LEO and the Lions Den

Sunday School Story:

Many years ago there lived a lion named LEO.

From his early years as a cub, he was given the training and responsibility to be King Darius’s chief executioner.

He was the head lion of the noble king of the beasts.

One day as usual himself and his fellow lions were waiting at the usual spot to begin their daily work.

They looked up as the stone was rolled away, and they saw the king himself was a witnesses to the execution. LEO roared to his subordinates “come on boys, the King is here, we better make sure we do a good job”

LEO heard King Darius wail “Oh Daniel may the God you serve protect you”.
LEO wondered to himself that is was very strange to show regret to the man that was dropping in for brunch.

But as LEO would account to future generations of lions in the Kings service, there was something different about this man they called Daniel.

LEO recounted that his mates and him had no appetite to eat the prisoner. Oh well said LEO to himself there is always a mid-afternoon snack or dinner. But as the day and night progressed they still had no appetite.

LEO wondered to himself maybe the great creator of the animals wanted this man to live.

LEO then observed Daniel and saw that he was constantly murmuring a prayer. “AH I see” said LEO, “he’s still praying for his life.” But as LEO listen Daniel was praying for King Darius and the rest of the people.

LEO then confirmed in his mind that the creator of the animals did in deed want this man to live. So with a quiet word of comfort that a small kitty cat might do he sauntered over to were Daniel lay in prayer and sat down beside him to keep him warm through the cold dessert night.

The next morning LEO heard the stone being rolled away. He was hungry again, but only saw Daniel as an equal, not as something to eat. “Hmmm” said LEO, “Daniel sure looks scrawny I better make sure he gets a good portion of today’s feed.”

But to his surprise the King called out to Daniel and asked if he was still alive and then a rope was lowered and out went Daniel. “Wow” said LEO “he’s the first person to make it out of here from the top”.

LEO and his friends then felt really hungry when they heard King Darius order the men who arranged for Daniel to spend a night in the den to be cast in. LEO then heard the final commands of the King that truly Daniel’s God was the one true God and that he only should be worshipped.

“Amen” said LEO as he began his lunch.

Luca Pacioli "Father of Accounting"

Fra Luca Bartolomeo de Pacioli was a great Italian Mathematician and Accountant. He lived from 1445 to approximately 1514.

In 1470 he became a friar and travelled as a mathematics tutor until 1497.

Pacioli published several works on including:

1. Summa de arithmetica, geometrica, proportioni et proportionalita (Venice 1494), a synthesis of the mathematical knowledge of his time.
2. Geometry (1509), a Latin translation of Euclid.
   De divina proportione (Venice 1509),
3. a work on mathematical and artistic proportion.
   Summa de arithmetica... included the first published description of the method of keeping accounts that Venetian merchants used during the Italian Renaissance, known as the double-entry accounting system.

Although Pacioli reported rather than invented this system, he is widely regarded as the "Father of Accounting". The system he published included most of the accounting cycle as we know it today. He described the use of journals and ledgers, and warned that a person should not go to sleep at night until the debits equalled the credits! His ledger had assets (including receivables and inventories), liabilities, capital, income, and expense accounts. He demonstrated year-end closing entries and proposed that a trial balance be used to prove a balanced ledger. Also, his treatise alludes to a wide range of topics from accounting ethics to cost accounting.

Jays ship Hillenbrand to Giants

Following up on his promise to rid himself of Shea Hillenbrand, Toronto Blue Jays general manager J.P. Ricciardi traded the disgruntled infielder Friday night to the San Francisco Giants.

Ricciardi also shipped relief pitcher Vinnie Chulk to the Giants for reliever Jeremy Accardo.

Hillendbrand was designated for assignment Wednesday night after a series of events that led to a confrontation with Blue Jays manager John Gibbons.
While he was in the team's clubhouse, Hillenbrand wrote the words "Play for yourselves" and "This is a sinking ship" on the board.
The message prompted a clubhouse argument between Gibbons and Hillenbrand.
Gibbons reportedly challenged Hillenbrand to a fight in front of the team.
Hillenbrand then ripped the Jays' organization in an anger-filled tirade to reporters during batting practice.
Hillenbrand revealed his displeasure for not having a regular position and being used primarily as a designated hitter. He also claimed that management failed to congratulate him and his wife for adopting a baby girl.
Hillenbrand, who is making $5.8 million US this season, is batting .301 with 12 homers, 15 doubles and 39 RBI.
He'll likely take over the first base duties for the Giants.

Should Non-Taxpayers utilize Tax Dollars

Choppy start to sea escape

Should Lebanonese-Canadians (who have dual citizenship and reside permanently in Lebanon) pay for the aid that Canadian tax payers are so willing to send for free?

The American Goverment is charging their citizens for the transportation back to Crete. Shouldn't we be aiding Canadian tax-payers who actually live in Canada first.
According to the Canadian embassey in Lebanon only a fraction of people actually registered witht he embassy (meaning that this represented the Canadian tourists). Why should we as tax payers pay for individuals who have chosen another country over Canada. They don't meet the residency requirment as a Canadian tax payer, and should not enjoy the benefits that a truly Canadian citizen enjoys.

So You think that Taxable Income = Taxes Payable?

I'm sure none of you were taken by surprise of the not so clever title .

For a corporation's bookkeeping, taxable income never equals tax payable.

There are differences in the bottom line of accounting income and taxable income. Not all the expenses permitted by the CICA handbook and GAAP recognition are legitimate deductions from taxable income.

Two main differences include

1. Temporary Differences: occurs in one period and then reveres itself out in subsequent periods. Example of this is depreciation, warranty costs, bond discounts or premiums etc. The depreciation method used by the corporate entity may not match the CCA reporting requirement for amortization to generate the entities taxable income.
2. Permanent Differences: the item enters into the reconciliation of taxable income in one period, but does not create future income tax. Examples of these include 50% of meals and entertainment (only 50% are tax deductible), golf memberships (o% are tax deductible), dividends received by a Canadian Corporation from another Canadian Corporation.

Monkey Business

In 1705 Britain was at war with France. One morning on the beach of West Hartlepool, England, the villagers watched in amazement as a hairy stranger climbed out of a rowboat. The odd-looking creature jabbered unintelligibly. The stranger was actually an ape, previously the mascot of a wrecked ship. The villagers were not at all familiar with apes. They court-martialed the beast, found it guilty, and hanged it as a French spy.

Taxman Cartoon

You weren't planning on using ALL of the money you earned were you?

Canada jumps 29 spots in FIFA rankings: Go Canada!!!

1. Canada jumped a whopping 29 spots in FIFA's redesigned world soccer rankings to a best-ever 54th place.
2. Canada made up huge ground on its May ranking of 83rd without playing a single game in the three-month span and without having an entry in the World Cup.
3. Canada is sandwiched between No. 53 Guatemala and 54th-ranked Angola, which played in the World Cup.
4. The team's previous best was No. 55 in 2000 when Canada won the Gold Cup and earned a berth in the Confederations Cup.
5. The new system takes into account games played over the last four years instead of the last eight. It also changes the weighting system, with more importance given to World Cup games vs. friendly games. Regional strength is also considered, as are opponents, goals scored and conceded, and home or away venues.
6. The United States and Mexico were two of the biggest losers.
   The United States, knocked out in the first round of the World Cup, dropped from No. 5 to 16. Mexico, which reached the second round, fell from No. 4 to 18.
   

Strange But True

• A single share of Coca-Cola stock, purchased in 1919, when the company went public, would have been worth $92,500 in 1997.
• Carbonated soda water was invented in 1767 by Joseph Priestley, the discoverer of oxygen.
• Cheerios cereal was originally called Cheerioats.Chewing gum was patented in 1869 by William Semple.
• Gatorade was named for the University of Florida Gators, where it was first developed.
• Hershey's Kisses are called that, because the machine that makes them looks like its kissing the conveyor belt.
• In 1984, a Canadian farmer began renting out advertising space on his cows.

(fromwww.crazynews.net)

ADAM SMITH ECONOMICS: Who was Left Behind?

In a new generation of internationalism and globalization has the idea of the ‘wealth of nations’ changed? A quick answer would be yes. The states represent a completely different establishment of economic progress and development. The enlightened period of the 1700’s gave way to the 1800’s industrialization and the 1900’s information age. The great economic genius Adam Smith could not have imagined the extent of humankind’s industrial and informational development. The benevolence of the baker, butcher, and brewer has not changed. Society depends on trade (using currency or barter methods), in order for the coexistence of a modern society with professions that may provide a vast array of services that are not necessary to sustain life. Overall, the original notion of Adam Smith’s view of real wealth is true today. He envisioned the real wealth of England not in the strength of the pound, or in the balance of trade, but in the ability to self-sustain itself. He claimed in one portion of the Wealth of Nations that society’s real wealth was in the sustainable products. It was not the services of a lawyer, accountant, or other tradesmen but in the grass roots of agriculture, that society is dependent.

In a “modern” world society places value on superfluous merchandise going beyond Mashlow’s Pyramid heights of self-actualization. Western Society has reached a pinnacle of self-actualization in which the majority’s basic needs are satisfied. This can be is seen in the low prices of essential food products. The real price of self-actualization is the sweat and blood of farmers. On a societal pyramid, the agriculturalist should be near the top. It has taken western society hundred of years to reach this period, not at the expense of industrialist but at the expense of the farmers. After two hundred years of progress, should not the agriculturalist be among the elite and wealthy? Without domestic agricultural, industrialization would be an ambition like establishing a space station on the moon (something that could be attainable someday with the right resources). Agriculture fueled the industrial revolution (and the human race), and then was promptly left behind by manufacturing industry supplying society with “more important” essential services.

So what can fix agriculture? Is it safe to put back the clock to an Amish dependent on farming, closing the world to globalization, or is it even feasible return to a simple a self-sustainable society? The answer can be determined by examining further alternatives. The manufacturing sector of the economy has held farmers hostage for too long. The chain of product refinement no longer stops at the farmer. The farmer whether his product is Soya Beans, Corn, Wheat, Carrots, Peas, Eggs, or Milk is required to sell his produce to the initial manufactures. They clean and cut the produce up and place it into neat little packages, bags, or cans. A one-step process two hundred years ago has become a long value chain. Government requirements to promote a healthy generation have placed health requirements on products like milk. A few decades ago, milk went in a bucket and then into an icebox. As manufacturing capacity grew, the industrialist started to play farmer and created a long-term problem whose initial results has created the mad cow scares. The basic solution to the problem of over-manufacturing is to scale back production and value chain growth and permit the natural resource growers to refine their own produce (get rid of the Canadian Wheat Board would be a good start). If the agricultural sector controlled the value-chain, farmers could get $0.20 for every loaf of bread instead of $0.01. This would not be attainable without the Government mandating the process. The only other solution to maintain the cost of production (today’s value chain) is for the Federal Government to intervene in some other form. To maintain the delicate economic balance at the grocery store the legislative bodies should subsidize the agricultural industry for lost profits due to the over-manufacturing of the products. The over-manufacturing and increased refining cost explains why commodity prices are ‘fixed’ low so that the rest of the value chain can make a profit. Its time that the Federal Government increased current subsidies ensure that there is a “P” for profit in the word agriculture, instead of a big “L” for losses.

Conservatives Caught up in Scandal!!!!

The small but proud province of Newfoundland has been shaken by allegations involving millions in misused public dollars. The Auditor General, John Noseworthy's investigations dealt with two things: MHA constituency allowances and questionable payments made to companies by the legislature.

• Four politicians misused approximately $1 million from their constituency allowances (money given to members of the provincial legislature to pay for items such as office rentals, supplies and miscellaneous services).
• More than $2.6 million was paid to three companies for trinkets like lapel pins and fridge magnets over a seven-year period, while an additional $170,000 went to a company owned by the legislature's now-suspended director of financial operations, Bill Murray.

The first public signs of scandal occurred on June 21 when Premier Danny Williams unexpectedly announced that Ed Byrne, a senior member of the provincial Tories, had stepped aside as natural resources minister because of a review by the auditor general's office.

• Ed Byrne resigned his post as Newfoundland and Labrador's natural resources minister in June. [The announcement rocked political circles because Byrne, 43, had been one of Williams's most trusted colleagues. In 2001, Byrne stepped down as leader of the Progressive Conservatives to make way for Williams to lead the party. He has also served as government house leader in the legislature.]
• The auditor general reported that Byrne had signed and submitted claims for $358,142 during the 2003 and 2004 fiscal years – or more than $326,000 above his $31,500 limit. All the money allegedly came from Byrne's constituency allowance, and Noseworthy claimed to have a paper trail of receipts and cancelled cheques showing the money was deposited into Byrne's personal bank accounts.
• Noseworthy's office reported that payments totalling $2.8 million were made between 1999 and 2005 in untendered contracts to buy low-cost promotional materials items – including lapel pins, fridge magnets and key chains – as well as a number of more expensive items, including 79 gold rings for MHAs that cost $750 each, plus tax.
• Payments were allegedly made to four companies: Zodiac Agencies, JAS Enterprises, Cedar Scents International and Unique Keepsakes.
  Noseworthy's staff also identified a possible conflict of interest when they reported Unique Keepsakes was tied to Bill Murray, who was suspended in June as the house's director of financial operations. Between 2001 and 2005, Unique Keepsakes received $170,000 of public money, Noseworthy found.
• On July 4, Noseworthy said he has finished his investigation into spending at the house of assembly and will no longer talk publicly about the expense scandal. The Royal Newfoundland Constabulary is now investigating the matter.

::Can the Maple Leafs get Peca?::

Rib's once said that I should include hockey on this blog. Well Ok, just this once. According to rumers from the Fan 590, Peca wants to come to Toronto, for somewhat of a reduced salary. It's nice to see a hockey player taking a marginal pay cut to play for the best team in the league :).
Whats Montreal up to. The habnots have yet to dip into the free agent market. What will happen to Ribs blog if Jan isn't resigned. Well at least is was saved my the resigning of their real captin Mike Riberio.
Go Leafs, Down with the habsnots. :)



Just think if they can trade for Roberts the team will be as good as they were when they almost beat Buffalo in 1999. :)

What is a Liability?

Have you ever got out of bed in the morning and wondered what is a liability? While I haven't but maybe you have.

A Liability is defined in section 1000.33 of the CICA handbook.

A liability must represent three things:
1. A highly profitable future sacrifice of assets or services.
2. Constituting a present obligation.
3. The result of a past transaction or event
(summarized by Thomas Beechy)

There are two types of liabilities:

1. Financial Liability: which is a financial instrument (which is a contract that gives rise to a financial asset of one party and a financial liability or equity of another party) (CICA 3855.17.a).

2. Non-financial Liability: is defined appropriately as what is NOT a financial liability :). This may include unearned or deferred revenue or estimated liabilities/expenses anticipated to arise in the future.

Portugal Falls to France

Portugal looses yet again to the unlikely French. What a match it would have been to see Italy play Portugal. I guess my barber will be really depressed until the next World Cup as his team lost again. I don't really follow soccer or football or whatever you want to call it. I just took the barbers word for it that it was the greatest team of our time. I hope France wins in the finals, at least then Portugal would have lost to the champions.

Happy Canada Day

I know its July 2, and its almost July 3. I didn't mean to miss posting commentary on the joyous celebration of 139 years.

We got back from Shelbyville at 7:30 last night. I drove all the 9 hours, so I was kind of tired after we got home. Joe's back in the land of the stars and stripes finishing his internship. At least he wore his Canada tie today when he went to church. :)

Wendy's to dispose of Tim's by Oct 1

TimHortonsbecomes completelypublicalytraded

Giving Abroad...

The second question was; why can’t domestic Canadian charities funnel receipted donations to non-affiliated non-profit organizations?

The short answer can be determined in the definition of “total gifts”. Section 118.1 (3) defines what total gifts represent. They include four components. Crown gifts, cultural gifts, ecological gifts, and total charitable gifts.

Total charitable gifts are defined as gifts to:
• Canadian registered charities;
• Registered Canadian amateur athletic associations;
• Prescribed universities outside Canada;
• Certain tax-free housing organizations in Canada
• Canadian municipalities
• United Nations
• Charities outside Canada, to which the Government of Canada has made a donation in the year or the preceding year

This explains the individual limit on charitable contributions (to be eligible for a tax receipt). This ties right in to the question would people donate even if they could not receive a charitable tax credit. If their on willing to donate to US based organizations, then the answer is yes. We’ll debate that question tomorrow.

Canadian registered charities are not international organizations, nor do small charities have operations in the USA or abroad, nor do they have affiliated charities operating abroad with headquarters in Canada. ONLY donations to Canadian registered charities are eligible to receive a tax credit. Therefore donations to charitable works in the USA and the rest of the globe, are not tax deductible (except to the extent that it can offset American source income, that may be taxable to a Canadian resident).

Is there a ‘cap’ on charitable tax credits?

In the next couple of weeks, I plan to explain some perplexing issues of the Income Tax Act. The research will be based on CRA’s pronouncements and information circulars.

In Sunday school, some very interesting points were brought up. Is there a federal “cap” on charitable donations? Would people contribute charitable donations, even if they could not get a tax receipt? Why can’t domestic Canadian charities funnel receipted donations to non-affiliated non-profit organizations?

Today we’ll discuss question one. Does the federal government’s tax legislation place a ‘cap’ on charitable contributions?

The long and short of the question is, yes!

It is a common misconception that the ‘cap’ is the tax credit formula. This is not true. The limitation as articulated in section 118.1 (1) that ‘total charitable gifts may be eligible for the tax credit to a maximum tax credit of 75% of division B income’. Therefore, the ‘cap’ on charitable contributions is 75% of taxable income (supported by the proper receipts).

Most often, the ‘cap’ is considered the spirit and calculation of the tax credit. The first limitation is that tax credits can only be used to the extent that they offset division B (taxable) income. The second limitation is the calculation. The formula to calculate the charitable tax credit is equal to (A*B) + C (D-B); where A= 16%; B= first $200; C= highest federal marginal tax rate for the year; D= is the total gifts in excess of $200.

Tax Protestors

Are you still paying income tax? Didn't you hear that income doesn't include wages, or that the section 92 of the Constitution was never ratified, or that none of the provinces are actually part of Canada., or that income isn't defined in the Income Tax Act? Or didn't you know that if you simply placed all of your assets into a tax shelter that nobody could ever touch them or collect taxes on them, including the government? Well, if you didn't hear any of this, don't worry because it isn't true. What is true is that some scam artists have made good money selling these bogus theories before themselves ending up in jail.

(Canadianized from www.quatloos.com)

Canadian Debt Projections

This chart depicts the amount of the Canadian National Debt; and its projected interest expenses and debt reduction. Its hard to believe that almost 20% of the estimated budget revenues goes to maintain crediable status on bank loans and interest on Canadian Savings Bonds. Just think what improvements Canada could have if the almost 50 billion could be spent on health care or defense. I suppose it would also create another source of temptation for mismanagement and fraud [:)].

One professor at the U of Windsor, claimed that around 80% of Canada's National Debt is internally held. He said only in Canada, would citizens of a country be so willing to purchase its own governments debt.