Corona virus crisis. But this past week, two health zones in New Brunswick were placed back in orange status, after weeks of relative freedom under the yellow banner. This means some businesses, like hair dressers and gymnasiums, will have to close shop, and social visits will be restricted to two-family bubbles.

Date:  October 9, 2020

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/new-brunswick/covid-19-new-brunswick-update-friday-higgs-russell-1.5756730

Discussion points:

1) What phase or colour is your university community in?

2) Has your university campus been impacted by a change in status during this school year? How has it impacted your campus?

3) In Wiley’s Financial Accounting: Tools for Business Decision-Making, we learn very early on about the concept of prepaid insurance. Think of vendors like hairdressers and gymnasiums who are impacted by shutdowns like this. Is there any insurance product that would protect them from the impacts of a pandemic? (Hint: perhaps do a bit of a search to see if pandemic insurance exists).

Posted by & filed under Canadian Economy.

Description: WestJet pilots have agreed to take a 50% pay cut to keep more of them working during these interesting times. Though WestJet originally thought the effect of the pandemic on air travel would force a reduction of about 1,200 staff, the pilots’ offer has cut the number to around 450. Actions like this across the economy are helping to keep highly trained employees in their companies until the situation turns around.

Date:  October 5, 2020

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/westjet-alpa-compensation-1.5748468

Discussion points:

1) Would you be willing to take a 50% pay cut to save your fellow-workers’ jobs?

2) Why is it so important for businesses to keep highly-skilled people employed?

3) The opening vignette of Chapter 9 in Wiley’s Financial Accounting: Tools for Business Decision-Making, tells us how WestJet depreciates various components of its airplanes. Do you think WestJet could make a case for charging less depreciation in 2020 on some of its aircraft components?

Posted by & filed under Accounting Careers.

Description: Canada’s competition bureau is taking on Amazon, the giant of the retail world that has only grown stronger during the Covid-19 period. The basic problem, as has been observed by US Senator Elizabeth Warren, is that Amazon owns the marketplace, and the company sells its wares in that same market. This conflict of interest causes concerns around the pricing of its goods versus other sellers in the market, and, about how Amazon may be sharing customer information across its various structures, such as Alexa, Whole Foods, and the regular Amazon online store. Former Amazon V.P. Jeff Bray has said “Amazon’s strategy of growth over profits doesn’t make any sense at all, unless your end goal is to become monopolistic in size to point in which you regain pricing power.”

Date:  October 11, 2020

Source:  thestar.com

 Link: https://www.thestar.com/business/opinion/2020/10/10/the-competition-bureau-needs-to-come-up-with-recommendations-that-target-the-inherent-conflict-of-interest-around-third-party-sellers-head-on.html

Discussion points:

1) Have you been using Amazon’s services more in recent months?

2) What did you find was the most interesting part of the article for you?

3) Did you ever think about the title of your accounting text, Wiley’s Financial Accounting: Tools for Business Decision-Making? What tools from this text could accountants apply in assisting the Competition Bureau in this examination of Amazon?

Posted by & filed under Personal Tax.

Description: The Canada Revenue Agency (CRA) wants to do your taxes. That might save you some time and labour, but it doesn’t please everyone. In Britain and France where such a system has been tried, it has delivered some questionable results. And given that a 2017 report by the Auditor General of Canada said that over 50% of the time calls to the CRA were not even answered, it might be fair game to question the idea of the ability of this agency to take on additional responsibilities.

Date:  October 2, 2020

Source:  financialpost.com

Link: https://financialpost.com/opinion/opinion-the-cra-can-barely-answer-phone-calls-now-it-wants-to-do-our-taxes-for-us

 

Discussion points:

1) How much time do you spend each year doing your taxes?

2) Would you be willing to rely on the CRA to do your tax return and let you know the size of your refund or amount owing?

3) Chapter One of Wiley’s Auditing: A Practical Approach, discusses several types of audits that auditors can perform. What type of audit do you think the Office of the Auditor General was conducting when it discovered the problems at the Canada Revenue Agency?

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

Description: Air Canada has ordered 25,000 Covid-19 test kits that may be able to detect the virus in about five minutes. With the airline industry being battered as the virus dissuades passengers from flying, the test kits may offer a way to convince potential customers to take to the sky once again. A quick test may also be useful in persuading government authorities to rethink travel regulation during the pandemic.

Date:  October 1, 2020

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/air-canada-testing-kit-1.5745976

Discussion points:

1) Have you flown since the original Covid-19 shutdown in March? What was your experience like?

2) Has the need to fly to your university campus changed how or where you are studying this year?

3) On pages 9-32 and 33 of Wiley’s Financial Accounting: Tools for Business Decision-Making, we see a comparison of the Return on Assets of both Air Canada and WestJet. What do you think would be happening to this ratio for Air Canada and WestJet in 2020?

Posted by & filed under Student life, Sustainable Development.

Description: On Friday RBC announced that it would not be funding new oil drilling projects in the Arctic. Neither would the giant bank be financing new coal-fired projects. Andrew Block, speaking on behalf of RBC, said “We are committed to finding ways to balance the transition to a low-carbon economy.” It will be interesting to see how other Canadian banks respond to RBC’s initiative.

Date:  October 2, 2020

Source:  cbc.ca

Link: https://globalnews.ca/news/7376077/rbc-coal-oil-financing-restrictions/

 

Discussion points:

1) What do you think about RBC’s move?

2) What sort of environmental efforts are students at your campus carrying out?

3) On page 1-26 of Wiley’s Financial Accounting: Tools for Business Decision-Making, you can read about an important section in a company annual report called Management Discussion and Analysis (MD&A). If you were preparing the MD&A for RBC’s next annual report, how would you present this decision on future investments?

Posted by & filed under Financial Reporting and Analysis.

Description: Last week this blog featured a story on the sale of Canada’s Mountain Equipment Co-op (MEC) to Kingswood Capital Management. This week comes news that MEC considered another alternative to solve its financial problems: a direct appeal to its close to six million members. But the decision-makers rejected the member bailout model as “impracticable to impossible.”

Date:  September 25, 2020

Source:  financialpost.com

Link: https://financialpost.com/news/retail-marketing/mec-considered-an-appeal-to-members-for-a-bailout-before-it-agreed-to-a-private-equity-deal

 

Discussion points:

1) If you were a MEC member would you have been willing to support a member-based bailout with some of your own cash? Why?

2) The article notes that a special committee of the board weighed the factors involved in the member bailout option and then decided against it. Do you think the committee made the correct decision? Why or why not?

3) Chapter 2 of Wiley’s Financial Accounting: Tools for Business Decision-Making, contains a section titled “Framework for the Preparation and Presentation of Financial Statements.” Illustration 2.21 summarizes this conceptual framework. What item in Illustration 2.21 seems particularly applicable for the MEC situation?

Posted by & filed under Student life.

Description: The pandemic has changed a lot of things, and one of those is how Canadians are pursuing fitness goals. With gyms shut down, or operating under various restrictions, Canadians are stocking up on sports equipment for home and outdoors. The Peloton ‘smart bike’ is a popular – if pricey – choice for some, clocking in at $3,000. It also seems to be a great time to unload your surplus equipment on Kiiji or eBay.

Date:  September 26, 2020

Source:  cbc.ca

Link: https://www.cbc.ca/news/business/fitness-pandemic-winter-1.5738568

 

Discussion points:

1) Have you been keeping up with your fitness activity during these strange days? What are you and your fellow students doing in this regard?

2) Do you know anyone who has sold used sporting goods during these past few months? What site or forum did they use to reach potential buyers?

3) On page 4-18 of Wiley’s Financial Accounting: Tools for Business Decision-Making, you can read about how Canadian Tire, one of the companies mentioned in the article, accounts for its sales of gift cards. Discuss with your classmates how you think these gift cards should be treated. Then go to page 4-18 to see if your theory is correct.

Posted by & filed under Data security, Personal Tax.

Description: Several weeks after a cyber-attack, the Canada Revenue Agency (CRA) reports that it is “working diligently to restore access to all services as quickly as possible.” Taxpayers have found some of the familiar online services are still not being offered. The CRA says that the fact that some of its employees have been working from home has not impacted this delayed recovery of service.

Date:  September 24, 2020

Source:  cbc.ca

Link: https://www.cbc.ca/news/business/cra-cyberattack-1.5737186

 

Discussion points:

1) Have you attempted to access your CRA account online recently? What problems did you encounter, if any?

2) Have you or any of your classmates encountered a data breach with any of your personal data on any of your online services or accounts?

3) On page 1-26 of Wiley’s Financial Accounting: Tools for Business Decision-Making, we learn about the elements of an annual report, including Management Discussion and Analysis (MD&A). Do you think that the MDA should be obligated to discuss security breaches that took place during the year? Why or why not?