Posted by & filed under Accounting Principles, Student life.

Description: “That should not be the consumer’s responsibility.” That’s how Keldon Bester, from Canadian Anti-Monopoly Project, responded to government advice for consumers to switch carriers for cheaper cellphone rates. The controversy comes in the face of rate hikes from Rogers Communications and word from some consumers that Bell is also raising rates. Bester had previously criticized Rogers’s acquisition of Shaw Communications. One obvious problem with searching for another carrier is that Canada has a rather thin selection of suppliers to choose from, and one less, we might say, with the Shaw acquisition.

Date:  January 6, 2023

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/mobile-wireless-pricing-competition-1.7076073

Discussion points:

1) What kind of rates are you and your classmates paying? How do they stack up against the chart in the article showing the rates consumers are paying in some other countries?

2) If you were the industry minister in the Canadian government, what would you propose to lower the rates?

3) Page 4-4 of Wiley’s Understanding Financial Accounting discusses a challenge Rogers faces in application of accounting policies. What is the nature of this challenge?

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

Description: Two large shareholders of GIldan Activewear have come to the defence of the company’s former CEO and are seeking to have him reinstated. Glenn Chamandy was both a founder of Gildan and the CEO until earlier in December, when, he says, he was let go without cause. The two shareholders – Browning West LP and Turtle Creek Asset Management Inc – are concerned about the potential impact of the firing on the company’s future growth.

Date:  December 14, 2023

Source:  toronto.citynews.ca

 Link: https://toronto.citynews.ca/2023/12/14/gildan-shareholders-seek-ceo-reinstatement-allege-grievous-error-by-board/

Discussion points:

1) Do you own any Gildan products?

2) If you had a client who was a minority shareholder unhappy with a major decision like this, what would you advise?

3) Page 2-39 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses Gildan’s liquidity and those of its competitors, Artiza and Canada Goose. Search for more current data to determine which company might be the most liquid.

Posted by & filed under eCommerce, Student life.

Description: A few years ago, the emergence of e-readers was seen as one more disruptive technology; one that seemed poised to kill the book. Well, take another look folks as the analog book is back. Sales of print books have risen somewhere between 10 % and 14 % in English speaking markets over the last three years. Calgary bookstore owner Nicola McNaughton notes the importance of the analog book as a “trophy” on young customers’ bookshelves.

Date:  December 17, 2023

Source:  cbc.ca

 Link: https://www.cbc.ca/radio/costofliving/print-books-thrive-despite-e-readers-1.7056731

Discussion points:

1) Are you and of your classmates reading books in analog these days?

2) Are you planning on giving any books as gifts at Christmas?

3) Page 5-4 of Wiley’s Financial Accounting: Tools for Business Decision-Making tell us about the length of the operating cycle of 3 Canadian companies. How long is the operating cycle of bookseller Indigo Books & Music?

Posted by & filed under Accounting Careers.

Description: It certainly is not something we see too often; a former deputy auditor general suing the Office of the Auditor General of New Brunswick for wrongful dismissal. Janice Leahy, New Brunswick’s former deputy auditor general, was let go from her position and replaced, but there has been little, if any, word from the auditor general, Paul Martin, about this matter or why such a large percentage of his staff have left the office in the last 12 months. Leahy’s claim states the “termination was retaliatory in nature given the positions taken by the plaintiff.” But details are scant, and the public, as well as the auditor general’s clients, the Members of the Legislative Assembly (MLA), may have to wait until the courts come forward with more detail in order to better understand the situation.

Date:  December 5, 2023

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/new-brunswick/auditor-general-former-deputy-firing-1.7048476

Discussion points:

1) Have you ever seen a case where an auditor general’s office was sued?

2) If your were an advisor to a MLA who was relying on the auditor general’s reporting to do their job, what might you recommend to get a better picture of what was happening?

3) Pages 10-9 through 10-11 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses accounting for provisions and contingent liabilities. What type of disclosure, if any, do you think the Office of the Auditor General of New Brunswick should include in its financial reporting regarding this lawsuit?

Posted by & filed under Fraud, Internal control.

Description: An auto theft ring appears to have benefited from inside information from Service Ontario, according to news reports. Operation Safari under the direction of the Toronto Police has been looking into an auto theft ring since earlier this year, and it has discovered that the workers inside Service Ontario would provide the thieves with driver and vehicle information that would make it easier to flip the vehicles in private sales transactions. An earlier probe, beginning in 2020, had shown Service Ontario employees were complicit in arranging modifications of vehicle records when the auto theft rings changed the Vehicle Identification Numbers (VIN) to make the cars appear legitimate.

Date:  December 7, 2023

Source:  nationalpost.com

 Link: https://nationalpost.com/news/canada/service-ontario-employees-auto-theft-ring

Discussion points:

1) Have you ever been the victim of a car theft?

2) The VIN once seemed like a pretty effective control to detect vehicle theft. What would you recommend to improve things if you were an accountant with the insurance industry?

3) Page 6-7 of Wiley’s Understanding Financial Accounting tells us about the limitations to internal control. What are they?

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

Description: Canada Bread has responded to a class action lawsuit centred on alleged price-fixing in the bakery business by essentially saying, “blame it on our former parent company, Maple Leaf Foods.” Michael McCain, a former Maple Leaf CEO, was having no part of this in his statement, saying, “We continue to believe that the pricing practices of Canada Bread were responsible, consistent with industry practice, and above all, lawful.” In June this year Canada Bread had been fined $50 million after having plead guilty under Competition Act charges for price-fixing.

Date:  December 8, 2023

Source:  ctvnews.ca

 Link: https://www.ctvnews.ca/business/canada-bread-denies-price-fixing-scheme-in-court-filing-points-finger-at-maple-leaf-1.6678876

Discussion points:

1) Do you buy commercial bread at the store from one of the large manufacturers, like Canada Bread?

2) How would paying $1.50 extra per loaf impact your budget as a student?

3) Illustration 9-1 of Wiley’s Managerial Accounting: Tools for Business Decision-Making depicts important pricing factors for companies making pricing decisions. What are the four big factors pictured for us in this graphic?

Posted by & filed under Accounting Principles, Student life.

Description: A few years back, when Adrian Ma visited his uncle in Hong Kong, he was gifted with a bottle of Glenlivet, Special Jubilee Reserve, a 25 year old whisky bottled in 1977 to honour Queen Elizabeth’s Silver Jubilee. At the time of the gift, Adrian’s uncle told him “I don’t have a reason to open this; You should have it.” Ma found the right occasion this summer, at a cottage, surrounded by friends at a group 40th birthday celebration.

Date:  December 10, 2023

Source:  cbc.ca

 Link: https://www.cbc.ca/radio/sunday/opening-rare-scotch-whisky-bottle-1.7042544

Discussion points:

1) Are any of your classmates fans of Scotch whisky?

2) If your uncle had gifted you a $3,000 bottle of whisky, would you save it for some special occasion or put it on the market?

3) Page 2-4 of Wiley’s Financial Accounting: Tools for Business Decision-Making educates us regarding the operating cycle of various types of companies. What do you think the length of the operating cycle of a distillery might be?

Posted by & filed under Canadian Economy, Student life.

Description: The Lipstick Index is perhaps one of the most unusual measures of economic performance you may have encountered. Essentially, this measure says that when times are tough, consumers will still avail themselves of smaller luxuries like skin care and perfumes in the face of cut backs on larger purchases. Leonard Lauder, the former CEO of cosmetic firm Estée Lauder, was the first to coin the term. Economists at California State University established the phenomenon was confirmed by economic data emerging from the 2008 financial crisis recession .

Date:  November 29, 2023

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/calgary/lipstick-index-beauty-sales-1.7041218

Discussion points:

1) Had you ever heard of this Lipstick Index?

2) Do you think the principles of the Lipstick Index are valid in the lives of you and your classmates?

3) Page 5-1 of Wiley’s Financial Accounting: Tools for Business Decision-Making introduces us to Loblaw’s subsidiary corporation Shoppers Drug Mart. What percentage of Shopper’s revenue comes from its cosmetics trade?

Posted by & filed under Accounting Careers, Canadian Government.

Description: The government of Canada and online giant Google have finally reached a deal regarding use of Canadian news on the web. The deal comes three weeks before the federal government’s Bill C-18, the Online News Act, comes into effect. Google has agreed to pay $100 million a year to Canadian news organizations for use of their content on its powerful platform. The other large holdout – Meta (Facebook) – has left the negotiating table without indicating when, and if, it may return.

Date:  November 29, 2023

Source:  cbc.ca

 Link: https://www.cbc.ca/news/politics/google-online-news-act-1.7043330

Discussion points:

1) How do you and your classmates get your Canadian news?

2) If you were an accountant tasked with distributing the $100 million to Canadian news organizations, what model do you think you would recommend?

3) Early in chapter one of Wiley’s Financial Accounting: Tools for Business Decision-Making we are given information about a number of famous Canadian accountants. What is the name of the Canadian accountant who serves as country manager for Google Canada?

Posted by & filed under Accounting Careers, Canadian governments.

Description: Universities in Ontario are banding together to try and find cost savings through efforts like joint procurement and combining course offerings, all in the shadow of provincial government pressures to find efficiencies before they will be allowed to increase tuition fees. But the Council of Ontario Universities stated the fiscal situation is becoming “increasingly untenable,” with several schools facing very large deficits. Jill Dunlop, the government minister responsible for universities has received a report from a high-profile panel that recommends a 10% increase in the grants to universities along with a 5% tuition increase. Dunlop’s panel included a look at university administrative costs as part of its review, noting that this area has “considerable room for improvement.”

Date:  December 1, 2023

Source:  thestar.com

 Link: https://www.thestar.com/politics/provincial/ontario-universities-are-running-out-of-money-and-time-report-says/article_7f7c8925-173c-5f57-8411-836283a5d44b.html

Discussion points:

1) Are you a student at an Ontario university? If so, how have these financial issues impacted you?

2) Do you think the Ontario government has been correct in insisting on increased efficiency in the university sector?

3) Pages 4-1 and 4-2 of Wiley’s Financial Accounting: Tools for Business Decision-Making talks about accounting at Western University in London, Ontario. What are the various types of revenues and expenses for a university that are mentioned in this vignette?