Hence, management accounting is an integral part of any organization. Canadian Imperial Bank of Commerce (CIBC), Canadian Tire and Wal-Mart Canada are three of the large organizations operating their business activities in Canada. Some of the key management accounting practices followed by these three companies has been discussed in this study.CIBC is involved in the business of providing different kinds of financial services to various individuals, corporate, etc. in Canada and outside. It has in offer both retail and wholesale banking products for its clients. CIBC is headquartered at Toronto and was founded in the year 1867.There has been a recent change in the organizational structure of CIBC in the year 2011. As of now CIBC has three Strategic Business Units (SBUs), namely Retail Banking, Wholesale Banking and Wealth Management. Each of these SBUs is considered to be the profit centers of the company. The treasury activities associated with each of these SBUs have an impact on its financial performance. The revenue performance of each of the SBUs are affected because of the policy of using cost of funds based on market prices adopted by the companys management. Transfer pricing system is also prevalent in CIBC (CIBC, 2012, p.If we look at the overall cost structure of CIBC, it can be found that it has both interest and non-interest expenses. The interest expenses of the company mostly include interest on deposits. On the other hand its non-interest expenses include employee benefits and compensation, occupancy costs, advertising costs etc. In addition to this the company has a provision for credit losses. The provision for credit losses were down by 20% in 2011 when compared with the year 2010. Card fees for the company went down significantly in the year 2011 because of high volume of securitization activities undergone by the organization. The non-interest expenses of the company went up by 5% in 2011, as compared to the year 2010 (CIBC, 2012, p.The net income of CIBC for the year 2011 and 2012 were $3,079 million and $2,452 million respectively. Some of the business activities followed by the company that had a significant impact on the profit figures of the company are as follows:The company is engaged in the business of credit run-off which has contributed a loss of $170 million for the
Canadian Tire. (2012). Life in Canada for 90 Years. Annual Report 2011. Retrieved from http://corp.canadiantire.ca/EN/Investors/FinancialReports/Annual%20Reports%20Library/CTC_AR_2011.pdf.
CIBC. (2012). Strong Fundamentals in a Changing World. Annual Report 2011. Retrieved from https://www.cibc.com/ca/pdf/about/ar11-en.pdf.
Khan, M. Y., & Jain, P. K. (2006). Management Accounting: Text, Problems and Cases (4th Ed.). New Delhi: Tata Mc-Graw-Hill Education.
Wal-Mart. (2012). 50 years of Helping Customers Save Money and Live Better. Annual Report 2012. Retrieved from http://www.walmartstores.com/sites/annual-report/2012/WalMart_AR.pdf.
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