Chapter 3 Blog- Ownership group for Major League Soccer in Vancouver reconsiders franchise fee

http://www.vancouversun.com/Sports/Ownership+group+Major+League+Soccer+Vancouver+reconsiders+franchise/1023715/story.html


Summary
This article is on the Vancouver Whitecaps attempting to enter Major League Soccer by 2011. Major League Soccer is demanding a huge 40 million dollar transaction fee to allow the Vancouver Whitecaps to join the organization. Six other cities are also negotiating to bring a Major League Soccer team to their city, so the price is expected to rise. The Vancouver Whitecaps have already agreed to pay BC place 350 million dollars to renovate their stadium to build a soccer field. With 350 million dollars secured to the renovations, the Vancouver Whitecaps are not sure they have the money to enter the Major League Soccer Organization.


Connections
I connected this article to the transaction part of the chapter. The 40 million dollar transaction fee which the Vancouver Whitecaps are planning to pay is going to take plenty of thought. The Vancouver Whitecaps need to make sure they have enough money left over from the renovations at BC place. Chapter three stresses that when making a major transaction, the business should take their time to decide whether or not the transaction is going to benefit them. In this case, the Vancouver Whitecaps should decide if they are going to be making more revenue by entering Major League Soccer. The Vancouver Whitecaps should also make sure they will have enough money to make the 40 million dollar transaction. Chapter three also states that a major transaction requires the services of a professional accountant, to check if the GAAPS and the appropriate accounting methods have been followed. A professional accountant will definitely be needed for this particular transaction to make sure everything stays legal.


Personal Reflection
I think that the Vancouver Whitecaps should make the transaction fee to enter the Major League Soccer Organization. I think they should because soccer is a growing sport in Vancouver, and by the Vancouver Whitecaps entering the Major League Soccer they will attract more spectators. People will get to watch superstars like David Beckham, Freddie Edu, and Dwyane De Rosario as they all play for Major League Soccer. These superstars are bound to attract spectators and will definitely boost revenue through ticket sales. I think that the Vancouver Whitecaps will gain more revenue by entering the Major League Soccer, rather than just staying in their low profile league.

Chapter 2 Blog

http://www.canada.com/vancouversun/news/business/story.html?id=1c317af2-9537-4de6-8721-875c1c0c7d49

Summary
This article reports that the declining prices in British Columbia’s high priced Vancouver, Kelowna, and Fraser Valley housing markets has helped to decrease the average cost of Canadian homes by 6.2 percent, compared to September of last year. British Columbia’s housing market is expected to decline even more due to the low consumer confidence. The Canadian Real Estate Association suggests that the low consumer confidence could be related to the elimination of mortgage-insurance availability for buyers with less than a five-percent down payment and 40-year amortizations. The Canada Mortgage and Housing Contractors estimates that 15,663 new units of residential units have been built since the beginning of the year, a five percent increase from the amount built at this point last year.

Connections
I connected this article to the balance sheet part of the chapter. With the housing market declining, assets in a balance sheet will be declining as a result. The decrease in the assets will lead to the equity section of a balance sheet to decline. Residential properties that were listed at high prices in the balance sheet are going to have to be cut down to lower prices. Cutting down these prices will result in the property account in the assets to decrease. The equity section of the balance sheet will decrease based on how much money the property account declined by. Real estate businesses will be affected the most because they own a large number of residential units. Owners of these real estate businesses will have a hard time observing comparative balance sheets as their equity and assets have decreased quite a bit.



Personal Reflection
With the housing market dropping in Canada, residential units are dropping in price also. I predict that in two to three months, consumer confidence is going to be high again when potential buyers see these low prices and want to take advantage of these deals. The high consumer confidence will cause the housing market to increase once again. At this point in time, I would recommend buying a house if you have the money saved up. Waiting for lower prices could actually backfire and cause you to lose money, as prices will eventually rise again. I predict real estate businesses are going to wait for the consumer confidence to get high again, and then start selling their residential units.


Harman Basra
Financial Accounting 12
Block A

Harman Basra's Blog

Chapter 1 Article Response

http://www.canada.com/vancouversun/news/business/story.html?id=59f73d28-2e36-46de-a39d-15e5fc40c8f9

Summary

The article I read is about the recent slump in the stock market and how it is affecting those who invest in and sell stocks. The article describes how the stock market is unpredictable and how stocks are “going up, down, and flipping around.” The article explains that the foreign market companies’ stocks are rising, such as Coca-Cola and Colgate Palmolive. Many inexperienced investors are going to want to jump into the stock market with buying shares, which could definitely hurt them financially but could also result in positive outcomes. The article reports that buying stocks at low prices and holding them is the smartest thing to do at this particular moment. In the near future, the stocks will increase in value and this will result in profit.

Connection

I connected this news article to the topic about shareholders and investors in the financial accounting textbook. Investors and shareholders are always looking to buy, sell, or trade shares to enhance their financial position. Especially with the recent stock market slump, investors are eagerly searching for the right stocks to invest in. Currently, buying, selling, and trading shares are crucial moves for investors and shareholders due to the unpredictable stock market. Investors need to make responsible decisions whether or not the business they decide to invest in is going to succeed or fail. The recent stock market slump is going to benefit some investors and shareholders who invest in the right corporations. With that being said, some shareholders and investors will be negatively affected by investing in the wrong corporations.

Personal Reflection

I feel that investors should carefully research the corporations that they are thinking about investing in. With the recent stock market slump, many inexperienced investors are going to jump into the market and make key investments that could make them or break them financially. These inexperienced investors should cautiously decide to invest in corporations rather than just playing the role of a kid in a candy store. I feel that investors should make investments with a reasonable amount of money depending on their financial position. Inexperienced investors should not take any chances and make risky investments that could kill them financially. I feel as though this stock market slump is going to help many investors by giving them valuable experience and more knowledge in the world of stock exchange.

-H.Basra