How do we change the culture?

Posted by & filed under Accounting Careers, Corporate Governance.

Description: This past week a study revealed that only 5% of Canadian tech companies have been founded by females. A similar 5% have a female CEO with females representing only 13% of the executive team. Further, 53% of these tech companies had no female executives. About a month ago, the Canadian Security Administrators released a study showing that in the broader economy, 62 % of companies had female representation as part of the executive team, illustrating a disconnect between the tech industry and other Canadian firms.

Date: November 2, 2017

Source: ctvnews.ca

Link: http://www.bnn.ca/only-5-of-canadian-tech-companies-have-female-chief-executives-study-1.902261

Discussion Points:

1) Why do you think this discrepancy exists between tech firms and other companies?

2)  What advantages could tech companies garner by bringing more females into the executive suite?

3)  What might be some strategies to address this discrepancy?

A distorted market ?

Posted by & filed under Auditing.

Description: New Brunswick forestry companies are being hit with a duty of almost 21% on softwood lumber exports to the United States following a decision by  the U.S. Commerce Department. It appears some parts of the forestry industry are blaming New Brunswick’s Auditor General for their misfortune, noting that the U.S. government relied on Kim MacPherson’s 2015 report in making this decision. While forest companies are calling for more study to dispute the AG’s reports on New Brunswick’s market for Crown wood, private woodlot owners are saying the problem is that the government has not implemented the Auditor General’s recommendations.

Date: November 3, 2017

Source: cbc.ca

Link: http://www.cbc.ca/news/canada/new-brunswick/jdi-softwood-lumber-duties-response-1.4386537

Discussion Points:

1) Why has New Brunswick been hit with these duties while the neighboring Maritime provinces have not?

2)  Do you think that a study disputing the Auditor General’s findings would undermine confidence in the Office of the Auditor General?

3)  On page 284 of Wiley’s Financial Accounting: Tools for Business Decision Making you can see problem P5-10A dealing with various financial statement numbers of a major forestry company, Canfor Limited. How would the financial statement numbers presented in that problem be impacted by a duty similar to the one imposed on New Brunswick’s forestry companies?

Which way do you slice this one?

Posted by & filed under Ethics, Financial Accounting.

Description: Canada’s Competition Bureau has launched an investigation into alleged price-fixing in Canada’s bread industry. Experts appeared surprised by the news, given the recent deflationary trends in the bread and rolls category. But the investigation reportedly stretches back as far as 2001, so it will be interesting to see what emerges.

Date: November 1, 2017

Source: thestar.com

Link: https://www.thestar.com/business/2017/11/01/competition-bureaus-bread-price-fixing-probe-leaves-experts-surprised.html

Discussion Points:

1) Are you a regular purchaser of bread? Have you noticed any price trends in your own grocery shopping?

2)  What would be the ethical considerations around price fixing?

3)  Wiley’s Financial Accounting: Tools for Business Decision Making discusses the terms profit margin and gross margin. Why do you think margins are so slim in the grocery business?

What keeps you up at night?

Posted by & filed under Data security.

Description: Household debt. Inflation. A recession. All these are among the things that could trouble the governor of the Bank of Canada, Stephen Poloz. But among the list of things that could keep him up at night, CTV news says Governor Poloz fears a cyber attack focused on the financial system as possibly number one. Such an attack could quickly undermine confidence in the financial system –  a system which operates on confidence. There were at least 8 high profile cyber attacks on banks in 2016, with one bank in Bangladesh losing $81 million in an electronic theft.

Date: October 26, 2017

Source: ctvnews.ca

Link: http://www.ctvnews.ca/business/cyberattacks-more-worrisome-than-all-the-other-stuff-bank-of-canada-governor-1.3650650

Discussion Points:

1) Have you ever been hacked? What happened?

2)  How could a cyberattack undermine confidence in the banking system?

3)  In Chapter 7 of Wiley’s Financial Accounting: Tools for Business Decision Making you can learn about various application controls. Which application controls could a bank employ to prevent or detect a cyberattack?

Walmart workers worried?

Posted by & filed under Canadian Economy, Financial Accounting.

Description: Retail is a very competitive industry, with companies perpetually seeking cost advantages over competitors. Walmart has often been seen as the leader in this respect, long renowned for its integration with suppliers and just in time deliveries. This week Walmart announced it would introduce a self-scanner for consumers to use in 22 of its Canadian stores to help it face competitive forces. With customers supplying Walmart with this “free” checkout labour, its probably bad news for Walmart workers.

Date: October 24, 2017

Source: ctvnews.ca

Link: http://kitchener.ctvnews.ca/retailers-automation-plans-likely-at-expense-of-jobs-experts-warn-1.3646907

Discussion Points:

1) In problem 9-11A, page 508 of Wiley’s Financial Accounting: Tools for Business Decision Making, you can find a comparison of Walmart and Target, along with an invitation to calculate a few key ratios. Which company appears to be the leader?

2)  As a consumer, how do you feel about contributing your own labour to assist in the checkout process? What are the pluses and what are the minuses?

3)  What are the implications for the replacement of jobs by new technologies?

Hope it still keeps good time

Posted by & filed under Financial Accounting.

Description: In 1984, Paul Newman turned over his Rolex watch to his daughter’s college boyfriend, James Cox, all because Cox told Newman he didn’t have a watch when Newman asked him the time. The watch had been a gift from Newman’s wife, Joanne Woodward, during the filming of a 1960s race car movie. This past week, the watch sold for a record $17.8 million at auction, proceeds going to benefit the Nell Newman Foundation.

Date: October 27, 2017

Source: people.com

Link: http://people.com/style/paul-newmans-rolex-sells-auction/amp/

Discussion Points:

1) What determines the price customers are willing to pay for a one-of-a-kind auction item such as Paul Newman’s Rolex watch?

2)  Wiley’s Financial Accounting: Tools for Business Decision Making discusses various costing models for inventory in Chapter 6. If you were a dealer in luxury goods, such as Rolex watches, what costing model would you be likely to adopt?

3)  Notice from the article that the proceeds from the watch benefited a charitable foundation. Which of Wiley’s accounting textbooks – featured under the banner Canadian Accounting Products accompanying this article –  would provide you with guidance on the accounting considerations for not-for-profit organizations?

Layoffs at Loblaws

Posted by & filed under Accounting Careers, Managerial Accounting.

Description: Loblaws has announced that roughly 500 administrative staff will be laid off in a cost-cutting move. Loblaws stated the cost cutting is to help cope with rising costs – perhaps such as an increase in the minimum wage. As well, the company cited increasing competitive forces as another reason they had to give this bad news to 500 of its workers.

Date: October 16, 2017

Source: huffingtonpost.ca

Link: http://www.huffingtonpost.ca/2017/10/16/loblaw-companies-ltd-will-lay-off-500-office-workers_a_23245152/

Discussion Points:

1) Wiley’s Financial Accounting: Tools for Business Decision Making discusses Loblaws in one of its feature stories.  Can you find any subjects in this feature story that might show other areas where a managerial accountant could find cost savings for Loblaws?

2)  Think for a moment about being a CFO in a large corporation. How would you break the news of layoffs to your staff?

3)  What do you think may be some of the chief competitive forces Loblaws is referring to in the article?

Searching for golden parachutes

Posted by & filed under Canadian Government.

Description: It has taken about eight years – including an attempt earlier this past summer – but New Brunswickers finally know that their provincially owned electrical utility paid roughly $1.7 million in severance to David Hay, the organization’s former CEO. In 2010 Hay abstained from a vote by the board of NB Power to sell the utility to Hydro Quebec, and he abruptly resigned with only a day’s notice. The provincial government had maintained for years that it could not reveal the size of the severance due to confidentiality.

Date: October 17, 2017

Source: cbc.ca

Link: http://www.cbc.ca/news/canada/new-brunswick/nb-power-severance-david-hay-1.4357625

Discussion Points:

1) The article speaks of a court decision which required the NB government to reveal severance payments. What do you think of this decision? Are you in favour of it?

2)  As a citizen, do you think all salaries and related payments to government employees should be available for all to see?

3)  Where would a Crown corporation like NB Power account for a payment like this in its financial statements?

Sad day for Canadian Music

Posted by & filed under Financial Accounting, Student life.

Description: It was a sad day for Canadian music on Wednesday as we found out about the death of Tragically Hip front-man Gord Downie.  At only 53 years old he leaves behind a family, friends and many, many fans. He used his own experience with a brain tumor to raise awareness around a deadly form of disease. Even the Prime Minister took time to reflect on his life and contributions

Date: October 18, 2017

Source: cbc.ca

Link: http://www.cbc.ca/news/entertainment/gord-downie-obit-1.4359906

Discussion Points:

1) Were you or any of your friends fans of Mr. Downie? If so, what appealed to you?

2)  What is your major source for listening to music today? How are some of the new ways of obtaining our music changing the methods by which musicians are compensated?

3)  One of the facts that emerged about Mr. Downie was his sharing of the credit – or copyright – of the song writing with all the band members of the Tragically Hip. Wiley’s Financial Accounting: Tools for Business Decision Making discusses various types of assets. Where can you find discussion of copyright in this book? What classification of assets does copyright fall under?

Taxing Discounts?

Posted by & filed under Accounting Careers.

Description: As if there wasn’t enough disquiet on the taxation front, this week things went a bit wild on the whole issue of employee discounts. You know, you work at a restaurant and you get a free meal. Or perhaps you work part-time at a sporting goods store, so your boss gives you 20% off on your new skates or running shoes. For a few days this week, it looked like that benefit was going to be taxable. But late in the week, it seemed as if the politicians were backing away from the whole plan, laying the blame on civil servants at the Canada Revenue Agency.

Date: October 13, 2017

Source: cbc.ca

Link: http://www.cbc.ca/news/politics/employee-discounts-pr-nightmare-cra-1.4351824

Discussion Points:

1) Wiley’s Auditing: A Practical Approach provides definitions for various types of audits. What kind of audit do auditors of employee discounts do?

2)  Why do you think the political level seemed to shift the blame to the civil servants at the CRA?

3)  Do you think this incident might impact recruiting efforts by the CRA?