Professor Elam

LUby's Misses Filing SEC Report

Thursday Nov 15 2018

Luby's  missed filing its annual 10 K financial report with the SEC.

 

Luby's stock hit a high of $25 in the early 1990s and has been in decline since. The firm also owns Fudrucker's and Cheeseburgers in Paradise.  This is ironic given the  flood of newer chains like Smashburger, Five Guys and In and Out in San Antonio.

 

Professor Farhat Lecture Series

Tuesday Nov 13, 2018

Thanks to a helpful tip from Mark Goldman, I am providing a link to

Professor Farhat's accounting lectures.

 

Here is the Edspira link

 

https://www.youtube.com/results?search_query=edspira+accounting+videos

 

 

 

 

This is a link to his main page which displays all his offerings. Notice he has about 33,000 followers!  And he covers all the bases, advanced, tax, intermediate, govt, cost even a section on cpa exam review.

So in addition to the Edspira Kahn series this is another resource for your accounting review.

FASB Adds SOFR to Interest Rate Hedge

Monday Oct 29 2018

FASB addds SOFR for interest rate hedging.

SOFR is the Secured Overnight Financing Rate.  This is being done after revelations that the LIBOR London Interbank Overnight Rate

was manipulated by fraudsters.

Reading the WSJ is one of my twelve steps to Conquer Accounting. I linked to another source but spotted the news in the WSJ today.

Sears Finally Near Bankruptcy

Wednesday Oct 10, 2018

Sears has employed a firm specializing in bankruptcies.

The article is a textbook lesson in why the cash flow statement is the most important. Sears has simply failed to generate cash to re pay debt and fund operations.

We have written about this for some time noting Eddie Lampert is no retailer. It is ironic that the firm which created catalog shopping in teh  1890s, now on line shopping via electronic catalogs, is going under.

IFRS vs GAAP

Weekend Sept 30 2018

I am going to begin posting every single day. Today we offer up the PwC podcast of the differences between IFRS and GAAP.

 

https://www.pwc.com/us/en/cfodirect/multimedia/podcasts/us-gaap-ifrs-differences.html

Revenue Recognition

WedJuly 26 2018

New Revenue Recognition Guidance

The new revenue recognition guidance has created new challenges for many companies with diversified service offerings. One of the most significant challenges has been determining how to group promised goods and services into performance obligations.  This determination can be highly subjective and complex and the conclusions reached can have a significant impact on how revenue is recognized. Because significant judgment is required, a thorough analysis should be performed and all considerations should be well documented.    The complexity around how to bundle or un-bundle promises into performance obligations includes determining at what point the customer can benefit from the services provided.  For example, certain pre-production services may be performed before goods or services can be transferred to the customer.  These pre-production services generally should not be considered a performance obligation as they don’t provide value to the customer on their own.   Additional complexity includes determining if a good or service is separate within the terms of the customer agreement.  This assessment can result in seemingly similar transactions being accounted for differently within the same company.  For example, product sales and labor services are typically two separate performance obligations; however if the customer agreement is for auto-repairs, the products and labor would likely be combined into a single performance obligation.   The identification of performance obligations is critical to properly applying the new revenue recognition guidance.  The assessment may be time-consuming and may require significant judgment; however, if the assessment is not done correctly, revenue could be recognized improperly.  Jared Benedict Managing Partner of Technical Accounting Aventine Hill Partners

The Big Board has Big Listing Requirements

Friday April 6, 2018

Parker Drilling PKD has violated NYSE listing requirements.

This is an instructive article. The New York Stock Exchange is the Big Board. Years ago the NASD was for small companies and the AMEX in between.

Tech stock like MSFT made the NASD an exchange of wealthy companies.Please read the listing requirement. Seems to me all PKD can do is initiate a reverse split,

 meaning fewer shares out are worth more money.

 

Hard Times at Exxon

Wednesday March 7,2018

Exxon Chief Woods Struggles to Undo Predecessors Botched Ventures

Chief Executive Darren Woods inherited a bunch of deals from his predecessor Rex Tillerson, now the U.S. secretary of state, which have since gone sour. This year Exxon took a write-off on over a billion dollars for walking away from some of Mr. Tillerson’s projects, including some in Russia and Mexico. The losses are putting a drag on the oil firm’s growth, analysts said.

 

Get the ALEKS Accounting Advantage

Weekend February 25, 2018

 

ALEKS is a self paced on line tutorial geared to your level of understnading.

If you are having difficulty in  ACCT 3302 ACCT 3303 I recommend taking

 

First the Accounting Cycle Course

And then the Accounting for Corporations

 

Click on the first hyper link to view the drop down menus.

BP Takes $1.7 B Writedown

Tuesday Jan 16 2018

BP takes a $1.7 billion write down as a result of Deepwater Horizon.

The purpose of this blog is to tie what we study in class to the real world of accounting. Here is an excellent example.  BP anticipates charges and fines as a result of the oil spill. Now that it can identify them, it is taking a charge to reflect these losses.

We will report later on how this affects BP's stock price.