個案資料

ShakeeBee Honey Inc. was a relatively small producer of pure honey and beeswax and provider of pollination services located in central Newfoundland, Canada. The company needed to consider further expansion beyond the facility modernization it undertook in 2018; this expansion would involve acquiring additional land and attracting key personnel. In March 2020, the owner reached out to his accountant for assistance with a variety of accounting-related matters. The company needed an analysis of its current operations, including profitability by product/service line offered. It also needed an assessment of its application for a government pollination grant and a declaration in support of this application, and assistance in evaluating tax implications of some upcoming decisions.

This exercise can be used in courses in management accounting and finance at the graduate level or in integrated Chartered Professional Accountants of Canada preparatory courses. After working through the case and answering the assignment questions, students will be able to<ul><li>use cost allocation data to help evaluate segment financial performance;</li><li>review the appropriateness of cost allocation data to a segment for the purpose of support for an operating grant;</li><li>evaluate the sufficiency of funds available from personal assets, and assess the tax implications of their disposal for the purpose of business expansion funding;</li><li>consider options regarding assurance given in support of a government grant application;</li><li>use present value analysis to evaluate whether a firm should buy or lease land for expansion;</li><li>consider the tax implications, for an individual, of the sale of a principal residence and the eligibility of moving expenses; and</li><li>consider the corporate tax implications of an allowable business investment loss.</li></ul>

• managerial accounting, CPA, taxation