• Professor Elam

    Thursday June 24, 2010

    Here is a link to presentations on the CMA designation. 

    Download CMA_Presentation_current_candidates

    Download CMA%20External%20Presentation_1.22.10

    Here is a link to an extensive salary survey among IMA members this past year. Frankly I tend to take salary surveys with a grain of salt, note most responding have 20 years in the field. Note that realistically the ones doing well are no doubt much more likely to respond to such a survey than ones who are disappointed for whatever reason in their personal outcomes. But it is certainly a comprehensive effort. 

    Gleim CMA Candidate Forum is here

    The CMA is proving to be a popular designation in the Middle East. This slide show makes the reason clear, one does not have to travel to the US to take the exam and Dubai is becoming an important financial center. 

    Here is an IMA comparison of the CPA versus CMA content of the exams 

    And of course the ever popular Wikipedia has a good article on CMA. 

  • Professor Elam

    Wednesday June 23, 2010

    We are pleased to announce the formation of our first review class leading to the Certified Management Accountant Exam CMA. This is a designation of the Institute of Management Accountants. 

    The information on this review class is on the local San Antonio Institute of Management Accountants page. 

    Information about the certification is located on the IMA website.

    I am available by e mail or phone to answer any and all questions you may have concerning the process. 

    This is NOT a Texas A & M Accounting class but a separate non credit review class using Gleim materials developed specifically for the CMA exam. You will be reviewing for the new two part CMA exam. 

    The world of accounting is changing.I continually I learn of more and different certifications.  We urge you to attend a local meeting of IMA, read the websites linked above, and plan to add distinction to your degree by attaining such status. 

    Dennis.elam@tamusa.tamus.edu

  • Professor Elam

    Wed June 23, 2010

    Here is a thoughtful article on student evaluations. By parallel there have been many stories written and movies made from them about how the military turned a rebel without a cause into a constructive goal driven individual. No movie did it better than An Officer and a Gentleman in the early 1980s, sorry Clint,all your recruits in Heart break Ridge looked like fashion models. Richard Gere would not have given Lou Gossett Jr. any accolades for the way he conducted the class, until of course the end of the movie. 

    Click on the link to the article in the Eagle about how A & M views all this. 

  • Professor Elam

    Tuesday June 22 2010

    Michael Dell has considered taking  his firm private. Yes Dell faces an SEC investigation but going private would require buying out the stockholders who currently own $27 B worth of stock. And it does not change the competitive background. But this is an interesting turn of events from a few years back. A few years ago this high tech group was indignant about expensing stock options, now the very idea of being public is problematic, times change. 

  • Professor Elam

    Sunday June 20, 2010

    We have initiated market coverage at Market Perspectives. Click for a link to that blog where we will market observations. That  blog combines socionomics, business history, accounting analysis, and technical analysis. 

  • Professor Elam

    Saturday June 12, 2010


    Behold the Elephant

     


    Picture 9  
    It
    was six men of
    Hindustan

    
To
    learning much inclined,

    
Who
    went to see the Elephant
(Though all of them were blind),


    That
    each by observation

    
Might
    satisfy his mind.

    John
    Godfrey Saxe, 1816-1887

     

    We re in a period of prolonged economic
    stagnation. This is the inevitable result of the 1982-2000 period of boom. This
    bear market will root out failed strategies and require new perspective if one
    is to survive it intact. Another feature of such a period is the idea of
    exclusion. Other ideas and indeed peoples will be excluded rather than
    included. Already there are calls to nationalize British Petroleum (a third
    world idea of expropriating assets of foreign company) and Israel is under fire
    even more than usual. To appreciate and endure what is happening, we return to
    the parable of the six blind men of India who attempt to describe an elephant.

    Saxe’s poem quoted above is the most famous
    Western version but there are Jain, Hindu,  Buddhist  and
    Muslim versions as well.  
    Here is the Jain (an Indian religion of the ninth century) version.

    The
    blind man who feels a leg says the elephant is like a pillar; the one who feels
    the tail says the elephant is like a rope; the one who feels the trunk says the
    elephant is like a tree branch; the one who feels the ear says the elephant is
    like a hand fan; the one who feels the belly says the elephant is like a wall;
    and the one who feels the tusk says the elephant is like a solid pipe.

    The point of the story of course is that
    everyone has a totally different perspective of the same facts. Working in
    groups of faculty, administration, and students has brought this home to me the
    last few years. Indeed, there are many elephants on the same campus.

    Now, to complete one’s understanding of what is
    happening, appreciate that the power of Point of View prevents each blind
    person (or the one sitting next to you in a meeting) from seeing the
    perspective of anyone else in the group. Dale Carnegie put his finger on this
    one, each person believes that he or she is the center of their own
    universe.  And so each argues that
    the ‘elephant’ is a tusk or a pillar but certainly not a rope.

    This difficulty takes many forms. Peace in the
    Middle East to Syria means an absence of Israel.  A ‘clean environment’ may mean some fantasy escape from the
    necessity of carbon based fuels. Access to health care may actually mean
    considerable re distribution of wealth.   Just his week Oliver Stone was extolling the virtue of
    Hugo Chavez to Larry King; a Congressman expressed amazement at this view.

    The ultimate negative social disagreement is
    war. With the Dow at 10,000, North Korea has already sunk a South Korean vessel
    resulting in loss of life.  Israel
    may well attack Iran.  If my
    assumptions come true, that the Dow will revisit its March 2009 lows in the
    next two years, expect that opinions and actions will harden that much further.

    Saxe sums all this up as follows, and remember
    this observation has floated around for hundreds of years, nothing is going to
    change human nature.

    Moral:

    So oft in theologic wars,

    The disputants, I ween,

    Rail on in utter ignorance

    Of what each other mean,

    And prate about an Elephant

    Not one of them has seen! 

  • Professor Elam

  • Professor Elam

    Monday May 24, 2010

    Mark Steyn says Greece is no outlier, the rioters are the government establishment, and it is past saving. 

    He points out that at 1.3 kids per family the demography is going backwards, and with a business unfriendly environment worse than Yemen, who would want to move there?

    This is going to be repeated across Europe and onto the US.  If you read this article and then peruse the reports on Mish bout unions in the US, the conclusion is pretty clear. Our promises have exceeded out ability to pay for them, just ask the bank clerks the rioters killed in the bank set afire. 

  • Professor Elam

    Sunday May 21 2010

    The Express News updated this April story about the City Manager of Windcrest.  Cutting to the chase, the City Manager has funneled money donated by Rackspace to his brother, a 'developer' with all sorts of business related problems. I could not link to the article in today's Express News, a recurring problem. But over $2 M was transferred to the General Fund, this should never have happened, the money was intended for specific improvements and should accordingly have been in such a fund. 

    My point here is to highlight the importance of internal audit. This function is designed to uncover such irregularities. If you are ever on a City Council, as an accountant you should ask the tough questions about how such funds are handled. You should demand transparency and specific encumbrances for such funds. Imagine how embarrassing it would be, if you were on the City of Windcrest City Council and it was discovered that the City Manager had misused millions of dollars. I see that some of the incumbents were defeated in the recent Windcrest election.   The incumbents claim to have a two year plan to fix things, I guess the voters had a different time table in mind….

  • Professor Elam

    Sunday May 23 2010

    Mish posted this article from Bloomberg about the difficulty of finding a job upon graduation. 

    Many of our students are already working and San Antonio is faring much better than the national average. Still I urge accounting students to obtain a certification now as quickly as possible, we are liable to have a sideways at best economy for many years.  

    Now for those of you that believe I am just being a fear monger, take a look at this chart from Business Insider, it juxtaposes the S and P from 2000 with the Nikkei from 1989 to now, with the US DOW from 1929 to 1949. Here is what happened. 

    FDR never stimulated private investment in the economy. The best he could do as create the WPA which paid people to work on various government projects. Now we are are not even doing that  we are just paying people 'not to work' by extending unemployment benefits to perpetuity. 

    Japan never would write off its bad loans, so rather than undergo a couple of tough years, it has never recovered from its all time high in 1989. The result is not one but two lost decades. Japan the juggernaut that could do no wrong in 1989 has not been heard from since. 

    Picture 1