Wiley Accounting Updates

Posted January 25th, 2016 by Brent White & filed under Data security, eCommerce.

Description: Splashdata is a tech company that has developed a software tool for managing passwords. And each year Splashdata entertains and educates us by publishing a list of the 20 worst passwords. This year’s worst two are unchanged from the previous results – “123456” and “password” still top the list. And what makes it worse, is that many users are using their terrible passwords across multiple platforms.

Source: Globeandmail.com

Date: January 19, 2016

Link: http://www.theglobeandmail.com/technology/its-time-to-hit-reset-on-weak-passwords-fatigued-data-security/article28248640/

Discussion Points:

1) Check out the list of the worst of the worst in the article. Have you ever used any of these ‘winners’?

2) What do you think will be the passwords of the future? How far away are things like biometrics?

3) What can accountants do to increase staff awareness of password security?

Posted January 25th, 2016 by Brent White & filed under Accounting Careers, Advanced Accounting.

Description: This is a bit of good news in what has been a week of bad news for Goodwill Industries of Toronto, Eastern, Central and Northern Ontario. Last Sunday when employees arrived for work, they found the doors were locked. The organization is experiencing cash flow problems and employees were wondering if they would be paid outstanding wages estimated at over $500,000. But an announcement on Friday indicated that the organization had obtained the financing to enable it to meet payroll obligations, providing some sense of relief for the affected employees.

Source: Globeandmail.com

Date: January 22, 2016

Link: http://www.theglobeandmail.com/news/national/great-sense-of-relief-as-goodwill-announces-it-will-pay-back-wages/article28336091/

Discussion Points:

1) Have you ever lost wages in a bankruptcy or similar financial crisis for an employer you worked for? Does the law provide any protections for wage earners in these situations?

2) If you are thinking about a career as an accountant, what would you think about specializing as a trustee in bankruptcy?

3) What are some options for organizations like Goodwill that are facing a cash-flow crisis like this?

Posted January 18th, 2016 by Brent White & filed under Accounting Principles, Marketing & Strategy.

Description: Some are calling Fitbit’s new offering a ‘not-so-smart watch.’ Unveiled at Las Vegas’s giant consumer electronics show earlier this month, and priced at $199, Fitbit’s new Blaze is being criticized for its lack of apps. Meanwhile with competitors like Samsung and Under Armour looking for breakthroughs, and Apple Watch version 2 on the horizon, investors are punishing Fitbit’s stock.

Source: Globeandmail.com

Date: January 11, 2016

Link: http://www.theglobeandmail.com/technology/tech-news/fitbits-slide-continues-after-new-blaze-panned-as-not-so-smart-watch/article28118390/

Discussion Points:

1) Do you wear a Fitbit? What’s your opinion of this technology?

2) If the Blaze does not sell well at its $199 price point, what accounting principles for inventory might become an important consideration for Fitbit?

3) What strategies might Fitbit employ to offset this negative publicity surrounding the Blaze?

Posted January 18th, 2016 by Brent White & filed under Accounting Principles, Financial Reporting and Analysis.

Description: One year ago Target announced the end of its short-lived Canadian experiment and quickly exited the country. But landlords, suppliers and other creditors are still waiting to find out how much they might recover. Creditors could be waiting for months to hear the answer.

Source: Globeandmail.com

Date: January 14, 2016

Link: http://www.theglobeandmail.com/report-on-business/a-year-after-target-bolted-canada-creditors-still-face-uncertainty/article28199218/

Discussion Points:

1) Why does it take so long for creditors to get paid in such a matter?

2) If you were a creditor of Target’s, how would you disclose this matter in your annual report?

3) How would you calculate a provision for the amount owed by Target if you were a creditor?

Posted January 18th, 2016 by Brent White & filed under Accounting Careers, Public Finance.

Description: The CEO overseeing 2/3 of the provincial hospital system says major changes are needed and that we need to move away from the traditional reliance on hospitals. But the politician overseeing New Brunswick’s strategic program review says that there won’t be any major cuts to health care and education. Citizens have been left wondering what are the tough choices then that the government has been talking about for the last several months if both education and health care won’t be touched.

Source: CBC.ca

Date: January 15, 2016

Link: http://www.cbc.ca/news/canada/new-brunswick/budget-health-education-cuts-1.3405888

Discussion Points:

1) If you were advising the New Brunswick government, what would you recommend for the so-called tough decisions?

2) What role could accountants play in educating the Canadian public about the choices to be made in setting provincial budgets?

3) What do you think of the notion of public budget consultations as a budgeting tool?

Posted January 11th, 2016 by Brent White & filed under Canadian Economy.

Description: Both Canada and the United States saw record auto sales in 2015. A number of factors appear to have contributed to the big year, including low petroleum prices and low interest rates. Pent-up demand is another likely influence, a factor which may continue to play a role as Canadians are driving a record 10 million vehicles that are at least ten years old.

Source: Globeandmail.com

Date: January 5, 2016

Link:

Discussion Points:

1) Do you know anyone who purchased a new car this year? If so, did any of the factors mentioned in the article influence their decision?

2) Why do you think so many Canadians are driving vehicles 10 years or more old?

3) Do you think the fact that so many are driving vehicles that are so old should cause accountants to reconsider lengthening the depreciation rates on vehicles?

Posted January 11th, 2016 by Brent White & filed under Accounting Careers, Accounting Theory.

Description: Looking for an edge as you graduate this spring and look ahead to your career? Could it be as simple as trying three simple things? Columnist Leah Eichler offers three simple tips to give you an edge at work:

Stretch yourself
Tell great stories
Be happy

Source: Globeandmail.com

Date: December 31, 2015

Link: http://www.theglobeandmail.com/report-on-business/careers/career-advice/life-at-work/three-simple-strategies-for-keeping-your-edge-at-work/article28081974/

Discussion Points:

1) What is your opinion of Leah Eichler’s three tips?

2) What might be some strategies for accountants to use in dealing with the point of telling great stories, the notion that people can’t put more than 3 points into their short term memories?

3) What are some ways accountants and auditors might stretch themselves in building their careers?

Posted January 11th, 2016 by Brent White & filed under Advanced Accounting, Corporate Strategy.

Description: At one time, mutual fund companies dominated the retail sales market for mutual funds. And part of those days were big deferred sales charges (DSC) levied when retail investors wanted to cash in their holdings. But many players in the industry have moved away from deferred charges, to the point where Globe and Mail financial writer Rob Carrick says that “a reasonable goal for 2016 is that no investor buys a DSC.”

Source: Globeandmail.com

Date: January 8, 2016

Link: http://www.theglobeandmail.com/globe-investor/funds-and-etfs/funds/leave-deferred-sales-charges-for-mutual-funds-to-the-dinosaurs/article28088507/

Discussion Points:

1) Do you agree with Rob Carrick’s statement? Why or why not?

2) If you were a senior accounting officer in a firm with a DSC strategy, what would you advise?

3) How would a mutual fund company recognize the revenue from a DSC?

Posted January 4th, 2016 by Brent White & filed under Accounting Careers, Student life.

Description: Steve Jobs was fond of it. And apparently so too is John O’Donnell, the CEO of Allstate Insurance in Canada. Mr. ODonnell and his staff can often be found in a walking meeting, roaming the paths around Allstate’s Markham head office. There are benefits to thinking outside the box of the office walls as well as the health benefits of fresh air and exercise.

Source: Globeandmail.com

Date: December 31, 2015

Link: http://www.theglobeandmail.com/report-on-business/careers/career-advice/life-at-work/cooped-up-in-the-office-take-a-walk-outside-for-your-next-meeting/article27974330/

Discussion Points:

1) Have you ever been on a walking meeting?

2) What do you think of using a walking meeting for some of your student group projects?

3) If you were applying for a job at a company like Allstate, would the idea of a walking meeting impact your decision?

Posted January 4th, 2016 by Brent White & filed under eCommerce, Managerial Accounting.

Description: Technology disrupts. Ask the taxi drivers upset with Uber. Or the hotel owners coping with competition from Airbnb. Now the banking industry is concerned that so-called fintech startups may cause users to question the value of a relationship with a traditional bank. For example, new payment processors are offering businesses much lower transaction fees for credit card processing than the traditional banks.

Source: Globeandmail.com

Date: January 2, 2016

Link: http://www.theglobeandmail.com/report-on-business/rob-commentary/the-fintech-threat-part-bubble-part-trouble-for-big-banks/article27984504/

Discussion Points:

1) What’s your opinion of the fintech movement? Will it threaten the big banks?

2) The article speaks of 80 to 90% gross margins on some financial products. How would you calculate a gross margin on the sale of financial products? What would be some of the components of the cost of sales?

3) What are some of the key factors that would give these fintech firms a cost advantage?