• Professor Elam

    Monday Dec 5, 2016

    We have written many times about the difficulties at Sears. CEO Eddie Lampert has been selling off various parts to the point that there is nothing left.

    Now suppliers are reluctant to ship inventory for fear of a bankruptcy in which they might not get paid. With only half the inventory to sell, no wonder sales have  fallen.

    Sales have dropped from $41 B in year  2000 to $15 B in 2015.

    There have been suspicions for some time that Lampert would eventually liquidate and sell the real estate SHLD owns.

  • Professor Elam

    Weekend Dec 3 2016

    UT Austin recruiting a mom and pop operation?

    Well, compared to Alabama and Clemson apparently so. I did not think UT Austin lacked for anything. But more is always better, right?

    Other schools with large enrollments mistakenly believe that they can be 'just like the big guys.  This assumption does not grasp the amount of money and talent the big guys bring to the table.

    And so the Univ of North Texas, and Texas State, and UTSA, and I don't know, does UT Arlington play football?  I looked it up, they don't so there is hope some school gets it.

    University of Houston finally lucked out and got a winning coach and now he is gone to UT Austin, so now what to do?

    I had a student in class who had been the marketing director for Texas State Athletics. He said people were always asking why he did not do this or that. His  answer was that the marketing budget was only $300,000, a literal drop in the bucket.

    So the gulf between the big guys who can qualify for name bowl games, and then everyone else, remains large.

  • Professor Elam

    Wed Nov 30, 2016

    The WSJ ran this opinion piece on  Trump's decision to not investigate or prosecute Hillary any further.

     

     

    I made this comment which received several likes via e mail.

     

    One of the most admired Presidents of this past century was Harry Truman, by both parties. An artillery officer in WW I, he did not know of the Manhattan Project when he came into office but had to make the decision to use it. He stated he would never profit from the office of the President. And he went back to Mo and never did.The Clintons in complete contrast never missed a chance to make a buck off the experience. They shamelessly profited. And now they and their contributors have nothing to show for it.Let's hope they do the right thing, and discourage this practice and recommend Harry's path instead, but I doubt it….

  • Professor Elam

    Wed Nov 30 2016

    President Elect Trump names Goldman Sachs partner as Treasury Secretary.

    Steven Mnuchin suppoted Hillary in 2007, then switched to Obama when he won, and then became Trump's campaign finance chief.  Conclusion, this guy is on the winning side.

    He attended Yale and his Father also worked at GS. 

    He has successfully in vested in films like Avatar, American Sniper, and the latest Mad Max films. Look for an easy confirmation.

  • Professor Elam

  • Professor Elam

    Weekend Nov 27, 2016

    Penn State received a record $2 M + fine over the Sandusky incident.

    The penalty is for violating the Clery Act, a  1990 law that covers rep;orts on campus crimes and warnings to the campus community.

    AS I remarked in the audit class, do you suppose the large internal audit staff at Penn State ever considered such a possibility, apparently not.

  • Professor Elam

    Wed Nov 23, 2016

    There are numerous review aids available to prep for the final exam. Here are a few.

    Textbook Website

    The second item listed on the syllabus under electronic sites is the free website for the textbook.

    http://highered.mheducation.com:80/sites/0078025834

    Click on student edition.

    Then select a Chapter.

    You will be presented with a multiple choice quiz for that chapter.

    Now click above the drop down box on Additional Student Resources.

    Narrated slides are available as well as practice exams.

    Textbook Review

    Financial Reporting Case

    No one reads them but the Financial Reporting Case at the start of the Chapter also contains important information.

    Typically it excerpts from an actual annual report. It then

    poses questions

    provides the look up page which discusses this topic

    and there is a Financial Reporting Case Solution at the end of the Chapter prior to The Bottom Line section.

    Concept Review Exercises

    Each chapter contains solved Concept Review Exercises typical of what is found in the test bank. Handily the answer is provided. But the key here is to attempt to work the problem without examining the answer first.

    The Bottom Line

    After the chapter end but before Questions for Review of Key Topics is the chapter summary titled The Bottom Line.This is a review by Learning Objective. Again the authors are summarizing the important concepts in their terms. Now, uh, why is that important?  Because the authors wrote the Test Bank used for the exam!

    End of Chapter Questions

    Each chapter has at least 20 questions located after the summary of learning objectives and before the Brief Exercises.

    I have  posted the answers to these questions under Course Content on Black Board.

    This would be a perfect time to read through the questions, phrase your answer and then read the suggested answer. This should remind you of a great deal of detail.

    McGraw Hill Connect

    Here I have posted links to the narrated power points, the CPA CMA review questions and answers,

    Warning, all these aids taken together will improve your performance but only if you take the time to learn them.

    The key to conquering accounting is practice practice practice and repetition.

    There is no such thing as an overnight success in accounting.

     

     

     

     

     

  • Professor Elam

    Tuesday Nov 22, 2016

    A TAMUSA student correct points out that Strong has not been officially terminated. But what a mess of mixed signals.

    This article mentions that

    the VP for diversity and community engagement  showed up but not the Athletic Director who now dismisses reports Strong would be fired as a rumor but said no decision would be made until after the game.

    Well gee there's a vote of support from the sky boxes, eh!

    As Darrel Royal used to put it, you dance with the one that brung you which means supporting the coach and not sending mixed metaphors that are more advantageous to the administration than to the team or the players.

    I teach the accounting ethics course in the spring of  2017. The very heart of the question of ethics is how should be treat one another. My take is that this sorry spectacle is not the way to treat one another. Now the players  are literally crying over their frustration and Strong wants to return next season.  
    All this rhetoric has made that just more difficult.

  • Professor Elam

    Monday November 21, 2106

    I am not a big football fan but I do teach the required accounting ethics class here at TAMUSA. I am a graduate of UT Austin, three times over.

    I sent them this short letter but doubt it will appear on the athletic website.

     

    UT Administration and Other Sore Short Term Frustrated Fair Weather Fans

    There is only one way to avoid losing at any game, don’t play. So if you just cannot stand the thought of losing on the scoreboard, perhaps we would start playing soccer or some other sport on Saturdays.

    But there is more, much more, going on here than the score at the end of the game. Just look one hundred miles north for an alternate reality.

    Sure that school won more games but the record also includes

    the resignation of the coach, athletic director, and President

    players on the way to jail, literally

    a long established tradition of integrity lost in two short years

    and no doubt a few alums wondering if that school is really the place for their daughters.

    None of hat happened at UT Austin, thanks for Charlie Strong’s efforts to root out the ‘deplorables’ his first season

    Shame on the officials who announced Strong’s removal before the season was even over, how tawdry, and unappreciative.

    Darrell Royal advised one to 'dance with the one that brung you.'

    UT could not even wait another six days, they had to suggest they were looking for a new dance partner before the TCU game. Just how does that improve the situation, not for Charlie, not for the team, not for the fans, just for the administration flexing its muscle, without of course, offering a solution.

    If you had to choose between the end results of the two programs, I would go for the Strong result every time

    Integrity and a class act with no need to apologize for player behavior is a winner in the Game of Life,

    And that is something to put first, before the team takes the field.

    Dennis Elam
    Class of 1970, 1972, 2003

  • Professor Elam

    Weekend Nov 19 2016

    I have re printed Emerson's essay I believe ever since beginning the student blog in 2006.

    It is the very anti-thesis of the obsession of Black Friday, the shopping day after Thanksgiving or as Ralph put it Screen Shot 2016-11-20 at 8.42.07 AM

    But it is a cold, lifeless business when you go to the shops to buy me something, which does not represent your life and talent, but a goldsmith’s. This is fit for kings, and rich men who represent kings, and a false state of property, to make presents of gold and silver stuffs, as a kind of symbolical sin-offering, or payment of black-mail.

     

    Gifts*

    by Ralph Waldo Emerson

    Gifts of one who loved me,–
    ’T was high time they came;
    When he ceased to love me,
    Time they stopped for shame.

    1 It is said that the world is in a state of bankruptcy, that the world owes the world more than the world can pay, and ought to go into chancery, and be sold. I do not think this general insolvency, which involves in some sort all the population, to be the reason of the difficulty experienced at Christmas and New Year, and other times, in bestowing gifts; since it is always so pleasant to be generous, though very vexatious to pay debts. But the impediment lies in the choosing. If, at any time, it comes into my head, that a present is due from me to somebody, I am puzzled what to give, until the opportunity is gone. Flowers and fruits are always fit presents; flowers, because they are a proud assertion that a ray of beauty outvalues all the utilities of the world. These gay natures contrast with the somewhat stern countenance of ordinary nature: they are like music heard out of a work-house. Nature does not cocker us: we are children, not pets: she is not fond: everything is dealt to us without fear or favor, after severe universal laws. Yet these delicate flowers look like the frolic and interference of love and beauty. Men use to tell us that we love flattery, even though we are not deceived by it, because it shows that we are of importance enough to be courted. Something like that pleasure, the flowers give us: what am I to whom these sweet hints are addressed? Fruits are acceptable gifts, because they are the flower of commodities, and admit of fantastic values being attached to them. If a man should send to me to come a hundred miles to visit him, and should set before me a basket of fine summer-fruit, I should think there was some proportion between the labor and the reward.

    2 For common gifts, necessity makes pertinences and beauty every day, and one is glad when an imperative leaves him no option, since if the man at the door have no shoes, you have not to consider whether you could procure him a paint-box. And as it is always pleasing to see a man eat bread, or drink water, in the house or out of doors, so it is always a great satisfaction to supply these first wants. Necessity does everything well. In our condition of universal dependence, it seems heroic to let the petitioner be the judge of his necessity, and to give all that is asked, though at great inconvenience. If it be a fantastic desire, it is better to leave to others the office of punishing him. I can think of many parts I should prefer playing to that of the Furies. Next to things of necessity, the rule for a gift, which one of my friends prescribed, is, that we might convey to some person that which properly belonged to his character, and was easily associated with him in thought. But our tokens of compliment and love are for the most part barbarous. Rings and other jewels are not gifts, but apologies for gifts. The only gift is a portion of thyself. Thou must bleed for me. Therefore the poet brings his poem; the shepherd, his lamb; the farmer, corn; the miner, a gem; the sailor, coral and shells; the painter, his picture; the girl, a handkerchief of her own sewing. This is right and pleasing, for it restores society in so far to its primary basis, when a man’s biography is conveyed in his gift, and every man’s wealth is an index of his merit. But it is a cold, lifeless business when you go to the shops to buy me something, which does not represent your life and talent, but a goldsmith’s. This is fit for kings, and rich men who represent kings, and a false state of property, to make presents of gold and silver stuffs, as a kind of symbolical sin-offering, or payment of black-mail.

    3 The law of benefits is a difficult channel, which requires careful sailing, or rude boats. It is not the office of a man to receive gifts. How dare you give them? We wish to be self-sustained. We do not quite forgive a giver. The hand that feeds us is in some danger of being bitten. We can receive anything from love, for that is a way of receiving it from ourselves; but not from any one who assumes to bestow. We sometimes hate the meat which we eat, because there seems something of degrading dependence in living by it.

    "Brother, if Jove to thee a present make,
    Take heed that from his hands thou nothing take."

    We ask the whole. Nothing less will content us. We arraign society, if it do not give us besides earth, and fire, and water, opportunity, love, reverence, and objects of veneration.
     

    4 He is a good man, who can receive a gift well. We are either glad or sorry at a gift, and both emotions are unbecoming. Some violence, I think, is done, some degradation borne, when I rejoice or grieve at a gift. I am sorry when my independence is invaded, or when a gift comes from such as do not know my spirit, and so the act is not supported; and if the gift pleases me overmuch, then I should be ashamed that the donor should read my heart, and see that I love his commodity, and not him. The gift, to be true, must be the flowing of the giver unto me, correspondent to my flowing unto him. When the waters are at level, then my goods pass to him, and his to me. All his are mine, all mine his. I say to him, How can you give me this pot of oil, or this flagon of wine, when all your oil and wine is mine, which belief of mine this gift seems to deny? Hence the fitness of beautiful, not useful things for gifts. This giving is flat usurpation, and therefore when the beneficiary is ungrateful, as all beneficiaries hate all Timons, not at all considering the value of the gift, but looking back to the greater store it was taken from, I rather sympathize with the beneficiary, than with the anger of my lord Timon. For, the expectation of gratitude is mean, and is continually punished by the total insensibility of the obliged person. It is a great happiness to get off without injury and heart-burning, from one who has had the ill luck to be served by you. It is a very onerous business, this of being served, and the debtor naturally wishes to give you a slap. A golden text for these gentlemen is that which I so admire in the Buddhist, who never thanks, and who says, “Do not flatter your benefactors.”

    5 The reason of these discords I conceive to be, that there is no commensurability between a man and any gift. You cannot give anything to a magnanimous person. After you have served him, he at once puts you in debt by his magnanimity. The service a man renders his friend is trivial and selfish, compared with the service he knows his friend stood in readiness to yield him, alike before he had begun to serve his friend, and now also. Compared with that good-will I bear my friend, the benefit it is in my power to render him seems small. Besides, our action on each other, good as well as evil, is so incidental and at random, that we can seldom hear the acknowledgments of any person who would thank us for a benefit, without some shame and humiliation. We can rarely strike a direct stroke, but must be content with an oblique one; we seldom have the satisfaction of yielding a direct benefit, which is directly received. But rectitude scatters favors on every side without knowing it, and receives with wonder the thanks of all people.

    6 I fear to breathe any treason against the majesty of love, which is the genius and god of gifts, and to whom we must not affect to prescribe. Let him give kingdoms or flower-leaves indifferently. There are persons, from whom we always expect fairy tokens; let us not cease to expect them. This is prerogative, and not to be limited by our municipal rules. For the rest, I like to see that we cannot be bought and sold. The best of hospitality and of generosity is also not in the will, but in fate. I find that I am not much to you; you do not need me; you do not feel me; then am I thrust out of doors, though you proffer me house and lands. No services are of any value, but only likeness. When I have attempted to join myself to others by services, it proved an intellectual trick,–no more. They eat your service like apples, and leave you out. But love them, and they feel you, and delight in you all the time.

    * First printed in the periodical The Dial, "The Gift" is the final piece in Ralph Waldo Emerson's Essays: Second Series, published by James Munroe and Company in 1844.