Professor Elam

Lost Your iPod?

Sunday Oct 31, 2010

An iPod was turned into my Lost and Found last week, it was in an evening class. Judging by the apps I am guessing it belongs to a male. If one of you can identify the content as yours please claim it. 

Successful Studying

Sunday Oct 31, 2010

Here is an article on successful studying.  I would say the most important thing here is continual progress over time. Students mistake cramming for study, like the cheap suitcase, everything falls out, this never leads to mastery of the content. By the tine the exam rolls around, a sucessful sutdy routine will result in a short review. I often see students with their books open a minute before the exam, this is indicative of a lack of confidence and failure to master the material. One should be envisioning what one will write down as memonics and such at that point. If one is still anxious a minute before the exam and trying to cram this is the sign of a failed study program.

CEO Speak De Mystified

Sat Oct 30 2010

This article about Town Hall Corporate demystifies the language used by CEOs to explain what they are doing. As always, things are not what they seem!

Steve Jobs and Design

Thursday Oct 28 2010

 

Here is a 1984 photo of Steve Jobs L with then boss John Sculley R. In a recent Business Week Sculley describes Jobs' fascination with then tech leader Sony and the importance of Design. 

Sulley notes that Jobs marveled at the then new Walkman. I have always thought Sony if it had been on its game, should have brought out the iPod, but they did not, Apple did. 

I believe graduate schools of business that put an emphasis on Design will have a huge edge over other school. This is why Apple has left Sony and Dell in the dust, Design. Read the link to see what I mean. 

Robin Alizadeh

Wed October 27, 2010

 
Robin Alizadeh with Rush Enterprises spoke to the Graduate Cost Class tonight. Robin is an Internal Auditor with Rush Enterprises. Rush owns some 60 Peterbilt dealerships and is headquartered in New Braunfels. 

Robin attended UT Dallas which has an emphasis at the graduate level on Internal Auditing. 

Robin stressed that having the CIA designation assisted him in getting the position with Rush. And he pointed out that most job descriptions are now requiring CIA CMA or CPA preferred if not mandatory. This backs up what we have been telling students. Multiple certifications are the here and now of what is happening in terms of career placement for accountants. 

Robin also mentioned the importance of preparing for such exams while one is still in school with as he put it a 'school brain.'  Well put Robin, this is an academic exam. 

A tip of the hat to former President of San Antonio IIA Arlena Sones for suggesting we contact Robin, thanks Arlena!

 

Finally Robin mentioned that Rush is looking to hire one additional accounting audit position. Contact Robin at 

Robin H. Alizadeh CIA, CFE
Internal Auditor
Rush Enterprises, Inc. 
Office:  830-626-5938

Cell:  972-302-1866 

alizadehr@RushEnterprises.com

 

Jump Start

Wed Oct 27 2010

Jump Start is a program for aspiring accounting interns sponsored by a local CPA firm. We are not presently participating. My question, I can certainly approach the firm about our university participating in this program but I want to be sure we have sufficient interest to actuallly send someone. Please sound off on this one and let me know!

 

 

Internships

Wed Oct 27 2010

From Career Services

This week I spoke to Chris Filoteo about the upcoming internship possibility at Sol Schwartz and Associates, P.C. beginning in February, 2011 and ending April 15, 2011.

 They are seeking a Senior or Grad. student with a minimum GPA of 3.25.

Twenty hours per week, flexible. Pay depends on experience.

 Resume will be accepted until the end of November. The internship posting is listed on the career services section of our website.

 Advise students to come see me for a resume review or to submit it through their account on Jag Jobs.

Bennett Grey

Career Advisor

Student Engagement and Success

Texas A & M University-San Antonio

1450 Gillette Blvd.

San Antonio, Texas 78224

210-932-6287

210-932-6230

bennett.grey@tamusa.tamus.edu

BRK to SEC, Never Mind

Tuesday Oct 26 2010

 

Financial Accounting GAAP requires an adjustment to market when the value of securities held rises or falls above cost. Or at least that is the idea of Trading Securities and Available for Sale Securities. But 

Berkshire Hathaway did not take any mark to market losses on Kraft or US Bancorp, both of which are below BRK's cost. So, will the SEC do anything or is BRK just a special case? 

Here is the BRK response.

As of December 31, 2009, approximately 77% of the $1,864 million of unrealized losses in equity investments that were in a continuous unrealized loss position for more than twelve months was concentrated in two issuers, Kraft Foods ($789 million or 18% of cost) and U.S. Bancorp ($646 million or 27% of cost). These securities were principally acquired during 2006 and 2007.

As a result of the housing and credit crises and near collapse of the financial markets in 2008, the market prices for substantially all of Berkshire’s investments in equity securities declined, including Kraft Foods and U.S. Bancorp. This was consistent with the stock market in general. While stock prices for these two companies at December 31, 2009 did not change significantly as compared to December 31, 2008, each company reported significant earnings despite the prevailing economic conditions.

At December 31, 2009, we reviewed publicly available information on these companies and concluded that the underlying businesses of Kraft Foods and U.S. Bancorp were each financially sound and continued to possess significant future earnings potential, and that it was likely that their stock prices would eventually exceed our original cost. We also concluded that the market price declines in Kraft Foods (18% of cost) and U. S. Bancorp (27% of cost) were not extraordinary given the economic and other conditions prevalent in 2008 and 2009.

At December 31, 2009, we further concluded we had the ability and intent to hold these securities to their anticipated recovery. We believe it is reasonably possible that the market prices of Kraft Foods and U.S. Bancorp will recover to our cost within the next one to two years assuming that there are no material adverse events affecting these companies or the industries in which they operate. As of March 31, 2010, the market prices of Kraft Foods and U.S. Bancorp increased by 11.3% and 15.0%, respectively, since December 31, 2009. Historically, Berkshire has demonstrated the ability to hold equity securities for very long periods and currently holds certain equity securities that were acquired over 20 years ago.

Based on the information presented above, we believe that our conclusions to not record other-than-temporary impairment charges on investments in an unrealized loss position for more than twelve consecutive months was appropriate and in accordance with ASC 320 and Topic 5M. We will continue to evaluate the unrealized losses in our investments in equity securities in future periods based on the information currently available and assess whether impairment losses should be appropriately considered other than temporary for financial reporting purposes.

 

 

You Majored in What?

Monday Oct 25, 2010

Surprise surprise, engineering, CSI, Accounting make more right out of college than liberal arts. 

A dynamic that one might miss is this, there are simply too many liberal arts and humanities majors for the 'market' to possibly absorb them, hence it is difficult to stand out and supply continues to trump demand. 

In a rational market this would not happen, undergrads would gravitate away from low paying majors. But, universities get the same tuition for liberal arts as for business and engineering, the surplus of LA majors makes it less expensive to hire professors, students as I read this weekend, never demand tougher statistics classes, and so, wink wink nod nod, the university never mentions the lack of jobs in one area, using the massive number of LA undergrads to help fund the engineering programs and such for colleges that have them. This is managerial accounting, pure and simple. 

Katharine Brooks is head of Career Placement at UT Austin for liberal arts majors. While this is obviously not aimed at business majors I think I will get a copy, perhaps a couple of us need to write a road map on your business degree as well. 

Character Surfaces During Hard Times

Sunday Oct 24 2010

UT seethes after humbling loss to Iowa State, 28-21

It's easy to look great and even a bit humble when things go your way. But real character shows through when the game so to speak is not going your way. Just a week ago also ran Iowa State lost 52-0 to Oklhoma, but not this week!

UT Coach Mack Brown, according to the papers, uleased the kind of harsh, unfiltered emotion he had never shown after even his most bitter previous defeats.

"What we did was totally unacceptable...there's no way to hide from that, the team 'stunk' " he criticized his team's 'arrognace', he did admit Iowa State was better coached buat hen, 'I' myfighting my guts out to get them turned, you can't trust your team!" 

Gee Coach come again, whose team is this anyway?

Mack should have seen the potential for this coming, Consider, Iowa State was ranked 112th antionally in defense, they had ben outscored 120-27 in their last two games and had not won a game against a ranked opponenet on the road in 20 years. Gee think they would like some payback for all that mediocrity?

 ISU coach Paul Rhodeds had a different take, 'We came to [lay, we were focused, resilient, and we executed.' As the paper reported, they were the opposite of UT. An Iowa running back put it this way,

Nobody for a second thought we could lose.

Well there's the power of positive thinking for you!

We all like to win and no one likes losing, show me a good loser and I'll show you a loser as the saying goes.

Darrel Royal was the coach when I was in school as an undergrad. AS he told tv host Cactus Pryor week after week as he won games, we play each week a game at a time, Royal realized just how much each and every team wanted to beat UT, even if they lost every other game that season.

Or as Ross Perot used to tell us

 

They always want to tackle the guy that carries the ball.

But the buck stops as the well paid Coach's Corner