Wiley Accounting Updates

Posted October 6th, 2014 by Brent White & filed under Accounting Careers, Canadian Economy, Canadian governments.

Description: When I was much younger, futurists dreamed of a day when the work week would be much shorter. What would we do with our high standard of living and all this leisure time? Well, according to Saturday’s Globe and Mail, many have reached the 15 hour work week. But that is a problem – for consumers, their finances and the country’s economy as a whole

Source: Globe and Mail.com

Date: October 4, 2014

Link: http://www.theglobeandmail.com/report-on-business/the-15-hour-workweek-canadas-part-time-problem/article20926986/

Questions for Discussion:

1) What has been your personal experience – and that of your friends and family – with this “part-time problem”?

2) How do you think this part-time problem might impact the accounting profession?

3) What policies can our society envision to help address the “part-time problem”?

Posted October 6th, 2014 by Brent White & filed under Canadian Economy, Financial Accounting, Marketing & Strategy, Student life.

Description: They’ve transformed the coffee world, these single-serve brewing units like Kuerig and Tassimo. And now a Toronto company, Club Coffee LP, is suing Kuerig Green Mountain Inc for alleged anti-competitive practices. Club Coffee makes its own pods which are compatible with the Kuerig machines. And the patent on the K-Cup technology has expired. But Club Coffee maintains Kuerig is using its influence with retailers to close the lid to its coffee makers to everything but official K-Cup brands.

Source: Financial Post.com

Date: October 1, 2014

Link: http://business.financialpost.com/2014/10/01/keurig-green-mountain-sued-by-canadas-club-coffee-for-600-million/

Questions for Discussion:

1) Are you a fan of the K-Cup? Why? Has the K-Cup changed your morning coffee routine as you head out for the day’s first class?

2) If you were an executive with Club Coffee, what strategies might you pursue to make your product successful?

3) What accounting issues are raised by a lawsuit like this? How would Club Coffee disclose it in its financial statements? What about Kuerig?

Posted October 6th, 2014 by Brent White & filed under Accounting Theory, Advanced Accounting, Canadian Economy.

Description: Not so long ago, it seems, we were hearing all kinds of talk of peak oil. Speculation abounded on what this might mean for oil prices and their impact on economic prosperity. But now, in spite of various international crises, world oil prices are in decline. Oil prices have hit a two year low amid concerns about oversupply.

Source: Globe and Mail.com

Date: September 30, 2014

Link: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/crude-oil-in-us-slides-most-in-17-months-on-growing-supply/article20859519/

Questions for Discussion:

1) Are you at all surprised by this turn of the discussion regarding world oil prices? What are your expectations for the future of oil price supply?

2) What will these prices mean for the accountants and auditors reviewing the valuation of oil reserves on the financial statements of oil and gas companies?

3) What impacts will this oil glut have on the Canadian economy?

Posted September 29th, 2014 by Brent White & filed under Auditing, Canadian governments.

Description: The recent New Brunswick election not only produced a new government; it also produced a rather intriguing situation when the vote counting machines malfunctioned, causing concerns about the process. Elections NB blamed the problem on a software malfunction. Meanwhile, a number of political officials have been calling for hand counts of the ballots.

Source: CBC.ca

Date: September 23, 2014

Link: http://www.cbc.ca/news/canada/new-brunswick/new-brunswick-votes-2014/new-brunswick-election-software-glitch-to-blame-for-result-delays-1.2775858

Questions for Discussion:

1) What do you think should be done in this situation? Should there be a hand recount of all ballots?

2) Would an audit of the results be a possible solution to restore voter confidence? What level of assurance would an audit firm provide on such an assignment?

3) What lessons might there be for other Canadian jurisdictions in this tabulation machine malfunction?

Posted September 29th, 2014 by Brent White & filed under Accounting Careers, Accounting Theory, Contemporary Business Issues, Financial Reporting and Analysis, Succession Planning.

Description: Bond King Bill Gross has resigned from the firm he founded. Gross left Pimco – Pacific Investment Management Co. – after a number of months of apparent internal struggles. Gross had been the face of the firm for over thirty years. But now his pictures have disappeared from the company website. The firm’s new CEO speaks of “overwhelming” relief at resolution of the firm’s situation.

Source: Wall Street Journal .com

Date: September 27, 2014

Link: :http://online.wsj.com/articles/pimco-ceo-cites-overwheling-relief-over-bill-gross-departure-1411853763

Questions for Discussion:

1) When a firm has such a public departure of a senior executive, what impact do you think it would have on the firm’s value?

2) Given that Bill Gross was the public face of the organization, and was known for his investor letters, what strategies could Pimco use to go forward without him?

3) What role can accountants play in leading their clients through succession-planning issues?

Posted September 29th, 2014 by Brent White & filed under Advanced Accounting, Auditing, Canadian Economy, Financial Accounting.

Description: It was a big news week for Blackberry. First, the struggling technology company released a new handset called the Passport. Then, Blackberry announced its second quarter results. Although the company continues to lose money, its loss of 2 cents per share was considerably lower than the 16 cents per share anticipated by analysts.

Source: Globe and Mail.com

Date: September 26, 2014, updated September 28, 2014

Link: http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDQQqQIwAQ&url=http%3A%2F%2Fwww.theglobeandmail.com%2Freport-on-business%2Fblackberry%2Farticle20799187%2F&ei=D78oVPLOAou1yAT06oKoCw&usg=AFQjCNEJ77jVcFAh-TieEs-MZn2C3q853g&bvm=bv.76247554,d.aWw

Questions for Discussion:

1) Do you think Blackberry’s new Passport phone has the potential to return the company to profitability? Why?

2) If you were the auditor of Blackberry, how would this latest news influence your evaluation of going concern?

3) If you were a Blackberry executive, what strategies would you recommend to address the firm’s challenges?

Posted September 22nd, 2014 by Brent White & filed under Auditing, Fraud, Internal control, Risk management.

Description: Home Depot appears to be the latest big-name retailer hit by hackers stealing credit card data. Estimates suggests this problem could affect up to 60 million account holders with a cost of up to $3 billion. Home Depot is offering a variety of services to help users who may have been hit in this wide-ranging hack.

Source: CBC.ca

Date: September 16, 2014

Link: http://www.cbc.ca/news/business/home-depot-credit-card-security-breach-could-cost-3b-1.2768043

Questions for Discussion:

1) If you were an executive at Home Deport, how would you respond to clients affected by this security breach?

2) For accountants and auditors, what are some of the internal control issues raised by this hacking incident? What can organizations do to mange this risk?

3) As a consumer, how do you protect yourself against the theft of credit card data and other personal information?

Posted September 22nd, 2014 by Brent White & filed under Canadian Economy, Public Finance.

Description: Former Nova Scotia Finance Minister, Graham Steele, has released a book describing his time in politics. Steele tells his readers of his deep disillusionment with the political experience. The Rhodes Scholar leaves the reader with a list of rules from the rough and tumble game of politics. Rule #1: Get re-elected

Source: CBC.com

Date: September 15, 2014

Questions for Discussion:

1) How do you think the ‘get re-elected’ rule impacts the finances of governments in Canada?

2) Are you surprised to hear these comments from a former minister of finance? Would you be interested in reading Mr. Steele’s book? Why or why not?

3) How are you reading your books these days? Do you go for paper or do you prefer the e-readers? Why?

Posted September 22nd, 2014 by Brent White & filed under Accounting Principles, Advanced Accounting, Intermediate Accounting, IPO's.

Description: In the largest initial public offering (IPO) in US history, Chinese internet marketer, Alibaba, began trading on the New York York Stock Exchange on Friday. Alibaba now has a market capitalization larger than a number of Silicon Valley heavyweights, including Facebook and Amazon. Yahoo, however, may be smiling quietly in the background. As an early investor in Alibaba, Yahoo may have made over $8 billion on the IPO.

Source: ABC news.com

Date: September 21, 2014

Link: http://abcnews.go.com/Technology/wireStory/alibabas-big-debut-10-things-256584712

Questions for Discussion:

1) What do you think about the price investors paid for Alibaba shares in this initial IPO?

2) How would Yahoo account for this impressive gain on its original investment in Alibaba?

3) Why do you think Alibaba chose to list its shares on the New York Stock Exchange versus another closer exchange, such as the Hong Kong exchange?

Posted September 15th, 2014 by Brent White & filed under Accounting Principles, Advanced Accounting, Canadian governments.

Description: On September 11, Federal Finance Minister Joe Oliver delivered his first major policy initiative since taking over as Minister earlier this year, with his announcement of a Small Business Jobs Credit. The aim of the credit is to reduce employment insurance premiums which in turn may prompt small business to hire more workers. The question on the minds of various business owners and economists, however, is how major is this ‘major’ announcement?

Source: TheGlobeandMail.com

Date: Thursday, September 11 2014; updated Friday, September 12 2014

Link: http://www.theglobeandmail.com/news/politics/canadian-businesses-divided-over-tax-credit-limit/article20571385/

Questions for Discussion:

1) To what extent do you think this tax credit will promote job creation by small businesses?

2) Do you think the cost of this program is providing value-for-money for Canadian taxpayers?

3) How will small businesses account for this credit in their financial statements?