• Professor Elam

    Tuesday Nov 17, 2015

    Stock buybacks were a topic of one of our research papers last spring at the Student Research Forum. Here is an article detailing HP spending more than it earns on buying back stock.  This decreases the number of shares outstanding and therefore increase earnings per share even though the company has not increased net revenue. Little is spent on innovation.

    This is a good example of why a firm like HEB or Whataburger are not public companies. That way there is little pressure to produce continually higher earnings per share. I have had students working at those firms relay this message.

    Stock buy backs have helped propel the Dow to 18,000. So this new high is not the result of innovation or more productivity. Rather it is the result of near zero interest rates allowing big firms to repurchase stocks at near no interest cost.

  • Professor Elam

    Monday Nov 16 2015

     

    Education Management settled with the Dept of Justice resolving allegations that it used illegal enrollment incentives to pay recruiters and exaggerated its career placement ability. 

    The DOJ recently put Corinth University out of business.  At least Education Management escaped that fate. 

    Now the ethical question – the internet is littered with stories of law school students and graduates either suing or starting internet publications describing rosy career placement promises that never materialized.

    Why isn't the DOJ fining those law schools?

    Now universities all cite statistics that one will earn much more over a lifetime with a college degree. But there are huge differences in outcomes depending on the major chosen. Is it fair to make such blanket claims for all majors?

  • Professor Elam

    Friday Nov 13 2015

    The Director of Accounting at Brooks City Base Judy Trevino is looking for an Accounting Intern. 

    (210)678-3300

    3201 Sidney Brooks  
    San Antonio, TX 78235

    Accounting Intern

    Position to help support our Finance, Accounting and General Services office. This position performs a variety of clerical and entry-level accounting tasks under general supervision. They will be responsible for performing basic accounting and clerical duties to include, scanning, copying, filing, preparing spreadsheets, reports, invoices, and/or statements and performing various accounting calculations and transactions.

    Duties include:

    ·     Distribute invoices for coding and approval

    ·     Mail out account payable checks to vendors

    ·     Maintains accounting files and records

    ·     Scan invoices with all backup to electronic folders

    ·     Computes, prepares, verifies, and summarizes invoices for daily and weekly data entry

    ·     Produces various spreadsheets, reports and or statements

    ·     Research discrepancies

    ·     Complete special projects

     

    REQUIREMENTS:  

    ·     Proficient knowledge of accounting functions

    ·     Working knowledge of Microsoft Office, Word, Excel, and Outlook

    ·     Skilled in operating a computer, ten key adding machine, fax machine, copier

    ·     Excellent organizational, problem-solving, and time management skills

    ·     Ability to perform basic mathematical calculations

    ·     Able to work independently and as part of a team

     

    PHYSICAL REQUIREMENTS:

    Physical requirements include occasional lifting/carrying of 10 pounds; visual acuity, speech and hearing; hand and eye coordination and manual dexterity necessary to operate a computer keyboard and basic office equipment. Subject to sitting, standing, reaching, walking, twisting, and kneeling to perform the essential functions. Working conditions are primarily inside an office environment.

     

  • Professor Elam

  • Professor Elam

    Thursday Nov 2015

    We are studying fraud and internal control in audit class. Here is a message from Weaver CPA on inventory control.

  • Professor Elam

    Thursday Nov 12, 2015

    Students at the Open Cloud Academy say they learn more there in eleven weeks than in two years at CC.

    I recently penned two newspaper columns essentially suggesting much the same approach. The real solution to downsizing college cost is to eliminate everything not associated with your specialty,bingo, you are done in much less time. I also argued that I cold not discern most student learned anything in the classes outside their major anyway. 

    Are traditional colleges falling prey to rear view mirror thinking?

  • Professor Elam

     

     

    I enjoyed 2002's My7 Big Fat Greek Wedding. The show written by  Nia Vandals  poked fun at all things Greek. Well Nia Vandals is back with the second installment. this time she and her husband have  a daughter planning to leave for college. But in a snafu of paperwork it is discovered that her parents never quite were officially married. Merriment ensues, the movie is due out March 2016. If the market fall into that period which I expect, this should be a nice pick me up for social mood at that point. 

  • Professor Elam

    Wed Nov 11, 2015

    Here is a rundown on the new rules for long term leases which will take effect in 2018.

    There is a distinction between an operating lease, for example, you rent an apartment for a year, and a capital lease. Capital leases extend beyond a year and include major pieces of our economy including rail cars, passenger jets, and Walgreens and CVS drugstores. 

    Leases have been subject to four capital lease tests. If the lease falls under any one of the four, it is deemed a capital lease. This means it has to go on the balance sheet as long term debt.This of course adversely affects a firm's debt/equity ratio. And so, firms seek to 'serpentine' among the rules trying to create an operating lease rather than a capital lease. 

    My understanding of the new rules is simple. If the lease extends beyond one year, it has to go on the balance sheet. 

    This will have a tremendous effect on firms that are simply just a lease like airlines, rails, and drugstores. Between the new lease and revenue recognition rules, the accounting times they are a changin', to paraphrase Bob Dylan. 

  • Professor Elam

    Wednesday Nov 11, 2015

    I have mentioned the advantages of being a student member of the Institute of Internal Auditors. Here is an example. I received this e mail today from IIA.

       

    Dennis,

    Internal Auditor magazine, the world’s leading publication covering the internal audit profession, and The Institute of Internal Auditors (The IIA) are striving to strengthen internal audit and like professions through education. For decades, The IIA has been committed to Academic Relations by providing dedicated staffing and volunteer support, as well as partnering with schools through the Internal Auditing Education Partnership (IAEP) program.

    Internal Auditor magazine is launching a scholarship program in 2016 for undergraduate and graduate students. Six US$1,000, essay-based scholarships will be offered throughout the year to students who write the most informative and thought-provoking essays, as judged by The IIA’s Publications Advisory Committee.

    We’d like to invite you to share this opportunity with your university’s students by posting the scholarship on your university website and scholarship board. Learn more about this opportunity and sign up to receive updates.

    Sincerely,

    Anne Millage
    Editorial Director and Editor in Chief, Internal Auditor Magazine
    The Institute of Internal Auditors

     
     
     
  • Professor Elam

    Tuesday Nov 10, 2015

    71-00597 SPECIALIST – ACCOUNTING
    Perform as a Cost Accountant, developing and supporting financial transactions, compliance, and
    reporting; responsible for day to day accounting functions, month-end close, annual audit support, and
    financial analysis requests as required; responsible for the accounting and reconciliation of various
    general ledger accounts in accordance with SwRI’s accounting policies, which are based on the Cost
    Accounting Standards (CAS) and U.S. Generally Accepted Accounting Principles; review project based
    transactions to ensure proper accounting and in accordance with Federal Acquisitions Regulations (FAR);
    compile and/or review various journal entries for the respective accounting period; prepare monthly
    account reconciliations. Identify reconciling items and communicate with stakeholders/customers on
    resolution; ensure that reconciling items are cleared in a timely manner; research and prepare accounting
    entries for unique transactions; assist with the maintenance of the CostPoint7 fixed asset system and
    management of the interface between the fixed asset system and the general ledger; develop, generate,
    review and distribute financial management reports for various user departments and management;
    participate in pre-close and post-close variance analysis and provide meaningful insight to activity, trends,
    unusual and significant transactions; prepare and maintain desk top procedures as necessary, for
    assigned responsibilities; assist with related cross-training; other duties as assigned by the Cost
    Accounting Manager and Controller. Requires a BS degree in Accounting with at least a 3.0 GPA. CPA
    candidate or Masters preferable. Requires a minimum of 3 – 5 years relevant work experience, preferable
    to have public accounting experience. Preferred knowledge of Federal Acquisition Regulation (FAR), as
    well as, experience with OMB Circular A-133 requirements; experience in a professional accounting
    position with a proven understanding of generally accepted accounting principles is required; experience
    with reconciling balance sheet accounts and resolving any discrepancies within a timely manner is
    required; must have demonstrated ability to adapt and work with financial systems.; must have
    experience with personal computers with an ability to type and 10-key; proficiency in Microsoft Office, with
    advance skills in Excel is required; knowledge of general business practices and procedures and must be
    organized, efficient, and able to meet tight deadlines; must be able to solve problems and work with
    colleagues; must be detail oriented and have the ability to work with large amounts of data gathered from
    various systems; must have excellent oral and written communication skills; must have the ability to work
    collaboratively with all levels of employees and various functional departments to maximize efficiency,
    problem solving, and outcomes; must be able to maintain a commitment to financial accuracy, and a spirit
    of continuous improvement to eliminate inefficiency; must have a passion for learning and should be
    recognized as an approachable, engaging, confident and trusted team member; must embody the ability
    to work in multiple areas of accounting and to comprehend the inter-related aspects of various accounting
    transactions and associated accounts and projects.