Professor Elam

Malaysian Leader Spends Millions on Luxury Goods

Thursday March 31, 2016

http://search.proquest.com/news/docview/1776773494/CF96E9E0B2A540FFPQ/4?accountid=130967

There have been numerous protests in Malaysia over abuses by their leader. Now we know!

Images of protests in Malaysia

Indicted Official Wants ot Defend Indigent in Bexar County

Wed March  30 2016

James Jonas III is the disgraced city manager and city attorney from Crystal City, Tx.  He lost his cush $216,000 salary as city manager when he was arrested.This is considered excessive for a city of 8,0000. So what to do for a living?

The Fraud Diamond adds the dimension of Capacity, how good is one at perpetuating a fraud So Jones, a former S Attorney ahd high powered republican lobyist, applied to be a public dfender for the  indigent of Bexar County.

Someone who can keep all these balls in the air so to speak, would probably be pretty good at that.  Bexar Judges will be meeting on his application.

A photo of the applicant in Gilbert Garcia's column

HSBC Pays $$1.9B Fine in 2012, still Struggling with Compliance

Wed March 30, 2016

I will have the link to the WSJ article later this morning as it has not appeared in our library database yet.

HSBC bank paid a $1.9 B fine to the Justice Dept in 2012 to settle allegations it failed to spot laundered proceeds of drug trafficking in Mexico. It also failed to flag transaction with countries subject o economic sanctions.

Reading the article I wondered why HSBC would run the risk of doing business in Mexico where obviously the laundering question is at the highest risk. By the end of the article, we learn that indeed HSBC is shutting down much of its Mexico business.

HSBC has now hired 9,000 compliance officer. No wonder job prospects look good for accountants.

But, my ethical question is, is it fair for the Justice Dept to fine HSBC such a huge amount given the difficulty of what is required?  All that did was deny honest Mexicans the advantage of HSBC services. Is this really just an extortion racket the Justice Dept is running?  Hey nice bank you got here, be a shame if something happened to it...

Consider this list of fines paid by banks to Dept of Justice.

And in deed HSBC cold lose its license to do business in the US.

Managing Principal at Blackstone Charged with Fraud

Tuesday March  29 2016

Andrews W. W. Caspersen  who had been a principal at Blackstone, is charged with a bizzare scheme to steal $25 million.

We are studying fraud in the ethics class. And this case seems to fit the bill.

Uppercrust pedigree from Princeton and Harvard

HIgh Profile employer and background

As we learn in the fraud diamond, he had capability, the fourth and perhaps most important piece of the puzzle in making a fraud happen.

NOtable names in Wall Street Finance fell for the scheme.

He came from a distinguished family. His Dad was CEO of Beneficial Corp. His brother practiced at Sullivan and Cromwell before providing counsel to the 9/11 Commission.

The Cost of Quality

Friday March 25, 2016

Kirk Tuck's Visual Science Lab is one of my favorite weblogs. In this post, How Sharp Does It Need to Be

he tells an interesting story about a client who said they wanted a really top notch photo that could be blow up a large size say 40 in by 60 in.

After haggling the intermediary did not call back, but Kirk did. Read the link to find out what happened.

Once again, quality wins the race.

Accountant Wanted

Thursday March 24, 2016

Accountant II - Finance & Accounting (FT Days)

 Department Name: Accounting

Work Location: 

United States-Texas-San Antonio-Methodist Healthcare System

Schedule: Full-time FTE: 1.000000

Shift: No Weekends

Requisition ID: 08164-68116

Rick Sanchez

Senior Accountant

Central Accounting Office

HCA / Methodist Healthcare System

8109 Fredericksburg Rd.

San Antonio, TX 78229

210.575.0295 Work

Email: [email protected]

Tour of ACELITY for SA CPA members

Tuesday March 22 2016

Good afternoon Professors,

I hope you are doing well.  In case you do not remember me, my name is Bryan Morgan and I the current Chair of the San Antonio CPA Society Student Auxiliary.

I wanted to pass information on to you that I hope you will share with your students.  We have scheduled an office tour to Acelity L.P.'s (formerly KCI) Corporate Headquarters on Friday April 1st from 3pm to 5pm and hope that some of your students may be available to make the event.

ACELITY L.P. Inc. and its subsidiaries are a global advanced wound care and regenerative medicine company created by uniting the strengths of three companies, Kinetic Concepts, Inc., LifeCell Corporation and Systagenix Wound Management, Limited. Available in more than 80 countries, the innovative and complementary ACELITY product portfolio delivers value through solutions that speed healing and lead the industry in quality, safety and customer experience. Headquartered in San Antonio, Texas, ACELITY employs more than 5,800 people around the world.

We have about 20 more spots left for the event which is open to any current SACPAS Member. Students can confirm their membership and RSVP by emailing Amanda Talaat at [email protected]

PLEASE NOTE THAT PROFESSIONAL DRESS IS ABSOLUTELY REQUIRED. STUDENTS NOT IN COMPLIANCE WILL BE ASKED TO LEAVE. NO EXCEPTIONS.

Full details of the event can be found on our Facebook page: https://www.facebook.com/events/1514558132174294/

Lastly, for any students seeking internships, Acelity currently has several for accounting students.  Details are below:

FP&A Intern

 Position Summary: At Acelity, we're committed to advancing the science of wound healing and helping our patients heal. We’ve led the way in the development of new technologies, medicines and therapies designed to make wound healing more manageable for caregivers and more comfortable for patients around the world. We believe all patients deserve the most advanced treatments available. That's why our employees are dedicated to developing the best innovations and providing the best service and clinical support in over 20 countries. Acelity is elevating patient outcomes, lowering costs and delivering the advanced treatments necessary to heal wounds and improve lives. Acelity offers the excitement and challenges of being a growing and innovative leader in the medical device marketplace. 

Benefits of an Internship with Acelity:  

Professional experience and skill developmentExposure to various corporate software systemsExposure to different areas of Finance from an industry perspectiveMentorship and coachingProfessional connections and networking opportunities Primary Duties/Responsibilities:

Work for one of the following Finance Departments:
Forward Planning & Analysis o
Controllership & General Ledger Accounting
Commercial and R&D Finance
Corporate Tax
Internal Audit
Treasury

Perform financial analyses on historical and prospective financial informationCollect and analyze financial data to draw insightful conclusionsAssist with revenue and expense forecastsPrepare account reconciliations and contribute to the month end close processAssist in making recommendations for improvements and corrective action to enhance internal controls and minimize risksInteract and collaborate with individuals from other finance teamsSupport both income and indirect tax complianceParticipate in special and ad hoc projects as required

 Basic Qualifications:

Enrolled as an undergraduate or graduate business major, preferably finance or accountingCompleted 2nd or 3rd year with basic business coursework earned creditsOverall GPA greater than or equal to 3.0 on a 4.0 scale.GPA in major greater than 3.0Experience with MS Office applications including: Word, Excel, & Outlook 

Please do no hesitate to reach out to me if you have any questions. You can email me or call/text me at 210-818-4108

Sincere regards,

Bryan Morgan Jr
Chair-Student Auxiliary
San Antonio CPA Society

Valuing Intangibles

Tuesday March 22, 2016

We are studying Plant, Property, and Equipment along with intangible assets. But accounting does not account for exisitng intangibles on the books unless the company paid for them.

This article notes that Radio Shack's books did not acknowledge two valuable assets, the brand name and customer data. In a concluding example the market capitalization for Facebook is $320 billion. but the book value is $44 billion.  This suggests the market believes the intangible value of FB is $276 billion. The current capitalization of the S & P 500 is $17.9 trillion. There may be another $8 trillion in un-booked intangible assets in the form of trademarks, customer data, real estate, and such. Will the FASB take this issue up?  If so it could conceivably bring new value to many companies.

SEC to Crack Down on Customized Earnings

Thursday March 17, 2016

The SEC sounds the alarm on customized earnings.

In financial accounting we study Generally Accepted Accounting Principles or GAAP. These prescribe a specific way to prepare financial statements and EPS.

However companies have been publishing their own version of GAAP. The SEC is cracking down on this extra legal form of self indulgence.

SARBOX Ten Years Later

Tuesday March 15, 2016

Steven Harris is a PCAOB Board Member. Here is lists ten thiings SARBOX accomplished.

Oddly the first thing is restoring investor confidence. But hey Steve didn't the markets have a far worse fall in 2008-09?