Beating a drum

Posted by & filed under Managerial Accounting, Marketing & Strategy.

Description: Ten years ago Larry Guay faced a huge challenge when his business of building furniture components was undercut by cheap knock-offs from competitors. Rather than fold up the manufacturing plant, he shifted product focus and together with his wife started Los Cabos Drumsticks. The team took their show on the road in the early days, calling on dealers throughout Canada, showing off their drumsticks to prospective customers. Now their markets include Japan and Europe.

Source: Globeandmail.com

Date:  April 22, 2015

Link: http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/the-challenge/nb-drumstick-maker-wants-to-make-some-noise/article24042872/

Discussion Points:

1) What important success qualities did the entrepreneur Larry Guay exhibit in turning his furniture manufacturing business into a drumstick maker?

2) What would be some of the key costs you would want information on if you were Larry Guay?

3) The article closes with three prominent business experts providing  strategy advice for Larry’s business. Which piece of strategy advice do you believe is the best? Why?

 

Budget balancing

Posted by & filed under Canadian Economy, Canadian Government, Personal Tax.

Description: The federal government released its budget this week, with a planned surplus of over a billion dollars. One of the tax measures for Canadians was an increase in tax free savings account limit to $10,000 per year. There were also changes in the small business tax rate.

Source: thestar.com

Date:  April 21, 2015

Link: http://www.thestar.com/news/canada/2015/04/21/highlights-of-the-2015-16-federal-budget.htmlDiscussion Points:

1) As a student, what type of measures would you like to see in a federal budget?

2) What do you think of the changes in the limits for tax free savings accounts? Is this a savings option that appeals to you or your friends? Your parents?

3) The article speaks of over $1 billion being allocated for research infrastructure. Do you know if your university is on track to receive any of these funds?

Pension funds say on pay

Posted by & filed under Accounting Theory, Contemporary Business Issues, Executive Compensation.

Description: Three major pension funds are ready to throw out the board of Barrick Gold because they are concerned about the company’s executive pay plan. One of the three pension funds also expressed concerns about pay practices at CIBC. Although these funds are only minority shareholders, their public statements may raise important points regarding concerns on executive pay.

Source: Globeandmail.com

Date:  April 17, 2015

Link: http://www.theglobeandmail.com/report-on-business/teachers-bcimc-object-to-barrick-cibc-compensation/article24009241/

Discussion Points:

1) How do you think the strategy of these three pension funds will influence the debate around executive pay?

2) If you were a member of the compensation committee of the board at Barrick or CIBC, how would you respond to this public criticism?

3) What are some of the key points accounting theory tells us about how to structure executive compensation plans?

Mobile gaming rewards

Posted by & filed under Corporate Strategy, Managerial Accounting.

Description:  McGill grad Jeremy Zuckerman is looking to disrupt the world of mobile gaming. He plans a unique strategy of paying cash rewards to players of games offered by his company WINR Games. Success does not come easily in this $21 billion industry, so it will be interesting to see if Jeremy’s reward ploy works in the key metric of drawing players to his company.

Source: Globeandmail.com

Date:  April 14, 2015

Link: http://www.theglobeandmail.com/technology/mcgill-graduate-searches-for-magic-formula-of-mobile-gaming-industry/article23963010/

Discussion Points:

1) Do you have a favourite mobile game? What attracts you to it?

2) What is your opinion of this strategy of paying winners as a method of building the customer base?

3) Which of the two cost per customer metrics discussed in the article do you believe is the most relevant?

Shopify to go public

Posted by & filed under Canadian Economy, Financial Accounting, Managerial Accounting.

Description: Ottawa area tech company Shopify is getting set to go public, perhaps helping to put some lustre back on Canada’s tech image after well-publicized problems at Blackberry and Nortel. The initial public offering is expected to raise in the range of $100 million for the company. Shopify provides an internet platform that retailers can use to do business online, but it also provides a number of other software supports for its clients.

Source: Globeandmail.com

Date:  April 14, 2015

Link: http://www.theglobeandmail.com/report-on-business/shopify-files-for-initial-public-offering/article23961028/

Discussion Points:

1) Were you familiar with Shopify prior to reading this article?

2) How will Shopify account for funds raised through an IPO?

3) What are some of the factors a company would have to consider before deciding to go public?

Down, but is it out?

Posted by & filed under Canadian governments, Taxation.

Description: Last week Globe and Mail political  writer Jeffrey Simpson had a tersely worded warning for one Canadian province: “New Brunswick is flat on its fiscal back.” The article noted that New Brunswick is “the worst case in Canada” in terms of fiscal problems. One issue seems to be a reluctance to raise the harmonized sales tax because of a fear of political fallout.

Source: Globeandmail.com

Date:  April 10, 2015

Link: http://www.theglobeandmail.com/globe-debate/new-brunswick-is-flat-on-its-fiscal-back/article23875102/

Discussion Points:

1) Do you agree with Mr. Simpson’s assessment?

2) If you were the Finance Minister of New Brunswick, what steps would you take to improve the situation?

3) What role can professional accountants play in addressing these important public finance issues?

A sweet story

Posted by & filed under Accounting Principles, Corporate Strategy.

Description: It’s spring.  The sap is flowing. And the world’s largest maple syrup producer, the Province of Quebec, is facing increased competition from American competitors. Whereas Quebec once controlled 80% of the market through its tight supply management system, it is predicted that by 2018, that figure could drop to 63%.

Source: Globeandmail.com

Date:  April 6, 2015

Link: http://www.theglobeandmail.com/report-on-business/quebec-losing-hold-over-maple-syrup-industry-due-to-us-competition/article23815051/

Discussion Points:

1) Are you a maple syrup fan? How much of a premium would you pay for real maple syrup over a maple-flavoured substitute?

2) What may be some strategies Quebec producers could use to combat the decline in market share?

3) How would a farm’s maple trees be accounted for on a set of financial statements?

Accounting control and the Senate

Posted by & filed under Accounting Careers, Auditing, Ethics, Public Finance.

Description: In the news last week – and presumably for the next few weeks to come – it was hard to escape mention of the trial of suspended senator Mike Duffy. The media seems fixated on the trial. One thing that has emerged seems to be very wide interpretation of what expenses allowed under the Senate rules.

Source: Globeandmail.com

Date:  April 7, 2015

Link: http://www.theglobeandmail.com/news/politics/mike-duffy-abused-position-as-senator-crown-alleges-in-first-day-of-trial/article23822755/

Discussion Points:

1) Have you been following the news surrounding the Mike Duffy trial?

2) What lessons might accountants learn from this public trial about establishing policies and procedures around travel expenses in their workplaces?

3) In addition to this criminal trial, several media outlets have reported that the Auditor General is auditing senators’ expenses. What might be some of the audit procedures you would recommend for carrying out an audit of travel expenses?

Art auction surprises Christies

Posted by & filed under Accounting Principles, Accounting Theory, Auditing.

Description: Two anonymous 19th century Canadian paintings sold last Wednesday in London for a lot price of close to $1 million. This was over a dozen times Christie’s original estimate of what the lot might attract. A representative of Christies auctioneers was obviously “thrilled.”

Source: Globeandmail.com

Date:  April 1, 2015

Link: http://www.theglobeandmail.com/arts/art-and-architecture/paintings-netting-nearly-1-million-set-new-benchmark-in-canadian-art-sales/article23757063=

Discussion Points:

1) What are some of the challenges in valuing art?

2) What choices do institutions like museums and galleries have for disclosing their art holdings in their financial statements?

3) If you were an auditor of a client who had significant holdings of art, what might be some of the audit procedures you would employ to ensure the valuation of the art was accurate?

MEC’s new space

Posted by & filed under Accounting Careers.

Description: Mountain Equipment Co-operative (MEC)  has a brand new head office space in Vancouver and it seems to be one that fits MEC’s vision. The four-story HQ which has an employee lounge with mountain views, in addition to a climbing wall and bike lockers, is about 70% more energy efficient than  comparable commercial buildings. CFO Sandy Treagus says this new building is much more appropriate for the energy of  MEC’s workforce.

Source: GlobeandMail.com

Date:  March 31, 2015; updated April 1, 2015

Link: http://www.theglobeandmail.com/report-on-business/industry-news/property-report/inside-mecs-modern-woodsy-hq/article23686912/

Discussion Points:

1) Are you a MEC member? If so, what attracted you to the MEC brand?

2) Do you think the physical aspects of a workspace can have a big influence on how you carry out your work?

3) What do you think might be some of the key decisions a CFO like Sandy Treagus would be involved with?