An investor is reviewing his investment in Air Canada to choose whether or not to sell his shares in the business. Recent weakness in the airline sector as well as 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 think about the company's pension plans in his evaluation.
A suggestion to move new hires from defined benefit pension plans to defined contribution was a key point of argument between striking workers and the organization. The investor knew the business's pension plans were underfunded and he desired to evaluate what impact the capital would have on the organization 's future. Finally, the investor needed to understand the impact that the change to International Financial Reporting Standards would have on Air Canada's pension accounting.
PUBLICATION DATE: September 23, 2011 PRODUCT #: W11204-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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