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In November 2020, the owner of Tranquility by Jen Candle Company located in Canmore, Alberta, Canada, was reviewing her company's financial performance for its third fiscal year. The company was a candle manufacturer located in Canmore, Alberta, Canada. The owner had gathered the company's statement of financial position for fiscal year 2018-19, the list of cash receipts and disbursements for 2019-20, and various related miscellaneous information. Her task was to record all necessary accounting transactions for the current fiscal year, ending October 31, 2020.

The general director of Northern Canada Evangelical Mission (NCEM) wanted to make some changes to the organization's accounting system to coincide with the calendar year-end. The changes involved consolidating the financial records for 20 separate ministries operating across the country to reduce the number of redundant, time-wasting, manual entries needed and to align the general ledger accounts with the charitable activities report required by the government. As well, the process for tracking and reporting taxes needed to be improved. Finally, NCEM's board of directors wanted an increased level of professionalism and timeliness in the organization's financial statements. The chief financial officer and accounting staff would need a carefully planned schedule to carry out the changes, which would involve bookkeepers, ministry leaders, and the executive team, all while minimizing the interruption to NCEM's operations. How could the general director make the changes without causing additional problems along the way?

Delta 9 Cannabis Inc. produced and sold recreational cannabis in Canada-a market that after legalization was characterized by volatility in supply, demand, and regulations. Nonetheless, Delta 9 grew rapidly, and March 31, 2020, marked Delta 9's best-ever fiscal quarter. However, Delta 9's share prices had deflated over the previous year and the economy had recently been upended by the COVID-19 pandemic. Thus, there was considerable uncertainty regarding the outlook of Delta 9's three main business segments, each facing unique challenges and opportunities. The chief executive officer must decide how to allocate existing capital to keep Delta 9 on the path to growth.

This case explores the accounting treatment of the essential items that appeared in the financial statements of Madison Holdings Group Limited (Madison Holdings or the Group, stock code: 8057.HK). A seller of alcoholic beverages for decades, the Group had no expertise and know-how in financial technology. Through acquisitions, Madison Holdings opened the new blockchain services segment without the need to build everything from scratch on its own. However, the lifespan of the segment was unexpectedly short. Management disposed of the whole segment due to unsatisfactory performance in less than two years. The company's stock price dropped by more than 90% from its peak, largely due to the huge impairment loss recognized in the cryptocurrency mining activities. The case seeks to highlight the accounting treatment of various financial statement items of a company that engages in cryptocurrency mining activities. Through the case, students will grapple with the practical questions of whether Madison Holdings appropriately recognized its cryptocurrency mining revenue and recorded the corresponding costs of cryptocurrency mining activities, including the depreciation expenses and impairment loss of plant and mining equipment.

Spreadsheet to accompany product 8B21B001.

Delta 9 Cannabis Inc. produced and sold recreational cannabis in Canada—a market that after legalization was characterized by volatility in supply, demand, and regulations. Nonetheless, Delta 9 grew rapidly, and March 31, 2020, marked Delta 9’s best-ever fiscal quarter. However, Delta 9’s share prices had deflated over the previous year and the economy had recently been upended by the COVID-19 pandemic. Thus, there was considerable uncertainty regarding the outlook of Delta 9’s three main business segments, each facing unique challenges and opportunities. The chief executive officer must decide how to allocate existing capital to keep Delta 9 on the path to growth.

In 2019, the pricing manager at the US manufacturing facility for Sparrow GmbH (Sparrow), a chemical manufacturer based in Germany, asked the project manager at Roland Berger, a global management consulting firm, to provide her opinion on the pricing for Sparrow's bid on a basic chemicals contract with Impendium Chemicals. The basic chemicals industry was a highly competitive and commoditized environment; as a result, pricing decisions with respect to formulating bids were very important. Although the company had traditionally relied on the estimates of salespersons for pricing, it needed to develop a more refined approach to its pricing strategy. The project manager had to decide which costing method was most appropriate for this contract and recommend a price for the bid.

Spreadsheet supplement for case 120069.

In 2017, Jan Juchelka, the new CEO of Komerční Banka, identified the need for the bank to start an enterprise wide agile transformation. He started by working to create a sense of urgency to kick-start a process to enable the level of service delivery to customers he believed is necessary to prepare for a future of increased levels of competition from both traditional players and possible new digital challengers. This journey is embarked upon despite entering a relatively successful operation with a leadership position among peer financial services organizations in several areas. To do so, Juchelka and team begin working to shift mindsets and start adapting the organizational structure towards an agile operating model. The case describes the bank's transformation, including the timeline for each department's move to agile (from HR to Risk), the creation of an Agile COE (Center of Expertise), the training and selection of managers to launch the first "Agile Tribes", and the thought process on how and where to begin. The case also discusses goal setting processes and use of OKRs (Objectives and Key Results), linking an enterprise wide agile operating rhythm, to an outcomes based mindset that meets the requirements of Juchelka and team to empower a more responsive, adaptable and agile organization. The case reflects on the lessons and challenges of launching, leading and scaling an enterprise wide agile change program.

Students were provided with the financial data for 10 major companies listed on the New York Stock Exchange in 2019. They were also given a list of 10 major industries. As an exercise, students were then asked to identify which company operated within which industry. The exercise would test the students' understanding of how a company’s financial data can be specific to a particular industry. Using only financial figures, could the student identify within which industry each company operated?

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 1 offers a summary of different types of financial information and their providers, focusing on information that is issued publicly. Financial information is essential for an organization to operate efficiently. Various people use an organization's financial information, such as tax authorities, lenders, and suppliers. The information requirements of users are typically met by an organization's financial information system and disclosures in income statements, balance sheets, and cash flow statements. Several examples are given of financial information from large companies. Types of financial information are also discussed that are specifically meant for those inside the company and are not available publicly. Financial information is needed by those running a business and is vital for effective management.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 2 introduces three main financial statements: income statements, balance sheets, and cash statements. Income statements show the profit for a specific financial period; balance sheets provide information about the assets and liabilities of an organization at the end of the financial period; cash statements reveal the money coming in and going out during the financial period. These statements are typically in an organization's annual report. This chapter will discuss how to find key figures in financial statements and learn about the company's financial position and performance. Trend analysis, vertical analysis, and comparative analysis are all explored. For-profit organizations are the focus of this chapter, and several examples are given that show how to calculate ratios in order to analyze financial success or failure. The principles in this chapter can be applied to all types and sizes of organizations.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 3 builds on the previous chapter, going into greater detail about analysis of financial statements. Examples of financial statements from three companies in three different countries are offered. These examples show how to look at complex financial statements and find the figures needed to conduct an analysis. This chapter focuses on analyzing a company's profitability, liquidity, efficiency, and control of cash. How to conduct a sophisticated analysis is then explained. Calculating and analyzing ratios is discussed. To analyze ratios, comparisons are needed, which can be from the company's previous financial statements or statements from other companies; these ratios are useful in understanding an organization's financial performance and standing. Limitations of ratio analysis are also discussed.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. This chapter discusses how information available to managers is essential for business success as it can help them make informed decisions, explore problems, set performance targets, and complete their management responsibilities. Managers are specifically interested in the costs of activities and decisions, such as operating machinery or selecting different working methods. This chapter explains what cost and management accounting are and explores various types of cost, specifically direct, indirect, fixed, and variable costs. How costs relate to the service sector and the manufacturing sector is also discussed. This chapter focuses on different types of costing to ensure an organization's efficiency, such as process costing, full costing, and standard costing. Explanations and examples are given for each.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Building off of the previous chapter, this chapter shows how to choose the costing methods that would be most helpful to find the financial information needed. Various methods and techniques are explained; however, businesses should be careful to select which ones would be the most helpful and tailor those techniques to meet the business's needs rather than trying to change the business to fit a specific method. Before determining what information is needed, it has to be decided where the business is going. This chapter explores business objectives, planned profit, sales objectives, and cost strategies. Every organization should have a business plan that is expressed in financial terms as well as a form of record keeping to measure success or failure in meeting the plan. Several costing methods are given that may be helpful; which to choose depends on a company's size and industry type. Two major financial approaches-activity-based and total quality management-are also discussed with the focus on the aspect of accounting.

Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 6 goes beyond looking at just financial performance and takes a broader view of a company's activities. This chapter starts by exploring Management Discussion and Analysis sections in annual reports, the growing amount of data available to companies, and how companies can use data analytics to improve decision making. Key performance indicators (KPIs) can help organizations measure performance and explain publicly available information. This chapter also discusses the potential expansion of information made available to shareholders, sustainability accounting, and integrated financial reporting. Typically, only large organizations give information on sustainability and integrate their financial reports; however, this information is of interest to investors as well as a growing number of consumers.

Publicly traded companies in the U.S. must prepare financial statements in accordance with the requirements of U.S. Generally Accepted Accounting Principles (U.S. GAAP). However, many companies also report non-GAAP measures those calculated outside the requirements of U.S. GAAP in their earnings announcements, annual reports, and SEC filings. The SEC began regulating the release of non-GAAP measures in 2003 and has expressed ongoing concern regarding firms' disclosure of the same, but the use of non-GAAP measures continued to increase nonetheless. A 2018 Audit Analytics report found that in 2006, 76% of SEC filers included non-GAAP measures, but in 2017 that percentage rose to 96%. This installment of Accounting Matters provides an overview of the SEC regulations regarding non-GAAP measures, examines how investors react to non-GAAP disclosures, and provides guidance regarding how companies can avoid receiving a non-GAAP disclosure comment letter from the SEC.

The gender pay gap is an important issue today in the U.S. The lack of transparency surrounding pay in businesses is viewed as one cause of this gap. The first section of this article explores the origins of the gender pay gap and presents a brief history of pay transparency. Then, I propose a framework built from three continua that breaks the concept of pay transparency into types and levels. Using this framework, I offer guidance to organizations that want to increase pay transparency. The article concludes with a discussion of the risks associated with increased pay transparency and suggestions for future research.

GE's recent announcement that it was placing its 2020 audit out for tender has shone a spotlight on the audit bidding process and the possibility that auditors could fall prey to a phenomenon known as the winner's curse when bidding on new clients. In this article, we begin by describing the winner's curse utilizing an example that highlights how its primary features influence the likelihood of bidder's experiencing it. Then, we discuss how the winner's curse uniquely applies to the audit bidding process and develop a descriptive table through which to analyze key differences between these settings. Last, we overlay the winner's curse onto the various cost considerations firms assess in preparing their audit bids. Our goal is to assist auditors in preparing bids that accurately reflect the costs of conducting an audit with a deeper knowledge of features that can lead to the winner's curse.

As You Are Seventh-Day Adventist Church (AYA) is located in Williamsburg, Virginia, in a low-income community, where it offers a wide range of primarily religious services. AYA is part of the River Seventh-Day Adventist Conference-East (RCE), which finds and pays for the pastors at each of its churches. In return, the RCE receives the weekly tithes as conference dues, and AYA keeps the offerings given by its members. This partnership has allowed AYA to expand its programming, serving community members facing homelessness, hunger, and financial difficulties. But over the years, AYA has had its own financial struggles, seeing a decline in tithes and offerings as its membership numbers have declined. It has been forced to end many of its community services in order to preserve church resources. And in 2015, the church's leader, Pastor Robert Haskins, announced his intention to leave his position early. The RCE decided to replace Haskins with Pastor Alexander Dean, who had a proven track record of turning troubled churches around. Dean begins his duties at AYA confident that he can correct the church's course. He quickly becomes a controversial figure, however, due to the changes he decides to make. AYA's volunteer treasurer wrestles with a conflict between her desire to support Dean in his effective efforts to welcome new members and higher cash donations and her misgivings about his aggressive insistence on increasing his budget as pastor and unilaterally signing off on expensive projects without church committee approval. The treasurer is deeply concerned about how AYA will survive financially under these new pressures, both from the new leader and from sources beyond the church's control.