Posted by & filed under Accounting Careers.

Description: Canadian Patrick Pichette, Google’s CFO since 2008, announced his retirement from the huge company last week. At only 52, this can be considered an early retirement and he intends to do more traveling. The decision was spurred by a question his wife asked him as they stood on top of Mount Kilimanjaro last fall.

Source: Globe and Mail.com

Date:  March 11, 2015, updated March 13, 2015

Link:  http://www.theglobeandmail.com/technology/googles-canadian-cfo-ready-to-embark-on-an-early-retirement/article23412646/

Discussion Points:

1) What do  you think of Mr. Pichette’s decsion to retire at 52?

2) As your university career winds down, and you think ahead to your future, what is your career plan?

3) What lessons do you see for your own life in Mr. Pichette’s career?

Posted by & filed under Accounting Careers, Canadian Economy, Taxation.

Description: According to a  report released on March 5 by real estate  consultants  Knight Frank, Toronto ranks among key cities for the Mega-rich. Those with lots of money apparently see much that is attractive in Canada’s most populous city. Meanwhile, Sotheby’s International Realty Canada suggests that Toronto will continue to lead the luxury real estate market in Canada.

Source: Globe and Mail.com

Date:  March 5, 2015

Link:  http://www.theglobeandmail.com/report-on-business/top-business-stories/toronto-among-cities-that-will-dominate-for-worlds-megarich-study-finds/article23304004/

Discussion Points:

1) What business opportunities do you think might emerge for the accounting profession from this situation?

2) For Canadian governments at various levels, does this situation present any opportunities or challenges?

3) Why do you think Toronto is looked upon so favorably by wealthy individuals?

Posted by & filed under Accounting Careers, Canadian Economy.

Description: More Canadians are becoming self-employed. And wages of those employed seem to be falling. A study by the Canadian Imperial Bank of Commerce shows rather alarming trends in measures of job quality, looking at data from a 25 year span.

Source: Globe and Mail.com

Date:  March 5, 2015

Link:  http://www.theglobeandmail.com/report-on-business/economy/job-quality-in-canada-sinks-to-all-time-low-cibc-index-shows/article23303996/

Discussion Points:

1) How do you feel about the employment prospects for you and your fellow classmates?

2) What are some things that you might do to prepare for the job market in the face of such trends?

3) What are some of the policy options that Canada might pursue to reverse these trends in job quality?

Posted by & filed under Accounting Theory, Corporate Strategy.

Description: Costco – the huge warehouse style retailer – beat Walmart and Target in sales growth in the most recent quarter. Costco was up over 8% versus about 1.5% for Walmart and 3.2% for Target. Perhaps in a bit of a surprise though, Costco shares fell about 0.1%.

Source: Globe and Mail.com

Date:  March 5, 2015

Link:  http://www.theglobeandmail.com/report-on-business/international-business/us-business/costco-profit-tops-estimates-as-revenue-growth-beats-wal-mart/article23303696/

Discussion Points:

1) What do you think may be some of the reasons behind Costco’s success?

2) What are some internal control considerations for a giant retailer like Costco?

3) Why would Costco’s shares have fallen in the face of this positive news? What might accounting theory have to say about this?

Posted by & filed under Accounting Careers, Auditing.

Description: A report released on Tuesday, February 24, by security firm FireEye showed that roughly 70 percent of companies suffering data breaches last year found out about it from someone outside the organization. Police agencies and customers, for example, may notify a company before anyone inside the organization realizes they have been hit by cyberattack. Another scary fact revealed in the report is that the median time to find out about an attack was about 7 months, leaving lots of time for the hackers and attackers to wander around at will.

Source: Globe and Mail.com

Date:  February 24, 2015

Link:  http://www.theglobeandmail.com/technology/companies-are-falling-short-in-efforts-to-counter-cyberattacks-report/article23190827/

Discussion Points:

1) Have you ever had your data compromised in a cyberattack?

2) What are some internal controls that you may have learned in your auditing or accounting classes that could help prevent or detect cyberattacks?

3) What are some of the career options for accountants who are interested in developing a career in cyber security?

Posted by & filed under Canadian Government, Personal Tax.

Description: A report released by Canada’s Parliamentary Budget Officer is raising alarm regarding the government’s plan to double the limit on Tax Free Savings Accounts (TFSAs). Both the federal government and the provinces would eventually be losing billions in revenue each year as a result of the changes. With aging populations, this raises serious questions about where governments will find the  revenue to replace the loss from TFSAs.

Source: Globe and Mail.com

Date:  February 25, 2015

Link:  http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/why-we-cant-afford-to-raise-the-tfsa-contribution-limit/article23207258/

Discussion Points:

1) What is your opinion on the planned increase in the TFSAs?

2) If you had $5,000, would you contribute it to as TFSA or to a registered retirement savings plan?

3) If you were advising the government, what revenue generating strategies might you recommend?

Posted by & filed under Advanced Accounting, Intermediate Accounting.

Description: Hudson’s Bay Company is going beyond the retail sales stream in an effort to add value to its business. The company announced it has entered into joint ventures, one with an American company and the other here in Canada, in an effort to cash in on value locked in its real estate assets. The joint venture arrangements will generate cash for Hudson’s Bay that can be applied to reducing its debt.

Source: Globe and Mail.com

Date:  February 25, 2015

Link:  http://www.theglobeandmail.com/report-on-business/hudsons-bay-simon-property-form-venture-valued-at-18-billion/article23194925/

Discussion Points:

1) What is your opinion of this strategic move by Hudson’s Bay?

2) How will Hudson’s Bay Company have to account for the debt raised by the joint ventures?

3) What are some of the key issues in joint venture accounting?

Posted by & filed under Canadian Government, Financial Accounting.

Description: The Government of Canada is writing off about $300 million in student loans, most of which was defaulted on before 2009. The details were revealed in supplementary spending estimates tabled in Parliament on February 19. Jessica McCormick of the Canadian Federation of Students commented that the amount of the defaults points to a need for changes in student funding programs.

Source: Globe and Mail.com

Date:  February 19, 2015

Link:  http://www.theglobeandmail.com/news/politics/new-18-billion-in-federal-spending-includes-300-million-to-write-off-bad-student-loans/article23074161/

Discussion Points:

1) As a student, what has been your experience with student loans?

2) What changes would you recommend to help students finance their post-secondary education?

3) The article states that with respect to student debt, “the department does not report losses for each fiscal year”. Discuss the merits of this based on your knowledge of accounting principles.

Posted by & filed under Advanced Accounting, Canadian Economy, Financial Reporting and Analysis.

Description: Interest rates continue to fall, signalling bad times for pension funds and pension recipients. As rates fall, the present value of the liabilities in defined benefit pension plans increase. An increase in liablities, often means that a company must contribute more cash to the pension plan.

Source: Globe and Mail.com

Date:  February 20, 2015

Link:  http://www.theglobeandmail.com/globe-investor/investment-ideas/big-deficits-mean-big-cash-contributions-to-corporate-pensions/article23135545/

Discussion Points:

1) How much longer do you think the low interest environment will continue?

2) What are some of the key financial reporting issues related to pension plans?

3) It seems that in a number of well publicized cases, defined benefit pension plans appear to be in danger of being replaced. What can accountants do to contribute to the discussion of the future of pension plans?

Posted by & filed under Auditing, Ethics.

Description: SNC-Lavalin, the Canadian engineering giant, has been charged by the RCMP for bribery. These charges stem from SNC-Lavalin’s alleged bribes to Libyan officials of at least $47.7 million. The company could also face additional charges according to the Globe and Mail.

Source: Globe and Mail.com

Date:  February 19, 2015

Link:  http://www.theglobeandmail.com/report-on-business/snc-lavalin-faces-rare-corporate-fraud-and-bribery-charges/article23108284/

Discussion Points:

1) If you were an executive at SNC-Lavalin, what strategy would you put in place to respond to these charges?

2) If you were an auditor of SNC-Lavalin, how would the news of these charges affect your assessment of audit risk?

3) How should a Canadian company respond when doing business in countries where bribes might be seen as just a normal part of a commercial transaction?