Posted by & filed under Accounting Careers, Corporate Social Responsibility, Taxation.

Description: The charitable organization Oxfam released a report last week, adding another voice to the chorus of those raising alarm bells on rising global inequality. Oxfam’s report says that the richest 80 people in the world own as much as the 3.5 billion humans at the bottom of the economic scale. Oxfam calls for a number of measures – such as improved disclosure of lobbying, raising minimum wages, and addressing tax havens – to address the growing inequity.

Source: Globe and Mail.com

Date:  January 19, 2015

Link: http://www.theglobeandmail.com/report-on-business/economy/oxfam-warns-richest-1-per-cent-could-own-majority-of-world-wealth/article22529109/

Discussion Points:

1) What is your opinion on the Oxfam report? Do you believe that there is a growing problem re wealth distribution?

2) As a student looking ahead to graduation, how does this story impact upon your career expectations? What kind of a career are you looking for?

3) What taxation and policy decisions might leaders implement to best address the wealth distribution issue?

Posted by & filed under Accounting Careers, Auditing.

Description: It has been dragging on for over 20 years. But now, a $220 million offer from Coopers and Lybrand, Chartered Accountants, has been put forward to take care of all claims resulting from the failure of Castor Holdings in 1992. Coopers Lybrand, which subsequently merged with Price Waterhouse, was the auditor of Castor Holdings, a real estate company alleged to have overstated both its loan portfolio and revenues in its financial statements.

Source: Globe and Mail.com

Date:  January 19, 2015

Link: http://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/settlement-offer-tabled-in-long-running-castor-real-estate-case/article22529021/

Discussion Points:

1) Why do you think some of these lawsuits involving auditing firms take so long to resolve?

2) What are some things audit firms can do to ensure that they avoid costly litigation?

3) Does the prospect of litigation have an impact on your choice of accounting career?

Posted by & filed under Canadian Economy, Corporate Strategy, Financial Reporting and Analysis.

Description: Many were caught by surprise last week when retail giant Target announced it was ending its Canadian experiment and closing all of its stores here. Many have speculated on what went wrong in this strategic misstep. Impacts of Target’s withdrawal may be difficult to assess, but it will certainly hit the retail real estate market.

Source: CBC.com

Date:  January 17, 2015

Link: http://www.cbc.ca/news/business/target-canada-s-closure-leaves-landlords-with-vacant-real-estate-1.2913138

Discussion Points:

1) Were you surprised by Target’s decision? Why or why not?

2) What are some of the strategic lessons we might see in Target’s Canadian experience?

3) What financial reporting considerations emerge in a case like this of discontinued operations?

Posted by & filed under Contemporary Business Issues, Ethics.

Description: A Canadian has been arrested in Florida for his alleged involvement in a high-frequency trading scheme. Allegations suggest that the Canadian trader used a plan known as layering or spoofing to impact share prices. It appears that the scheme was detected when the trader approached an employee of a bank in an attempt to recruit an additional accomplice. The bank employee  was actually cooperating with enforcement officials and recorded the conversation with the trader.

Source: Globe and Mail.com

Date:  January 13, 2015

Link: http://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/us-charges-canadian-man-with-stock-price-manipulation/article22431831/

Discussion Points:

1) Were you familiar with the term high-frequency trading? If so, what is your understanding of it?

2) What are some of the ethical issues raised by this story?

3) What is your opinion of the potential penalty discussed in the article? Do you believe it acts as a sufficient deterrent?

Posted by & filed under Advanced Accounting, Public Finance.

Description: On Tuesday, January 13, the Quebec government announced that the provincial pension fund, the Caisse de dépôt et placement du Québec, would make a $5 billion investment in the province’s transportation network. The pension fund will provide both the financing and the management for these assets. This mixing of political and pension goals may have big impacts though. What type of returns can be expected from these public investments and how will this impact the pensions of those who rely on the Caisse for their retirement income?

Source: Globe Advisor.com

Date:  January 14, 2015

Link: https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20150114/RBSWPENSIONS

Discussion Points:

1) The article raised the point that the Quebec government is heavily indebted so relying on the pension fund for public infrastructure does offer resources to it. What is your opinion of the risks and rewards of this strategy?

2) What are some of the accounting issues that might emerge for both the government and the Caisse?

3) If you were a pensioner relying on the Caisse for your retirement income, what would be your view of the arrangement?

Posted by & filed under Accounting Principles, Contemporary Business Issues.

Description: Rosafe Signet is sort of a household name in Cuba, but he is barely known in his Canadian home. This prize Holstein bull is the father of much of Cuba’s dairy herd. Now, with President Obama’s warming of relations towards Cuba, and the actions of a determined Vancouver attorney named Carey Linde fronting the efforts, Rosafe Signet may soon receive recognition via a 600 kg statue in Old Havana. Linde has been attempting to use Kickstarter to help fund the project.

Source: Globe and Mail.com

Date:  January 4, 2015

Link: http://www.theglobeandmail.com/news/national/ontario-holstein-bull-to-be-honoured-with-statue-for-role-in-cuban-history/article22288218/

Discussion Points:

1) Have you ever used Kickstarter or a similar approach for raising funds?

2) How should accountants record funds raised through Kickstarter or similar sites?

3) What opportunities might the warming of relations between Cuba and the United States create for businesses?

Posted by & filed under Accounting Principles, Financial Reporting and Analysis, Marketing & Strategy, Student life.

Description: Air Canada recently reported its best quarter in corporate history. No doubt all those extra fees airline customers have to pay fit somewhere into that profitable picture. In the US, this so-called ancillary income – where it is disclosed – is up from $2.5 billion back in 2005 to $31.5 billion for 2013. That’s a lot of extra cash for a bit of extra legroom.

Source: Globe and Mail.com

Date:  January 8, 2015

Link: http://www.theglobeandmail.com/globe-debate/a-golden-age-of-flying-yours-for-a-few-extra-fees/article22359782/

Discussion Points:

1) Have you had any surprises about the ancillary fees airlines charge? What has been your experience in some of your travels to and from university?

2) The wording in the article indicates that not all airlines may be disclosing these ancillary fees. What is your opinion on whether or not such fees should be disclosed in the airlines’ financial statements?

3) Some of things we now pay extra fees for – like a bit of extra legroom and checked baggage – were once included in the standard airfare. What has caused many airlines to now bill separately for these items that were once considered standard?

Posted by & filed under Accounting Theory, International Business Operations.

Description: In December, Europe officially entered the deflationary zone, with a 0.2 per cent drop in the consumer price index. The European Central Bank is being pressured to respond to this situation. A deflationary environment, if it persists, can be very damaging if people begin to expect a future of declining prices.

Source: Globe and Mail.com

Date:  January 7, 2015;  updated January 8, 2015

Link: http://www.theglobeandmail.com/report-on-business/international-business/european-business/deflation-hits-euro-zone-ramping-up-pressure-on-ecb/article22329510/

Discussion Points:

1) What challenges do declining prices pose to an economy?

2) During the high inflationary period of the 1970’s and the 1980’s, accountants debated what the impact of changing prices meant to our “cost based” financial statements. What theoretical accounting issues might emerge in a deflationary environment?

3) The article also notes that Europeans are not as invested in the stock market as Americans. Why do you think this would be?

Posted by & filed under Advanced Accounting, Auditing.

Description: When you think of Manulife Financial Corp, you probably think of life insurance. But you may be surprised to learn that the company has diverse investments ranging from timber to  renewable energy to macadamia nuts. A broader range of investments helps the company compete in the wealth management business while offering growth potential.

Source: Globe and Mail.com

Date:  January 2, 2015

Link: http://www.theglobeandmail.com/report-on-business/international-business/manulife-branches-out-from-insurance-in-quest-for-stability-and-profitability/article22278840/

 

Discussion Points:

1) What surprised you about Manulife’s investment portfolio? Why?

2) One of the investments discussed in the article is a joint venture in Chile in the timber industry. What are some of the special accounting considerations for joint ventures?

3) If you were the auditor of Manulife, what are some of the challenges you might face in gaining an understanding of the client’s business?

Posted by & filed under Taxation.

Description: One of the big book hits of the last year has been French economist’s Thomas Piketty’s Capital in the 21st Century. Pikkety’s 700 plus pager has generated debate with his call for a global tax on capital, a prescription he argues is necessary to assist low growth economies that see too much wealth in the hands of too few. Piketty underlined his belief in dramatic fashion recently by refusing to accept the prestigious membership in France’s Légion d’honneur. This refusal has given an unusually high profile to the issue of tax policy.

Source: Globe and Mail.com

Date:  January 1, 2015

Link: http://www.theglobeandmail.com/globe-debate/editorials/le-grand-snub-de-thomas-piketty/article22277270/

Discussion Points:

1) If you were in Thomas Piketty’s position, would you have accepted this award? Why or why not?

2) What is your opinion regarding the argument that low growth is a symptom of wealth concentration?

3) Given that tax policy is so important to businesses, citizens and economies, why do you think we give so little profile  to it in the media?