Wiley Accounting Updates

Posted December 7th, 2015 by Brent White & filed under Accounting Careers, eCommerce, Financial Reporting and Analysis.

Description: CIBC and TD Bank reported their year end financial results last week and one thing both banks shared were heavy costs related to job cutbacks. The cuts seemed aimed at reducing costs on a go forward basis to make the banks more competitive. Banks are envisioning competitive challenges – a sort of Uberization of the industry – that are sparking investments in technology at the same time that they are absorbing charges for laying off employees.

Source: Globeandmail.com

Date: December 3, 2015

Link: http://www.theglobeandmail.com/report-on-business/cibc-td-relying-on-cost-cutting-to-combat-slow-growth/article27589713/

Discussion Points:

1) Do you think technologies such as Apple Pay will threaten the banking industry? Why?

2) What accounting disclosures might you expect in the banks’ financial statements around this matter of charges for restructuring?

3) If you were an accountant being asked for advice on where cutbacks could be made, what are some of the criteria you would use in making your decisions?

Posted November 30th, 2015 by Brent White & filed under Accounting Careers, Canadian Economy.

Description: Almost 40% of Canadians owning homes have found themselves in some sort of cash flow crisis in the preceding year according to a recent Globe and Mail report. Increasing house prices might explain why Canadians are reaching out to relatives or loading up the credit card to get through a tough spot in paying the bills. But reality hasn’t quite hit home with many Canadians with approximately 75% of homeowners saying they are in a good position to handle a financial emergency such as a surprise auto repair.

Source: Globeandmail.com

Date: November 26, 2015

Link: http://www.theglobeandmail.com/report-on-business/economy/housing/more-than-a-third-of-canadian-homeowners-struggle-to-pay-the-bills-survey/article27482778/

Discussion Points:

1) Have you run into your own cash flow crisis in the past year? How did you respond?

2) Why do you think so many Canadian homeowners are running into financial problems? What does this mean for the economy?

3) What are some ways accountants could contribute to the financial education of Canadians?

Posted November 30th, 2015 by Brent White & filed under Personal Tax, Tax Planning.

Description: During the recent federal election the Liberals, while supporting cuts in the small business tax rate, expressed concern about businesses being set up mainly to avoid paying higher rates of taxes. Now that the Liberals are in office, some doctors and lawyers fear that the new government may alter the rules on Canadian controlled private corporations (CCPCs). Their concern is that the government may reduce small business tax privileges in order to prevent high income professionals from avoiding tax.

Source: Globeandmail.com

Date: November 27, 2015

Link: http://www.theglobeandmail.com/report-on-business/small-business/sb-money/doctors-lawyers-concerned-about-small-business-tax-changes/article27480893/

Discussion Points:

1) What are the possible tax advantages for a professional using a CCPC?

2) What are some of the ways the government might choose to address this perception of tax avoidance?

3) Do you believe the government should pursue this change in tax policy?

Posted November 30th, 2015 by Brent White & filed under Data security, eCommerce.

Description: There were still lineups of course. And many retailers were offering deals. But Black Friday this year seemed to have less retail store traffic in the US than in some prior years. Of course, now with some retailers opening on Thanksgiving Thursday, some consumers may have already made their purchases. And online purchases were up roughly 15% over the prior year.

Source: Globeandmail.com

Date: November 27, 2015

Link: http://www.theglobeandmail.com/report-on-business/international-business/us-business/black-friday-retailers-await-numbers-as-shoppings-super-bowl-kicks-off/article27505467/

Discussion Points:

1) Why do you think Black Friday lineups may have decreased in the US this year?

2) Have you ever crossed the border to participate in so-called Black Friday? What was your experience like?

3) What do you think the increase in online sales this year says about the future of eCommerce?

Posted November 23rd, 2015 by Brent White & filed under Corporate Social Responsibility, Student life, Taxation.

Description: Many students have found value, pleasure and comfort in Ikea’s furniture. And they’ve gone on to be Ikea shoppers as they move into the world of work. But did you know the Swedish furniture giant also operates a humanitarian arm known as the Ikea Foundation? This Foundation, in typical Ikea fashion, has developed lightweight, durable, and easy-to-assemble temporary housing that can be used to shelter refugees in various areas of crisis. The shelters last far longer than tents and even have solar powered LED lights.

Source: Globeandmail.com

Date: November 19, 2015

Link: http://www.theglobeandmail.com/life/home-and-garden/ikea-foundation-building-easy-to-assemble-refugee-shelters/article27360097/

Discussion Points:

1) Do you have any Ikea furniture in your apartment? What are some of the key features that attract you to the Ikea option, providing Ikea with a competitive advantage?

2) What are some of the strategic advantages of a company using a foundation to carry out humanitarian efforts?

3) Under Canadian tax laws, what would be some of the key considerations in establishing a foundation to carry out humanitarian or charitable work on behalf of a corporation?

Posted November 23rd, 2015 by Brent White & filed under Accounting Careers, Accounting Theory.

Description: Bernadette Wightman can now smile. On the street that is. Now serving as president of Cisco Canada, Wightman comes to her post after previously serving as a Cisco executive in Russia where she discovered it is not considered socially acceptable to smile at strangers. It’s an important reminder of the need to be sensitive to the various cultural differences you might encounter in an international business career.

Source: Globeandmail.com

Date: November 17, 2015

Link: http://www.theglobeandmail.com/report-on-business/international-business/avoid-being-lumped-in-with-the-rich-men-and-idiots/article27287376/

Discussion Points:

1) Does an international career interest you? Why or why not?

2) Why have accountants traditionally had broad opportunities to work internationally?

3) Despite the move towards IFRS, it has been said that accounting standards are applied differently in various countries. Why do you think this might be?

Posted November 23rd, 2015 by Brent White & filed under Managerial Accounting, Student life.

Description: Last year 3G Capital Partners LP of Brazil purchased Canadian coffee giant Tim Horton’s. It’s perhaps a sign of 3G’s famous cost-cutting behaviour that some Tim’s outlets are doing away with the classic porcelain coffee mugs in favour of an all paper cup regime. It’s unlikely that all patrons will be happy with this move to replace reusable dishes. Nonetheless, Tim’s is thanking its “valued guests” for “joining our efforts to reduce water usage and improve our recycling program.”

Source: Globeandmail.com

Date: November 15, 2015

Link: http://www.theglobeandmail.com/report-on-business/tim-hortons-cost-cutting-efforts-could-dispose-of-porcelain-mugs/article27265968/

Discussion Points:

1) Are you a fan of Tim’s coffee? If so, do you prefer porcelain to paper or vice-versa?

2) What would be some of the relevant costs in comparing the paper cups to porcelain mugs?

3) What impact do you think the recent Marketplace television program that revealed recycling problems at both Tim Horton’s and Starbucks may have had on this decision by Tim’s to go all-in on paper cups? See the following url for the Marketplace story: http://www.cbc.ca/marketplace/episodes/2015-2016/coffee-cups

Posted November 16th, 2015 by Brent White & filed under Advanced Accounting, Corporate Strategy.

Description: The Globe and Mail categorized it as a “megabrew”. The two largest brewers in the world have combined to form an organization that will account for approximately 1/3 of the beer produced worldwide. Anheuser-Busch announced that is purchasing SAB Miller PLC for about $143 billion. Some maneuvering may be necessary in both the US and China to keep the extremely large “megabrewer” from having too much control in the marketplace.

Source: Globeandmail.com

Date: November 11, 2015

Link: http://www.theglobeandmail.com/report-on-business/international-business/us-business/ab-inbev-launches-sab-bid-to-sell-millercoors-stake/article27205423/

Discussion Points:

1) What would be some of the key strategic issues you would have to deal with in a mega-merger like this?

2) What would be some of the key accounting issues in accounting for such a consolidation?

3) How can consumers be protected in markets where the megabrewer has effective market control? Is there a point at which a brewer’s percentage of the market share is too high?

Posted November 16th, 2015 by Brent White & filed under Advanced Accounting, Auditing, Canadian governments.

Description: The Province of New Brunswick certainly seems to have its share of fiscal challenges, after having run deficits for several years. Last week the Province began looking at another cost-cutting measure: reducing the number of independent legislative officers. Legislative officers include the Auditor General and the Ombudsman. New Brunswick has nine of these officers while most other jurisdictions have fewer than that. Policy expert Donald Savoie recommends reducing the number to four.

Source: cbc.ca

Date: November 11, 2015

Link: http://www.cbc.ca/news/canada/new-brunswick/new-brunswick-legislature-watchdogs-review-warned-1.3314016

Discussion Points:

1) What’s your opinion on this discussion? Would you recommend a reduction in the number of officers?

2) In 1918 the Province of NB eliminated its auditor general office and it did not reappear for 50 years (see https://journals.lib.unb.ca/index.php/JNBS/article/view/24246/28032 for a detailed account of this change). Do you thing the government should make any changes to the auditor general’s office as part of this current review?

3) How should Canadian governments disclose money spent on legislative functions in their financial statements?

Posted November 16th, 2015 by Brent White & filed under Accounting Careers, Student life.

Description: Housing prices in places like Vancouver and Toronto are causing Globe and Mail arts columnist Marsha Lederman to wonder what retirement might be like for Gen-Xers, like her, or the Millennials who are following. She remembers the big day when her mother celebrated receiving a notice from the bank saying the home mortgage had been paid off, but she wonders if her own mortgage will be paid by retirement time. No one seems to be talking of freedom 55 anymore. And 34 percent of Canadians are apparently hoping for a lottery win to solve their retirement funding crisis. Lederman’s advice – “think hard about the choices you make.”

Source: Globeandmail.com

Date: November 13, 2015

Link: http://www.theglobeandmail.com/globe-debate/a-cautionary-tale-learn-from-those-smart-stingy-boomers-and-think-before-you-spend/article27255113/

Discussion Points:

1) As a student, are you thinking ahead to your post-university life and the financial choices that lie ahead?

2) What opportunities does this personal finance situation offer for accountants?

3) What are the odds of winning the lottery? Does it surprise you that 34 percent of Canadians seem to be considering it as a solution?