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Air Canada: Defined Benefit Pension Plans

Darren Henderson; Christine I. Wiedman; Pricilla Cheung;

商品編號:9B11B016
出版日期:2011/09/23
再版日期:
商品來源:Ivey
商品主題:Accounting
商品類型:Case (Library)
涵蓋議題:Pensions, IFRS Adoption, Financial Analysis
難易度:4 - Undergraduate/MBA
內容長度:15 頁
地域:Canada
產業:Transportation and Warehousing;
事件年度:2011

An investor is reviewing his investment in Air Canada to decide whether or not to sell his shares in the company. Recent weakness in the airline industry and a three-day strike by service staff has caused the investor to reevaluate Air Canada's long-term prospects. In particular, the investor wants to consider the company's pension plans in his analysis. A proposal to move new hires to defined contribution from defined benefit pension plans was a key point of contention between the company and striking workers. The investor knew the company's pension plans were underfunded and he wanted to assess what impact the underfunding would have on the company's future. Finally, the investor wanted to understand the impact that the change to International Financial Reporting Standards would have on Air Canada's pension accounting.

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