Troy University Accounting Essay

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Prepare a report- The report will be in a memo, no longer than 5-6 pages single-spaced. For the body of the text and any references using APA style. You will be graded on format, content, and evidence to support your decision. You must declare what your recommendation is, use the three questions from the template and support your recommendation by referring to items from the template. DO NOT simply copy the template and place it in the report.

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Canada – Royal Bank of Canada
Template for Country Analysis Source sheet
Hao Pham – Canada – Royal Bank of Canada
Scenario: The firm of Capozzoli and Capozzoli CPA’s has had numerous domestic clients open offices in
foreign countries. To better serve their client base it was decided that you (an up and coming accountant
with the firm) have been asked to perform a country analysis to determine if the country is suitable for a
planned expansion of the firm.
To facilitate the analysis, you will analyze a country and a company operating in that country.
To enable this expansion the country must have a technology infrastructure in place to support far flung
teams operating in a global environment. Answer the questions below and include the answers in the first
page of the report.
Should the firm consider this country to establish a business presence for accounting related activities?
Yes or No, Why (3 sentence maximum):
Yes, the country should consider establishing a business presence for accounting-related activities because of
the high economic and political stability within the country. The country is also not hostile to new businesses.
Overall Assessment of IT Capability of Country (3 sentences maximum):
The overall IT capability of Canada is high. It is one of the most advanced countries because of its proximity to
the United States. The mobile and fixed telephone users in the country is at 93percent, while 99percent of
households have registered phone service.
Attractiveness of the Country from a Strategic Perspective (3 sentences maximum):
Canada is highly attractive from a strategic perspective. While, it is accessible by sea, it is also easy to access
other world economic superpowers from it. Its GDP is also strong enough to support a resource-demanding job.
There are many resources, human and technological, in the country to support it.
Dimension
Political
environment
#
1.0
Category
H M L
i e o
g d w
h
Political stability
X
Comments/Notes/URL Sources
CA:
Voice and accountability (96th percentile)
Political stability (78th percentile)
Government effectiveness (92nd percentile),
Regulatory quality (97rd percentile)
Rule of law (90st percentile)
Control of corruption (95st percentile)
https://databank.worldbank.org/reports.aspx?Report_N
ame=WGI-Table&Id=ceea4d8b
Canada – Royal Bank of Canada
1.1
Extent of
government
promotion of
accounting
policies (AP) and
information
technology (IT)
X
IFRS Standards are the Canadian GAAP for all
publicly responsible firms, while authorities allow
those filing in the United States and rate-regulated
companies to use US GAAP instead of Canadian
GAAP.
https://www.ifrs.org/use-around-the-world/use-of-ifrsstandards-by-jurisdiction/viewjurisdiction.html/canada/
2.0
Regulation/restrict
ion of company
ownership of an
accounting
practice
X
High to reduce internal liaison and interference
2.1
Accounting
Certification
What does it take
to be a CPA or
equivalent
X
Obtain a recognized university degree
Register with the Order as a candidate
Complete the CPA Professional Education
Program Complete a period of practical
experience
• Pass the Common Final Examination (CFE)
https://cpaquebec.ca/en/students-and-future-cpas/howto-become-a-cpa/key-steps-to-becoming-a-cpa/
2.2
Existence of a
formal accounting
board
X
Chartered Professional Accountants (CPAs) and the
Canadian Public Accountability Board (CPAB)
Regulation
Accounting
•
•
•
https://www.ifac.org/aboutifac/membership/country/canada
2.3
Extent of IFRS
adoption
2.4
Extent of native
accounting
practices in use
2.5
Accounting
standards are set
by?
X
All accounting firms are under a governing body
X
X
The use of accounting services is mostly limited to
formal sectors
Accounting Standards Board of Canada (ACSB)
https://www.iasplus.com/en/jurisdictions/americas/cana
da#:~:text=Accounting%20Standards%20for%20all%2
0Canadian,part%20of%20the%20public%20sector.
Canada – Royal Bank of Canada
Educational
System
3.0
Literacy overall
X
99%
https://www.macrotrends.net/countries/CAN/canada/lit
eracy-rate
Canada gets a “C” and ranks 8th out of 13 countries on
the percentage of adults scoring low on adult literacy
rate tests.
https://www.conferenceboard.ca/hcp/Details/education/
adult-literacy-rate-lowskills.aspx#:~:text=Canada%20gets%20a%20%E2%80
%9CC%E2%80%9D%20and,on%20adult%20literacy
%20rate%20tests.
3.1
Accounting
Literacy
3.2
IT literacy
X
84%

Digital Literacy

Language/
4.0
Extent of
knowledge of
English
X
75.4% of people can speak English in Canada.
https://www.canada.ca/en/canadianheritage/services/official-languagesbilingualism/publications/statistics.html
Culture
5.0
Hofstede MAS
X
80

Canada

5.1
Hofstede UAI
5.2
Hofstede PDI
X
68
https://www.hofstede-insights.com/countrycomparison/canada,japan,the-usa/
5.3
Hofstede (IND)
X
39
https://www.hofstede-insights.com/countrycomparison/canada,india/
6.0
Extent of Internet
connections
X
Most Canadians (94%) have home Internet access via a
fixed broadband connection. Although overall, this
percentage has been largely consistent since 2018,
home Internet access among those 65 and older has
climbed from 79 percent to 83 percent over that time.
https://www150.statcan.gc.ca/n1/dailyquotidien/210531/dq210531d-eng.htm
Telecommunic
ations
Infrastructure
X
X
55 of adults
https://gflec.org/wp-content/uploads/2015/11/3313Finlit_Report_FINAL-5.11.16.pdf
52

Canada

Canada – Royal Bank of Canada
Economy
6.1
Support for EDI
X
High
https://www.canada.ca/en/research-coordinatingcommittee/priorities/equity-diversity-inclusionresearch.html
7.0
Quality of physical
infrastructure
X
One of the best in the world and meets requirements for
international trade and high-tech business
https://www.nationsencyclopedia.com/economies/Ame
ricas/Canada-INFRASTRUCTURE-POWER-ANDCOMMUNICATIONS.html
7.1
GNP per capita
X
47,500 PPP dollars (2020)
https://data.worldbank.org/indicator/NY.GNP.PCAP.P
P.CD?locations=CA
7.2
Imports
X
453,360 million
7.3
Exports
7.4
Extent of foreign
direct investment
from other
countries
7.5
Extent of foreign
direct investment
to other countries
7.6
Legal protection
for international
software
copyrights & trade
secrets
X
X
USD 446,080 million
USD 48 billion. According to UNCTAD’s 2021 World
Investment Report, Canada attracted USD 24 billion of
FDI in 2020, a 50% decrease from 2019, where FDI
inflows reached USD 48 billion.
https://santandertrade.com/en/portal/establishoverseas/canada/foreigninvestment#:~:text=According%20to%20UNCTAD’s%
202021%20World,70%25%20in%20the%20manufactu
ring%20sector.
X
High, where each country has a specific share
https://www.statista.com/statistics/462892/canadadirect-investments-abroad-by-country/
X
Canada has stringent laws that protect foreign software
from infringement in the country
Company Specific Information:
Name of Company
Year of Financial Statements
Does it use IFRS or Local GAAP?
Are the statements audited?
Who performed the audit?
Royal Bank of Canada
IFRS
Yes
Deloitee & Touche LLP
Canada – Royal Bank of Canada
Value of assets
Order in which assets are presented
Capitalization / Stockholders equity
Net Income / profit loss after tax
Currency used if more than one give both
What is the current ratio?
Does it present fair value data?
What is the value of deferred taxes if any?
Given your currency translation to US $ what
was the exchange rate gain or loss?
Is the company listed on an American stock
exchange?
1.71 trillion Canada dollars
in 2021
Order of liquidity
98.67 billion Canada
dollars
16.05 billion Canada in
2021
Canada dollars
0.91
Yes
None
2 Canadian dollar quals
1.56 US dollars
Yes

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