Starbucks Cutting Down on Plastic

Posted by & filed under Financial Accounting, Marketing & Strategy, Student life, Sustainable Development.

Description: Starbucks has announced that in a bid to reduce waste associated with its popular cold drinks, it is coming out with a new cup with that will cut its plastic footprint by roughly 20 per cent. The company sees this as an industry leading practice and it maintains that the cups will still be sturdy. As a bit of a longer term goal, Starbucks aims to have all of its cups to be reusable, recyclable, or suitable for composting by 2030.

Date:  April 18, 2024

Source:  ctvnews.ca

 Link: https://www.ctvnews.ca/business/starbucks-will-roll-out-a-redesigned-plastic-cup-in-canada-this-month-in-a-bid-to-reduce-plastic-waste-1.6853358

Discussion points:

1) Do you have a Starbucks on your campus? How much plastic waste do you think these cups might generate?

2) What else might the company do to reduce plastic waste?

3) Page 6-4 of Wiley’s Financial Accounting: Tools for Business Decision-Making tells us about an important part of accounting for inventory (like cups and other supplies) that is usually done when the store is closed. What is this important activity, and, why do you think it is usually done when the facility is closed?

Students: File That T-1!

Posted by & filed under Financial Accounting, Personal Tax, Student life.

Description: If you are a student, you should be filing a T-1 Canadian income tax return, even if you don’t think you have earned money in the last year. Tax credits like the GST/HST credit and the Carbon Rebate have the unique feature of being dropped directly into your bank account, versus serving to reduce your overall tax owing on your income. As well, even if you don’t need the tuition credit for this year, file anyway. This will make it much easier for you to back track and make claims when you are earning more income.

Date:  April 16, 2024

Source:  thecanadianpressnews.ca

 Link: https://www.thecanadianpressnews.ca/business/students-benefit-from-filing-a-tax-return-even-if-they-dont-make-a-lot-of/article_bb100e66-8a3b-5bfe-978e-0f3dee37fe0f.html

Discussion points:

1) Did you file a return last year? Are you planning to do so this April?

2) What did you learn from this article?

3) In Chapter 10 of Wiley’s Financial Accounting: Tools for Business Decision-Making we can see how companies account for the income tax they withhold from our pay cheques. What is the journal entry a company would make to record the eventual forwarding of our deductions to the Canada Revenue Agency?

Where’s the Gold?

Posted by & filed under Fraud, Internal control.

Description: On April 14, 2024, the CBC ran a story noting how the big 400 kg gold heist from Pearson Airport was hitting a one-year anniversary with no word of arrests https://www.cbc.ca/news/canada/toronto-pearson-gold-heist-anniversary-1.7169898 . Almost as if on cue, came news this week that a number of individuals were being charged for their parts in the $22.5 million gold theft. As might have been suspected, a couple of those sought by the Peel Regional Police were from the inside. Detective -Sargeant Mike Mavity of the Peel Police said “They needed people inside Air Canada to facilitate this theft.”

Date:  April 17, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/toronto/pearson-airport-heist-arrests-1.7176041

Discussion points:

1) Why do you think the public is often fascinated by such stories as this one on a big heist?

2) Why would a theft like this one have required inside help?

3) In Chapter 7 of Wiley’s Financial Accounting: Tools for Business Decision-Making tells us a number of important things about internal control. Which of these do you believe would be most important in terms of hiring trusted help who would protect a company’s assets?

The Camper Glut

Posted by & filed under Accounting Careers, Canadian Economy, Student life.

Description: In the early days of the Covid-19 pandemic when air travel was heavily disrupted, Canadians directed their vacation spending towards things that would allow them to spend time outdoors; purchases such as travel trailers, RVs, ATVs, and camping gear. But a combination of the bounce-back from Covid travel restrictions and a decline in discretionary spending due to the uptick in inflation, has hit so-called “pre-trip expenses” fairly hard. Economist Eric Desjardins of Statistics Canada said last year saw a decline of over 10 percent in spending on “major durable goods for outdoor recreation.” For RVs in particular, a decline in sales of 20 percent has placed buyers in a very strong position.

Date:  April 14, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/calgary/new-rv-sales-down-1.7168266

Discussion points:

1) Did you or your family develop a new interest in outdoor vacations during the pandemic? Did you purchase any additional gear?

2) If you were an executive with a company specializing in the outdoor vacations market, what strategies might you recommend to deal with this downturn in demand?

3) In Chapter 6 of Wiley’s Financial Accounting: Tools for Business Decision-Making we see a section “Valuing Inventory at the Lower of Cost and Net Realizable Value” for Learning Objective 5. If you were an accountant at a dealer of RVs, how might this section impact your valuation of inventory on the lot, given today’s market?

Solar Eclipse Good for Tourism

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

Description: The April 8 solar eclipse was certainly good for business. Niagara Falls, with locations on both sides of the Canada-U.S. border, anticipated a million visitors https://www.theweathernetwork.com/en/news/lifestyle/travel/a-million-solar-eclipse-enthusiasts-expected-at-niagara-falls-canada . About 100 Super 8 motels in the path of totality sold out. Occupancy rates on AirBnB trended upwards and no doubt some in the tourism industry had a small windfall owing to the law of supply and demand.

Date:  April 8, 2024

Source:  businessinsider.com

 Link: https://www.businessinsider.com/solar-eclipse-tourism-boost-local-economies-hotels-glasses-skydiving-2024-4?op=1

Discussion points:

1) Was your university in the path of the eclipse? Did your campus have special events or class cancellations?

2) If you were in the tourism industry, what strategy might you adopt to take advantage of this once-in-a-lifetime opportunity?

3) In Wiley’s Financial Accounting: Tools for Business Decision-Making we often read about note disclosures in the financial statements. Do you think that an unusual rise in business activity associated with an eclipse is something that should be disclosed?

How Much House Debt Can You Handle?

Posted by & filed under Financial Accounting, Student life.

Description: For those of you getting set to graduate and enter the workforce, do you see a house purchase in your immediate future? If so, you may want to take a look at this handy tool CBC news reported on this week. This simple to use tool gets you to fill in a simple four corner dashboard looking at your key financial information, such as income before taxes and your expected mortgage interest rate. Out comes a suggestion on how much of a home you probably can afford.

Date:  April 10, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/what-s-the-most-expensive-home-you-could-afford-1.7151065

Discussion points:

1) Do you want to purchase a home soon after graduating? How about your classmates?

2) Using the CBC tool, how much of a home can you afford?

3) In Illustration 2-12 of Wiley’s Financial Accounting: Tools for Business Decision-Making we read about the three main classifications of financial ratios. Which of these classifications is most applicable to the personal finances of a home owner with a mortgage?

Investors Pressure RBC on Green Reporting

Posted by & filed under Accounting Careers, Sustainable Development.

Description: Under pressure from the City of New York’s pension funds, RBC has agreed to reverse course and start reporting on the ratio of its green investments to its investments in fossil fuels. The move will help RBC avoid the potential embarrassment of losing a vote on the issue at its upcoming annual meeting of shareholders. Environmental groups may see this as a moral victory of sorts. Last year it was reported that RBC was the largest financier of fossil fuel developments in the world. https://www.cbc.ca/news/business/royal-bank-oil-and-gas-1.6809011

Date:  April 6, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/rbc-green-energy-nyc-pensions-1.7165467

Discussion points:

1) Do you feel that this enhanced reporting will help reduce overall carbon emissions?

2) Are you interested in studying about, and perhaps eventually working in, the area of improved corporate reporting around environmental impacts?

3) In the What’s New? section of Wiley’s Financial Accounting: Tools for Business Decision-Making we read on page vii that this edition of the text has a new feature on “Accounting and the Environment.” This new section is featured in three different chapters. Which of the three do you find the most interesting? Why?

There Goes Your Show

Posted by & filed under Accounting Careers, Marketing & Strategy, Student life.

Description: Bell has announced that starting next month, shows customers have recorded on their PVRs will disappear after 60 days. With the move to cloud storage, Bell clients have benefited by being able to watch their recorded shows on mobile devices. But, of course, all that cloud storage comes at a cost, and, it appears that Bell is looking to reduce this impact on its bottom line.

Date:  April 5, 2024

Source:  msn.com

 Link: https://www.msn.com/en-ca/news/other/pvr-pullback-bell-to-delete-viewers-saved-tv-shows-and-movies-after-60-days/ar-BB1l6W4x

Discussion points:

1) Do you and your friends at university make much use of the pvr? If so, will the move by Bell impact you?

2) If you were an accountant employed by Bell, and you were asked to calculate the potential savings of this new “60-day delete” policy, how would you approach it?

3) Page 1-3 of Wiley’s Financial Accounting: Tools for Business Decision-Making tells us of a number of Canadians who have studied as accountants and then gone on to broader careers. Which accountant listed there has a significant position with Bell Canada?

University Hit in Cyber Attack

Posted by & filed under Data security, Student life.

Description: The University of Winnipeg has been the victim of a cyber attack, forcing it to cancel some classes and exams. The university reports that the attackers probably stole data from students – both current and former – as well as faculty and staff. The hackers may have targeted such details as social insurance numbers, addresses, and banking information. University of Winnipeg users have been warned to keep a tight watch for such things as another party trying to open a credit account with stolen information.

Date:  April 4, 2024

Source:  ctvnews.ca

 Link: https://winnipeg.ctvnews.ca/university-of-winnipeg-reveals-student-faculty-data-stolen-in-cyber-attack-1.6834039

Discussion points:

1) Are you a student at the University of Winnipeg who was impacted by this breach? If not, do you know a student or employee who may have been touched by this?

2) What can you do to protect your information from hackers?

3) On page 6-7 of Wiley’s Understanding Financial Accounting you will read of five limitations of internal control. Though the University of Winnipeg would have a system of internal control, including controls to protect data, which of these limitations do you think would have been the most likely to have permitted the data breach?

Chocolate Heading Up

Posted by & filed under Managerial Accounting, Student life.

Description: The price of chocolate is heading up, adding particular pain to some Canadians as they mark the rising food prices in their budgets. Chocolate is made from cocoa, and the major growing region of West Africa suffered from drought and disease, reducing crop yields while essentially tripling the price. Olive oil is another case where bad weather sent harvests downward and prices up.

Date:  March 28, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/climate-change-inflation-1.7155668

Discussion points:

1) How many of the students in your class are chocolate lovers? How many have felt the cocoa crisis in their own spending?

2) Have you changed any of your shopping habits to deal with inflation of food prices?

3) Page 2-3 of Wiley’s Managerial Accounting: Tools for Business Decision-Making introduces us to the three broad classifications of manufacturing costs. If you were a chocolate producer, which of these three classifications would you record your cocoa purchases in?