September retail sales rise, but are still weaker over same time last year.

By David Friend @ http://ca.news.yahoo.com/s/capress/091123/business/statscan_retail_6

Summary:

The sales of merchandising businesses have increased in September, but relatively low gain has shown compared to last year. However, results are more positive when compared month-to-month. The reason for the decline in sales is due to last year global recession. Sales have increase in supermarkets and most merchandising businesses. The home supplies and clothing and accessories sectors have been decreasing. Doug Porter, the deputy chief economist at BMO Capital Markets claims that the Canadian economy is in full recovery mode. Retail sales rose in eight provinces in September, except for Alberta and Saskatchewan.

Reflection:

I assume that as retail sales increase, the inventory of those businesses will also increase. The reason for this is that retailers have to purchase more inventories in order to fulfill the demand of consumers; otherwise, it will lead to inventory shortage. The Canadian economy is recovering, therefore, this trend of increasing sales will continue.

Connection:

Merchandising business is a type of business that buys and sells goods to make profit. In this article, it talks about sales of retail businesses, which is a type of merchandising business that buy goods from wholesalers and manufacturers and sell to public. This is related to our chapter since the chapter is on merchandising business. As mentioned earlier, increasing sales could possibly lead to increase in inventory, which is also another topic this chapter has covered.

First-time Adoption of IFRS

http://www.cica.ca/ifrs/ifrs-transition-resources/implementing-ifrs/item2707.aspx

Summarize
Starting by January 2011, all the companies are required to convert from the Canadian GAAP to the International Financial Reporting Standards which is the IFRS. A lot of Canada's public companies are fushing to meet the requirements so that their report can meed to international requirements.Country like European Union, Australia, South Africa started to adopting IFRS five years ago. IFRS is more common worldwide, it makes the report more clearer and simpler.Chartered accountants of Canada recommend the Canadian companies to get started earlier.Start now…to be prepared for January 1, 2010.

Connections
The material we are learning right now is all about GAAP and the accounting system is going to change real soon. Is the school going to change the learning material? Since our country is updating our accounting system the GAAP is no longer the guideline for accounting.Accountant have to get used to the new accounting system and get used to the worldwide financial reporting language. As they say IFRS represent vital competitive advantages in the global marketplace, the GAAP is now out dated.

Reflection
I am so worry that the material i learned from accounting is not longer updated. If i want to continue my education in Hong Kong how can i connect the GAAP and the IFRS together? Why didn't Canada start adopting IFRS earlier? But its good that Canada finally meet the international requirement and become more competitive in the global marketplace.Hope this will improve Canada economic a bit, so many people can get a job to improve their life style.