Chapter 3

http://www.cbc.ca/money/story/2010/01/15/consumer-corporate-haiti-donations.html



Summary:
A natural disaster had struck Haiti about a week ago causing thousands and thousands of deaths and thousands buried underground. Canadian Businesses have committed millions of dollars in aid for victims of the earthquakes. Companies like BMO, Roger, National Bank of Canada, TD Bank, IKEA, etc have donated money to help aid the situation. Credit Card Company such as Visa, MasterCard and American Express will suspend interchange fees on Haitian relief donations to certain organizations. Western Union and Money Gram have suspended fees on transactions for charitable donations to the relief effort. Air Transat has temporarily suspended its weekly flight to Haiti because the airport is unable to receive it.
Connection:
The connection I have made with this article to chapter 3 is that the donation that the companies are donating to aid the earthquake are consider infrequent event. Infrequent events are a special thing that is infrequent and unusual. It is always recorded in a separate section in the multi-steps income statement. The companies that have donated money to aid the Haiti earthquake crisis should record their donations during the “Prepare Financial Statements” section of the accounting cycle. The donations should be recorded in the infrequent event section of the multi-steps income statements. This will show that the company had done something with their money, instead of not knowing where the money went. Natural disaster like this does not happen often; therefore, donations like from these companies should be considered infrequent events.
Reflections:
The Haiti earthquake was a sad and unpredictable event. It is nice to see that people from all around the world are doing something to help out the ones who are needed. Many large companies had donated money to aid the crisis. Credit card companies are willing to earn less money by suspending transaction fees for charitable donations. Even people who are not from big companies are contributing to aid the people in Haiti. It was an event that devastated the whole world. The amounts of people who died and buried are increasing.