New Bookmarks
Year 2006 Quarter 4: October 1 - December 31 Additions to
Bob
Jensen's Bookmarks
Bob Jensen at
Trinity University
For
earlier editions of New Bookmarks go to
http://www.trinity.edu/rjensen/bookurl.htm
Tidbits Directory ---
http://www.trinity.edu/rjensen/TidbitsDirectory.htm
Click here to
search Bob Jensen's web site if you have key words to enter --- Search Site.
For example if you want to know what Jensen documents have the term "Enron"
enter the phrase Jensen AND Enron. Another search engine that covers Trinity and
other universities is at
http://www.searchedu.com/.

Choose a Date
Below for Additions to the Bookmarks File
December 31, 2006
November 30, 2006
October 31, 2006

December 31, 2006
Bob Jensen's New Bookmarks on December 31,
2006
Bob Jensen at
Trinity University
For
earlier editions of Tidbits go to
http://www.trinity.edu/rjensen/TidbitsDirectory.htm
For
earlier editions of New Bookmarks go to
http://www.trinity.edu/rjensen/bookurl.htm
Click here to search Bob Jensen's web site if you have key words to enter ---
Search Site.
For example if you want to know what Jensen documents have the term "Enron"
enter the phrase Jensen AND Enron. Another search engine that covers Trinity and
other universities is at
http://www.searchedu.com/.
Bob Jensen's Blogs ---
http://www.trinity.edu/rjensen/JensenBlogs.htm
Current and past editions of my newsletter called New
Bookmarks ---
http://www.trinity.edu/rjensen/bookurl.htm
Current and past editions of my newsletter called
Tidbits ---
http://www.trinity.edu/rjensen/TidbitsDirectory.htm
Current and past editions of my newsletter called Fraud
Updates ---
http://www.trinity.edu/rjensen/FraudUpdates.htm
Bob Jensen's past presentations and lectures
---
http://www.trinity.edu/rjensen/resume.htm#Presentations
Bob Jensen's various threads ---
http://www.trinity.edu/rjensen/threads.htm
(Also scroll down to the table at
http://www.trinity.edu/rjensen/ )
Click here to search this Website if you
have key words to enter --- Search Site.
For example if you want to know what Jensen documents have the term "Enron"
enter the phrase Jensen AND Enron. Another search engine that covers Trinity and
other universities is at
http://www.searchedu.com/.
Bob Jensen's Home Page is at
http://www.trinity.edu/rjensen/
Click Here for Tidbits and Quotations Between December 1
and December 31, 2006 ---
http://www.trinity.edu/rjensen/book06q4.htm#Tidbits123106
Click Here for Humor Between December 1
and December 31, 2006 ---
http://www.trinity.edu/rjensen/book06q4.htm#Humor113006
Links to Documents on Fraud ---
http://www.trinity.edu/rjensen/Fraud.htm
Bob Jensen's search helpers are at
http://www.trinity.edu/rjensen/searchh.htm
Bob Jensen's Bookmarks ---
http://www.trinity.edu/rjensen/bookbob.htm
Bob Jensen's links to free electronic literature, including free online
textbooks ---
http://www.trinity.edu/rjensen/ElectronicLiterature.htm
Bob Jensen's links to free online video, music, and other audio ---
http://www.trinity.edu/rjensen/Music.htm
Bob Jensen's documents on accounting theory are at
http://www.trinity.edu/rjensen/theory.htm
Bob Jensen's links to free course materials from major universities ---
http://www.trinity.edu/rjensen/000aaa/updateee.htm#OKI
Bob Jensen's links to online education and training alternatives around the
world ---
http://www.trinity.edu/rjensen/Crossborder.htm
Bob Jensen's links to electronic business, including computing and networking
security, are at
http://www.trinity.edu/rjensen/ecommerce.htm
Bob Jensen's links to education technology and controversies ---
http://www.trinity.edu/rjensen/000aaa/0000start.htm
Bob Jensen's home page ---
http://www.trinity.edu/rjensen/
Bob Jensen's complete set of Enron Updates are at
http://www.trinity.edu/rjensen/FraudEnron.htm#EnronUpdates
Bob Jensen's threads on the Enron scandal are at
http://www.trinity.edu/rjensen/FraudEnron.htm
How do scholars search for academic
references?
Scholarpedia Launches at the end of 2006
From the University of Illinois Issues in Scholarly Communication blog on
December 28, 2006 ---
http://www.library.uiuc.edu/blog/scholcomm/
Scholarpedia feels and looks like
Wikipedia - the free encyclopedia that anyone can
edit. Indeed, both are powered by the same program - MediaWiki. Both allow
visitors to review and modify articles simply by clicking on the edit this
article link.
However, Scholarpedia differs from Wikipedia in some very important ways:
• Each article is written by an expert (invited or elected by the public).
• Each article is anonymously peer reviewed to ensure accurate and reliable
information.
• Each article has a curator - typically its author -- who is responsible
for its content.
• Any modification of the article needs to be approved by the curator before
it appears in the final, approved version.
…Currently, Scholarpedia hosts Encyclopedia of
Computational Neuroscience, Encyclopedia of Dynamical Systems and
Encyclopedia of Computational Intelligence. Although all three will
eventually be published in a printed form, they will also remain freely
available and modifiable online. (Producing a hard copy of each encyclopedia
is important for archiving; besides, many academicians have a preconception
that the prestige of an online article is not as high as that of a printed
one.)
If there is enough interest and support from the
public, Scholarpedia will grow in the following directions:
• The neuroscience chapter of Encyclopedia of Computational Neuroscience
will be a seed to start Encyclopedia of Cognitive Neuroscience, and then
Encyclopedia of Neuroscience
• Encyclopedia of Dynamical Systems will be a seed to start Encyclopedia of
Applied Mathematics, and then Encyclopedia of Mathematics.
• Encyclopedia of Computational Intelligence will be a seed to start
Encyclopedia of Computer Science.
Read more at
Scholarpedia ---
http://www.scholarpedia.org/article/Main_Page
Second Nature: PLoS One Picks Up Where Nature
Left Off
From the University of Illinois Issues in Scholarly Communication blog on
December 27, 2006 ---
http://www.library.uiuc.edu/blog/scholcomm/
The launch of the new
PLoS ONE
scholarly research portal looks like a big win for open access research
content from a number of angles. PLoS ONE is posting research and will allow
interactive review before and after publication for scientific articles via
a very sophisticated publishing environment. The PLoS ONE platform applies
many of the best practices of social media, providing ready access to
comments posting and awareness of active discussions to draw in more active
discussions. PLoS ONE will publish all papers that are judged to be rigorous
and technically sound, and had already posted more an 100 papers by its
launch - a remarkable number for a just-launched scholarly journal of any
kind. By contrast Nature's recently shuttered open-review portal trial,
which ran for around four months, attracted only 71 authors willing to post
their work online and attracted 92 technical comments.
As we noted in our
latest news analysis article one of the keys to
successful social media products is a dedicated core of trusted contributors
who will be able to ensure editorial success. PLoS ONE starts with a global
editorial board of more than 200 scholars, ensuring a broad array of inputs
for reviewing content. Some of the fears about having content rejected after
having had it exposed to comments prior to publication may be relieved by
the PLoS ONE policy that allows papers that have been already rejected by
PLoS Biology and Medicine journals to be re-submitted via PLoS ONE. This is
a potentially valuable feature, allowing research that may not have yet
reached the highest levels of acceptance to mature through its exposure to
comments from a broader audience.
PLoS ONE is finally opening the doors to the
potential for fundamental changes in how scholarly research proves its
worth. With an open exchange of ideas and commentary facilitated by
technologies long available to the general public and a solid body of
research and reviewers PLoS ONE holds out the potential to liberate the
highest levels of scholarly innovation from the regimen of the printing
press. Changing the way that research is paid for was a good first step for
open access, but with the ability to eliminate artificial distribution
bottlenecks that choke off natural conversations PLoS ONE may do for
scholarly research what Wikipedia has done for reference materials - with
much more integrity in the underlying editorial processes.
John Blossom,
Content Blogger 12/22/06
Bob Jensen's search helpers are at
http://www.trinity.edu/rjensen/searchh.htm
How do scholars search for academic references?
Scholarpedia ---
http://www.scholarpedia.org/article/Main_Page
PLoS One ---
http://www.plosone.org/home.action
Google Scholar ---
http://scholar.google.com/
Not to be confused with Google Advanced Search which does not cover many
scholarly articles ---
http://www.google.com/advanced_search?hl=en
Microsoft's Windows "Live Search" or "Academic Search" ---
http://search.live.com/results.aspx?scope=academic&q=
Amazon's A9 ---
http://a9.com/-/search/advSearch
Beginning October 23, 2003,
Amazon.com offers a text search of entire contents of over 120,000 books
(over 10 million pages) ---
http://www.amazon.com/exec/obidos/tg/browse/-/10197021/ref%3Dsib%5Fmerch%5Fgw/104-3984945-7813514
How It Works ---
http://snurl.com/BookSearch
A significant extension of our groundbreaking Look Inside the Book
feature, Search Inside the Book allows you to search millions of pages
to find exactly the book you want to buy. Now instead of just displaying
books whose title, author, or publisher-provided keywords that match
your search terms, your search results will surface titles based on
every word inside the book. Using Search Inside the Book is as simple as
running an Amazon.com search.
Answers.com ---
http://www.answers.com/
Wikipedia (heavily used by scholars in spite of authenticity
risks)---
http://en.wikipedia.org/wiki/%s
Other Scholarly Search Engines (CrossRef
and
Scirus.) ---
http://privateschool.about.com/b/a/116956.htm
Also see
http://www.library.uq.edu.au/internet/scholsearch.html
Scholarly search tools
-
CiteBase
Citebase is a trial service that allows researchers
to search across free, full-text research literature
ePrint archives, with results ranked according to
criteria such as citation impact.
-
Gateway to ePrints
A listing of ePrint servers and open access
repository search tools.
-
Google Scholar
A search tool for scholarly citations and abstracts,
many of which link to full text articles, book
chapters, working papers and other forms of
scholarly publishing. It includes content from many
open access journals and repositories.
-
OAIster
A search tool for cross-archive searching of more
than 540 separate digital collections and archives,
including arXiv, CiteBase, ANU ePrints, ePrintsUQ,
and others.
-
Scirus
A search tool for online journals and Web sites in
the sciences.
|
|
UCLA Library Scholarly Search Helpers ---
http://www2.library.ucla.edu/googlescholar/searchengines.cfm
University of Kansas Scholarly Search Helpers ---
http://www.lib.ku.edu/technology/searchengines/scholar.shtml
Social scientists and business scholars often use SSRN (not free) ---
http://www.ssrn.com/
If you have access to a college library, most colleges generally have
paid subscriptions to enormous scholarly literature databases that are not
available freely online. Serious scholars obtain access to these vast
literature databases.
Librarian's Index to the Internet ---
http://www.trinity.edu/rjensen/searchh.htm#Librarian'sIndex
Searching the Deep Web ---
http://www.trinity.edu/rjensen/searchh.htm#DeepWeb
Open Access Shared Scholarship ---
http://www.trinity.edu/rjensen/000aaa/updateee.htm#OKI
University Channel (video and audio) ---
http://uc.princeton.edu/main/
Bob Jensen's links to electronic
literature, including free online textbooks and other learning materials ---
http://www.trinity.edu/rjensen/ElectronicLiterature.htm
Bob Jensen's search helpers are at
http://www.trinity.edu/rjensen/searchh.htm
I think this is a good deal for accounting students everywhere!
November 9, 2006 message from Tracey E. Sutherland
[membership@aaahq.org]
I am proud to announce that student membership in
the American Accounting Association is now available to full-time students
residing anywhere in the world. Student members pay discounted membership
dues and receive their selected Association journals online. Student
membership also allows students to attend national, section, and regional
meetings of the Association without vote but at reduced rates. Student
members are also eligible to purchase Association publications at member
prices.
Student membership dues in the AAA are as follows:
One electronic journal option - $25
Two electronic journal option - $35
Three electronic journal option - $45
Also included in student membership are electronic
and hard copy versions of the AAA newsletter and updates/emails about
upcoming events and conferences. Student members are also welcome to join
any of our 15 interest sections at the discounted rate of only $6 per
section.
Please encourage your students to take advantage of
this new option to participate in the accounting education community, and
share the news of this new opportunity with your colleagues.
Information about student membership in the AAA and
an online student membership application can be found online at
http://aaahq.org/membership/student_member.htm.
If you have any questions about student membership,
please feel free to contact Deirdre Harris at membership@aaahq.org or
941-921-7747, ext. 319.
Best regards,
Tracey Sutherland
Executive Director
American Accounting Association
Phone: 941/921-7747 ext. 311
Fax: 941/923-4093
AAA website:
http://aaahq.org
Email:
tracey@aaahq.org
Although current issues of AAA publications are not free, I remind readers
that back issues of The Accounting Review (up to I think year 2000) can
be downloaded free as images (not PDF text) from
http://maaw.info/TheAccountingReview.htm
You have to click on the "(Non USF user link)".
I've never found sources for free back issues of other
AAA publications, although most college libraries subscribe to databases that
provide free downloads of page images (not PDF text for older editions).
Congratulations Bill (Well Deserved)
The Management Accounting Section of the American Accounting Association is
pleased to announce that it has awarded the Lifetime Contribution to Management
Accounting Award to Professor William L. Ferrara. The AICPA sponsored award
recognizes individuals who have made significant contributions to management
accounting education, research, and practice over a sustained period of time
through scholarly endeavors, teaching excellence, educational innovation, and
service to the Management Accounting Section. The award extends profession-wide
recognition to the recipient and promotes role models in management accounting.
"LIFETIME ACHIEVEMENT AWARD GIVEN TO WILLIAM FERRARA FOR CONTRIBUTIONS TO
MANAGEMENT ACCOUNTING," AccountingEducation.com, December 7, 2006 ---
http://accountingeducation.com/index.cfm?page=newsdetails&id=144010
Study: Most Audit Committees
Do Not Have Even One Accountant
Then why call them
audit committees?
A new report says that in 2005 the number of
accountants sitting on audit committees doubled compared to four years prior,
but that six out of 10 companies still did not have at least one accountant on
their committee. The research from
Huron Consulting
is based on a sample of more than 700 audit committee
members at 178 public companies from the NASDAQ 100 and Fortune 100
listings. The report analyzed patterns of audit committee
composition between 2002 and 2005 using information contained in the companies'
annual proxy statements and 10-K disclosures filed with the U.S. Securities and
Exchange Commission.
"Study: Most Audit Committees Lack Accountant ," SmartPros, November 30,
2006 ---
http://accounting.smartpros.com/x55639.xml
Bob Jensen's threads on proposed
reforms are at
http://www.trinity.edu/rjensen/FraudProposedReforms.htm
Issue 16 of the Ernst & Young Faculty Connection ---
http://www.ey.com/global/content.nsf/US/EY_Faculty_Connection_(Issue_16)
IFAC Code of Ethics for Professional
Accountants
From the IAS Plus blog on December 31, 2006 ---
http://www.iasplus.com/ifac/0612ethicsed.pdf
The International Ethics Standards Board for
Accountants (IESBA) has issued an exposure draft proposing to update and
strengthen the auditor independence requirements contained in the IFAC
Code of Ethics for Professional Accountants. Significant proposed
modifications to the Code include:
- extending the partner rotation requirements to
all key audit partners on an audit of an entity of significant public
interest;
- updating requirements related to the provision
of non-assurance services, including setting out additional guidance on
the provision of tax services to audit clients;
- providing guidance on key audit firm personnel
accepting employment with audit clients that are entities of significant
public interest; and
- extending the independence requirements to the
audits of a wider range of entities of significant public interest
Bob Jensen's threads on auditor professionalism and
independence are at
http://www.trinity.edu/rjensen/fraud001.htm#Professionalism
XBRL: You Can't Ignore It Anymore
The SEC has poured $54 million into a new interactive
reporting tool to replace the retiring Edgar. Now the Big Four say it is time to
scrap quarterly reports in favor of real-time (read: daily) financial reporting.
If the phrase "XBRL" put you to sleep in the past, it's time to wake up. And as
momentum for improving the format of data reporting builds, the push for
enriched information content is moving along, too. Indeed, the big audit firms
are calling on corporations to report scads of non-financial data to buttress
the financials.
"XBRL: You Can't Ignore It Anymore," CFO Magazine Special Report, Various
Dates in 2006 ---
http://www.cfo.com/guides/guide.cfm/8310234?f=members_121406&x=1
THE INTERACTIVE DATA MOVEMENT
Q&A: Microsoft's Laux on Finance Reports The
software giant's director of technical accounting and reporting thinks that
once CFOs clear the Sarbox 404 hurdle, they'll show more enthusiasm for XBRL
and the reporting of non-financial data.
Will the AICPA Take Over XBRL Standards? Companies
could be filing XBRL-ready financial statements as soon as 2008. But some
observers worry that the definitions corporations will have to follow will
be written almost entirely by accountants.
The Good and Bad About XBRL's Future The setup
costs for XBRL is relatively low, but without the proper user tools,
regulatory filings can turn into "gibberish."
XBRL Will Keep Investors Wanting More The
programming language will pique, not satiate, investors' appetite for more
information.
SEC Hires a Company It's Investigating Hired on
Monday to work on the commission's new filing system, BearingPoint earlier
reported that it would file its financials late—and that it was under
investigation by the SEC.
10-Ks, 8-Ks a Thing of the Past? In announcing that
the SEC's XBRL project will be done within a year, Chairman Christopher Cox
said investors will be able to assemble their own financial data, rather
than rely on current regulatory documents.
XBR-What? Even as SEC chairman Cox champions
"interactive data," few CFOs seem impressed. Is that because too few of the
benefits accrue to them?
Another XBRL Nudge from the SEC The SEC issues a
formal request to add an XBRL analysis tool to its online Edgar system. The
move increases pressure on companies to voluntarily adopt the technology.
Will XBRL Improve Analyst Coverage? If more
companies filed financial documents using XBRL, analysts would be able to
spend less time on data collection and would be likely to ''expand buy- and
sell-side coverage,'' according to one panelist at an SEC roundtable.
GE, Pepsi Join SEC Data Pilot More companies agree
to provide the SEC with financial data in XBRL format, a program strongly
backed by Chairman Christopher Cox.
Ready or Not, XBRL Is Coming The SEC and FASB are
gearing up for XBRL, suggesting it's only a matter of time before its use
becomes mandatory.
Tagged, But Not It Yet A small group of companies
has signed up with the SEC to test Internet-tagging of financial data. Will
this latest effort finally launch the long-predicted XBRL revolution?
XBRL: From Tags to Riches? The SEC is offering
limited liability relief, the ability to file using Form 8-K, the freedom to
tag just a portion of data, and other incentives to encourage companies to
file financial data using XBRL.
What XBRL Means For You XBRL promises to bring a
little context to numbers. And yes, that's a good thing.
THE SKINNY ON XBRL
For a more laid-back approach to our coverage of
interactive data, check out the blog posts below, or click to go to the main
blog page.
XBRL? No Thanks, Chaps
The Real-Time Reporting Conundrum
IDA? EVA? XENA?
Cue EDGAR's Fat Lady
Tiny XBRL
XBRL: Is it a TWR of BABL?
A Question of Terms
Bob Jensen's threads on XBRL ---
http://www.trinity.edu/rjensen/XBRLandOLAP.htm
A while back I created a video tutorial for XBRL. You
can download the xbrldemos.wmv files from the following path
http://www.cs.trinity.edu/~rjensen/video/windowsmedia/
IFRSs, Applying International Financial Reporting
Standards
Paul Pacter, a director in Deloitte's IFRS Global Office
and webmaster of IASPlus, is co-author of the Second (Enhanced) Edition of the
leading university textbook on IFRSs, Applying International Financial
Reporting Standards, published this month by John Wiley and Sons
(Australia). The focus of this 1,236-page text is on the analysis, illustration,
and application of IFRSs. The textbook has been written for intermediate and
advanced financial reporting courses, at both undergraduate and postgraduate
level, and aligns with the knowledge expectations of the accounting profession.
Paul's co-authors are Keith Alfredson, former chairman of the Australian
Accounting Standards Board (AASB); Ruth Picker, AASB deputy chairman and a
technical partner of Ernst & Young; Ken Leo and Jeannie Radford, both of Curtin
University of Technology; and Victoria Wise of Victoria University. Here is the
Book's Home Page, for more information and on-line purchasing. Or, for
international orders, email
custservice@johnwiley.com.au (cite ISBN: 9780470808238).
IAS Plus, December 21, 2006 ---
http://www.iasplus.com/index.htm
December 4, 2006 --- Dennis Beresford
[dberesfo@TERRY.UGA.EDU]
The first of the PCAOB's inspection reports on Big 4 firm audits for the
2004 year end has been posted to the PCAOB's web site. It can be accessed
at:
http://www.pcaobus.org/Inspections/Public_Reports/2006/Deloitte.pdf
Denny
December 9, 2006 reply from Bob Jensen
I'm getting
increased messaging from companies who complain that the PCAOB inspections
of Audits are making auditors highly conservative, especially regional
auditing firms.
In particular auditors are becoming very tough about
testing for hedge ineffectiveness under FAS 133. No auditing firm wants to
get caught up anything like KPMG got caught up in before being fired from
the Fannie Mae audit.
You can read
more about ineffectiveness testing under the term "Ineffectiveness" at
http://www.trinity.edu/rjensen/acct5341/speakers/133glosf.htm#I-Terms
Because Denny is the new head of
Fannie Mae's Audit Committee, I suspect he's heard a lot about
ineffectiveness testing as of late.
Bob Jensen
December 9, 2006 reply from Denny Beresford
[DBeresfo@TERRY.UGA.EDU]
Bob,
Without commenting on specific situations, it
appears that the regulators would like companies and their auditors to
actually follow the accounting literature. Seems pretty reasonable to me.
Denny
"PCAOB Finds Problems At PricewaterhouseCoopers (PwC)," by David
Reilly, The Wall Street Journal, December 16, 2006; Page A4 ---
http://online.wsj.com/article/SB116622194790551886.html?mod=todays_us_page_one
The Public Company Accounting
Oversight Board, in an inspection report released Friday, cited
PricewaterhouseCoopers LLP for deficiencies in some of its audits of public
companies.
The PCAOB noted the firm had failed
in some cases to catch or address errors in the way companies applied
accounting rules or lacked sufficient evidence to back up some of its
decisions. The PCAOB singled out for criticism nine audits done by
PricewaterhouseCoopers, saying in a number of the cases the firm failed to
adequately check the value of revenue, inventory and accounts receivable at
companies whose books it was approving. The board's inspections entail
reviews of a sampling of audits, not every audit done by a firm.
In keeping with the board's policies,
the report doesn't identify the companies that had their audits cited. In
addition, only a portion of the report is made public. A section that
includes criticisms related to an accounting firm's quality-control systems
is kept secret and never made public if a firm is able to show that it has
corrected the problems cited within 12 months of the report's issuance.
In a comment letter included in the
PCAOB report, PricewaterhouseCoopers said, "We have addressed each of the
specific findings raised in the report and, where necessary, performed
additional procedures or enhanced the related audit documentation." A
spokesman for PricewaterhouseCoopers issued a statement saying that the firm
believes it is "performing quality audits" and that it "will incorporate the
board's findings" into the firm's practices.
The board's inspection reports are
the only public assessment of audit firms' work available to investors and
the corporate audit committees, which hire, fire and negotiate how much to
pay the accounting firms.
The report is the second this year
that the PCAOB has issued for a Big Four accounting firm covering
inspections conducted last year of the firms' audits of companies' 2004
financial results. Earlier this month the agency issued its 2005 report for
Deloitte & Touche LLP.
The PCAOB, which has been criticized
for the length of time it is taking to issue annual reports, has yet to
issue 2005 inspection reports for Ernst & Young LLP or KPMG LLP, the other
two members of the Big Four. The board has until the end of the year to do
so.
The PCAOB must issue an annual
inspection report for any accounting firm that audits 100 or more public
companies. Firms that audit fewer than 100 public companies are inspected
every three years, although the PCAOB on Friday said it would look to amend
this rule.
PricewaterhouseCoopers' response to
its PCAOB report was in contrast to that of Deloitte, which included strong
rebuttals of many of the board's findings.
Bob Jensen's threads on audit incompetence are at
http://www.trinity.edu/rjensen/FraudConclusion.htm#IncompetentAudits
Bob Jensen's threads on PwC troubles are at
http://www.trinity.edu/rjensen/Fraud001.htm#PwC
"FASB Proposes Improved Derivatives, Hedging Disclosures,"
SmartPros, December 11, 2006 ---
http://accounting.smartpros.com/x55778.xml
The Financial Accounting Standards Board issued a
proposal that would provide investors and others with better information
about the effects of derivative and hedging activities on a company's
financial statements.
The proposed statement specifically addresses
constituents' concerns that existing disclosure requirements associated with
FASB Statement No. 133, Accounting for Derivative Instruments and Hedging
Activities, do not provide adequate information to financial statement
users.
"The proposed disclosure requirements are intended
to enhance understanding of how and why entities use derivatives, how they
are accounted for in an entity's financial statements, and how they affect
an entity's financial position, results of operations, and cash flows," said
Kevin Stoklosa, FASB Project Manager.
The exposure draft would enhance the current
disclosure framework by requiring that objectives and strategies for using
derivative instruments be discussed in terms of underlying risk and
accounting designation. The exposure draft would require tabular disclosure
of notional and fair value amounts of derivatives instruments and the gains
and losses on derivatives instruments and related hedged items.
Additionally, the proposed statement would require disclosure of information
about counterparty credit risk and the existence and nature of contingent
features in derivative instruments.
The requirements of the proposed Statement would be
effective for financial statements issued for fiscal years and interim
periods ending after Dec. 15, 2007, with early application encouraged. The
proposed statement would encourage but would not require disclosures for
earlier periods at initial adoption. In years after initial adoption, the
proposed statement would require disclosures for earlier periods.
The board is seeking written comments on the
proposal by March 2, 2007.
For a short time you can download the proposed FAS 133 amendment from
http://www.fasb.org/draft/ed_derivatives_disclosure.pdf
Bob Jensen's tutorials on FAS 133 and IAS 39 are at
http://www.trinity.edu/rjensen/caseans/000index.htm
A slide show on FAS 133 and IAS 39 disclosure rules is available at
http://www.cs.trinity.edu/~rjensen/Calgary/CD/JensenPowerPoint/
Accounting Snags Push Dresser to Restate Problems with derivative
transactions, inventory controls
Dresser Inc. said it will restate its financial
statements for 2001 through 2003 based on a host of accounting errors. In May,
the industrial engineering company had warned that it would restate its 2004
annual filing, its 2004 and 2005 quarterly financial statements, and would be
evaluating the potential need to restate prior periods. The accounting errors
relate to inventory valuation and derivative transactions under the Financial
Accounting Standards Board's FAS 133. Other accounting errors relate to the
company's businesses which were sold in November 2005.
Stephen Taub, "Accounting Snags Push Dresser to Restate Problems with derivative
transactions, inventory controls, keep IPO on hold," CFO Magazine,
November 26, 2006 ---
http://www.cfo.com/article.cfm/8346406/c_8347143?f=FinanceProfessor.com
Dresser Inc. changed its independent
auditor to Pricewaterhouse Coopers (PwC) in 2002 and with plans to restate its
2001 financial statements after it changed auditors. The previous auditor was
KPMG.
Bob Jensen's threads on KPMG are at ---
http://www.trinity.edu/rjensen/Fraud001.htm#KPMG
Monster says it made monster accounting errors
Monster Worldwide Inc. said on Wednesday it overstated
profit from 1997 to 2005 by a total of $271.9 million, a result of its
investigation into historical stock option grants and accounting. In a filing
with the U.S. Securities and Exchange Commission, the parent of job search Web
site Monster.com recorded a net charge of $9.2 million for 2005, $14.4 million
for 2004, $27 million for 2003, $44.9 million for 2002, $65.6 million for 2001,
and $110.8 million for the cumulative period of 1997 through 2000.
"Monster says overstated '97-'05 profit by $271.9 m," Rueters, December
13, 2006 ---
Click Here
The Independent Auditor for Monster Worldwide is KPMG ---
http://www.trinity.edu/rjensen/Fraud001.htm#KPMG
It just gets deeper and deeper for KPMG
Fannie Mae Sues KPMG
The mortgage lending company Fannie Mae filed suit on
Tuesday against its former auditor KPMG, accusing the firm of negligence and
breach of contract for its part in the flawed accounting that led to a $6.3
billion restatement of earnings. Fannie Mae states in its complaint that KPMG
applied more than 30 flawed principles and cost it more than $2 billion in
damages. Fannie Mae fired the accounting firm in mid-December 2004, just a week
after the Securities and Exchange Commission ordered the company to restate more
than two years of flawed earnings. A KPMG spokesman, Tom Fitzgerald, said the
company planned to “pursue our own claims against Fannie Mae.”
"Fannie Mae Sues KPMG," The New York Times, December 13, 2006 ---
http://www.nytimes.com/2006/12/13/business/13kpmg.html?_r=1&oref=slogin
KPMG fired back at former audit client Fannie Mae
this week, saying it would counter the mortgage giant’s $2 billion negligence
and breach of contract lawsuit. KPMG “will pursue our own claims against Fannie
Mae” in the U.S. District Court in Washington, D.C., spokesman Tom Fitzgerald
told reporters Tuesday. Fannie Mae filed its lawsuit Tuesday in the Superior
Court of the District of Columbia. Fitzgerald said the issues raised in Fannie
Mae's lawsuit “are already pending" in shareholder lawsuits before the federal
district court. He did not elaborate on what claims KPMG would make against
Fannie Mae, Reuters reported.
"KPMG Plans Counter Suit of Fannie Mae," AccountingWeb, February 14, 2006
---
http://www.accountingweb.com/cgi-bin/item.cgi?id=102902
Bob Jensen's threads on KPMG are at ---
http://www.trinity.edu/rjensen/Fraud001.htm#KPMG
Guilty Plea Made in Trial Over Shelters From KPMG
A businessman pleaded guilty yesterday to charges of
conspiracy and fraud and agreed to help federal prosecutors pursue indicted
former employees of the accounting firm KPMG in a widening investigation into
questionable tax shelters. The businessman, Chandler Stuart Moisen, who appeared
in Federal District Court in Manhattan, is the third person to enter a guilty
plea in the tax shelter investigation, which has ensnared accountants, bankers,
lawyers and investment advisers. . . . . . . Although Mr. Moisen is a relatively
minor figure in the tax shelter inquiry, his offer to cooperate with the
prosecution could have major consequences for the KPMG defendants, in particular
for Robert Pfaff, a former KPMG partner with whom Mr. Moisen worked closely to
sell questionable tax shelters.
Lynnley Browning, "Guilty Plea Made in Trial Over Shelters From KPMG," The
New York Times, December 22, 2006 ---
http://www.nytimes.com/2006/12/22/business/22shelter.html?ref=business
Bob Jensen's threads on KPMG are at ---
http://www.trinity.edu/rjensen/Fraud001.htm#KPMG
Prison for Chip Executive
An executive with Samsung Electronics will plead
guilty, serve 10 months in prison and pay a $250,000 fine for conspiring to fix
prices of computer memory chips, the Justice Department said on Thursday.
Young-hwan Park participated in the conspiracy while he was a vice president for
sales at Samsung, which is based in South Korea and is the world’s top maker of
memory chips, the department said.
"Prison for Chip Executive," The New York Times, December 22, 2006 ---
http://www.nytimes.com/2006/12/22/technology/22samsung.html
"Fannie Mae Faces Work After Restatement," by Marcy Gordon,
SmartPros, December 8, 2006 ---
http://accounting.smartpros.com/x55766.xml
Mortgage giant Fannie Mae has taken a significant
stride in its march out of an accounting scandal by completing a restatement
of past earnings but still faces tough work to make its financial reporting
current.
The restatement for 2001 through June 30, 2004,
made public on Wednesday, wiped out $6.3 billion in profit for the
government-sponsored company, which finances one of every five home loans in
the United States. But it was well below Fannie Mae's earlier estimate of
$10.8 billion. Ordered by the government two years ago, the massive
reworking of its accounting has cost the company some $1 billion this year
to carry out.
Shares of Fannie Mae rose $1.64, or almost 3
percent, to $60.14 in early trading Thursday on the New York Stock Exchange.
It has traded in a range of $46.17 to $62.37 over the last 52 weeks,
compared with its peak of around $80 in early 2004.
It was the first earnings statement filed by Fannie
Mae since late 2004. The scandal erupted in the fall of that year when
federal regulators accused Washington-based Fannie Mae - with its
long-standing prestige, vaunted political clout and reputation for financial
excellence - of serious accounting problems and earnings manipulation to
meet Wall Street targets.
Fannie Mae also announced Wednesday an increase in
its quarterly dividend to 40 cents from 26 cents, where it had been since
being slashed in half in January 2005.
"We believe that returning higher levels of capital
back to shareholders is a top priority at Fannie Mae, and this marks an
important first step," Moshe Orenbuch, an analyst at Credit Suisse, said in
a research note issued Thursday.
The company hasn't said when it will get caught up
and report its results for 2005 and 2006; it could take a year or two.
The restatement "is a key step forward for the
company and represents two years of hard work," James B. Lockhart, director
of the Office of Federal Housing Enterprise Oversight, said in a statement
Wednesday. "Much remains to be done. ... Fannie Mae faces enormous
challenges in fixing its operational and risk management systems, in
(financial controls) compliance, and in producing audited financial
statements for 2005 and 2006."
Jim Vogel, an analyst with FTN Financial Capital
Markets, said in a research note that for Wall Street, the concern is "if
there's a pattern of sustained quarterly losses that appear to reflect more
difficulties in risk management than the market had thought."
OFHEO is the federal agency that regulates Fannie
Mae and Freddie Mac, its smaller sibling in the $8 trillion home-mortgage
market. Last May, it issued a blistering report alleging a six-year
accounting fraud at Fannie Mae, the second-largest U.S. financial
institution after Citigroup Inc. Regulators said the scheme included
manipulations to reach quarterly earnings targets so that company executives
could pocket hundreds of millions in bonuses from 1998 to 2004.
Lockhart also said Wednesday the agency plans to
file a lawsuit before year's end to recover tainted bonus money from former
Fannie Mae officials, including ex-chief executive Franklin Raines and chief
financial officer Timothy Howard. Raines, a prominent Washington figure who
was White House budget director in the Clinton administration, was swept out
of office in December 2004 along with Howard. A number of senior executives
and board directors have left the company.
Fannie Mae paid a record $400 million civil fine in
a settlement with OFHEO and the Securities and Exchange Commission. It also
agreed to limit the growth of its multibillion-dollar mortgage holdings,
capping them at $727 billion, and to make top-to-bottom changes in its
corporate culture, accounting procedures and ways of managing risk.
The company also disclosed Wednesday that its chief
executive, Daniel Mudd, received a pay package of $13.1 million, including a
$2.6 million bonus, for 2005. Mudd, who was the top operations official at
the time of the accounting misdeeds, was elevated to the CEO in a management
shakeup in December 2004.
In detailing its restatement, Fannie Mae cited a $7
billion net decrease from previously reported earnings for periods prior to
2002, a $705 million reduction for 2002, a $176 million increase for 2003
and a $1.2 billion increase for the first six months of 2004.
Over the last two years, Fannie Mae has disclosed a
passel of new accounting problems that had been uncovered in several areas,
including its core business of issuing securities backed by the billions of
dollars of home mortgages annually that it buys from lenders and bundles
together for resale to investors worldwide. Other problems were revealed in
loans, houses acquired through foreclosures, interest on delinquent home
loans and reverse mortgages.
They all were in addition to the accounting-rule
violations that came to light in September 2004 involving derivatives, the
financial instruments that Fannie Mae and Freddie Mac use to hedge against
swings in interest rates.
Fannie Mae escaped criminal prosecution over the
accounting failure. The Justice Department had pursued a criminal
investigation, but federal prosecutors said in August that they had shut
down their probe without bringing any action. The SEC still could bring
civil actions against individual executives, including people no longer at
Fannie Mae, with the burden of proof less stringent than in criminal
prosecutions. Several shareholder lawsuits have been filed against the
company and current and former executives.
Fannie Mae and Freddie Mac were created by Congress
to pump money into the home-mortgage market to keep interest rates low and
make home ownership affordable for low- and moderate-income people.
Freddie Mac, which also is government-sponsored and
has its stock publicly traded, had its own accounting scandal that came to
light in June 2003. The company misstated earnings by some $5 billion -
mostly underreported - for 2000-2002 to smooth out volatility in profit and
uphold its image on Wall Street as a steady performer.
Bob Jensen's threads on Fannie Mae are
http://www.trinity.edu/rjensen/caseans/000index.htm
"Regulators sue ex-Fannie Mae executives," Marcy Gordon, The
Columbus Dispatch, December 19, 2006 ---
Click Here
The government yesterday filed civil charges
against former Fannie Mae chief Franklin Raines and two other top
executives, accusing them of misconduct costing shareholders billions of
dollars.
The Office of Federal Housing Enterprise Oversight
announced that it is seeking fines and the return of millions in bonus
money. It filed 101 charges against Raines, former Chief Financial Officer
Timothy Howard and former controller Leanne Spencer.
Raines and Howard were swept out of office two
years ago in the multibillion-dollar accounting debacle at the
government-sponsored company, which finances one of every five home loans in
the United States. Fannie Mae earlier this month announced a longawaited
restatement for 2001 through June 30, 2004, that erased $6.3 billion in
profit.
OFHEO said it is seeking civil fines of $100
million or more against the three former executives and restitution of more
than $115 million in bonus money tied to an improper accounting scheme.
Continued in article
Will Fannie eventually become an even bigger taxpayer loss than the
infamous Savings and Loan frauds?
Fannie Mae's stock price has been on an upswing since
late summer, reflecting investor confidence that a Democratic Congress would
make strict scrutiny of the mortgage giant less likely (see the nearby chart).
And there's no doubt that with Barney Frank wielding the gavel in the House
Financial Services Committee, Fannie Mae and Freddie Mac will have a pal on
Capitol Hill. Mr. Frank is already talking about expanding the companies'
operations (and thus taxpayer exposure to any financial accident) . . . The
well-documented allegation is that Fannie's managers manipulated earnings to
ensure that their bonuses and incentive compensation were maximized. If Fannie
didn't in fact reach those earnings targets -- and it has since restated its
earnings by $6.3 billion -- then that money does not belong to the managers who
"earned" it.
"Ill-Gotten Raines," The Wall Street Journal, December 20, 2006; Page A18
---
http://online.wsj.com/article/SB116658240822955337.html?mod=djemITP
Yet Again the SEC Amends Executive Compensation Disclosure (particularly
regarding stock options)
The US Securities and Exchange Commission has
amended its executive and director compensation disclosure rules to more closely
conform the reporting of stock and option awards to FASB Statement No. 123
(revised 2004) Share-Based Payment. FAS 123R is similar to IFRS 2 Share-based
Payment. The amendment modifies rules that were adopted in July 2006.
SEC Press Release 2006 219 ---
http://www.iasplus.com/usa/0612seccomp.pdf
Bob Jensen's threads on outrageous executive compensation are at
http://www.trinity.edu/rjensen/FraudConclusion.htm#OutrageousCompensation
Where were the auditors?
Firms cook the books to set executive pay
And these same executives are protesting Sarbanes-Oxley
"Firms cook the books to set executive pay," Editorial, The New York Times,
December 19, 23006 ---
http://www.sptimes.com/2006/12/19/Opinion/Firms_cook_the_books_.shtml
Among the corporate deceits that buttress America's
obscene executive pay is the one about comparability. But a new federal rule
may help expose the reality of so-called "peer groups." Far too often, the
list of comparable CEOs is cooked.
As the New York Times reported in its latest
installment on executive pay, former New York Stock Exchange chairman
Richard Grasso was a poster child for the abuse. His $140-million
compensation package was rationalized, in part, by comparing his job to
those at companies with median revenues 25 times the size of the exchange,
assets 125 times and employee bases 30 times the size.
Grasso was hardly alone. Executives have learned
that the path to personal riches is paved by "peer groups" that include big
and profitable companies. Eli Lilly compared itself to eight companies that
had much higher profit margins. Campbell Soup used one set of companies for
executive pay and a separate one as a benchmark for stock performance. Ford
Motor Co. compared itself to other industries, its proxy statement said,
because "the job market for executives goes beyond the auto industry."
The "job market" argument is particularly
disingenuous. As the New York Times noted, ousted Hewlett-Packard chief
executive Carly Fiorina was replaced by a data processing executive who was
earning less than half her pay. His company, NCR, never appeared on the
Hewlett-Packard "peer group."
The growth in executive pay has been so meteoric in
the past quarter-century that it is demeaning the contributions of average
workers and undermining public faith in corporate America. Last year,
according to the Corporate Library, the average pay for an S&P 500 chief
executive was $13.5-million. The average CEO now earns 411 times the average
worker, up from 42 times in 1980.
The new Securities and Exchange Commission
disclosure rules went into effect on Friday, and compensation consultants
are scrambling to cover their tracks. But stockholders who have been kept
mostly in the dark will now at least have a chance to see the playbook.
That's the first step toward ending these games of executive greed.
Bob Jensen's fraud updates are at
http://www.trinity.edu/rjensen/FraudUpdates.htm
Bob Jensen's threads on outrageous executive compensation are at
http://www.trinity.edu/rjensen/FraudConclusion.htm#OutrageousCompensation
Bob Jensen's threads on fraudulent and incompetent auditing are at
http://www.trinity.edu/rjensen/FraudConclusion.htm#IncompetentAudits
Where can you learn more about FAS 133?
February 15, 2006 message from XXXXX
Bob,
. . . .The purpose of my email is to solicit your opinion on the best
resources I can leverage to answer various issues that arise and generally
broaden my understanding of FAS 133. work in risk management but have
difficulties with the accounting side of FAS 133. [Other portions of
message deleted]
Thanks for your time!
XXXXX
February 15, 2006 reply from Bob Jensen
Hi XXXXX,
I receive inquiries like this almost daily. Usually these questions come
from accountants who do not have sufficient background in derivative
instruments contracting and economic hedging and, as a result, have not been
able to tackle FAS 133 and IAS 39. Sometimes the inquiries come from people
like your self who have good background in finance and risk management but
cannot comprehend the quirks of accounting that led to this monstrous set of
incomprehensible rules for booking and/or disclosing derivative financial
instruments.
When accountants do not understand derivatives and risk management, I
tell them to work through one of the best textbooks I've ever seen (which
has no accounting whatsoever inside):
Derivatives: An Introduction by Robert A Strong, Edition 2
(Thomson South-Western, 2005, ISBN 0-324-27302-9)
When people like yourself who understand derivatives and risk management
but cannot understand the quirks of accounting, I begin with an illustration
of a basic quirk in accounting--- a quirk discussion that also introduces
the concepts of "forecasted transaction" and "firm commitment" hedging under
FAS 133 rules.
Unbooked Financial Risks
One of the first things we learned in Accounting 101 is that accountants
traditionally do not book (and usually do not even disclose) purchase/sales
contracts until legal title to the goods and services actually changes
hands. Reasons are complicated, but the most fundamental reason is that
defaulted purchase/sales contracts are usually settled in court or out of
court for a small fraction of contracted amounts, i.e., settlements are
usually based upon damages rather than contracted amounts in full. For
example, when Dow Jones contracts with St. Regis Paper Company for paper
purchases over the next 50 years of publishing The Wall Street Journal
it would be absurd to try to book a soft estimate of the billions of the
actual contracted dollars of this contract. Damage estimates are virtually
impossible to estimate and change from month to month as more trees for
paper harvesting are planted.
Hence the biggest problem finance and economics professors have with
accounting professors is that purchase/sales contracts entail financial
risks that accounting professors refuse to book. Furthermore these
purchase/sales contract risks are commonly hedged. When the notional
(quantity) and underlying (price or rate) are contracted, the purchase/sales
contract is called a "firm commitment" under FAS 133. There is no cash flow
risk in firm commitments, but they can be hedged for fair value (when future
spot prices differ from contracted prices). When the notional (quantity) is
contracted or otherwise reasonably certain and the underlying is not
specified there is cash flow risk that can be hedged with a cash flow hedge
defined in FAS 133. Also firm commitments and forecasted transactions can be
hedged for foreign currency (FX) risk apart from U.S. dollar risks. Most
accountants do not even understand that it is impossible to simultaneously
hedge for fair value and cash flow.
FAS 133 as Source Material for Comedy Central TV
My purpose here is not to launch into a tutorial about purchase/sales
contract hedge accounting rules under FAS 133. Rather my purpose is to
illustrate the dilemma caused by traditional quirks in accounting. Where
finance and accounting professors differ is on the basic concept of
financial risk. Finance professors are confused
when there are financial risks that can be hedged even though those risks
are virtually ignored by accountants because legal title has not changed
hands. Then along comes FAS 133 that
declares the hedge contracts for unbooked hedged items must be booked and
maintained at fair value even though the hedged items themselves are not
booked until title passes. This begins to sound like great source material
for Comedy Central TV --- perhaps the Cobert Report!
Where To Begin
Adding pain to misery is the fact that FAS 133 rules for fair value hedges
differ greatly from rules for cash flow and FX hedges. Finance professors
find the stated reasons in FAS 133 incomprehensible. Accounting professors
don't bother to open FAS 133 and never get out of the starting gate in
understanding derivatives, hedging, risk management, and FAS 133.
So where do you begin to understand the accounting quirks in FAS 133? My
first piece of advice is to totally ignore accounting textbooks, including
those that may claim to be derivatives accounting textbooks. These are
worthless. Second ignore the finance and economics textbooks since authors
of these books do not understand accounting quirks.
You mentioned Ira Kawaller. Ira is an economist who admits to having
difficulties understanding accounting quirks. This is why he sometimes
brings me into partner with him on teaching FAS 133 --- my role is to teach
accounting quirks of FAS 133. I also give my own workshops on this topic ---
http://www.trinity.edu/rjensen/resume.htm#Presentations
I also provide free online FAS 133 and IAS 39 tutorials and videos ---
http://www.trinity.edu/rjensen/caseans/000index.htm
But the bottom line is that my audiences and my readers conclude that my
biggest success in life is confusing them about accounting for derivatives.
My defense is that it is very difficult to explain the huge gap between
financial risk versus what accountants book. I get a lot of compliments for
what I provide online, but the most common complaint is that my online
materials are a nightmare to navigate
Where should you dig into to learn about the accounting quirks of FAS
133? The bottom line is that I don't know! You can pay thousands of dollars
to attend one of our seminars, but these are so broad brushed that our
audiences feel like they've just had a meal on hors'deovers.
The bottom line is that it is probably best to dig into the FASB's "Green
Book" line for line as painful as that becomes for 873 pages of jargon ---
http://fasbpubs.stores.yahoo.net/dc133-3.html
Also request the FASB's supplemental documentation (119 pages to date) of
error corrections in the Green Book.
Secondly, memorize the FAS 133 and IAS 39 rules rather than try to find a
rationale. For example, it is utterly frustrating trying to reason why hedge
accounting for cash flow/FX hedges use OCI offsets that are verboten
fair value hedges (never OCI for FV hedges). You
should just to do or die, not reason why.
I do suggest that you especially look at my Excel workbooks at
http://www.cs.trinity.edu/~rjensen/Calgary/CD/FAS133AppendixB/
I also suggest that you look at my PowerPoint files at
http://www.cs.trinity.edu/~rjensen/Calgary/CD/
There is much pressure outside and within the FASB and the IASB to
simplify rules for accounting for derivative financial instruments. This is
a bit like appeals to reduce felony statutes to a mere Ten Commandments on
stone tablets. Simplification sounds great as a principle, but in my
viewpoint oversimplification will be disastrous. The reason is that there
are thousands of different kinds of risk management contracts, and it's
impossible to derive ten commandments covering all the variations arising in
the practice of risk management.
Some argue that fair value accounting (in place of historical cost
accounting) is the answer, but I have my doubts about this
oversimplification ---
http://www.trinity.edu/rjensen/FairValueDraft.htm
Also see
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#FairValue
For example, fair value accounting is no panacea to accounting for
purchase/sales contracts.
Bob Jensen
Federal Regulators Fine Grant Thornton $300,000 Over Audit of Failed Bank
Federal bank regulators have fined the accounting firm
Grant Thornton LLP $300,000 for what they called "reckless conduct" in its audit
of First National Bank of Keystone, a West Virginia institution whose collapse
in 1999 was one of the costliest U.S. bank failures in the past decade.
Marcy Gordon, "Federal Regulators Fine Grant Thornton $300,000 Over Audit of
Failed Bank, SmartPros, December 11, 2006 ---
http://accounting.smartpros.com/x55776.xml
Grant Thornton LLP said it will challenge recent
Treasury Department (DoT) findings and penalties stemming from the firm’s audit
of a bank that collapsed in 1999. The Office of the Comptroller of the Currency,
the Treasury agency that regulates nationally chartered banks, on Friday
announced the telling $300,000 fine against the Chicago-based CPA firm that
audited First National Bank of Keystone in 1998.
"Grant Thornton to Fight Claim of “Reckless” Audit," AccountingWeb,
December 12, 2006 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=102894
Bob Jensen's threads on Grant Thornton (especially the Refco audit failure)
are at
http://www.trinity.edu/rjensen/Fraud001.htm#GrantThornton
"Accounting Firms Seek Overhaul," by Tad Kopinski, Institutional
Shareholder Services ISS, November 20, 2006 ---
http://blog.issproxy.com/2006/11/accounting_firms_seek_overhaul.html
The six biggest international audit firms have
called for a complete overhaul of corporate financial reporting as
the U.S. and Europe move toward convergence of international audit
standards.
In a Nov. 8 report, the accounting firms
propose to replace static quarterly financial statements with
real-time, Internet-based reporting that encompasses a wider range
of performance measures, including non-financial ones. The report
was signed by the chiefs of PricewaterhouseCoopers International,
Grant Thornton International, Deloitte, KPMG International, BDO
International, and Ernst & Young. The report can be downloaded
here.
"We all believe the current model is
broken," Mike D. Rake, KPMG's chairman, told the Financial Times.
"There are significant shortcomings to U.S. GAAP [Generally Accepted
Accounting Principles] and issues of concern with International
Financial Reporting Standards. We're not in a very happy situation."
Rake noted that quarterly reporting and the
short-term focus on companies' ability to meet Wall Street earnings
expectations helped foster accounting scandals. The firms have been
working on their proposals for more than a year.
The large discrepancy between the "book"
and "market" values of many listed companies is clear evidence that
the content of traditional financial statements is of limited use,
the report said. The audit firms recommend using non-financial
measures that would provide more valuable indications of a company's
future prospects, such as customer satisfaction, product or service
defects, employee turnover, and patent awards.
The report said the following developments
need to occur to ensure capital market stability, efficiency, and
growth:
--Investor needs for information are well
defined and met;
--The roles of the various stakeholders in these markets--financial
statement preparers, regulators, investors, standards setters, and
auditors--are aligned and supported by effective forums for
continuous dialogue;
--The auditing profession is vibrant, sustainable, and provides
sufficient choice for all stakeholders in these markets;
--A new business-reporting model is developed to deliver relevant
and reliable information in a timely way;
--Large, collusive frauds are more and more rare; and
--Information is reported and audited pursuant to globally
consistent standards.
ICGN Expresses Concerns Over
ConvergenceMeanwhile, the
International Corporate Governance Network (ICGN) has expressed
concerns about a draft proposal on harmonizing international and
U.S. accounting standards. The ICGN argues that the draft doesn't
pay sufficient attention to shareholder rights and the stewardship
role of boards and investors.
"Convergence must be there to raise
standards," ICGN Executive Director Anne Simpson told the Financial
Times. "Convergence for its own sake is not of value."
The ICGN letter was in response to a
request for comment by the International Accounting Standards Board
(IASB) and its U.S. counterpart, the Financial Accounting Standards
Board (FASB) on a discussion paper on harmonization objectives. The
IASB and the FASB have been working on harmonizing the two
accounting systems since October 2002 and have set 2008 as the goal
for finalizing the process.
Unlike the current IASB auditing framework,
the discussion paper endorses a model more similar to U.S.
standards, dropping a key shareowner safeguard embedded in
U.K.-style standards, the ICGN noted. Rather than focusing audits on
past transactions, the discussion paper calls for audits to focus on
"decision-usefulness" that can affect company cash flows, the letter
said.
"We are concerned that this emphasis on the
ability to forecast the future does not fully capture the
requirements of stewardship, which is concerned with monitoring past
transactions and events," Mark Anson, the CEO of Hermes Pensions
Management who chairs the ICGN, wrote in the Nov. 2 letter. (A
Hermes affiliate is a part owner of ISS.)
"In many jurisdictions, financial
statements provide significant input into the decisions we make as
shareholders, by providing an account of past transactions and
events and the current financial position of the business," the ICGN
letter noted. "In de-emphasizing things that are particularly
[relevant to shareholders' risks and rights], the standards setters
could achieve the perverse effect of actually increasing the cost of
capital."
The ICGN includes more than 400
institutional and private investors, corporations, and advisers from
38 countries with capital under management in excess of $10
trillion, according to its Web site. The ICGN letter also was signed
by Claude Lamoureux, CEO of the Ontario Teachers' Pension Plan.
A copy of the IASB discussion paper, which
was published in July, can be downloaded
here.
Bob Jensen's threads on standard setting are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#MethodsForSetting
Bob Jensen's threads on fair value accounting are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#FairValue
Bob Jensen's threads on troubles in the big international accounting firms
are at
http://www.trinity.edu/rjensen/Fraud001.htm
Bob Jensen's threads on proposed reforms are at
http://www.trinity.edu/rjensen/FraudProposedReforms.htm
Bob Jensen's threads on audit firm litigation instances are at
http://www.trinity.edu/rjensen/Fraud001.htm
From The Wall Street Journal Accounting Weekly Review on November 3,
2006
TITLE: Booming Audit Firms Seek Shield From Suits
REPORTER: David Reilly
DATE: Nov 01, 2006
PAGE: C1
LINK:
http://online.wsj.com/article/SB116235111161209823.html?mod=djem_jiewr_ac
TOPICS: Auditing, Auditing Services
SUMMARY: The Big Four U.S. audit firms--PricewaterhouseCoopers, Deloitte &
Touche, Ernst &Young, and KPMG--want legal limits on court damages granted to
investors and others after failure of publicly traded companies they audit.
"Their argument is being championed by an influential group recently formed to
study the competitiveness of U.S. financial markets with the encouragement of
Treasury Secretary Henry Paulson." Others, including the U.S. Chamber of
Commerce and the European Commission, are considering similar measures.
QUESTIONS:
1.) The argument against limiting legal liability of public accounting firms
argues that auditors should "be held to a high standard of performance." Explain
this argument and describe who in business and investing activities likely holds
this view.
2.) The argument for limiting legal liability includes the point made by the
chief executive of Deloitte Touche Tohmatsu in the article that "the cost of
...audits was never built for insuring capital markets." Summarize the argument
in support of limiting legal liability for audit firms, including and
explanation of this statement.
3.) How did the Arthur Andersen firm failure result from the Enron scandal?
How was the possibility of a similar fate for KPMG avoided? How do these events
contribute to the debate on this issue?
4.) How did the Committee on Capital Markets Regulation become involved in
the debate on limiting audit firms' legal liability?
5.) How does the discussion in the article indicate the international focus
on this issue? Cite all points you can find in the article.
Reviewed By: Judy Beckman, University of Rhode Island
--- RELATED ARTICLES ---
TITLE: Panel's Mission: Easing Capital-Market Rules
REPORTER: Alan Murray
PAGE: A2
ISSUE: Sep 12, 2006
LINK:
http://online.wsj.com/article/SB115802003723560082.html?mod=djem_jiewr_ac
"Booming Audit Firms Seek Shield From Suits," by David Reilly, The
Wall Street Journal, by November 1, 2006; Page C1 ---
http://online.wsj.com/article/SB116235111161209823.html?mod=todays_us_money_and_investing
Business is booming at the world's biggest
accounting firms, so their top lobbying priority may seem ironic: They want
government protection from a big financial hit.
Revenues at the Big Four -- PricewaterhouseCoopers,
Deloitte & Touche, Ernst & Young and KPMG -- have grown at a double-digit
pace in recent years as audit fees soared. Regulatory overhauls enacted in
the wake of accounting scandals earlier this decade have led to new work for
firms. One of the biggest problems facing the Big Four these days is a lack
of staff to meet the huge demand for services.
Yet the Big Four want to limit court damages that
investors and others can seek from them for flawed audits of public
companies. Without such a shield, the firms say, it's only a matter of time
before one of them is felled by a massive court award.
Their argument is being championed by an
influential group recently formed to study the competitiveness of U.S.
financial markets with the encouragement of Treasury Secretary Henry
Paulson. The group is expected to recommend in coming weeks that the
government enact new protections for auditors. A panel set up within the
powerful U.S. Chamber of Commerce is sounding a similar theme. In Europe,
the European Commission is studying the issue and is likely to recommend
limitations on the damages accounting firms can face.
How much risk the big firms actually face has been
largely absent from the debate over auditor liability. Despite a slew of
big-ticket lawsuits that emanated from corporate scandals earlier this
decade, none of the firms suffered a fatal blow from those legal actions.
The one big firm that folded, Arthur Andersen LLP in 2002, fell victim not
to a lawsuit but to a criminal obstruction-of-justice conviction, later
overturned on appeal.
"I don't see that auditors have a real need for any
kind of special protections," said Bill Kelley, general counsel at the
Retirement Systems of Alabama, which has sued accounting firms following
corporate blowups. "Auditors need to be held to a high standard. Those are
the outsiders we rely on. It's tough to have that responsibility, but that's
what they're getting paid for."
Mr. Kelley and likeminded critics say it's also
difficult to quantify the risk the firms face from a big court award. That's
because the accounting firms are private partnerships that don't, in most
cases, disclose their financial condition or results. So outsiders don't
know how much capital the firms have, their level of profitability or even
how much insurance they carry.
If anything, the risk from class-action lawsuits
appears to be dwindling. The number of class actions that cite auditors as
defendants declined to five last year from 14 in 2002, according to the
Stanford Law School Securities Class Action Clearinghouse.
The bigger threat to firms has stemmed not from
civil litigation, but from alleged criminal actions related to their
conduct. In addition to the Arthur Andersen case, KPMG LLP suffered a
near-death experience last year due to its sale of improper tax shelters;
federal prosecutors ultimately decided not to indict the firm, a move that
likely would have put it out of business.
The Andersen and KPMG cases have led some lawyers
to claim that the Big Four are already seen by government as too big to
fail. "The fact is that the government couldn't indict KPMG for policy
reasons," said Sean Coffey, a partner at New York law firm Bernstein
Litowitz Berger & Grossmann LLP, who has sued several accounting firms.
"These folks are effectively immune to being put out of business and now
they're trying to find ways to further inoculate themselves from
accountability."
The firms also have shown they can weather pretty
big hits. Over the past two years, KPMG has agreed to pay out nearly $700
million in fines and settlements related to criminal and civil actions. In
2000, Ernst & Young LLP settled for $335 million a shareholder suit related
to its work for Cendant Corp.
Accounting firms argue the danger they face from
civil litigation is real and that there are still many scandal-era actions
that have yet to work their way through the courts. What is needed, the
firms say, are litigation caps similar to those many states have enacted to
protect doctors from malpractice suits.
The firms say special protection is warranted
because they can be sued not just by the companies whose books they audit,
but also by others, such as investors. These investors, the firms add, try
to use auditors to recoup stock-market losses.
"The cost of our audits was never built for
insuring the capital markets," said William G. Parrett, chief executive of
Deloitte Touche Tohmatsu, the international arm of Deloitte & Touche. "I
don't think we're saying we shouldn't have any liability, but it has to be
in proportion to our participation in any problem."
The firms also say they can't get sufficient
insurance because their liability is almost unlimited, encompassing in a
worst-case scenario the total stock-market value of the companies they
audit. So they are forced to settle lawsuits rather than risk a trial.
A study for the European Commission, released in
September, said the total costs of judgments, settlements, legal fees and
related expenses for the U.S. audit practices of the Big Four firms had
risen to $1.3 billion in 2004, or 14.2% of revenue, up from 7.7% in 1999. In
addition, according to a study by insurer Aon, there were 20 claims
outstanding against U.S. auditors as of September 2005 where damages sought
or estimated losses topped $1 billion. Accounting firms say they couldn't
survive an award of that size.
Advocates of liability caps frame the issue around
the broader debate over U.S. market competitiveness.
"I think the whole issue of liability is one of the
major reasons why foreign companies aren't coming here" to list their stocks
on U.S. exchanges, said Hal S. Scott, a Harvard Law School professor and a
founding member of the Committee on Capital Markets Regulation, the group
formed with Mr. Paulson's blessing to study market competitiveness. Mr.
Scott added that while court awards can serve as a deterrent to shoddy audit
work, "if we left this to the legal process, we might come up with the right
amount of damages to deter bad behavior but have just two or three
accounting firms" because one will have gone out of business.
Recognizing, though, that auditor liability
overhaul might be a tough sell on Capitol Hill, the committee may suggest
that the U.S. Securities and Exchange Commission come up with a solution,
Mr. Scott said. "The SEC could modify their own rules regarding liability,"
he added. One idea under study: Allowing accounting firms to negotiate
liability caps with clients, a practice now barred to preserve auditors'
independence.
November 2, 2006 reply from Mark Eckman, Rockwell Collins
[mseckman@ROCKWELLCOLLINS.COM]
With tongue firmly planted in cheek, why don't we
let the audit firms become insurance companies and let them charge premiums
based on the risk of material misstatement and deny coverage when the risk
is too high? Turn auditors into underwriters and I believe you would see a
vast difference in how audits are conducted.
Mark S. Eckman
November 2, 2006 reply from Deborah Johnson
[vicjohn@SPRINTMAIL.COM]
I have to agree. Even though you regard it as
tongue in cheek, it actually sounds more rational than the current
situation. Let each company comply with Sarbanes, and purchase two Bonds
from an Insurer. The first Bond for the materiality of the Financial
Statements. The Second Bond for Fraud Insurance.
November 5, 2006 reply from Bob Jensen
For years some professors like Josh Ronen (NYU) have made arguments for
auditing firms to insure financial reports (not necessarily internal fraud
that does not materially affect annual reports).
There are some very good reasons why it makes sense to do this,
especially from the perspective of reducing litigation costs for misleading
financial reports. However, there are some huge differences between auditing
and insurance risks. Insurance risks are measured by actuarial studies of
relatively stable systems such as mortality, home fires, wind damage, etc.
Insurance companies tend to write in coverage exceptions for things that are
less predictable like nuclear war and earthquakes that arise in
non-stationary systems. Financial fraud and auditor errors that hugely
impact financial statements are more like nuclear war and earthquakes.
Audits are conducted in much less stationary systems that defy actuarial
prediction of losses. One problem is that the systems themselves are
reactionary. The current rash of executive option backdating is a good
example. Who could've predicted that thousands of executives would commence
to backdate options? Events transpired to inspire these frauds, including
changes in FAS 123, changes in tax constraints, and a window of opportunity
before SOX went into effect. My point is that each new accounting standard,
EITF, interpretation, law change (especially tax law), and political
outcomes (with power shifting between conservatives and liberals) changes
the entire system being audited such that actuarial calculations are
impossible.
Bob Jensen
Bob Jensen's threads on proposed reforms are at
http://www.trinity.edu/rjensen/FraudProposedReforms.htm
November 5, 2006 reply from Mark Eckman, Rockwell Collins
[mseckman@ROCKWELLCOLLINS.COM]
Very good analysis. Still, I would raise the point
that there are specialty underwriting segments available; viz., one can
insure for exceptional things such as war, inconvertibility of currency,
expropriation, kidnap & ransom, etc. that have no actuarial basis. However,
where a need exists and the pvt insurance sector cannot or will not take on
the entire risk, govt insurance entities as primary insurers, reinsurers, or
insurers of last resort are frequently seen. My former employer, the
Overseas Private Investment Corporation, is an example. Whether these
coverages can provide indemnity in the same way as auto insurance is
doubtful. Even so, as one looks for solutions to the increasingly complex
problem of the modern role of financial auditing, these alternatives should
be carefully examined.
Paul Bjorklund, CPA
Bjorklund Consulting, Ltd.
Flagstaff, Arizona
November 9, 2006 reply from Tom Hardy
[thardy@IVESINC.COM]
In response to several inquiries that we have
received regarding the Nov 1, 2006 Wall Street Journal article on Big 4
Litigation cases entitled “Booming Audit Firms Seek Shield on Suits,” I am
making the attached analysis available to AECM.
“Big
4 Securities Class Action Litigation- Citing Auditor as Defendant”
highlights the number of security class action cases involving Big 4
Accounting Firms between 2002 and 2005. It also lists each case by year.
This research was compiled using the Audit
Analytics Litigation Module. If you would like additional information or a
demonstration of this new AuditAnalytics.com database please give me a call
or send me an e-mail.
Tom Hardy
AuditAnalytics.com
IVES Group, Inc.
9 Main St. Suite 2F
Sutton, MA 01590
508-476-7007 Ext. 28
thardy@ivesinc.com
Taxation of Dividends Creates European Union Stir
The Institute of Chartered Accountants in Ireland (ICAI)
said that the European Court of Justice (ECJ) ruling this week on the UK
dividends case creates issues for other European countries, including Ireland,
which have a similar system of taxation of dividends to that in the UK. The ECJ
ruled on the principles of freedom of establishment and freedom of movement of
capital in relation to the UK dividends system. See further details in our full
news item.
Andy Lymer, "ECJ DIVIDENDS CASE CREATES ISSUES FOR IRELAND,"
AccountingEducation.com, December 14, 2006 ---
http://accountingeducation.com/index.cfm?page=newsdetails&id=144069
"2007 Excellence in Project
Accounting Philosophy Essay Scholarship Contest Begins," AccountingWeb,
December 8, 2006 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=102883
The 2007 Excellence in Project Accounting Philosophy
essay scholarship contest launches on January 1, 2007. The winning essayist
will receive $500 toward college tuition and fees from Journyx, the first
company to provide Web-based time-tracking and project accounting solutions
that guide customers to per-person, per-project profitability.
“Journyx is committed to eradicating cost ignorance
from our knowledge worker society and leading organizations to the highest
levels of profitability through innovation,” Curt Finch, chief executive
officer (CEO) of Journyx said in a prepared statement. “We developed this
essay scholarship so that we could educate and share our philosophy with
some of the bright minds about to enter the workforce, as well as learn new
ideas from them. We will choose the submission that is the most creative and
has the most real-world business applicability.”
The scholarship is open to full-time student
enrolled in a graduate level masters or doctoral level degree program at a
university in the United States. Interested students should contribute an
essay of 1,000 words or less on one of the following two topics:
- Persuade someone who doesn’t want to track his
time on a per product per-activity basis why it is in his best interests
to do so.
- Describe a real situation that you’ve
encountered where project oriented time tracking has made a positive
difference in the world.
Complete rules and details, including how the
essays will be scored, where to send the entries, etc., can be found
at
www.journyx.com/company/scholarship.html All
entries must be received by 5:00 p.m. CST on June 1, 2007.
January 1, 2007 message from Doug
Roberts [robertsfd@APPSTATE.EDU]
I am teaching for the first time a fraud
examination course. As this is not my area of experience, I'm looking for
ideas on what to cover and how best to cover it. In addition, the timing of
the class and the non- standard "audience" will impact what I do.
The course will meet 3 and 1/2 hours a day for 12
days (consecutive except for weekends) at the end of the semester. Students
will be those just returning from tax internships who need another 3 credit
hours to maintain full-time status (rather than taking the course because
they have an interest in fraud examination); they will have just finished 15
weeks of busy season and I suspect will be less than motivated to do much
work without thoughtful "pressure" on my part. Therefore, my objective is to
have activities that will force them to remain involved and hopefully learn
something and have fun at the same time.
The textbook is rather interesting reading covering
various forms of fraud. Beyond their reading outside of class and some
quizzes over the reading, I need ideas on what to do - I'd like to keep
lecture time to a minimum but need to fill up at least 3 hours. I have some
videos the Association of Certified Fraud Examiners put out and will try to
get some guest speakers who work in the area. But that still leaves me much
time.
Does anyone have any ideas? One thought I had was
working with data using Excel and Access to look for fraud flags. However, I
have not been able to find datasets. Does anyone know of any good datasets
or cases where data analysis is used? I saw where IDEA offers an educational
demo - does anyone have experience using that? And how long does that take
to complete? Any other ideas using hands-on computer exercises?
Any ideas would be appreciated.
Happy New Year,
Doug Roberts
January 1, 2007 reply from Len
Stokes
I have used some of the cases from the Knapp Audit
Case book published by Thomson. Many of the cases relate to audit failure
and I don't focus exclusively on the GAAS perspective but the Internal
Control, fraud etc. I break the class into groups and have a specific grup
lead the disucssion of the issues in the case and what they think went
wrong, why and what could have been done to prevent it. I don't allow them
to focus on the questions that are provided My concept is to get them to
begin to think outside the box not just think that Fraud involves specific
lists of thing to do. The Fraud videos usually are about an hour. The
students usally have interesting comments related to what they saw. Use the
class time like a seminar with disucssions and the time will fly with a
great deal of interest on their behalf.
Len
January 2, 2007 reply from Bob
Jensen
Here are a few references of possible interest on this topic:
Turn Excel into a financial sleuth: an easy-to-use digital analysis tool
can red-flag irregularities
Journal of Accountancy, August, 2003 by Anna M. Rose, Jacob M. Rose ---
http://www.aicpa.org/pubs/jofa/aug2003/rose.htm
Three books are reviewed in the December 2002 issue of the Journal of
Accountancy, pp. 88-90 ---
http://www.aicpa.org/pubs/jofa/dec2002/person.htm
"Auditors’ New Procedures for Detecting Fraud," by D.D. Montgomery, M.S.
Beasley, S. Menelaides, and Z. Palmrose, Journal of Accountancy, May 2002
---
http://www.aicpa.org/pubs/jofa/may2002/mont.htm
"Let Them Know Someone’s Watching, by Joseph T. Wells, Journal of
Accountancy, May 2002 ---
http://www.aicpa.org/pubs/jofa/may2002/wells.htm
Bob Jensen's fraud updates are at
http://www.trinity.edu/rjensen/FraudUpdates.htm
Question
What happens when you don't qualify for the "Shortcut Method" for interest rate
swaps under FAS 133?
How to avoid ineffectiveness testing for interest rate swaps
using the Short-Cut Method ---
http://www.trinity.edu/rjensen/acct5341/speakers/133glosf.htm#Shortcut
Also see ---
http://www.cs.trinity.edu/~rjensen/000overview/mp3/133summ.htm#ShortCut
December 2006 article by Ira Kawaller
on Long Haul Hedge Accounting ---
http://www.kawaller.com/pdf/BALM_Long_Haul.pdf
Pension Fund
Accounting Fraud in San Diego
"San Diego Charges," by Nicole
Gelinas, The Wall Street Journal, November 27, 2006; Page A12 ---
http://online.wsj.com/article/SB116459315111633209.html?mod=todays_us_opinion
The SEC has announced that it has resolved its
pension-fund fraud case against San Diego, with the city agreeing not to
commit illegal shenanigans in the future and to hire an "independent
monitor" to help it avoid doing so. Although the SEC went easy on the
residents and taxpayers of San Diego in its settlement, it still has an
opportunity to make an example of the former officials who the SEC
determined committed the fraud. The feds should seize that chance to show
they're serious about policing a sector of the investment world that remains
vulnerable to similar fraud.
San Diego ran into legal trouble with its pension
fund because elected officials wanted to keep its municipal workers happy by
awarding them more generous pension and health-care benefits, but also
wanted to keep taxpayers happy by sticking to a lean budget. The two goals
were mathematically irreconcilable. So San Diego officials, with the
cooperation of the board members of the city employees' retirement system
(the majority of whom were also city officials), intentionally underfunded
the pension plan for years. They used the "savings" to award workers and
retirees more benefits, some retroactive. Because taxpayers couldn't see how
much retirement benefits for public employees eventually would cost them,
they couldn't protest against those high future costs. The fund also
violated sound investment principles by using "surplus" earnings in boom
years to pay extra benefits to retirees, including a "13th check" in some
years. Trustees should have put such "surpluses" aside for years in which
the market was down.
But the alleged escalated in 2002 and 2003, when
city officials brushed aside warnings from outside groups, as well as from
an analyst it had itself commissioned, about the fund's parlous financial
straits. Although figures clearly showed that the pension fund would face a
seven-fold increase in its deficit, to more than $2 billion, over less than
a decade, San Diego didn't disclose what, according to the SEC, it "knew or
was reckless in not knowing" was an inevitability, instead maintaining its
charade. City officials disclosed not a word of the fund's financial
troubles to potential investors or bond analysts as it raised nearly $300
million in new municipal securities during those two years.
The SEC elected to go easy on the city. The feds
won't levy a fine against it, reasoning that it would end up being the
taxpayers who would pay. This argument has merit, since these taxpayers are
already on the hook for the $1.5 billion deficit -- roughly equal to the
city's operating budget -- the pension-fund fraud had concealed. Taxpayers
could face fallout if wronged investors sue the city. But while SEC won't
punish taxpayers, it can't afford to go so easy on the officials it's still
investigating. (The SEC doesn't name the current and former officials under
its scrutiny, but former Mayor Dick Murphy, former city manager Michael
Uberuaga and former auditor Ed Ryan, as well as members of the City Council,
all had degrees of responsibility for and knowledge of the pension fund's
operations.) The SEC must demonstrate that it considers the fraud officials
committed against the city's bondholders to be just as grave as similar
frauds in the private sector.
People who invest in municipal bonds do so because
they feel that such investments are safer than investing in the common
stocks of corporations. That's why cities and states enjoy access to capital
at affordable interest rates. And, for tax reasons, municipal-bond investors
often invest in the bonds of the city in which they reside, so they face
double jeopardy. In the first place, if city officials are committing fraud,
their bonds will turn out not to be as sound (and thus not as valuable) as
they thought they were. The second risk is that they will have to pay higher
taxes, or suffer lower government services, to cover pension-funding
shortfalls in their city's budget if that is the case.
Continued in article
Bob Jensen's threads on pension fund and
post-retirement accounting are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#Pensions
"Assessing and Responding to Risks in a Financial Statement Audit: Part II,"
Journal of Accountancy, January 2007 ---
http://www.aicpa.org/pubs/jofa/jan2007/fogarty.htm
Bob Jensen's threads on
professionalism in auditing are at
http://www.trinity.edu/rjensen/fraud001.htm#Professionalism
Bob Jensen's threads on the future of
auditing are at
http://www.trinity.edu/rjensen/FraudConclusion.htm#FutureOfAuditing
The Cost Approach for Financial Reporting
From IASPlus on November 21, 2006 ---
http://www.iasplus.com/index.htm
The International Valuation Standards Committee has
published
Proposed
Revisions to International Valuation Guidance Note 8 – The Cost Approach
for Financial Reporting {PDF 193k). The
proposed revisions are the result of requests for clarification and
suggestions of minor improvements to the 2005 version of GN8. Comment
deadline is 31 December 2006. The
IVSC
has also released an update of its work programme:
Bob Jensen's threads on underlying bases for balance sheet valuation ---
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#UnderlyingBases
The CEO Who Jousted With Regulators
Options Backdating Takes Its Toll at Cyberonics
The tumultuous tenure of Robert P. Cummins as chairman,
president and chief executive of the medical device maker Cyberonics has ended,
the company disclosed yesterday. Mr. Cummins, 52, who is known as Skip, is a
former venture capitalist who joined the board of Cyberonics in 1988 and became
chief executive in 1995. He gained a reputation as one of nation’s most
passionate and intimidating business leaders in dealing with critics, regulators
and investors.
Barnaby J. Feder, "Head of Cyberonics Resigns as Options Inquiry Expands,"
The New York Times, November 21, 2006 ---
http://www.nytimes.com/2006/11/21/business/21device.html?_r=1&oref=slogin
Bob Jensen's threads on accounting for employee stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
The CEO Who Argued Against Backdating of Options Because Such Practices
Were Wrong
January 2, 2007 message from Denny Beresford
[DBeresfo@TERRY.UGA.EDU]
I found the following article quite interesting. As
noted, not backdating option grants (or other business correspondence) ought
to be obvious rather than something that needs to be taught in ethics
classes or otherwise. Yet it never hurts to mention these good examples to
students.
Denny Beresford
"McNealy is one reason Sun never backdated,"
by Elise Ackerman and Nicole C. Wong, Mercury News
Stanford University's Faculty Club dining room
buzzed at 8 a.m. one day recently with alumni, business leaders and
community members wondering what former *Sun Microsystems *Chief Executive
Scott McNealy would say about ``leadership transitions.''
McNealy -- a Silicon Valley icon known for pushing
people's buttons while pushing technology forward -- relinquished the top
job after 22 years to his hand-picked successor, Jonathan Schwartz, in
April. However, McNealy remains chairman of the board.
His quick tips raced from the importance of
``asking prima donnas to leave'' the company (``Everyone will love you for
it,'' he said) to hiring people who are smarter than you (``marrying up, as
they say'').
``The other piece of identifying and grooming
leaders is you have to watch for one very important breach -- that is a
breach of integrity,'' McNealy said.
``You have to look for people who never break
character, even Saturday night at a cocktail party.''
Toward the end of his one-hour talk, McNealy
fielded a question from the audience about dealing with ethics.
Business school ethics courses are ``trying to
teach something that the parents are supposed to be teaching,'' said
McNealy, the father of four sons ages 4 to 11. ``Either you're born with it
or you learn it from your parents.''
He alluded to the dozens of Silicon Valley
companies that have been swept up this year in an ethics controversy
surrounding backdated stock options, which can be done to pad the potential
profits for the option recipients.
Sun hasn't been caught with a backdating problem.
Schwartz recently credited Sun's clean record to McNealy's unwavering
ethics, which carried over to not parking in spaces reserved for the
handicapped or customers, even when there weren't any other spaces available
for the circling CEO in Sun's parking lot.
**``
They never taught me in school that you are supposed to put the date that
you signed it,'' McNealy said. ``It was kind of intuitively obvious to me
that you didn't backdate.''
* *
Bob Jensen's threads on accounting for employee stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
"Toll of the stock options scandal heavy in 2006: More
prosecutions are expected to be brought next year," by Marcy Gordon,
SeattlePi, December 27, 2006 ---
http://seattlepi.nwsource.com/business/297346_stockoptions27.htm
Eighteen chief executives swept out. More than 100
public companies under federal investigation and more than $5 billion in
profits erased by restatements. Indictments so far: five former top
executives at two companies, Brocade Communications Systems Inc. and
Comverse Technology Inc. The toll of the stock options timing affair --
corporate America's scandal of the year -- has been heavy. Federal officials
say more prosecutions will be brought in 2007 over manipulation of the
timing of stock option grants to enrich top company executives.
The toll of the stock options timing affair --
corporate America's scandal of the year -- has been heavy. Federal officials
say more prosecutions will be brought in 2007 over manipulation of the
timing of stock option grants to enrich top company executives.
Nearly every business day, more companies report
federal or internal investigations. New lawsuits by shareholders are filed.
More businesses disclose that because past option grants may have distorted
their financial results, they may have to restate earnings.
Next year could well bring more restatements, and
companies' stock could be stripped from public trading because reviews of
options grants made them late in filing their quarterly financial reports.
The Justice Department will "continue to be engaged
for perhaps years to come, as we work these cases out," U.S. Attorney Kevin
Ryan, who heads a task force in Northern California pursuing options timing
cases, said recently at a gathering of attorneys. "The final chapter hasn't
been written yet."
Many of the companies ensnared in the scandal are
in Silicon Valley's high-tech industry, where stock options for employees
created legions of millionaires in the dot-com era.
The prized perks allow executives and employees to
buy shares of their company's stock in the future at a set price. If the
stock rises before the options are exercised, the employee can buy the stock
at the predetermined, lower price, then sell it at the higher, current price
-- and pocket the difference.
Among the wide swath of companies caught up in
internal or government investigations: Apple Computer Inc., Barnes & Noble
Inc., Caremark Rx Inc., Issaquah-based Costco Wholesale Corp., Seattle-based
F5 Networks, Gap Inc., The Home Depot Inc., McAfee Inc., Monster Worldwide
Inc., Restoration Hardware Inc., Staples Inc. and UnitedHealth Group Inc.
Some prominent executives at blue-chip companies
have lost their jobs in the affair, including former UnitedHealth CEO
William McGuire, who engineered the company's ascent from a regional health
insurer into the nation's second-largest.
Continued in article
A Short History of Employee Stock Options
"Bosses' Pay: How Stock Options Became Part of the Problem Once Seen as a
Reform, They Grew Into Font of Riches And System to Be Gamed Reload, Reprice,
Backdate," by Mark Maremont and Charles Forelle, The Wall Street Journal,
December 27, 2006; Page A1 ---
http://online.wsj.com/article/SB116718927302760228.html
Bob Jensen's threads
on accounting for employee
stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
Maybe Apple Corporation will backdate its 2006 annual report
Apple Computer Delays Filing Annual Report With SEC Due
to Ongoing Stock Option Investigation NEW YORK (AP) -- Apple Computer Inc. said
Friday it has delayed filing its annual report with the Securities and Exchange
Commission due to its ongoing investigation into stock option grants. In a
filing with the SEC, the company said it needs to restate historical financial
statements to record charges for compensation related to past grants. As a
result, Apple was unable to file its 10-K Form for the fiscal year ended Sept.
30 by the required filing date of Dec. 14.
"Apple Delays Filing Its Annual Report," Yahoo News, December 15, 2006
---
http://biz.yahoo.com/ap/061215/apple_options.html?.v=3
Executive
Compensation Fraud at Apple
Corporation:
Apple's mea culpa on
backdating last week was
eloquently incomplete
Apple's mea culpa on
backdating last week was
eloquently incomplete, and
all the more intriguing
because the gaps seemed
almost Socratically mapped
to invite the media to fill
the holes by asking obvious
questions. The big joke here
is that the logic of the
witch hunt will stop the
media from asking the
obvious questions, not least
because CEO Steve Jobs is a
hero to much of the press
and there's little appetite
for bringing him down. Don't
misunderstand. We believe it
would be a gross injustice
if he were defenestrated
over backdating, just as we
have serious doubts about
the prosecutions launched
against other backdating
CEOS. And Apple's likely
purpose in issuing its
statement, naturally, was
not lexical
comprehensiveness but saving
Mr. Jobs's job.
Holman W. Jenkins, Jr., "A
Typical Backdating
Miscreant, The Wall
Street Journal, October
11, 2006; Page A15 ---
http://online.wsj.com/article/SB116052823194588801.html?mod=opinion&ojcontent=otep
"Apple
C.E.O. Apologizes for Stock
Practices," The New
York Times, October 5,
2006 ---
Click Here
Now that an internal
investigation over Apple
Computer Inc.'s
stock-option practices
has helped abate
investor worries over
Steve Jobs' role as CEO,
a key lingering concern
will be the impact of
pending earnings
restatements.
Apple said Wednesday its
three-month
investigation did not
uncover any misconduct
of any current employees
but did raise ''serious
concerns'' over the
accounting actions of
two unnamed former
officers.
The iPod and Macintosh
maker also said its
former chief financial
officer, Fred Anderson,
had resigned from the
company's board of
directors.
Jobs -- his position
intact -- apologized.
The probe found that
Jobs knew that some
option grants had been
given favorable dates in
''a few instances,'' but
he did not benefit from
them and was not aware
of the accounting
implications, the
company said.
''I apologize to Apple's
shareholders and
employees for these
problems, which happened
on my watch,'' Jobs said
in a statement. ''We
will now work to resolve
the remaining issues as
quickly as possible and
to put the proper
remedial measures in
place to ensure that
this never happens
again.''
Apple said it will
likely have to restate
some earnings due to
revised tax and stock
option-related charges.
Auditors are still
reviewing the situation,
and Apple said it has
not yet determined the
extent of the financial
impact.
The looming restatements
could dramatically
reduce some of the
windfall generated
during the company's
recent run of record
profit, analysts said.
Shares of Apple shed 10
cents to $75.28 in
midday trading Thursday
on the Nasdaq Stock
Market. The stock has
traded between $47.87
and $86.40 over the past
year.
Apple has reported
profit totaling $3.1
billion during the past
four years. If the
restatements are severe,
it could dent Apple's
stock, said IDC analyst
Richard Shim.
''The restatements have
the potential to bite
them again depending on
how large they end up
being,'' Shim said.
''That said, the company
is certainly firing on
all cylinders so
investors may be willing
to forgive them, but
it's something that will
linger in the backs of
their minds.''
Piper Jaffray analyst
Gene Munster said he and
other investors are
breathing a sigh of
relief that Jobs kept
his job throughout the
scandal.
''The risk was that if
something bizarre
happened and Steve Jobs
got fired over it,''
Munster said from his
office in Minneapolis.
''That could have
significantly impacted
the company in a
negative way. Steve Jobs
is Apple. Ultimately,
the scope of the
backdating was bigger
than we thought, but the
impact turned out to be
less severe.''
Apple is one of the most
prominent among more
than 100 companies
caught in the nationwide
stock options
mishandling scandal.
Cupertino-based Apple
initiated its own
stock-options
investigation in June
after problems at other
companies began to
unravel.
In
many instances, the
problem has centered on
the ''backdating'' of
stock options -- a
practice in which
insiders could make the
rewards more lucrative
by retroactively pinning
the option's exercise
price to a low point in
the stock's value.
Apple said its probe
found irregularities in
the recording of stock
option grants made on 15
dates between 1997 and
2002, with the last one
involving a January 2002
grant, the company said.
The grants had dates
that preceded the
approval of those
grants.
Apple spokesman Steve
Dowling said the 15
grants represented 6
percent of the total
issued during that
period. He said he did
not have further details
regarding the specific
grants or whether they
were awarded to officers
or employees.
The company did not
identify the two former
officers whose
accounting, recording
and reporting of option
grants raised ''serious
concerns'' during the
probe.
Apple said Anderson, who
served as the company's
chief financial officer
from 1996 until 2004,
resigned from the board,
citing he did so in
''Apple's best
interest.''
Dowling said the company
will provide more
details about the probe
to the Securities and
Exchange Commission.
The company's special
committee conducting the
investigation examined
more than 650,000
e-mails and documents,
and interviewed more
than 40 current and
former employees,
directors and advisers.
"Apple
Says Jobs Knew of Options,"
by Laurie J. Flynn, The
New York Times, October
5, 2006 ---
Click Here
The external
auditor for Apple
Corporation is KPMG ---
http://www.trinity.edu/rjensen/Fraud001.htm#KPMG
Bob Jensen's threads
on accounting for employee
stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
They not only teach about options backdating at the University of Phoenix
The Apollo Group, which as owner of the University of
Phoenix is the largest player in for-profit higher education in the United
States, on Thursday
announced that some former officials may have
concealed information about the handling of stock-option grants, a key issue in
light of ongoing investigations by various authorities into stock-option
violations at many top American corporations. As a result of Apollo’s continuing
investigation, the company announced that it would need to delay the release of
quarterly and annual financial reports that would normally be due on December 31.
Bloomberg reported on some of the details of the
problems at Apollo.
Inside Higher Ed, December 15, 2006 ---
http://www.insidehighered.com/news/2006/12/15/qt
Bob Jensen's threads
on accounting for employee
stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
Home Depot may see fallout over options backdating
Home Depot Inc.'s admission this week that some stock
option grants were backdated could spur lawsuits, result in fines and have tax
implications, analysts and other experts said. The disclosure of 19 years of
backdating tops off a difficult year for the world's No. 1 home improvement
retailer as it continues to be dogged by criticism about executive pay, a
disappointing stock performance and the fallout from the slower U.S. housing
market.
"Home Depot may see fallout over options backdating," Reuters, December
8, 2006 ---
Click Here
Jensen Comment
Those that blame back dating on changes in tax laws and/or newer options expense
requirements under FAS 123(R) should note the 19 years of backdating by Home
Depot.
"Options backdating might never have happened if
reasonable options accounting had been required years ago," by Floyd Norris,
The New York Times, October 13, 2006 ---
http://norris.blogs.nytimes.com/?ref=business
Bob Jensen's threads
on accounting for employee
stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
"How Backdating Helped Executives Cut Their Taxes: Evidence
Suggests Recipients Of Some Stock-Option Grants Manipulated Exercise Dates," by
Mark Maremont and Charles Forelle, The Wall Street Journal, December 12,
2006; Page A1 ---
http://online.wsj.com/article/SB116589240479347248.html?mod=todays_us_page_one
New evidence suggests that corporate executives may
have found another way to manipulate their stock options, this time to cheat
on their income taxes.
In a paper that began circulating in recent days, a
Securities and Exchange Commission economist concludes there is strong
statistical evidence that executives manipulated the exercise dates of their
options as part of a tax dodge. And a review of corporate filings turns up
some companies with startling options-exercise patterns.
The new information could open
another front in the options-backdating scandal. Backdating already has
sparked the broadest corporate-fraud probe in decades, with more than 130
companies under investigation by federal authorities. So far, attention has
focused on the practice of retroactively selecting favorable dates to grant
options. The new wrinkle involves rigging the dates on which options are
exercised, sometimes years after they're granted.
The tax dodge related to options,
however, almost certainly involves fewer executives than are caught up in
the furor over the backdating of grants. (See
related article.)
The reason it can be tempting to
backdate the exercise of options lies in the way the Internal Revenue
Service treats different types of income for tax purposes. Options, a common
part of executive pay packages, give the recipient the right to buy a
company's stock at a fixed price in the future. That price, known as the
strike price, is usually the stock's market price on the day the options
were granted.
About three-quarters of the time,
executives immediately sell the shares they buy when they exercise options.
Under IRS rules that typically apply, those executives must pay ordinary
income tax, as well as payroll taxes, on the difference between the stock's
value on the date the option was exercised and the option's strike price.
The highest federal marginal income tax rate is 35%.
But for a variety of reasons,
including corporate rules that require top managers to own a certain amount
of stock, some executives don't sell immediately. Those who hold the shares
for at least a year pay a much lower capital-gains tax -- currently 15% --
on any profit between the time they exercise and when they eventually
dispose of the shares. That lower rate gives the executive an incentive to
exercise the options at a relative low point for the stock: The move reduces
the amount of money that would be owed at the ordinary income tax rate, and
shifts the difference so it is potentially taxed at the much-lower capital
gains rate.
Consider an executive who holds options on 100,000
shares with a strike price of $10. If he exercises and sells when the price
is $20, he realizes $1 million in income and must pay $350,000 in income
taxes.
If he instead can claim an exercise price of $16,
he lowers his income tax to $210,000. If he then sells a year later and the
stock is at the same price of $20, he pays $60,000 in capital-gains levies,
for a total tax bite of $270,000. In other words, he has the same $1 million
gain but saves $80,000 in taxes. The problem arises if the executive
misrepresents when the exercise occurred to claim a lower exercise price.
Determining which executives or companies might be
involved is difficult, and it's impossible to know what information they may
have included in their tax returns. But some executives have exhibited
unusual timing in their options exercises.
At Maxim Integrated Products Inc., a Sunnyvale,
Calif., chip maker, chief executive John F. Gifford exercised options and
held shares seven times between 1997 and 2002, according to regulatory
filings and insider-trading data from Thomson Financial. In all but one
case, Mr. Gifford's reported exercise date was the very day the stock
reached its lowest closing price of the month. After the Sarbanes-Oxley
corporate-reform law took effect in 2002, drastically reducing the
opportunity to backdate by tightening reporting requirements, his fortunate
timing vanished.
Maxim is facing investigations by the SEC and
federal prosecutors in California over its option-granting practices. A
special committee of directors is also probing the matter.
Chuck Rigg, a Maxim vice president, said the
company is "looking into" questions about Mr. Gifford's options exercises,
but said initial data don't indicate any problems. Mr. Rigg added that the
company used an outside broker to handle options exercises. "There's not a
way you can backdate that," he said. Mr. Gifford didn't respond to requests
for comment.
Continued in article
Bob Jensen's threads
on accounting for employee
stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
Evidence that options backdating scandals are not uniquely caused by U.S.
tax law
"Options backdating: The latest U.S. corporate scandal involves
executives falsifying the dates on stock options. A series of reviews in Canada
is starting to reveal worrisome patterns," by Janet McFarland and Paul Waldie,
The Globe and Mail, January 12, 2006 ---
Click Here
In the spring of 2001, the two founders and
co-chief executive officers of Research In Motion Ltd. were each granted
100,000 stock options. Back then, the company relied heavily on stock
options for its compensation, and often granted its executives 100,000
options at a time.
The timing was fortuitous for the executives. RIM's
share price was $33.60 on April 2 when the options were granted -- its
lowest point so far that year and its lowest level since the previous May,
almost a year earlier.
By the time investors learned of the grant when it
was disclosed publicly on June 8, the share price had climbed to $50, an
increase of $16.40. That means within five weeks of the grant date, each CEO
already had seen a gain of $1.64-million in the value of his options.
It wasn't the first time RIM had granted its CEOs
options before a healthy climb in the company's share price. In 1998 and
1999, RIM granted options at a particularly low point, just prior to an
increase in the share price.
How did this good luck come about?
This is the question being pondered by investors
and regulators. The company itself has launched an internal review of its
past stock option grants. RIM is not saying anything about what it is
specifically examining, but co-CEO Jim Balsillie has said that RIM is "in
the same position as a lot of other companies" these days.
Canadian companies haven't been drawn into the
stock option backdating scandal that has swept through the United States,
where regulators have launched more than 180 investigations of backdating
cases, and many top executives have been forced to resign in disgrace.
But legal and accounting experts believe Canada
will not remain immune to the scandal. They say many Canadian companies have
quietly launched internal reviews of their options practices to determine
whether they have scandals lurking in their corporate closets. And while
Canada had tougher rules for options than the U.S., these same experts
believe they do not prevent options backdating.
Backdating involves manipulating the date that
stock options are granted to executives. Normally options are granted at the
price of the company's stock that day. That means the options only have
value if the share price climbs in the future. Many companies, including
RIM, don't allow executives to cash out options right away, often making
them wait several years.
Companies involved in backdating use the benefit of
hindsight to look back and choose a date when their share price was low,
then falsely claim that the options were granted on that date. It's as if a
participant in a hockey pool could retroactively pick winners of games after
they were played.
A Report on Business review of option grants to
CEOs at more than 30 large Canadian companies between 1997 (when company
filings were first available electronically) and 2005 found numerous
examples of especially well-timed option grants just before an increase in
the company's share price. But it is hard to draw conclusions from
individual examples because an outsider cannot easily determine which cases
were lucky timing and which, if any, were manipulation.
Some studies have suggested there is a problem in
Canada based on a broader market review. Independent analysis firm Veritas
Investment Research, for example, looked at all companies comprising the
S&P/TSX 60 index and examined their option grants between 2003 and 2006. It
concluded option timing "is alive and well in Canada," with stock prices
over all tending to drop toward the date of option grants and climb
afterward.
University of Manitoba economists have done a more
detailed review of the same period, examining 5,644 options granted to
senior executives by companies listed in the S&P/TSX 60 between June, 2003,
and October, 2006.
According to a preliminary review of the data, "the
evidence is suggestive of the occurrence of backdating in Canada," the
researchers found.
"We expected to find nothing with that kind of
data, and the fact that we found something is sort of like, wow," said
Lindsay Tedds, an assistant professor who led the study. Prof. Tedds said
the results don't confirm that backdating is necessarily occurring, but she
added: "There's something going on. We didn't expect to find much of a
pattern in this aggregate data."
Continued in article
Hundreds of old-economy companies also committed backdating fraud
Abuses of stock option grants are perceived to have
spread like a virus among high-technology companies. But a new study suggests
that hundreds of old-economy companies may also have caught the backdating bug.
In a paper to be released today, researchers estimate that 590 nontechnology
companies appear to have manipulated options so their chief executives received
them at the lowest price of the month. That compares with 130 technology
companies that appear to have backdated their chief executives’ options to a
monthly low.
Eric Dash, "Study Charts Broad Manipulation of Options," The New York Times,
November 17, 2006 ---
http://www.nytimes.com/2006/11/17/business/17options.html?_r=1&oref=slogin
From The Wall Street Journal Accounting Weekly Review on November 10,
2006
TITLE: UnitedHealth Expects Probe to Result in 'Greater' Charges
REPORTER: Steve Stecklow and Vanessa Fuhrmans
DATE: Nov 09, 2006
PAGE: B1
LINK:
http://online.wsj.com/article/SB116299996219517252.html?mod=djem_jiewr_ac
TOPICS: Accounting, Accounting Changes and Error Corrections, Sarbanes-Oxley
Act, Securities and Exchange Commission, Stock Options
SUMMARY: "UnitedHealth Group Inc. said it would have to take charges related
to its backdated stock options that will be 'significantly greater' than its
previous estimates and expects the charges to impact more than 10 years of
previously reported earnings."
QUESTIONS:
1.) Describe the options backdating scandal that has developed since March,
2006. If you are unfamiliar with the issue, you may click on the link for
"Perfect Payday: Complete coverage" on the left hand side of the on-line
article.
2.) For how long has options backdating been going on at UnitedHealth? Have
the accounting requirements remained the same throughout that period of time?
Summarize the required accounting and other financial reporting practices for
executive and employee stock options over the last 10 years.
3.) Suppose that, once UnitedHealth finishes its review, the restatement of
earnings nearly doubles to $500 million and that the restatement applies equally
to each of the preceding 10 years. What accounting entry must be made to correct
this $500 million error? What will be the ultimate impact on each year's
earnings and on stockholders' equity at the end of each year? How will this
correction be disclosed? In your answer, cite the accounting standards which
require the treatment you present.
4.) Click on "Read the full text" of UnitedHealth's Nov. 8 filing with the
SEC on the right-hand side of the on-line article. What Form number did
UnitedHealth file? Summarize the implications of the depth of the options
backdating problem found at this company.
5.) Refer to the related article. What role does the Public Accounting
Oversight Board fill in assisting accountants to audit companies' accounting for
stock options?
Reviewed By: Judy Beckman, University of Rhode Island
--- RELATED ARTICLES ---
TITLE: Guidelines Set for How to Audit Stock Options
REPORTER: Siobhan Hughes
PAGE: A10 ISSUE: Oct 18, 2006
LINK:
http://online.wsj.com/article/SB116114078518696161.html?mod=djem_jiewr_ac
"HealthSouth Agrees to $445 Million Settlement,"
AccountingWeb, October 2, 2006 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=102629
HealthSouth Corp. announced on Wednesday that it
will pay $445 million to settle several lawsuits that were filed against the
company and some of its former directors after an accounting scandal.
HealthSouth will pay $215 million in common stock
and warrants, and its insurance carriers will pay $230 million in cash, the
company said. Also, federal securities class-action plaintiffs will get 25
percent of any future judgments obtained by or on behalf of HealthSouth
regarding certain claims against fired CEO Richard Scrushy, former auditors
Ernst & Young, and the company’s former investment bank, UBS. Each party
remains a defendant in the derivative actions and the federal securities
class actions.
A judge must approve the settlement, which is
nearly the same as a preliminary settlement that was reached in February.
"This settlement represents another significant
milestone in HealthSouth's recovery and is a powerful symbol of the progress
we have made as a company," said HealthSouth President and CEO Jay Grinney.
HealthSouth, the Birmingham, Ala.-based rehabilitation and medical services
chain, does not admit any wrongdoing in the settlement, nor does any other
settling defendant, the company said.
The settlement does not include Ernst & Young, UBS,
Scrushy or any former HealthSouth officer who entered a guilty plea or was
convicted of a crime in connection with the company's financial reporting
activities ending in March 2003.
Scrushy and more than a dozen top executives were
accused of recording as much as $2.7 billion in bogus revenues on the
company's books over six years. UBS and Ernst & Young have denied knowing
about the fraud. Last year, Scrushy was acquitted of all criminal charges in
the fraud. He was convicted of conspiracy, bribery and mail fraud charges in
a separate government corruption trial.
Note that the above settlement does not include a settlement
with Ernst & Young auditors.
Bob Jensen's threads on the HealthSouth Corp. fraud are at
http://www.trinity.edu/rjensen/Fraud001.htm#Ernst
Bob Jensen's fraud updates are at
http://www.trinity.edu/rjensen/FraudUpdates.htm
Bob Jensen's threads on accounting for employee stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
Scrushy to Pay HealthSouth $31 Million
Richard M. Scrushy, founder of the HealthSouth
Corporation, has agreed to pay the company $31 million as part of a settlement
of litigation over his bonuses and legal fees. Mr. Scrushy dropped a lawsuit
seeking $21 million for legal fees after HealthSouth agreed to credit that
amount against the $52 million he owed for inflated bonuses, said Teresa
Tomlinson, one of his lawyers. HealthSouth ousted Mr. Scrushy in 2003 after
auditors uncovered a $2.7 billion accounting fraud at the chain of
rehabilitation centers.
"Scrushy to Pay HealthSouth $31 Million," The New York Times, November
30, 2006 ---
http://www.nytimes.com/2006/11/30/business/30health.html
Link forwarded by Roger Collins
How dominant shareholders screw the small investors
What matters, though, is that the non-family
shareholders have not fully benefited from deals over the years. Moreover,
because of these transactions, investors have lost influence over their company
to a dominant shareholder. In essence, the Bouygues' financial cunning enabled
the family to acquire stakes in companies that arguably should have been
entirely in the hands of Bouygues SA. But the dealing was extremely subtle; any
ordinary investor living through the drawn-out creation of the Bouygues family's
stake would have found it almost impossible to follow. This raises a broader
lesson. Investors battered by scandals over stock-options and golden parachutes
sometimes look to family-run companies for salvation. Although professional
managers, with the advantages of time and inside knowledge, can run a business
to suit their own interests, family owner-managers are often thought to be less
prone to such “agency risk”. Yet the story of Bouygues SA suggests that family
capitalism, so common in continental Europe, can sometimes backfire as much as
any share-option scheme.
"Creative construction," The Economist, November 30, 2006 ---
http://www.economist.com/business/displaystory.cfm?story_id=8348645&fsrc=nwlbtwfree
Complicated Accounting Rules and Employee Pressures
November 7, 2006 message from Amy Dunbar
[Amy.Dunbar@BUSINESS.UCONN.EDU]
I am teaching a class, Research for Accounting
Professionals, and I have been thinking about how to prepare my students for
the "real world." I am looking for some insight re: the apparent increased
pressure on accountants. For example, some say that the financial reporting
environment is rivaling the tax world for the number of new rules that come
out every year. I counted the number of statements issued since per year and
found that the 1980s was the busiest period, with 1982 being the highest
year with 18 statements. Does anyone know why that was? If the number of
statements isn't increasing, is it the guidance from SEC that has increased,
or is the pressure coming from the SOX environment with its emphasis on
internal controls? Has the internal control guidance stepped up? Or is the
pressure simply the same pressure that all business people are facing from
increased global competition?
1 1973
2 1974
9 1975
2 1976
6 1977
4 1978
10 1979
10 1980
9 1981
18 1982
7 1983
4 1984
6 1985
3 1986
6 1987
4 1988
3 1989
2 1990
2 1991
5 1992
4 1993
2 1994
7 1995
3 1996
4 1997
3 1998
3 1999
3 2000
4 2001
4 2002
3 2003
4 2004
1 2005
5 2006
Amy Dunbar
University of Connecticut
School of Business
Department of Accounting
2100 Hillside Road, Unit 1041 Storrs, CT 06269
November 8, 2006 reply from Bob Jensen
Hi Amy,
I don’t think you can
compare numbers of FASB/SEC statements with any sort of confidence. How
do you compare FAS 133 (incredibly complex) with FAS 157 (relatively
simple)? The problem is not the number of new standards but the way new
standards merely add to a growing mountain of previous standards that
does not go away --- the mountain just grows higher and higher.
Our students must face
an exceedingly complex world of technology. They must have skills in
pivot tables, client databases, knowledge databases, ERP, and things
that were just not crashing down on our graduates in the 1980s.
I personally think
that a negative externality of technology has been increased risk of
fraud that increases pressures on auditors. For example, technology has
made it lucrative to steal IDs. Now we have huge conspiracies to steal
those IDs, as witnessed by the recent reporting of a gang, including
hotel owners, managers, and employees, that were stealing IDs at
multiple hotels. Internal controls have just not kept pace with the
level of theft risks and temptations, and our graduates are under
pressures to invent newer internal controls in complicated IT systems.
Hacker/Cracker criminals themselves are extremely sophisticated and
skilled. Our networked enemies can be anywhere on the globe.
Pressures are coming
from a wide variety of interacting causes, not the least of which is SOX
which is basically aimed at improving audit quality. What you had back
in the 1980s was auditing sham! Firms like Andersen were removing much
of the detail testing and trench work out of the audits, thereby taking
much of the pressure off of auditors in the field ---
http://www.trinity.edu/rjensen/fraud001.htm#RiskBasedAuditing
The world’s worst audit in history, WorldCom, brought this sham into the
light.
The audit scandals
(spread rather evenly among firms), litigation losses, the nose dive of
reputation of the CPA profession, and SOX turned much of this around and
now the audit firms are trying to restore the professionalism of their
work with a dramatic increase in funding to do the job. But the
pressures are bound to increase as well if auditors really try to do
professional work.
You have audit firms
being fired (the way KPMG was fired from Fannie Mae and E&Y was fired
from TIAA/CREF). You have clients paying millions upon millions to
restate financial statements because of bad auditing (e.g., Fannie is
spending over $100 million to produce restatements). This is bound to
pressure auditors assigned to do the job right. One of my former
students brought in by PwC to help generate Fannie’s restatements said
that he had to become an expert on valuing derivatives using a Bloomberg
terminal (as part of the restatement effort). How many of our accounting
education programs teach students how to value interest rate swaps on a
Bloomberg terminal?
But mostly I think the
pressure is on our graduates to deal with incredibly tough contracts
that their professors and their supervisors themselves do not
understand. Pressure is put on our green-as-grass new graduates to
understand and explain contract complexity all the way up the food chain
in their firms.
Below is a message
that I received yesterday from a recent graduate who went to work
immediately for AT&T rather than one of the big auditing firms. It helps
explain how our young graduates encounter contracts that do not appear
in our textbooks and how they must have skills and knowledge well beyond
what we taught in the past Century.
|
Hey again Dr. Jensen,
I have another derivatives
situation! Do you know anything about zero coupon bonds that are
puttable? I guess they are a relatively new transaction type
that banks are trying to push. I guess the theory is that you
sacrifice some additional risk (by allowing the bondholder to
put to you) in return for a lower interest rate than a typical
zero coupon bond. It is my interpretation that written options
don't count for hedge accounting status unless they offset
another derivative instrument (FAS 133, P 396-401). It is also
my interpretation that this is a situation which would create a
difference in the bond value which would be reflected as an
income statement (other income/expense) effect.
However, I think the financial
components of the situation are over my head, and my boss is
trying to tell me that he thinks that all of this transaction
would either run through interest expense or there would be a
huge increase in income in the first period represented (with no
MTM throughout). I don't understand these arguments. Do you have
any idea what he is getting at?
I am really grateful for any help
you can provide, but I am starting to feel bad about emailing
you. I have always assumed that you enjoyed these kind of
discussions, but if you don't please don't feel obligated to
answer. Just let me know - I don't want to disturb your
retirement!
As always, hope things are well.
Thanks again so much.
Andrew |
My response to him is too long to repeat here, but you can read a bit
more about puttable bond accounting at
http://www.trinity.edu/rjensen/acct5341/speakers/133glosf.htm
Each new message from a frustrated former student makes me happier that
I’m retired in the high hills. I would not want to be one of these
young men and women today.
Bob Jensen
November 8, 2006 reply from J. S. Gangolly
[gangolly@CSC.ALBANY.EDU]
Years ago, I suggested one of my doctoral students
(now a colleague) to prepare a graph that shows how the various standards
are related. The result was the graph attached.
Here, we represent each standard as a point,
equidistant from each other, on the circumference of a circle. Then we draw
an arrow from standard A to standard B if standard A amended Standard B. The
result is the attached graph. It looks more like an oval because I had to
compress the image to fit powerpoint slide.
The graph helps us understand the dynamics of
standards, forces us to ask questions as to why standards may be frequently
revised, why interpretation of "the GAAP" as opposed to standards becomes
difficult, and behooves us to ask what needs to be done.
This sort of a graph is used in information
retrieval as well as exploratory data analysis. I teach using this figure in
my statistics course for accountants (and not Accounting "Theory" course).
Those interested in my first class of the semester,
please go to the following link:
http://www.albany.edu/acc/courses/acc522.fall2006/classnotes/acc522sept142006.ppt
Hope I am not too far off the mark.
Regards,
Jagdish
November 8, 2006 reply from Jim Formosa
[Jim.Formosa@NSCC.EDU]
I believe that SOX and the PCOAB shocked the FASB
for a while and I am not sure that the shock has worn off. I remember
reading in several journals that, with the advent of the PCOAB, the FASB
became tentative. Then I believe you have to consider the FASB process which
requires drafting and approvals with the constant threat of legislative
interference at the federal level. Many have questioned the long-term
efficacy of the FASB process itself. I believe in full disclosure and
feedback in the rule making process but it should not take years - expensing
options as only one of several examples.
I have also read that many believe the FASB is fast
becoming a dinosaur that has outlived its usefulness- it will certainly be
interesting.
Jim Formosa, M.S., CPA
Certified Senior WebCT Trainer
Associate Professor of Accounting
Nashville Community College 615-353-3420 FAX 615-356-1213
November 8, 2006 reply from J. S. Gangolly
[gangolly@CSC.ALBANY.EDU]
1. Codification is a neanderthal concept and a
vestige of the disastrous Napoleonic rule in Europe. It is expensive, does
nothing to resolve whatever ambiguities that might be present (in fact it
might exacerbate them), has high maintenance, and totally ignores all the
developments in information technologies over the past century. In fact, in
my humble opinion, codification is the accounting equivalent of Iraq (I am,
of course, exaggerating here). What is needed is NOT radical reconstitutive
surgery of the body of accounting standards (as in Iraq) by first
disemboweling them, but a philosophical reflection of the way we draft
standards (and how we use them) that is informed by the developments in
information technology.
In my humble opinion, the emerging technologies
surrounding the semantic web initiative of W3C is the way to go, but that
involves considerable research investments.
Years ago I tried a dialogue with some firms (and
also with FASB through some friends) about supporting research in the area,
but my plea fell on deaf ears (except for Arthur Andersen - their Litigation
Support people, who showed considerable interest before they tragically
disbanded).
2. Your second question as to why people still
refer to SASes rather than their codification, I think I can safely rest my
case in 1. above. Codification adds little value at great cost. Codification
is for the lazy people who want their thinking done for them.
If the standards are drafted well, codification is
a trivial task. One can have an algorithm for codification in less than a
semester of a competent doctoral student's time. Drafting the standards well
is another matter, and is a profoundly intellectual activity. We can not do
that without adequate theories of language competence, language use,
reasoning, and theories of textual interpretation (similar to legal
hermeneutics). And having examined the standards as well as EDGAR filings
over the past few years, I can safely say that we in accounting are quite
lacking in each of these.
Regards,
Jagdish
November 8, 2006 reply from J. S. Gangolly
[gangolly@CSC.ALBANY.EDU]
Bob,
1. That accounting standards standards have become
complex over the years is true. It is also perhaps true that they are
nowadays better drafted compared with the philosophical ramblings in very
early "standards". However, I personally don't think they are anywhere close
to the tax code in complexity (and of course length. For example, section 10
of SFAS 133, a relatively long paragraph for SFASes, is dwarfed by, for
example section 351 of the Tax code, a relatively average paragraph).
I will not resort to midieval torture of the reader
by reproducing the two sections side-by-side. But the elegance of the tax
code and the lack thereof is there plainly to be seen.
One of the problems with drafting in accounting
standards is in the way definitions are stated. In accounting, the
definitions are often given by examples rather than definitions with
exceptions to the definitions. That is not the only problem. There are a
slew of problems that I wrote about in an article titled "Some thoughts on
the Engineering of Financial Accounting Standards" that I wrote a long time
ago (in the second volume on AI in Accounting edited by Miklos Vasarhelyi.
It would be an interesting exercise comparing the
complexities between the two texts after developing appropriate metrics. I
am not sure accounting standards would measure up to the tax code, but I am
no expert in either field. Perhaps some one like Amy who is one in both can
enlighten us.
Jagdish
November 9, 2006 reply from Bob Jensen
Jagdish,
Codification with enforcement suppresses some types of atrocious
behavior. For example, thousands of CEOs commenced to steal from investors
by backdating stock options until disclosure rules were put in place.
Without codification and enforcement there's anarchy. With excess
codification freedom and creativity is suppressed. It's just very, very
difficult to set the bar optimally because Arrow's Impossibility Theorem
proved it to be impossible ---
http://en.wikipedia.org/wiki/Impossibility_theorem
We are thus doomed to forever debate codes of behavior ad infinitum.
As usual you make good points. However, financial contracting is so
complex that I'm like Amy is with tax accounting. I cannot imagine trying to
account on a subjective judgment basis without codification. Without
codification comparability is virtually impossible with exotic financial
structurings.
It's possible to reduce the problem with simplified rules/laws such as
eliminating 90% of the personal tax code with a new flat tax, eliminating
accrual accounting in favor of cash flow financial reporting, or reporting
on a "fair value" basis for all assets and liabilities. But the social
impacts of a flat tax are contentious. Cash flow reporting is a license for
CEOs to mislead and manipulate investors with cash flow timing
manipulations. Fair value reporting creates more fiction than fact (such as
wild earnings fluctuations of perfect hedges that eliminate cash flow or FX
risk).
Codification sets parameters on major types of behavior. What is "right"
versus "wrong" becomes anarchy if those parameters become subjective
variables. The never-ending debate becomes one of deciding what are the
"major types of behavior" to be codified since it is impractical and
undesirable to set a parameter for every element of behavior. In the case of
financial structuring we keep inventing new "major types." For example, the
interest rate swap was invented in 1984 and quickly became a major way to
raise capital before it even had to be disclosed (FAS 119) and eventually
booked (FAS 133) in Year 2000.
We are thus doomed to forever debate codes of behavior and accounting
standards ad infinitum.
My threads containing earlier arguments on this issue (e.g., Beresford
versus Ketz) are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#MethodsForSetting
Bob Jensen
S.E.C. to Ease Auditing Standards for Small Publicly Held Companies
The Securities and Exchange Commission will begin the
process of easing auditing standards for thousands of smaller public companies
this Wednesday when it proposes rules under the most contentious provision of
the Sarbanes-Oxley Act. The relaxed standards represent a compromise, giving a
qualified victory for businesses, which had considered any regulation
burdensome, and for the auditing firms, which had benefited from the imposition
of stringent requirements on their clients.
Stephen Labaton, "S.E.C. to Ease Auditing Standards for Small Publicly Held
Companies," The New York Times, December 11, 2006 ---
Click Here
Bob Jensen's threads on proposed reforms are at
http://www.trinity.edu/rjensen/FraudProposedReforms.htm
Standards of Value: Theory and Applications
Standards of Value covers the underlying assumption in many of the prominent
standards of value, including Fair Market Value, investment value, and fair
value. It discusses the specific purposes of the valuation, including divorce,
shareholders' oppression, financial reporting, and how these standards are
applied.
Standards of Value: Theory and Applications, by Jay E. Fishman, Shannon
P. Pratt, William J. Morrison Wiley: ISBN: 0-471-69483-5 Hardcover 368
pages November 2006 US $95.00) ---
http://www.wiley.com/WileyCDA/WileyTitle/productCd-0471694835.html
Bob Jensen's threads on fair value controversies in accountancy are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#FairValue
Why are CEOs making such a fuss over the accounting
for stock options? It has nothing to do with their concern about accounting
theory, argues J. Edward Ketz. "If they cared about accounting theory, CEOs
would be more supportive of the FASB, the SEC, and the IASB in developing and
improving accounting practice. They don't want improvements in accounting, else
somebody might actually know what they are up to.
J. Edward Ketz, "The Accounting
Cycle Accounting for Stock Options (Part Three): Why CEOs Fight Stock Option
Accounting," SmartPros, November 2006 ---
http://accounting.smartpros.com/x55207.xml
Kip Hagopian wrote a recent
article in California Management Review in which he claimed that "Expensing
Employee Stock Options is Improper Accounting." I explained in my first
column that his appeal to authority was misplaced, an error in logic. My
second column clarified why expensing employee stock options is indeed
proper and that Hagopian's assertions are invalid. In this essay, I shall
endeavor to discuss why CEOs are making such a fuss over the accounting for
stock options.
Let's state the
obvious fact: that CEOs are creating this hubbub over how to account for
stock options has nothing to do with their concern about accounting theory.
They don't care a wooden nickel about such matters. If they cared about
accounting theory, CEOs would be more supportive of the Financial Accounting
Standards Board (FASB), the Securities and Exchange Commission (SEC), and
the International Accounting Standards Board (IASB) in developing and
improving accounting practice. They don't want improvements in accounting,
else somebody might actually know what they are up to.
If CEOs cared about
investors, they would quit employing aggressive accounting techniques and
they would quit biasing their estimates (whether of interest rates, asset
lives, or fair values) to obtain their desired results. As they continue to
utilize aggressive, almost fraudulent accounting, we can infer that they are
looking out after themselves rather than anybody in the investment
community.
If CEOs were
worried about the state of accounting in the U.S., then we would expect them
to learn the vocabulary, the concepts, and the principles of accounting to
engage in meaningful debate. Mr. Hagopian and the set of signatories have
not bothered themselves with the trifles of accounting, as seen in their
invention of "gain-sharing instruments," their lack of appreciation for
accrual accounting, and the misapplication of the entity concept.
If CEOs were really
apprehensive about today's accounting, then we would expect them to get
involved in the many less-than-stellar accounting rules and argue for a
tightening and an improvement in them. Pension accounting and lease
accounting and the accounting for business combinations, to name a few, are
deficient FASB standards and in need of great work. Instead, CEOs get
involved primarily to prevent FASB from doing too much damage to them.
So why does Kip
Hagopian and so many CEOs still carp about the accounting for stock options?
I posit it is because, first, they do not want the general public to
understand the ever increasing gap between the wages of the average American
worker and the average corporate CEO and, second, they do not want investors
and creditors to realize the nexus between treasury stock repurchases and
their personal bank accounts.
The average CEO in
2004 earned $11.8 million, while the average worker made only $27,460. The
ratio of CEO-to-worker pay was 42 in 1980, 107 in 1990, and hit an all-time
high of 525 in 2001. Even now the ratio is 431. The explosive growth in CEO
compensation comes about primarily with stock and stock options.
Maybe as CNN's Lou
Dobbs continues his criticism of exporting American jobs overseas to cheaper
venues, he could advocate that we start outsourcing CEOs for cheaper ones.
Or maybe he should just insist on receiving some value for the compensation.
Broadcom's managers have received $5 billion from stock options while the
business entity has lost $6 billion in operating profits. What have these
executives done to deserve $5 billion in stock options?
I shall leave it to
others to debate the issue of when CEO pay becomes excessive. At this time,
I merely think people ought to have the facts so the debate will be
meaningful. And saying that stock options are costless is, well, witless.
The second point is
that we need to understand better the nexus between stock repurchases and
CEO's personal bank accounts. Stock options line their bank accounts of
managers with tons of money, but needing some emphasis is the fact that
stock options are quite similar to the government's printing more money.
When the government prints more money, the effect is inflation; for
instance, it takes more money to buy the same goods. In like manner, when
corporations print more stock certificates, the effect is also dilutive; for
instance, an investor's shares in the company provides over time a claim to
fewer and fewer of the net assets of the entity.
Corporate managers
comprehend this inflationary aspect of stock options quite well, so they
nearly always couple an aggressive stock option plan with a strategy to buy
back shares with some hogwash like they want to put some cash in the hands
of stockholders. If CEOs really wanted to do that, they could declare a
dividend instead of playing this song-and-dance.
Cisco Systems has
enriched its executives with $24 billion of stock options; it has
counterbalanced the dilutive effect by repurchasing $19 billion of its own
stock. Broadcom, Dell, and many other hi-tech companies have acted likewise.
Indeed, it is the
nexus of the stock options and the stock repurchases that explains why stock
options ought to be expensed. Managers find it critical to repurchase enough
shares of stock to offset the inflationary ripples that stock options
create. Simultaneously, the cash that the business enterprise disburses to
replenish the lost shares represents the assets conveyed to compensate the
management team.
While Kip Hagopian
is entitled to his opinion, the standard setters at FASB, SEC, and IASB
should not give it much weight. It is tainted with the greed of Lay and
Kozlowski. It is mere rhetoric to justify incredibly exorbitant salaries.
J. EDWARD KETZ is accounting professor at The Pennsylvania
State University. Dr. Ketz's teaching and research interests focus on
financial accounting, accounting information systems, and accounting ethics.
He is the author of
Hidden Financial Risk, which explores the causes of recent
accounting scandals. He also has edited
Accounting Ethics, a four-volume set that explores ethical
thought in accounting since the Great Depression and across several
countries.
When Top Scholars Write Outside Their Realm of Expertise
to Favor Executives at the Expense of Investors
To close, the appeal to authority is enticing
because it gives the aura that those with brilliant minds adopt a particular
point of view. While powerful rhetorically, this approach constitutes a logical
error because authorities sometimes make mistakes, such appeals to authority do
not address the subject under debate, and the opposing side can solicit its own
bevy of experts. Worse, this strategy backfires when the list of experts do not
really possess the requisite knowledge base in the field of battle. With such
ignorant experts, the glamour of Hagopian's paper disappears. I could stop my
critique at this point, but opponents of the expensing of employee stock options
would continue their nonsense. Therefore, I shall resume the critique in the
next column by reviewing the arguments by FASB and by Bodie, Kaplan, and Merton.
J. Edward Ketz, "Accounting for Stock Options: Reasoning by Authority:
Part 1," SmartPros, November 2006 ---
http://accounting.smartpros.com/x55203.xml
Jensen Comment
Bravo Ed!
Bob Jensen's threads on employee stock options accounting are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
From The Wall Street Journal Accounting Weekly Review on November 17,
2006
TITLE: Business Wins Its Battle to Ease a Costly Sarbanes-Oxley Rule
REPORTERS: Kara Scannel and Deborah Solomon
DATE: Nov 10, 2006
PAGE: A1
LINK:
http://online.wsj.com/article/SB116312925640019517.html?mod=djem_jiewr_ac
TOPICS: Accounting, Auditing, Public Accounting, Regulation, Sarbanes-Oxley Act,
Securities and Exchange Commission
SUMMARY: "...Securities and accounting regulators are yielding to pressure
for a...flexible reading of...Section 404 [of the Sarbanes-Oxley Act].
Regulators have said they will propose guidance next month to help companies and
auditors interpret Section 404 in a way likely to save them time and money."
QUESTIONS:
1.) Which regulators are considering changes to make the effects of
Sarbanes-Oxley less onerous?
2.) Are regulators proposing changes to the Sarbanes-Oxley law itself or to
some other documents? Explain.
3.) What has been the impact of Sarbanes-Oxley on fees charged by auditing
firms? Describe both the impact in the first year of implementing the rule and
in subsequent years.
4.) How has the impact of Sarbanes-Oxley in recent years been out of line
with expectations?
5.) How might relaxation of interpretation of Sarbanes-Oxley Section 404
impact smaller companies to ease their burden of implementation? In your answer,
specifically refer to auditing standards described in the article.
6.) Describe the impact of the issues discussed in answer to questions 3, 4,
and 5 on listings of stock with U.S. exchanges.
Reviewed By: Judy Beckman, University of Rhode Island
From The Wall Street Journal Accounting Weekly Review on November 17,
2006
TITLE: Accounting Watchdog Falls Behind`
REPORTER: David Reilly
DATE: Nov 10, 2006
PAGE: C3
LINK:
http://online.wsj.com/article/SB116312914256419514.html?mod=djem_jiewr_ac
TOPICS: Auditing, Fraudulent Financial Reporting, Public Accounting,
Sarbanes-Oxley Act
SUMMARY: "With the end of the year fast approaching, the Public Company
Accounting Oversight Board has yet to issue an annual inspection report for any
of the Big Four [public accounting firms]...'
QUESTIONS:
1.) Who is the "watchdog" who has yet to issue an inspection report this year?
What is the purpose of this "watchdog"?
2.) What is the time line for issuing reports on "auditing the auditors."
Where do the ones closest to completion stand against that time line?
3.) How are others expected to use the reports regarding auditors of publicly
traded firms?
4.) How is the process of "auditing the auditors" intended to make market
participants feel greater confidence in the integrity of markets?
5.) How does the benefit described in answer to question 4 translate into
benefits to society at large, rather than just benefits related to personal
investing?
Reviewed By: Judy Beckman, University of Rhode Island
Proposal for Real Time Reporting by Corporations
November 8, 2006 message from Glen L Gray
[glen.gray@CSUN.EDU]
Big Four Eyes End to Quarterlies: Report The
leading accounting firms want to change to "real-time, internet-based
reporting encompassing a wider range of performance measures" than current
"static" forms supply. Stephen Taub and David M. Katz, CFO.com November 08,
2006
The Big Four accounting firms will call on
Wednesday for sweeping changes in the way companies report their results to
investors, including an end to quarterlies, according to the Financial
Times.
In the place of "static" quarterly statements, PwC,
Deloitte, KPMG, Ernst & Young, plan to recommend "real-time, internet-based
reporting encompassing a wider range of performance measures," the FT
reported on late Tuesday afternoon.
Along with the heads of Grant Thornton and BDO,
senior managements of the Big Four reportedly plan to say in a joint paper
to be revealed at gathering in Paris that the financial reporting model of
the 20th century "is broken," said Mike Rake, chairman of KPMG
International, according to the FT.
"There are significant shortcomings to [U.S.
generally accepted accounting principles] and issues of concern with
international financial reporting standards," he also reportedly said.
"We're not in a very happy situation."
"Current systems of reporting and auditing company
information will need to change toward the public release of more
non-financial information customized to the user, and accessed far more
frequently than is currently done," the paper reportedly says.
The accounting firms reportedly have been working
on their proposals for over a year, according to the FT.
Glen L. Gray, PhD, CPA
Accounting & Information Systems,
COBAE California State University,
Northridge Northridge, CA 91330
http://www.csun.edu/~vcact00f
The CFO.com link is
http://www.cfo.com/article.cfm/8132475/c_813251
November 10, 2006 reply from Saeed Roohani
[sroohani@COX.NET]
This is a good demo to show application of
continuous auditing
http://www.emporia.edu/business/newsdetail.php?newsID=26
The demo was the prize winner of 6th Global XBRL
Academic Competition
2005-06 (www.XBRLeducation.com)
Other XBRL teaching cases/projects:
South America Unified Markets
http://www32.brinkster.com/xbrl2003/
user: SAUM
password : xbrl2003
InvestWise: Where investment forecasts are just a
click away!
http://personal.bgsu.edu/~ilyak/xbrl
password is xbrl
Credit Analyzer
http://kelley.iu.edu/Norne/ (ID: admin, PASSWORD: xbrlpass)
Some related links:
http://www.kelley.iu.edu/sagp/news_items.cfm?newsid=15
http://www.iasb.org/xbrl/xbrl_team/profiles_where_are_they_now.html
http://www.lerner.udel.edu/accounting/FacultyPages/Geerts.HTML
http://www.rafware.it/ias/index.php?id=2489
=====================
Saeed Roohani
Bryant University
December 10, 2006 message from Saeed Roohani
[sroohani@COX.NET]
In his speech at the 14th XBRL International
Conference, Chairman Cox talked about Global XBRL Academic Competition:
See below and the link for your information.
And I should point out that not only can XBRL help
reduce errors in the first place, but it can also help detect them after
they occur. Here's an interesting example of how that might work. Just this
year, a group of students at Emporia State University in Kansas won the
Sixth Global XBRL Academic Competition at Bryant University by creating a
software application that continuously identifies tagged transactions which
should come to the attention of internal or external auditors. It's not hard
to imagine that in the very near future, companies of all kinds will be able
to rely on interactive data to flag anomalous data and fix accounting errors
in real time
Speech by SEC Chairman: The Promise of Interactive
Data by Chairman Christopher Cox U.S. Securities and Exchange Commission
14th International XBRL Conference Philadelphia, Pennsylvania December 5,
2006
http://www.sec.gov/news/speech/2006/spch120506cc.htm
Saeed Roohani
Bryant University
Bob Jensen's threads on XBRL are at
http://www.trinity.edu/rjensen/XBRLandOLAP.htm
"A Report by the World’s Largest Auditors Urges Relaxed Standards for
Liability," by Floyd Norris, The New York Times, November 8, 2006 ---
http://www.nytimes.com/2006/11/08/business/worldbusiness/08account.html?_r=1&oref=slogin
The heads of the six largest auditing firms in the
world issued a call for relaxed liability standards for their companies
yesterday, in what appears to be the start of a campaign to protect their
franchises while reducing the risk that bad audits could bankrupt one or
more of them.
In a report, the executives said that they
supported efforts to standardize accounting and auditing standards around
the world and that eventually, “a new business reporting model” should be
developed that would provide better financial information more rapidly.
But while the report, entitled “Serving Global
Capital Markets and the Global Economy,” offered little detail in that area,
it was most detailed in its warnings that auditor liability needed to be
restricted and in mounting the arguments for that outcome.
It did not offer specific proposals on how
liability could be restricted while continuing to protect investors if
auditors failed to do a conscientious job. Instead, it pointed to a
restriction on auditor liability as being essential to solve many problems
of the industry, and suggested that if investors were worried about fraud,
they should be willing to pay for more detailed and more expensive audits
than those prepared now.
“Our firms are not and can never be the insurers of
last resort for the capital markets,” the report said. It cited an
“expectations gap” between what investors wanted from an audit in detecting
fraud “and what audit networks are actually capable of doing, at the prices
that companies or investors are willing to pay for audits.”
One idea the report raised, which could bring in
more revenue with less risk for auditing firms, was to create a separate
category of forensic audits, which would cost more than ordinary ones and be
more likely to uncover fraud. It said companies might be required to have
such an audit every five years, or to face such audits on a random basis.
Or, it said, investors could choose whether they wanted their companies to
face that additional cost.
Since the collapse of Arthur Andersen in the wake
of the Enron scandal, there has been worry over excessive concentration of
business in the Big Four firms — PricewaterhouseCoopers, KPMG, Deloitte &
Touche and Ernst & Young. The report, signed by the heads of those four
firms as well as of the next two, much smaller firms — Grant Thornton and
BDO International — suggested that more competition would appear if
liability concerns were eased.
It argued that fear of lawsuits had led to detailed
accounting rules in the United States that encouraged a “check the box”
style of auditing and accounting that in some cases made fraud more likely
and information less useful. It endorsed the idea of accounting rules that
are more “standards based,” with fewer details and more responsibility for
auditors to interpret them.
The report acknowledged that the big firms had
often sought detailed rules in the hope that would protect them from
lawsuits, but said that had not worked.
While the largest firms in major countries bear the
same or similar names, they are organized as partnerships in each country,
reflecting differing regulations on what accountants and auditors can do.
The firms asked for more consistent global rules and for ways to allow the
heads of the international firms to enforce standards on all those in a
network without making all the firms in the network liable for a firm’s
errors.
From The Wall Street Journal Accounting Weekly Review on November 10,
2006
TITLE: Caveat Auditor?
AUTHORS: Samuel DiPiazza, Jr., David McDonnell, Willaim Parrett, Mike Rake,
Frans Samyn, James Turley
DATE: Nov 08, 2006
PAGE: A22
LINK:
http://online.wsj.com/article/SB116293744280516046.html?mod=djem_jiewr_ac
TOPICS: Accounting, Auditing, Financial Accounting, Financial Accounting
Standards Board, International Accounting, International Accounting Standards
Board, International Auditing
SUMMARY: The leaders of the world's largest public accounting firms are
presenting a paper at the Global Public Policy Symposium in Paris and jointly
published this editorial encouraging global reporting and auditing standards,
QUESTIONS:
1.) Who are the worldwide leaders who have written this article? What symposium
are they attending on which the article is based?
2.) Why are these leaders supporting global accounting and auditing
standards? How can implementation of such standards assist them in operating
their audit firms?
3.) The authors argue that implementing world-wide accounting and auditing
standards will help restore investor confidence in capital markets. What is the
logic behind that argument? According to these individuals, what steps must be
taken beyond merely converging international standards to achieve a goal of
increased investor confidence?
4.) Focus particularly on the authors' argument in favor of "allowing
auditors greater room to exercise judgment." Greater than what? What is the
logic of this argument?
5.) How might investors and other users of financial statements argue against
this "need for greater judgment" by auditors? In your answer, also comment on
the "expectations gap" that persists with respect to auditing publicly traded
companies.
Reviewed By: Judy Beckman, University of Rhode Island
"Caveat Auditor?" By SAMUEL A. DIPIAZZA JR., DAVID MCDONNELL, WILLIAM G.
PARRETT, MIKE D. RAKE, FRANS SAMYN and JAMES S. TURLEY, The Wall Street
Journal, November 8, 2006; Page A22 ---
Investor confidence is easily shaken and, once
lost, hard to restore. After Enron and other corporate scandals, much has
been done by regulators, publicly traded companies, investors and auditors
to help win back that trust. As leaders of the six largest global audit
networks, we have rededicated ourselves to the highest standards of quality
and ethical service.
But it's clear that fully restoring investor
confidence requires much more. Fresh thinking and action are now required to
provide stability and sustainable growth to the global capital markets in
the future.
The way in which companies report financial
information matters greatly to almost everyone: from the individual saving
for a child's university tuition to money managers responsible for billions
of dollars. Public-company auditing matters because, in the end, it is one
of the foundations of investor confidence in capital markets and, in turn,
the global economy.
But when the basics of accounting procedures were
written, the world's investors were more a private club than a global
network. Auditors used fountain pens, capital stayed pooled in a few
financial centers, and information moved by runner.
Business is now much more complex, with more
sophisticated financial tools for raising capital and hedging risks than
were available in previous decades. Globalization has created ever greater
movement of goods, services and capital across borders. Yet the concepts
governing financial reporting and auditing standards have not sufficiently
changed with the times.
There has been some progress, such as the
introduction of EU legislation that clarifies the duties of statutory
auditors. But we can act further now to improve the information that firms
report to the public. • First, we should harmonize reporting and auditing
standards around the world. Stakeholders and investors need to know that the
information they are getting is compiled, classified, reported and audited
on a consistent basis across countries. The International Accounting
Standards Board and the U.S.-based Financial Accounting Standards Board are
already working on this task but should complete their efforts promptly. The
adoption of International Financial Reporting Standards in nearly 100
countries is a major step in this direction.
• There also remain national differences in the
oversight of auditors and enforcement of relevant audit standards. The new
Independent Forum of International Audit Regulators is the ideal body to
bring these regulatory regimes into harmony.
• Some financial statements have become so complex
that few people properly understand them. We must develop a new business
reporting model to make the information less complex and more useful. This
new model should include the reporting of more nonfinancial information.
While corporate value was once largely about tangible assets -- land,
plants, equipment and so on -- attributes such as customer loyalty, employee
knowledge, brand value and reputation are now just as important to many
investors. But the rules for financial reporting provide limited guidance as
to how a company should report these aspects of its business. The adoption
of more user-friendly technologies would also be helpful.
• All of these steps should include an emphasis on
allowing auditors greater room to exercise judgment. Accountants and
auditors are trained professionals who have the ability to apply the spirit
of broad principles in deciding how to account for and report financial and
other information. Rules that allow this judgment to be exercised will
produce better, more reliable and more useful information. Rigid rules are
ill-suited to a rapidly changing business environment.
• Such measures should also include an honest
assessment of the "expectations gap," relating to material fraud and the
ability of auditors to uncover it at a reasonable cost. Unless companies or
investors are willing to pay auditors to police all of a company's
transactions, auditors can use only indirect means to ascertain whether a
fraud has occurred.
We believe that these steps could give investors,
businesses and regulators what they want and deserve: reliable and relevant
information that is the lifeblood of thriving capital markets. We will offer
further details on these steps in a paper that we will present at the Global
Public Policy Symposium in Paris today. (For more information, see
www.globalpublicpolicysymposium.com.)
We hope that this symposium provides a starting
point for addressing these issues. The world is changing quickly and public
companies are changing along with it. It is time for financial reporting and
auditing standards to change as well.
Mr. DiPiazza is CEO of PricewaterhouseCoopers International Limited.
Mr. McDonnell is CEO of Grant Thornton International. Mr. Parrett is CEO of
Deloitte. Mr. Rake is chairman of KPMG International. Mr. Samyn is CEO of
BDO International. Mr. Turley is chairman and CEO of Ernst and Young.
November 8, 2006 reply from Paul Bjorklund
[PaulBjorklund@AOL.COM]
Bob-
Thank you for this. It is interesting in several
respects. I was particularly fascinated about the forensic audit idea set
forth. I think both the big firms and the profession as a whole need to put
on their "public interest" hats, rather than their trade-industry/lobbying
ones, and develop solutions that benefit everyone.
Paul Bjorklund, CPA
Bjorklund Consulting, Ltd.
Flagstaff, Arizona
November 8, 2006 reply from Roger Debreceny
[Roger@DEBRECENY.COM]
Intresting snippets in the
report's Executive Summary:
Reporting model, p2:
-
The value of many
companies resides in various “intangible” assets (such as employee
creativity and loyalty, and relationships with suppliers and
customers). However, information to assess the value of these
intangibles is not consistently reported.
-
Billions of people
around the world now have the ability to access information
instantaneously. Yet when it comes to financial reports, investors
must wait for companies to publish data only once a quarter, every
six months or annually.
-
The information
technology revolution has made data customization easy to use and
broadly expected. However, today’s financial reports remain largely
one-size-fits-all, and are not sufficiently accessible to many
investors.
Again on p3:
Longer-Run
Measures: Over the longer run,
experts agree that the current systems of reporting and auditing company
information will need to change — toward the public release of more
non-financial information (some or much of which may be
industry-specific) customized to the user, and accessed far more
frequently than is currently done. It is time, therefore, for all global
capital markets stakeholders involved to launch a process that will lead
to the development of a new business reporting model, with a clear
identification of the role of the independent audit and requirements
dictated by that model.
Skills, p2:
The
auditing profession needs to develop the talent and expertise to deliver
consistent, high-quality audit
services in the coming environment, both through the hiring of
outstanding individuals and the
training of auditors in new auditing techniques (especially evolving
information technology, fair
value models and expanded business information).
And again on p4:
To
provide these services, our profession must be able, through
market-based incentives and our workplace environments, to attract and
retain individuals with broad training in multiple disciplines — in
accounting, information technology, finance, tax and other business
skills — to deal with a more
complex and
global business environment. Among other things, this will require
improvements in accountancy degree curricula and investments in
continuous training on our part. Meanwhile, legal restrictions on the
scope of services that can be provided by audit networks should be
evaluated in light of the capital markets’ clear interest in assuring
the continued attractiveness of the profession and its ability to bring
in and retain individuals with the requisite talent and skills as well
as the need to assure auditor independence.
Interesting comments on national and global audit
standards, role or forensic auditing
etc.
Roger
..................................................................
Roger Debreceny
School of Accountancy
Shidler College of Business
University of Hawai`i at
Mānoa
2404 Maile Way, Honolulu, HI 96822,
USA
roger@debreceny.com
rogersd@hawaii.edu
Office: +1 808 956 8545 Cell: +1 808
393 1352
www.debreceny.com
Bob Jensen's threads on intangibles and accounting theory are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm
It struck me as yet another example of how small the
role of academe is in shaping the future of the profession of accountancy.
I examined the Vision being promoted, since November 8, 2006, by CEOs of the
largest accounting firms ---
http://www.globalpublicpolicysymposium.com/CEO_Vision.pdf
It struck me as yet another example of how small the role of academe is in
shaping the future of the profession of accountancy. I wonder if the professions
of medicine and law would chart the future of their own professions with so
little regard for schools of medicine and law. Large firms in accounting
actively seek to hire our students and have great public relations with
professors. However, when it comes to something as substantive as this it's very
difficult to find where leaders of the profession charted this change in course
by building upon academic accounting research. There are probably indirect
links, but it would be surprising if the writers of this proposed huge change in
policy were influenced heavily by published academic research. An exception
might be the thrust toward XBRL, but the so-called leading academic accounting
journals have paid scant attention to XBRL,
On one hand we could blame the leaders of the profession for avoiding academe
in the generation of new vision for the future. On the other hand we could blame
the accounting researchers and their top journals for addressing what they can
study with scientific models rather than what the profession wants to be
studied. My threads on this issue are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#AcademicsVersusProfession
"Largest Accounting Firms See Coming Revolution in Business Reporting,"
AccountingWeb, November 27, 2006 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=102827
As part of the Global Public Policy Symposium in
Paris, held on November 8 and attended by key players concerned with
ensuring the quality and reliability of financial reporting worldwide, the
Chief Executive Officers (CEOs) of PricewaterhouseCoopers (PwC)
International, Grant Thornton International, Deloitte, KPMG International
and Ernst & Young, published a joint statement of their vision of what the
future might hold for financial reporting and the accounting profession.
Entitled “Global Capital Markets and the Global
Economy: A Vision from the CEOs of the International Audit Networks,” the
document envisions investors having access to real time company financial
information through XBRL, financial statements that go beyond reporting past
performance to projecting future performance based on information about
business intangibles that are not currently measured, and a recommendation
that companies choose to supplement regular audits with periodic forensic
audits. The report may be viewed at
www.globalpublicpolicysymposium.com/
“This essay is about one type of information and
its importance to all actors in the global economy; information about the
performance of management and companies that make and deliver goods and
services, and compete for capital,” the symposium paper says.
In a letter to the Wall Street Journal published on
November 8, the day their paper was released, the CEOs wrote that when the
basics of current accounting procedures were written, the world’s investors
were more a “private club than a global network. Auditors used fountain
pens, capital stayed pooled in a few financial centers, and information
moved by runner.” The world has changed since then.
In the short term, the letter says, it will be
necessary to proceed as rapidly as possible with convergence in
international accounting standards, and with overcoming national differences
in oversight of auditors and in enforcement.
In the longer term, auditors themselves must
evaluate the usefulness to investors of information provided in the current
financial statement and footnote format and consider the inclusion of more
nonfinancial information.
But, the CEOs say in the Journal letter, “All of
these steps should include an emphasis on allowing auditors greater room to
exercise judgment. Accountants and auditors are trained professionals who
have the ability to apply the spirit of broad principles in deciding how to
account for and report financial and other information. . . . Such [future]
measures should also include an honest assessment of the “expectations gap,”
relating to material fraud and the ability of auditors to uncover it at a
reasonable cost.”
The paper looks forward to a world “where users
increasingly will want to customize the information they receive” in which
“the process for recording and classifying business information will be as
important, if not more important, than the static formats in which today’s
financial information is reported. Our jobs as auditors, must therefore
change to increasing focus on those business processes.”
An “important enabler” of future reporting will be
the Global XBRL Initiative, the paper says. XBRL users will be able to view
company data in any language, any currency and under different accounting
systems and get immediate answers to queries. “In fact the new world is
already here for the approximately 40,000 companies that already use XBRL to
input their data. . . . China, Spain, the Netherlands and the United Kingdom
have required companies to use XBRL.”
The paper acknowledges that investors, analysts and
others will still want standardized reports to be issued by public companies
on a regular basis. But the CEOs say that investors have told them they want
more relevant information to be included. “The large discrepancies between
the “book” and “market” values of many, if not most, public companies
similarly provide strong evidence of the limited usefulness of statements of
assets and liabilities that are based on historical costs. A range of
intangibles, such as employee creativity and loyalty and relationships with
suppliers and customers, can drive a company’s performance, yet the value of
these intangibles is not consistently reported."
In short, the CEO’s vision states “the same forces
that are reshaping economies at all levels are driving the need to transform
what kind of information various stakeholders want from companies, in what
form, and at what frequency. In a world of “mass customization,” standard
financial statements have less and less meaning and relevance. The future of
auditing in such an environment lies in the need to verify that the process
by which company-specific information is collected, sorted and reported is
reliable and the information presented is relevant for decision making.”
Investors and regulatory bodies may expect auditors
to go further than is reasonable to detect fraud and the paper recommends
that all companies be subjected to a regular forensic audit, or be subjected
to forensic audits on a random basis.
Another option would be introducing more choice
regarding the intensity of audits for fraud. For example, since forensic
audits are conducted primarily for the benefit of investors, one possibility
would be to let shareholders decide on the intensity of the fraud detection
effort
they want auditors to perform. Shareholders could be assisted in making this
decision by disclosure in the proxy materials of the costs of the different
levels of audits, as well as the historical experience of the company with
fraud.
The CEO paper calls for both liability reform and
scope of service reform.
Considering the “Brave New World” of auditing
envisioned in the document and the scope of the questions it raises, “Global
Capital Markets and the Global Economy” has received little attention in the
financial press, Motley Fool reports. But, while approving the idea of more
timely information flows for the investor, Fool says, “enough companies have
trouble meeting their reporting obligations as it is. I would prefer to both
maintain those reports and supplement them with additional data.”
That financial reporting will evolve and change is
inevitable, the International Herald Tribune says, but whether large
accounting firms will lead the dialogue is another matter that may be
influenced by their “life-threatening litigation risks.”
December 1, 2006 reply from Paul Bjorklund
[PaulBjorklund@AOL.COM]
Good points. My viewpoint is more as a reader/user
of financial reporting, rather than as a CPA who practices in the area of
financial accounting and auditing.
From my perspective though, it seems that some of
the innovations that are being proposed of late by the big firms should be
welcomed, no doubt. However, some questions arise as to who should
participate in this process and what roles they should play.
For example, if the current financial reporting
system, for both large and small enterprises, is allegedly "broken," how did
this come about? Is this supposedly inanimate "system" just had time pass it
by, and now as a result this state of broken-ness has just sort of
accidentally evolved? I question that characterization, as it would appear
that those with the greatest influence over the practice of auditing and
financial accounting have been the same big firms who now complain that it
is broken.
Accordingly, would it not be better for other
stakeholders to participate as well? I hope that, as suggested in the
previous posting by Dr. Jensen, the academic thinkers will indeed disengage
a little from their computer modeling and exert their influence in the
"coming revolution" too.
Paul Bjorklund, CPA Bjorklund Consulting, Ltd.
Flagstaff, Arizona
"Accounting Firms Seek Overhaul," by Tad Kopinski, Institutional
Shareholder Services ISS, November 20, 2006 ---
http://blog.issproxy.com/2006/11/accounting_firms_seek_overhaul.html
Bob Jensen's threads on accounting theory are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm
Bob Jensen's threads on proposed reforms ---
http://www.trinity.edu/rjensen/FraudProposedReforms.htm
SEC's Fair Disclosure (Regulation FD)
From The Wall Street Journal Accounting Weekly Review on December 1,
2006
TITLE: Seeking an Edge, Big Investors Turn to Network of Informants
REPORTER: Laurie P. Cohen
DATE: Nov 27, 2006
PAGE: A1
LINK:
http://online.wsj.com/article/SB116459881353833275.html?mod=djem_jiewr_ac
TOPICS: Accounting, Disclosure, Disclosure Requirements, Materiality, Securities
and Exchange Commission
SUMMARY: Capital management firms are turning to industry experts for
information about potential investments' business prospects in the wake of
Regulation FD. Experts' ability to avoid crossing the line into disclosing
material non-public information is questioned; so is their ability to provide
the services they offer given many employers' policies prohibiting
"moonlighting." Examples in the article seem to give credence to the argument
that these experts don't know when they've crossed these lines and behaved
improperly.
QUESTIONS:
1.) What is Regulation Fair Disclosure (Regulation FD)? When was it placed in
effect? Hint: to answer this question, you may read about Regulation FD at the
following SEC web site:
http://www.sec.gov/rules/final/33-7881.htm
2.) How has Regulation FD given rise to efforts to find unique information
sources about potential investments?
3.) Was the service provided by Gerson Lehrman specifically designed in
response to the impact of Regulation FD? If so, explain how. If not, explain how
the idea for this service developed.
4.) What evidence in the article indicates that "material, nonpublic
information" may be released through the service provided by Gerson Lehrman? In
your answer, define the phrase "material, nonpublic information."
5.) What are the potential ramifications of disclosure of material, nonpublic
information? Who would be responsible for costs and fees associated with
violating the SEC's Regulation FD?
6.) What evidence in the article indicates that Gerson Lehrman consultants
may not know if they have disclosed material nonpublic information?
7.) What evidence given in the article supports the claim that information
provided by these consulting services is 'either too good to trade on or too
pedestrian to care about"?
8.) What evidence supports Mr. Gerson's claim that his service is valuable
and can thrive, and even gain the approval of companies about whom the services'
consultants may speak?
Reviewed By: Judy Beckman, University of Rhode Island
Question
What is the new requirement to file an IRS Schedule M-3?
I vote for investor access!
From The Wall Street Journal Accounting Weekly Review on December 1,
2006
TITLE: Minding the Gap: IRS Looks Closer at Profit Disparity
REPORTER: Jesse Drucker
DATE: Nov 27, 2006
PAGE: C1
LINK:
http://online.wsj.com/article/SB116459525535533182.html?mod=djem_jiewr_ac
TOPICS: Accounting, Financial Accounting, Financial Accounting Standards Board,
Generally accepted accounting principles, Tax Avoidance, Tax Evasion, Tax Laws,
Tax Regulations, Tax Shelters, Taxation
SUMMARY: The article reports on a new IRS requirement to file Schedule M-3
detailing the differences between income reported to shareholders and taxable
income. The article describes how the required disclosures help the IRS to
decide which transactions and companies to scrutinize for potential abusive tax
shelters. The authors also refer to accounting research demonstrating greater
likelihood of IRS audits resulting in back-tax payments from companies with the
largest disparities between book and taxable income.
QUESTIONS:
1.) Why is there a difference between income reported in annual reports to
shareholders and others (book income) and taxable income reported to the
Internal Revenue Service (IRS)?
2.) Depreciation differences and tax deductibility of stock options are cited
as some of the biggest differences between the two reporting systems. Describe
the accounting and tax treatment for each of these items. How can depreciation
differences result in perpetual differences that show taxable income lower than
book income?
3.) Describe the research cited in this article. In particular, explain how
the biggest book/tax differences may serve as "markers" for potential volatility
in future earnings. How could an investor use this information?
4.) Do you think investors should have access to the information in the
now-confidential Schedule M-3 disclosures to the IRS? Support your answer.
5.) Describe the arguments for and against requiring the same set of
standards for financial reporting and for taxation. In your answer, you may
comment on systems in countries in which the two are the same or substantially
so.
Reviewed By: Judy Beckman, University of Rhode Island
December 4, 2006 reply from Richard C. Sansing
[Richard.C.Sansing@DARTMOUTH.EDU]
The research referred to in the WSJ article does
not support the conclusion that Jesse Drucker draws.
Mills (1998) showed that book-tax differences are
positively correlated with PROPOSED IRS audit adjustments, but Mills and
Sansing (2000) showed that book-tax differences are uncorrelated with
RETAINED IRS adjustments, which is the amount agreed to by the taxpayer
after the Exam, Appeals, and Counsel processes are completed.
Both results are consistent with the strategic
auditing model developed in the Mill and Sansing paper.
Mills, L. 1998. Book-tax differences and Internal
Revenue Service adjustments. Journal of Accounting Research
36 (Autumn): 343-56.
Mills, L. and R. Sansing. 2000. Strategic tax and
financial reporting decsions: Theory and evidence. Contemporary Accounting
Research 17 (Spring): 85-106.
Richard C. Sansing
Professor of Accounting
Tuck School of Business at Dartmouth
100 Tuck Hall
Hanover, NH 03755
Office: Tuck 307
Phone: (603) 646-0392
Fax: (603) 646-0995
email:
Richard.C.Sansing@dartmouth.edu
URL:
http://mba.tuck.dartmouth.edu/pages/faculty/richard.sansing/
You can access my papers on the Social Science
Research Network (SSRN) through the following URL:
http://papers.ssrn.com/author=016942
Forwarded by Maria
After 21 years of marriage, my wife wanted me to
take another woman out to dinner and a movie. She said, "I love you, but I
know this other woman loves you and would love to spend some time with you."
The other woman that my wife wanted me to visit was
my mother, who had been a widow for 19 years, but the demands of my work and
my 3 children had made it possible to visit her only occasionally. That
night I called to invite her to go out for dinner and a movie.
"What's wrong, are you well?" She asked. My mother
is the type of woman who suspects that a late night call or surprise
invitation is a sign of bad news.
"I thought that it would be pleasant to spend some
time with you," I responded. Just the two of us."
She thought about it for a moment, and then said,
"I would like that very much."
That Friday after work, as I drove over to pick her
up I was a bit nervous. When I arrived at her house, I noticed that she,
too, seemed to be nervous about our date. She waited in the door with her
coat on. She had curled her hair and was wearing the dress that she had worn
to celebrate her last wedding anniversary.
She smiled from a face that was as radiant as an
Angel's! "I told my friends that I was going to go out with my son, and they
were impressed," she said, as she got into the car. "They can't wait to hear
about our meeting."
We went to a restaurant that, although not elegant,
was very nice and cozy. My mother took my arm as if she were the First Lady.
After we sat down, I had to read the menu. Her eyes could only read large
print. Halfway through the entrees, I lifted my eyes and saw Mom sitting
there staring at me.
A nostalgic smile was on her lips. "It was I
who used to have to read the menu when you were small," she said. "Then it's
time that you relax and let me return the favor,"I responded.
During the dinner, we had an agreeable conversation
-- nothing extraordinary but catching up on recent events of each other's
life. We talked so much that we missed the movie. As we arrived at her house
later, she said, "I'll go out with you again, but only if you let me invite
you." I agreed.
"How was your dinner date?" Asked my wife when I
got home.
"Very nice. Much more so than I could have
imagined," I answered.
A few days later, my mother died of a massive heart
attack. It happened so suddenly that I didn't have a chance to do anything
for her. Some time later, I received an envelope with a copy of a restaurant
receipt from the same place where mother and I had dined.
An attached note said: "I paid this bill in
advance. I wasn't sure that I could be there; but nevertheless I paid for
two plates-- one for you and the other for your wife. You will never know
what that night meant for me.
"I love you, son." At that moment, I
understood the importance of saying in time: "I love you," and to give our
loved ones the time that they deserve.
Nothing in life is more important than your family.
Give them the time they deserve, because these things cannot be put off 'til
"some other time."
Somebody said it takes about 6 weeks to get back to
normal after you've had a baby . . .
Somebody doesn't know that once you're a mother, "normal" is history.
Somebody said you learn how to be a mother by
instinct. . .
Somebody never took a 3-year-old shopping.
Somebody said being a mother is boring . . .
Somebody never rode in a car driven by a teenager with a driver's permit.
Somebody said good mothers never raise their voices
...
Somebody never came out the back door just in time to see her child hit a
golf ball through the neighbor's kitchen window.
Somebody said you don't need an education to be a
mother . . .
Somebody never helped a 4th grader with his math.
Somebody said you can't love the 5th child as much
as you love the first . . .
Somebody doesn't have 5 children.
Somebody said a mother can find all the answers to
her child-rearing questions in the books . .. .
Somebody never had a child stuff beans up his nose or in his ears.
Somebody said the hardest part of being a mother is
labor and delivery. . .
Somebody never watched her"baby" get on the bus for the 1st day of
kindergarten, or on a plane headed for military boot camp.
Somebody said a mother can do her job with her eyes
closed and one hand tied behind her back . . .
Somebody never organized 7 giggling Brownies to sell cookies.
Somebody said a mother can stop worrying after her
child gets married. . .
Somebody doesn't know that marriage adds a new son- or daughter-in-law to a
mother's heartstrings.
Somebody said a mother's job is done when her last
child leaves home. . . Somebody never had grandchildren.
Somebody said your mother knows you love her, so
you don't need to tell her. . .
Somebody isn't a mother.
Pass this along to all the "mothers" in your
life.
Progress in School Behavior: 1976 Versus 2006
Forwarded by Dick Haar
Scenario: Jack pulls into school parking lot with rifle in gun rack.
1973 - Vice Principal comes over, takes a look at Jack's rifle, goes to his
car and gets his to show Jack.
2006 - School goes into lockdown, FBI called, Jack hauled off to jail and
never sees his truck or gun again. Counselors called in for traumatized students
and teachers.
++++++++++++++++++++++
Scenario: Johnny and Mark get into a fist fight after school.
1973 - Crowd gathers. Mark wins. Johnny and Mark shake hands and end up best
friends. Nobody goes to jail, nobody arrested, nobody expelled.
2006 - Police called, SWAT team arrives, arrests Johnny and Mark. Charge them
with assault, both expelled even though Johnny started it.
+++++++++++++++++++++++++++++++
Scenario: Jeffrey won't be still in class, disrupts other students.
1973 - Jeffrey sent to office and given a good paddling by Principal. Sits
still in class.
2006 - Jeffrey given huge doses of Ritalin. Becomes a zombie. School gets
extra money from state because Jeffrey has a disability.
++++++++++++++++++++++++++
Scenario: Billy breaks a window in his father's car and his Dad gives him a
whipping.
1973 - Billy is more careful next time, grows up normal, goes to college, and
becomes a successful businessman.
2006 - Billy's Dad is arrested for child abuse. Billy removed to foster care
and joins a gang. Billy's sister is told by state psychologist that she
remembers being abused herself and their Dad goes to prison. Billy's mom has
affair with psychologist.
+++++++++++++++++++++++++++++
Scenario: Mark gets a headache and takes some headache medicine to school.
1973 - Mark shares headache medicine with Principal out on the smoking dock.
2006 - Police called, Mark expelled from school for drug violations. Car
searched for drugs and weapons.
+++++++++++++++++++++++++
Scenario: Mary turns up pregnant.
1973 - 5 High School Boys leave town. Mary does her senior year at a special
school for expectant mothers.
2006 - Middle School Counselor calls Planned Parenthood, who notifies the
ACLU. Mary is driven to the next state over and gets an abortion without her
parent's consent or knowledge. Mary given condoms and told to be more careful
next time.
+++++++++++++++++++++++++++
Scenario: Pedro fails high school English.
1973: Pedro goes to summer school, passes English, goes to college.
2006: Pedro's cause is taken up by state democratic party. Newspaper articles
appear nationally explaining that teaching English as a requirement for
graduation is racist. ACLU files class action lawsuit against state school
system and Pedro's English teacher. English banned from core curriculum. Pedro
given diploma anyway but ends up mowing lawns for a living because he can't
speak English.
+++++++++++++++++++++
Scenario: Johnny takes apart leftover firecrackers from the 4th of July, puts
them in a model airplane paint bottle, blows up a red ant bed.
1973 - Ants die.
2006 - BATF, Homeland Security, FBI called. Johnny charged with domestic
terrorism, FBI investigates parents, siblings removed from home, computers
confiscated, Johnny's Dad goes on a terror watch list and is never allowed to
fly again.
+++++++++++++++++++++
Scenario: Johnny falls while running during recess and scrapes his knee. He
is found crying by his teacher, Mary. Mary, hugs him to comfort him.
1973 - In a short time Johnny feels better and goes on playing.
2006 - Mary is accused of being a sexual predator and loses her job. She
faces 3 years in State Prison.
All in the name of progress!
Click Here for Tidbits and Quotations Between December 1
and December 31, 2006 ---
http://www.trinity.edu/rjensen/book06q4.htm#Tidbits123106
Click Here for Humor Between December 1
and December 31, 2006 ---
http://www.trinity.edu/rjensen/book06q4.htm#Humor113006
And that's the way it was on December 31, 2006 with a little help from my friends.
Fraud Updates ---
http://www.trinity.edu/rjensen/FraudUpdates.htm
Facts about the earth in real time ---
http://www.worldometers.info/
Jesse's Wonderful Music for Romantics (You
have to scroll down to the titles) ---
http://www.jessiesweb.com/
International Accounting News
(including the U.S.)
AccountingEducation.com and Double Entries ---
http://www.accountingeducation.com/
Upcoming international accounting conferences ---
http://www.accountingeducation.com/events/index.cfm
Thousands of journal abstracts ---
http://www.accountingeducation.com/journals/index.cfm
Deloitte's International Accounting News ---
http://www.iasplus.com/index.htm
Association of International Accountants ---
http://www.aia.org.uk/
Free Harvard Classics ---
http://www.bartleby.com/hc/
Free Education and Research Videos from Harvard University ---
http://athome.harvard.edu/archive/archive.asp
I highly recommend TheFinanceProfessor
(an absolutely fabulous and totally free newsletter from a very smart
finance professor, Jim Mahar from St. Bonaventure University) ---
http://www.financeprofessor.com/
Bob Jensen's bookmarks for accounting
newsletters are at
http://www.trinity.edu/rjensen/bookbob1.htm#News
News Headlines for Accounting from
TheCycles.com ---
http://www.thecycles.com/business/accounting
An unbelievable number of other news headlines categories in TheCycles.com
are at
http://www.thecycles.com/
Jack Anderson's Accounting Information
Finder ---
http://www.umsl.edu/~anderson/accsites.htm
Gerald Trite's great set of links ---
http://www.zorba.ca/bookmark.htm
The Finance Professor ---
http://www.financeprofessor.com/about/aboutFP.html
Walt Mossberg's many answers to
questions in technology ---
http://ptech.wsj.com/
How stuff works ---
http://www.howstuffworks.com/
Household and Other Heloise-Style
Hints ---
http://www.trinity.edu/rjensen/bookbob3.htm#Hints
Bob Jensen's video helpers for MS
Excel, MS Access, and other helper videos are at
http://www.cs.trinity.edu/~rjensen/video/
Accompanying documentation can be found at
http://www.trinity.edu/rjensen/default1.htm and
http://www.trinity.edu/rjensen/HelpersVideos.htm
Click on
www.syllabus.com/radio/index.asp for
a complete list of interviews with established leaders, creative thinkers
and education technology experts in higher education from around the
country.
Professor Robert E. Jensen (Bob)
http://www.trinity.edu/rjensen
190 Sunset Hill Road
Sugar Hill, NH 03586
Phone: 603-823-8482
Email:
rjensen@trinity.edu
Tidbits and Quotations Between December 1 and December 31, 2006

My close
friends Lon and Nancy Hendersen own the Sunset Hill House down the road from
our cottage.
There
are assorted cross country ski trails up here.
The above picture is in their slide show at
http://www.sunsethillhouse.com/
Congratulations to
Kate Lopez and Trinity
University
I want to congratulate
Kate Lopez on her recent acceptance of an offer to join the accounting
faculty at Trinity University. Kate is finishing her PhD at the University
of Texas in San Antonio. Kate was one of my star students in Trinity's
undergraduate and masters accounting programs. She joined Arthur Andersen
and worked as a CPA auditor and an arbitrage consulting expert right up to
the day Andersen closed its doors in San Antonio. She consulted me about her
options for the future. With a new baby and her husband and father in
business together in San Antonio there were difficulties for her to travel
out of town to earn a doctoral degree.
I recommended that she
look into applying for the new accounting doctoral program starting up at
UTSA. The rest is history. She's done very well and is quite happy with
UTSA's program. I anticipate that you will learn much more about this very
talented young woman who's joining the Academy. Years ago as an
undergraduate she paid close attention when I explained why I was blessed to
have fallen into (more
accurately skied into) the career of being an accounting educator.
Kate's been teaching
accounting part time at Trinity for the past two years. Now she's stepped
onto the tenure track.
And Congratulations to
Some Old Folks at the Other End of Trinity's Tenure Track
November 30, 2006 message from Dan Walz
Please join me in congratulating Dick Burr
(Business Statistics) for being ranked as
the top professor for teaching at Trinity University and Petrea Sandlin
(Accounting) for being ranked number 3 in
Scene in SA Monthly. This is quite an honor! Open the pdf file
below to see more.
Dan
Tidbits on December 1, 2006
Bob Jensen
For
earlier editions of Tidbits go to
http://www.trinity.edu/rjensen/TidbitsDirectory.htm
For earlier editions of New Bookmarks go to
http://www.trinity.edu/rjensen/bookurl.htm
Click here to search Bob Jensen's web site if you have key words to enter
--- Search Site.
For example if you want to know what Jensen documents have the term "Enron"
enter the phrase Jensen AND Enron. Another search engine that covers Trinity
and other universities is at
http://www.searchedu.com/.
Bob Jensen's past presentations and lectures
---
http://www.trinity.edu/rjensen/resume.htm#Presentations
Bob Jensen's Home Page is at
http://www.trinity.edu/rjensen/
Bob Jensen's blogs and various threads on many topics ---
http://www.trinity.edu/rjensen/threads.htm
(Also scroll down to the table at
http://www.trinity.edu/rjensen/ )
Online Video, Slide Shows, and Audio
In the past I've provided links to various types of music and video
available free on the Web.
I created a page that summarizes those various links ---
http://www.trinity.edu/rjensen/music.htm
George Clooney and Oprah plead for an end to genocide in
Darfur ---
http://www.theirc.org/resources/george-clooney-visit-chad-sudan.html
The incoming House Ways and Means Chairman plays loose
with the facts by greatly exaggerating African American/ Hispanic
disproportions in what turns out to be our mostly white volunteer army ---
http://online.wsj.com/public/page/8_0004.html?bcpid=86195573&bclid=212338097&bctid=336010655
Hillary vs. Condi Ho Down (turn up your speakers)
---
Click Here
She's Ready (Hillary Dances) ---
Click Here
Hundreds of Clips from Canadian Broadcasting Corporation
---
http://archives.cbc.ca/index.asp?IDLan=1
Video Nation (from the United Kingdom) ---
http://www.bbc.co.uk/videonation/
Voices on Genocide Prevention (audio) ---
http://www.ushmm.org/conscience/podcasts/
PC World's Digital Duo Videos ---
http://www.pcworld.com/digitalduo/video/224-0/video.html
Who Wants to Be a Millionaire Game ---
http://abc.go.com/games/millionairetv/game/
Audio interview with two articulate Israeli women ---
www.israelthisweek.org.
Great Skinny Dip ---
http://www.metacafe.com/watch/303513/check_before/
Frank Sings Strangers on My Flight ---
http://www.beecy.net/frank/
David Letterman's selection of
great presidential moments ---
http://www.youtube.com/watch?v=uA0CMb8EoNk
Free music downloads ---
http://www.trinity.edu/rjensen/music.htm
Sammy Davis Song and Dance Man ---
http://www.npr.org/templates/story/story.php?storyId=6522104
From Jessie
If the sound does not commence after 30 seconds, scroll to the bottom of the
page.
You Had Me from Hello ---
http://www.jessiesweb.com/fromhello.htm
If I Should Ever Fall Behind ---
http://www.jessiesweb.com/fallbehind.htm
Paint the Sky With Stars ---
http://www.jessiesweb.com/paint.htm
Have a Little Faith in Me ---
http://www.jessiesweb.com/faith.htm
Good Morning Beautiful ---
http://www.jessiesweb.com/beauty.htm
Thank You for Loving Me ---
http://www.jessiesweb.com/thankyou.htm
Morning Has Broken ---
http://www.jessiesweb.com/morningbroken.htm
Holding All My Love for You ---
http://www.jessiesweb.com/madworld.htm
Nothing Can Keep Me From You ---
http://www.jessiesweb.com/dreams.htm
Love Me ---
http://www.jessiesweb.com/beforeido.htm
The River ---
http://www.jessiesweb.com/river.htm
Whiskey Bar ---
http://www.jessiesweb.com/whiskeybar.htm
From Janie
Elvis singing Memories ---
http://mjbreck.com/elvismagicofmemoriesbyjbw.html
From Janie (more Elvis) ---
http://mjbreck.com/JanieandElvisFromTheresa.html
Ravi Shankar, Master of the Sitar ---
http://www.npr.org/templates/story/story.php?storyId=4578267
Sanjay Mishra: A Cross-Cultural Exploration
in Music ---
http://www.npr.org/templates/story/story.php?storyId=6502991
The Psychedelic Debut of Jimi Hendrix ---
http://www.npr.org/templates/story/story.php?storyId=6491823
OK Go, French Kicks in Concert from D.C. ---
http://www.npr.org/templates/story/story.php?storyId=6486100
Tom Waits: The Whiskey Voice Returns ---
http://www.npr.org/templates/story/story.php?storyId=6519647
Taylor Fights, Then Follows, Parents' Musical
Path ---
http://www.npr.org/templates/story/story.php?storyId=6513773
Photographs and Art
Online Books, Poems, References, and Other Literature
In the past I've provided links to various types electronic literature
available free on the Web.
I created a page that summarizes those various links ---
http://www.trinity.edu/rjensen/ElectronicLiterature.htm
Yale Book of Quotations
(great but not an online freebie) ---
http://yalepress.yale.edu/yupbooks/book.asp?isbn=0300107986
This is favorably reviewed by Scott McLemee in "Quote Unquote," Inside
Higher Ed, November 29, 2006 ---
http://yalepress.yale.edu/yupbooks/book.asp?isbn=0300107986
Bob Jensen's links to free quotations are at
http://www.trinity.edu/rjensen/ElectronicLiterature.htm#Quotations
Ocean Flowers: Anna Atkins’s 19th
Century Cyanotypes of British Algae ---
Click Here
Phantasmagoria and Other Poems
by Lewis Carroll (1832-1898) ---
Click Here
The Adventure of the Blue Carbuncle
by Arthur Conan Doyle (1859-1930) ---
Click Here
You've got to be taught to hate and fear
You've got to be taught from year to year
It's got to be drummed in your dear little ear
You've got to be carefully taught
You've got to be taught to be afraid
Of people whose eyes are oddly made
And people whose skin is a different shade
You've got to be carefully taught
You've got to be taught before it's too late
Before you are six or seven or eight
To hate all the people your relatives hate
You've got to be carefully taught You've got to be carefully taught
Rogers and Rodgers and Hammerstein in South
Pacific
Parents have forced a school trip to a
mosque to be abandoned because they objected to their children learning
about Islam. Atwood Primary in Croydon was forced to call off a Year 5
class visit to a mosque after nearly a third of parents refused to give
consent.
"Class trip to mosque blocked by parents," Canada's
Daily Mail, November 22, 2006 ---
Click Here
Episcopalians tend to be better-educated and
tend to reproduce at lower rates than some other denominations
(e.g., Roman Catholic and Mormon churches that tend to encourage
large families)
Bishop Katharine Jefferts Schori,
the first woman to head the US Episcopal Church (ECUSA) ---
http://www.lifesite.net/ldn/2006/nov/06112106.html
Jensen Comment
I can't believe Bishop Schori made such a statement! She does confirm
why Episcopalians, being more educated, are more unfit for military
service than prolific and uneducated Roman Catholics who support
Senator Kerry
and
Representative Rangel..
MUSLIM terrorists are no more likely to come
from places with large Islamic populations than anywhere else, according
to Manchester academics. Dr Ludi Simpson and Dr Nissa Finney studied
media reports to map the location of suspects charged under anti-terror
laws. The Manchester university researchers found that the proportion of
people who have been charged is no greater in areas with large Muslim
populations.
Seb Ramsay, "Large Muslim
areas 'not breeding grounds for terror'," The U.K Manchester Evening
News, November 22, 2006 ---
Click Here
With Baghdad shaken by daily outbreaks of
sectarian violence, in Iraq's western al-Anbar province, groups of
former Iraqi Baathists are battling armed Islamist groups for control of
this largely desert region near the Syrian border . . . The former
Baathist fighters are believed to be relatively secular while their
opponents share al-Qaeda's dream of establishing an Islamic caliphate in
Iraq which will then be a launchpad for carrying out attacks around the
Middle East.
Maher al-Jasem, "Sunni face
new conflict in Iraq war," Al Jazeera, November 24, 2006 ---
Click Here
Libyan leader Moammar Gadhafi Sunday accused
the West of trying to grab Sudan's oil wealth with its plan to send U.N.
troops to Darfur and urged Khartoum to reject them. "Western countries
and America are not busying themselves out of sympathy for the Sudanese
people or for Africa but for oil and for the return of colonialism to
the African continent," he said.
"Gadhafi: U.N. Darfur force is ruse to grab Sudan's oil,"
CNN News, November 19, 2006 ---
Click Here
Jensen Comment
Yeah Right! George Clooney and Oprah secretly conspired with Bush and
Cheney to grab the oil wells. See the video for yourself at
http://www.theirc.org/resources/george-clooney-visit-chad-sudan.html
The news is that two years after we've said
"genocide" that it's still going on and it's increasing — and that
somewhere in there we can all talk about this and make speeches and say
this is horrible and we have to do something. But every day we don't do
something, and every day this goes on, thousands of people are dying and
dying horrific deaths . . . Here's the thing: We always see this now. We
have tragedy fatigue on television. Every day, 20 kids [are] killed in
Iraq or, you know, there's always disaster. Pakistan, Afghanistan,
there's always horrible disaster in Nepal now. But this is genocide, and
if everybody just got up right now out of their chair and picked up a
phone and called their congressman, or called the number that registered
with the president, it makes a difference. It always has.
Oscar Winning George Clooney, ABC News,
April 30, 2006 ---
Click Here
Clooney On Darfur | September 15, 2006 (Video)
We all condemn terrorism, because its
victims are the innocent. But, can terrorism be contained and eradicated
through war, destruction and the killing of hundreds of thousands of
innocents? If that were possible, then why has the problem not been
resolved?
Mahmoud Ahmadinejad, "Letter
to the American People," President of the Islamic Republic of Iran,
November 29, 2006 ---
http://www.blogsofwar.com/2006/11/29/mahmoud-ahmadinejads-letter-the-american-people/
“Americans are going to be very puzzled by
it (Mahmoud Ahmadinejad's, "Letter to the American People,")
,” said William Beeman, a linguistic anthropologist at Brown University
who specializes in Persian. “People are simply not used to being talked
to this way.” He added, “It is almost a sermon, which is very much in
keeping with his religious background. But I should also point out it is
also a lecture.” The letter reminded Americans that “many victims of
Katrina continue to suffer, and countless Americans continue to live in
poverty and homelessness.” It also lamented: “Civil liberties are
increasingly being curtailed. Even the privacy of the individuals is
fast losing its meaning.” The president
made no reference to the level of poverty, political freedom or judicial
independence in his own country.
Michael Slackman, "Iran’s
President Criticizes Bush in Letter to American People," The New York
Times, November 30, 2006 ---
http://www.nytimes.com/2006/11/30/world/middleeast/30iran.html?_r=1&oref=slogin
Anybody who recognizes Israel will burn in
the fire of the Islamic nation's fury.
Mahmoud Ahmadinejad ---
http://en.thinkexist.com/quotes/mahmoud_ahmadinejad/
Powerful Iran is the best friend of the
neighboring states and the best guarantor of regional security
Mahmoud Ahmadinejad
Our religion prohibits us from having
nuclear arms and our religious leader has prohibited it from the point
of view of religious law. It's a closed road.
Mahmoud Ahmadinejad
We believe that atomic energy is a blessing
given by God.
Mahmoud Ahmadinejad
Iran is ready to transfer nuclear know-how
to the Islamic countries due to their need.
Mahmoud Ahmadinejad
As the Imam (Ayatollah
Khomeini) said, Israel must be wiped off the
map.
Mahmoud Ahmadinejad
Jensen Comment
There are academic disputes over the translation of this threat ---
http://en.wikipedia.org/wiki/Mahmoud_Ahmadinejad_and_Israel
A synopsis of Mr Ahmadinejad's speech on the Iranian Presidential
website states:
He further expressed his firm belief
that the new wave of confrontations generated in Palestine and the
growing turmoil in the Islamic world would in no time wipe Israel
away (however interpreted) ---
http://en.wikipedia.org/wiki/Mahmoud_Ahmadinejad_and_Israel
They say it is not possible to have a world
without the United States and Zionism. But you know that this is a
possible goal and slogan.
Mahmoud Ahmadinejad
CNN host Glenn Beck criticizes the rest of
the Western media, including by implication his own station CNN, for
drastically failing to properly report on Islamic extremism. This
documentary, screened on the American (but not so far on the
international) version of CNN ---
http://www.youtube.com/watch?v=3PWIK8YTZS8
Researchers have been scouring rivers in
Europe and the US for traces of cocaine consumption. The result: Cocaine
use is probably much greater than previously assumed -- and New Yorkers
are the biggest coke-heads of all.
Markus Becker, "New York
Blows Away the Competition," Spiegel (Germany), November 23, 2006
---
http://www.spiegel.de/international/0,1518,450078,00.html
The radioactive poison used to kill the
former Russian spy Alexander Litvinenko is being offered for sale over
the internet for less than £40. A company in the US claims to supply
polonium-210 to anyone for just $69 plus postage and packing. A
three-pack set of “alpha, beta, gamma” radioactive isotopes also
includes polonium-210. United Nuclear, based in Albuquerque, New Mexico,
tells purchasers: “If you’re looking for clean, accurate, certified
radiation sources, here they are. . . All isotopes are produced fresh in
a nuclear reactor and shipped directly to you.”
Tony Halpin in Moscow,
"Polonium-210? it's yours for $69, no questions asked," London Times,
November 30, 2006 ---
http://www.timesonline.co.uk/article/0,,2-2478908.html
Jensen Comment
This makes little sense since coming near this radiation is dangerous to
postal workers and other innocent people who get near the package.
Be unselfish: respect the selfishness of
others.
Stanislaw Jerzy Lec
(1909-1966) ---
Click Here
A patriot must always be ready to defend his
country against his government.
Edward Abbey
This world is a comedy for those who think
but a tragedy for those who feel.
Horace Walpole
Be nice to people on your way up because
you'll meet them on your way down.
Wilson Mizner (1876-1933)
---
Click Here
Never mind those promised reforms
The reception thrown by Nancy Pelosi at the
Capitol a week after the Democrats prevailed in congressional elections
was a party some power players had been waiting more than a decade to
attend. The fête was for newly elected freshmen lawmakers, but Pelosi's
invited guests included big-name Democratic lobbyists like Jack Quinn,
Tony Podesta and Steve Elmendorf. Said a partygoer: "I thought to
myself, they're all back, all the same old faces. It was just like old
times." . . . Who will win the coming battle between reformers and
revanchists? The market is betting against reform. Demand for anyone
with access to powerful Democrats on the Hill is soaring. Lobbyists who
couldn't get a meeting (before the election)
are suddenly a hot commodity. "I've gotten a lot of calls from
headhunters in the last two months," says Florence Prioleau, a lobbyist
who has maintained close ties with her former boss, New York's Charles
Rangel, incoming chairman of the Ways and Means Committee. Pelosi's
former chief of staff, George Crawford, has just been hired by Amgen, a
biotech company, to represent its interests with the new Congress.
Massimo Calabresi, "When the
Democrats Take Back K Street: Democratic lobbyists are enjoying a
comeback after 12 years of exile. Never mind those promised reforms,"
Time Magazine, November 26, 2006 ---
Click Here
The City Council here voted late Tuesday to
ban certain giant retail stores, dealing a blow to Wal-Mart Stores
Inc.'s potential to expand in the nation's eighth-largest city. The
measure, approved on a 5-3 vote, prohibits stores of more than 90,000
square feet that use 10 percent of space to sell groceries and other
merchandise that is not subject to sales tax.
Elliot Spagat, "San Diego to Ban Wal-Mart Supercenters," Yahoo News,
November 29, 2006 ---
http://biz.yahoo.com/ap/061129/wal_mart_supercenter_ban.html?.v=4
Jensen Comment
Think of how much better off residents of San Diego will be as a result
of this decision supposedly in their best interests. I wonder what would
happen if the choice was put to a test in a referendum? The entire state
of Vermont banned new Wal-Mart stores of any kind, and now I can't get
into my closest New Hampshire Wal-Mart (ten miles away in Littleton)
because most of the cars in the overflowing parking lot have green
license plates. Claiming that sales tax revenue in San Diego and Vermont
will increase without Wal-Mart stores is phony to the point of being
fraudulent. The real reason is that local business interests can't
compete with Wal-Mart --- which is a much more legitimate argument but
it won't sell with voters. I might add that the lowest paying workers
are those clerks in small retail stores. These exploited workers would
have much better salaries and benefits working for Wal-Mart. But from a
selfish standpoint, I hope that my little village never allows any store
to have more than 50 square feet. We have only one Sugar Hill store to
date (an old fashioned cheese and venison store). One little store's
enough for our village as far as I'm concerned. I'd vote against
Wal-Mart if it ever came to a vote in Sugar Hill. But then I'd also vote
against any new store in Sugar Hill. But I was all in favor of more and
more Wal-Mart Supercenters when I lived in San Antonio, because more
Wal-Marts beside the many Super K-Marts and other giant stores are not
going to affect the ambiance of San Antonio (or San Diego).
The essay — in his collection
There’s No Such Thing as Free Speech —
ought to be more notorious still. According to Fish, academics will do
anything to distinguish themselves from “the realities of the
marketplace.” One of whose realities, I am suggesting here, is that
bosses do exist in both realms. Perhaps we can’t abide a vocabulary of
bosses because the need to distinguish ourselves from the world of
business is so crucial. Or, more interestingly, perhaps we already have
enough oppression. “In the psychic economy of the academy,” Fish
explains, “oppression is the sign of virtue. The more victimized you
are, the more subject to various forms of humiliation, the more you can
tell yourself that you are in proper relation to the corrupted judgment
of merely worldly eyes.”
Terry Caesar, "Who’s the
Boss?" Inside Higher Ed, November 21, 2006 ---
http://www.insidehighered.com/views/2006/11/21/caesar
It’s a funny old world. Chinese manufacturers are
copying the circuit boards and designs of products from Japan and Korea,
and they’re doing it so fast that by the time the originals arrive in
the marketplace, they’re seen as the fakes! China is a land of endless
factories, with many pumping out the world’s most desirable gadgets,
from iPods to portable computers to digital cameras and much more.
Alex Zaharov-Reutt, "Fake chinese electronics selling better than the
originals!" ITWire, November 27, 2006 ---
http://www.itwire.com.au/content/view/7483/52/
A state office that oversaw a series of
controversial charities tied to African-American legislators is being
scrutinized by the FBI, Gov. Kathleen Blanco’s office confirmed Tuesday
in announcing that it had complied with a subpoena for records from the
department. “The governor’s office staff has complied with the FBI’s
request for information dating back to 1996 regarding certain programs
funded by the former Office of Urban Affairs,”
Gordon Russell, Jan Moller and James Varney,
New Orleans Times Picayune, November 22, 2006 ---
Click Here
Jensen Comment
Government programs are always ripe for the plucking by ex-generals and
criminal politicians, most especially Louisiana politicians who've been
notoriously corrupt since the Louisiana Purchase in 1803. Crime just
grows and grows hand-in-hand with government programs and Louisiana
seems to steal more than its fair share from Federal programs. For
Louisiana criminals, of all races, Katrina was indeed a perfect storm.
Each place has its own advantages - Heaven
for the climate and Hell for society.
Mark Twain
A church that wanted to do something special
for Hurricane Katrina victims gave a $75,000 house, free and clear, to a
couple who said they were left homeless by the storm. But the couple
turned around and sold the place without ever moving in, and went back
to New Orleans. "Take it up with God," an unrepentant Joshua Thompson
told a TV reporter after it was learned that he and the woman he
identified as his wife had flipped the home for $88,000. Church members
said they feel their generosity was abused by scam artists . . . The
church was also shocked by an ungrateful interview the couple gave with
WHBQ-TV in Memphis. "I really don`t like this area," said Delores
Thompson. "I really didn`t, and I didn`t know anybody, so that`s why I
didn`t move in and I sold it."
"2 unrepentant about selling Katrina gift," The Angola
Press, November 22, 2006 ---
http://www.angolapress-angop.ao/noticia-e.asp?ID=489462
Also see
http://community.myfoxmemphis.com/blogs/category/NEWS
"They came in humble like they really needed
a new start, and our hearts went out to them," said Jean Phillips, a
real estate agent and member of the Temple of Deliverance Church of God
in Christ. "They actually begged for the home."
. . . "Do I have any legal problems?
What do you mean? The house was given to me," Delores Thompson said. "I
have the paperwork and everything." She refused further comment and hung
up.
WTOP ---
http://www.wtop.com/?nid=104&sid=982862
Jensen Comment
We can only hope that God takes it up with scammers like Joshua and
Delores Thompson. If we could get a glimpse of them ten years from now
my guess is that they will not be so proud and happy that they scammed
the Good Samaritans. It would be fantastic if they prospered and became
reformed Good Samaritans themselves --- but in the meantime don't hold
your breath!
British criminal psychologists are putting
together a list of the 100 most dangerous murderers and rapists before
they have committed any such crimes, The Times said.
"British police targeting would-be criminals before they
offend," PhysOrg, November 27, 2006 ---http://physorg.com/news83838079.html
Jensen Comment
In the U.S., our ACLU would never tolerate such a crime prevention move
even against our even our most threatening criminals.
And contrary to the United Nations
resolutions, contrary to the official policy of the United States
government, contrary to the Quartet so-called road map, all of those
things – and contrary to the majority of Israeli people's opinion – this
occupation and confiscation and colonization of land in the West Bank is
the prime cause of a continuation of violence in the Middle East," he
said.
"Carter blames Israel for Mideast conflict: 'Domination'
over Palestinians 'atrocious,' ex-prez tells 'Good Morning America',"
WorldNetDaily, November 27, 2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53120
Carter's book "Palestine: Peace Not
Apartheid" is so biased that it inevitably raises the question of what
would motivate a decent man like Jimmy Carter to write such an indecent
book. Whatever Mr. Carter's motives may be, his authorship of this
ahistorical, one-sided, and simplistic brief against Israel forever
disqualifies him from playing any positive role in fairly resolving the
conflict between Israel and the Palestinians. That is a tragedy because
the Carter Center, which has done much good in the world, could have
been a force for peace if Jimmy Carter were as generous in spirit to the
Israelis as he is to the Palestinians.
Alan M. Dershowitz, (Harvard Law School). New York Sun,
November 22, 2006 ---
http://www.nysun.com/article/43958
A knowledgeable Lebanese-American casts even more doubt on Carter's
scholarship
see
http://www.wnd.com/news/article.asp?ARTICLE_ID=53154
Also see
http://www.jewishvirtuallibrary.org/jsource/reviews/carter.html
One of the most nefarious elements
in the book is Carter’s effort to paint Israel as hostile to
Christians. He repeatedly refers to “Christians and Muslims” rather
than simply the Palestinians in a transparent effort to suggest that
Israeli actions were harming Christians and not just Muslims or
Arabs. He claims, for example, that “many priests and pastors” were
disturbed by the control of Israeli religious parties over “all
forms of worship.” On a visit to Jerusalem in 1990, he said he met
with a variety of Christian leaders who he said complained of
various abuses. He doesn’t offer a single specific example, but tars
Israel with bigotry. He then says that Prime Minister Shamir told
him that religious parties had authority over all religious matters
because of the needs of the coalition government. Carter says that
this conversation made him understand why “there was such a
surprising exodus of Christians from the Holy Land.”
These charges are so vile they
require a more substantial response. First, while Christians are
unwelcome in Islamic states such as Saudi Arabia, and most have been
driven out of their longtime homes in Lebanon, Christians continue
to be welcome in Israel. Christians have always been a minority in
Israel, but it is the only Middle East nation where the Christian
population has grown in the last half century (from 34,000 in 1948
to 145,000 today), in large measure because of the freedom to
practice their religion.
The "progressive" media grows angry with Democrats who do not
endorse Jimmy Carter's rage toward Israel
Instead, Democrats are shoring up their
pro-Israel bona fides. They are strikingly anxious because of a
courageous new book by President Jimmy Carter that hit American
bookstores in mid-November,
Palestine: Peace Not Apartheid.
Michael F. Brown, "Dems
Rebut Carter on Israeli 'Apartheid'," The Nation, November 20,
2006 ---
http://www.thenation.com/doc/20061204/brown
Jensen Comment
I don't find solutions in Carter's book that have not already been
advocated and tried even by Israel. Carter insists on Israel's right to
exist. He's a man a peace who does not advocate wiping out Israel.
Liberals who like to be called "progressives" advocate cessation of
military and economic backing of Israel. Do progressives really want
Israel so wounded and dying that Israel seriously considers resorting to
its huge nuclear arsenal. As usual, the "progressives" are long on
criticism but short on alternatives. So is Jimmy Carter. Finding
solutions is not nearly as much fun as finding fault.
Most chilling of all, could the festering
differences precipitate a military confrontation involving the use of
nuclear weapons? It is known that Israel has a major nuclear arsenal and
the capability to launch weapons quickly, and some neighboring states
are believed to be attempting to acquire their own atomic bombs. Without
progress toward peace, desperation or adventurism on either side could
precipitate such a confrontation.
Jimmy Carter,
Palestine: Peace Not Apartheid
A joint paratrooper and Shin Bet force
uncovered an explosive lab in Nablus Friday night. In the lab, the
forces found teddy bears with wires hanging from them, apparently slated
to be used as explosive devices . . .
Captain Assaf Cabra, a company commander at the Haruv battalion,
addressed the operation at the time: "We launched a regimental operation
in Nablus, which included searches, seizing weapons and arrests. We
uncovered the explosive lab in the casba, which contained between 40 to
50 kilograms (88 to 110 pounds) of explosives for preparing explosive
devices."
"Nablus: Explosive teddy bears found in lab,"
YNet News, November 25, 2006 ---
http://www.ynetnews.com/articles/0,7340,L-3332360,00.html
Jensen Comment
When the teddy bears blow up in the faces of children, Jimmy Carter
reminds them that their parents really caused the pain and suffering. In
fairness, Israel's recklessness has killed and maimed children in
Palestine. But it is a particularly vile deed to deliberately plant
explosives in toys for children.
Denmark, once the symbol of a welcoming
welfare state, is becoming part of an anti-immigrant backlash sweeping
across Europe. Sentiments once associated with ultra right-wing parties
are becoming mainstream.
Sylvia Poggioli, "Danes'
Anti-Immigrant Backlash Marks Radical Shift," NPR, November 20,
2006 ---
http://www.npr.org/templates/story/story.php?storyId=6505809
French presidential candidate Jean-Marie Le
Pen is drawing support again this year for his anti-immigrant stance.
The extreme-right politician is pushing for a welfare system that favors
indigenous French . . . Immigration -- code for Muslim immigration --
was the convention's hot-button issue.
Sylvia Poggioli,
"Anti-Immigrant Policy Boosts France's Le Pen Again," NPR,
November 22, 2006 ---
http://www.npr.org/templates/story/story.php?storyId=6522463
The second element is definitiveness. Our
political figures say they have to concentrate on an overall, long-term,
comprehensive answer to the immigration problem. So they huff and puff
about the long-term implications of this move or that, and in the end
they do nothing. They are like people in a burning house who sit around
discussing the long-term efficacy of various kinds of water hoses while
the house burns down around them.
Peggy Noonan, "What Grandma
Would Say: We don't need to solve the immigration problem forever. We
need to solve it now," The Wall Street Journal, November 24, 2006 ---
http://www.opinionjournal.com/columnists/pnoonan/?id=110009288
With political junkies looking ahead to the
2008 presidential race, two of the names often mentioned as leading
contenders for the GOP nomination – John McCain and Rudy Giuliani – are
being called "disastrous" for the Republican Party by Rep. Tom Tancredo,
R-Colo. Both of those individuals, of course, would be disastrous for us
for a variety of reasons, not the least of which is their position on
immigration, which is to open the border," Tancredo told WND in an
exclusive interview.
Joe Kovacs, "Tancredo:
McCain, Giuliani would be disastrous for GOP," WorldNetDaily,
November 22, 2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53039
Jensen Comment
Senator McCain's "open border stance," like a lot of his stances, is no
more solid than flubber. He voted both times to build the border fence
despised by Mexico and favored heavily by his Arizona constituency. To
see how the U.S. Senate (Republicans and Democrats alike) voted
overwhelmingly to build a useless wall between the U.S. and Mexico, go
to
http://www.trinity.edu/rjensen/book06q4.htm#BorderFence
Since being for an open border will be political suicide for the 2008
elections, it's entertaining to watch Congress dance the proverbial
sidestep. The great majority of our legislators will proudly point to
their votes in favor of building a border wall and then find all sorts
of excuses not to fund the actual construction. Even more of a hot
potato will be amnesty for millions of illegal immigrants already
residing in the U.S. I favor a one-time amnesty coupled with
elimination of citizenship of babies born to on U.S. soil to mothers who
are not citizens. Bush strongly supports amnesty and citizenship to all
babies born in the U.S. in the face of overwhelming opposition among
voters. Counterfeiters are now cranking out thousands of phony birth
certificates daily in anticipation of bringing in more more parents from
Mexico. This will be a booming business until babies are not granted
automatic citizenship regardless of citizenship status of the parents.
Half of the 91,516 illegal aliens from
terror-sponsoring countries and those of "special interest" apprehended
at the border between 2001 and 2005 were released into the U.S.
population, according to a report by the inspector general's office of
the Department of Homeland Security. The report, "Detention and Removal
of Illegal Aliens," released earlier this year with little fanfare or
attention, suggests about 85 percent of those aliens – potentially the
most dangerous – would abscond and likely never be seen by authorities
again.
Acknowledging the danger such aliens pose to
the
national security, the report cites a DHS
official testifying that terrorist organizations "believe illegal entry
into the U.S. is more advantageous than legal entry for operations
reasons."
"45,000 terror-threat illegals released into U.S.
population: Half from countries of 'special interest' let go between
2001, 2005, says report," WorldNetDaily, November 29, 2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53151
A South African man has been fined $140 for
taking a week off work, telling his employers he was pregnant. Charles
Sibindana, 27, stole a certificate from a clinic during his pregnant
girlfriend's checkup, a court near Johannesburg heard. He then added his
own details to the note and submitted it and took seven days off work,
seemingly unaware that only women consult gynaecologists
(sic) . His employers became suspicious and
investigated the matter.
"'Pregnant' man fined in SA court," BBC News,
November 28, 2006 ---
http://news.bbc.co.uk/2/hi/6190772.stm?lspan
Jensen Comment
This sort of dashes his hopes for maternity leave, but he might still
conjure up a miracle by moving to New Orleans.
A Primer on Electronic
Communication
Often enough we are faced with a question that can
best be answered by someone else, possibly a complete stranger. The upside
of the Internet is that we can quickly contact folks without much effort.
The downside of the Internet is that people can contact us without much
effort. This reality is very present in academe today — where senior
professors constantly gripe about being overwhelmed by inappropriate e-mail,
to the point where some hide their e-mail addresses. Graduate students and
researchers of all kinds, meanwhile, agonize over how to approach an eminent
scholar with a query, and trade strategies for actually getting an answer.
Eszter Hargittai, "A Primer on Electronic Communication," Inside Higher
Ed, November28, 2006 ---
http://www.insidehighered.com/workplace/2006/11/28/hargittai
November 29, 2006 reply
from Scott Bonacker [aecm@BONACKER.US]
That is good - thanks for posting the link.
Here's another one -
http://catb.org/%7Eesr/faqs/smart-questions.html
The subject of this one is different, but the
procedures are intended to reach the same result.
Scott Bonacker, CPA
Springfield, Missouri
"How To Ask Questions The Smart Way" by Eric Steven Raymond
http://catb.org/%7Eesr/faqs/smart-questions.html
Question
What radio broadcast had the largest audience in history?
You can listen to it here
---
http://www.npr.org/templates/story/story.php?storyId=6515548
The 1938 boxing rematch
between American Joe Louis and German Max Schmeling is believed to have had
the largest audience in history for a single radio broadcast. In 2005, the
Library of Congress selected it for the National Recording Registry.
"The Fight of the Century: Louis vs. Schleming," NPR, November 25,
2006 ---
http://www.npr.org/templates/story/story.php?storyId=6515548
2006 Update on WorldCom Fraud
U.S. Judge Denise Cote of the U.S. Court for the Southern District of New
York said the distribution should be made "as soon as practicable." More
than one dozen investment banks, including Citigroup Inc. and JPMorgan Chase
& Co., agreed to pay about $6.15 billion to resolve allegations that they
helped WorldCom sell bonds when they should have known the phone company was
concealing its true financial condition. The remaining balance from
available settlement funds will continue to accrue interest until other
claims are processed and disputed claims are resolved, Cote said in her
four-page order.
"Judge OKs $4.52 bln payout to WorldCom investors," Reuters, November
29, 2006 ---
Click Here
2005 Update on WorldCom Fraud
Former WorldCom Investors can now claim back
some of the billions of dollars they lost in a massive accounting fraud,
after a federal judge approved legal settlements of "historic proportions."
The deal approved Wednesday by U.S. District Judge Denise Cote, will divide
payments of $6.1 billion among approximately 830,000 people and institutions
that held stocks or bonds in the telecommunications company around the time
of its collapse in 2002.
Larry Neumeister, "Judge OKs $6.1B in WorldCom Settlements," The
Washington Post, September 22, 2005 ---
http://snipurl.com/WorldcomSettlement
University of California gets a settlement from Citigroup as part of
its losses in the WorldCom accounting scandal
Citigroup has agreed to pay the University of
California
more than $13 million to settle a lawsuit over
liability for the university’s investments in WorldCom, a company that
collapsed in 2002. The university sued over inaccurate analyses of WorldCom,
which led UC to pay more than it would have otherwise to buy stock in the
company.
Inside Higher Ed, April 7, 2006 ---
http://www.insidehighered.com/news/2006/04/07/qt
The WorldCom audit by
Andersen is arguably the worst audit in history. Bob Jensen's threads on the
WorldCom scandal are at
http://www.trinity.edu/rjensen/FraudEnron.htm#WorldCom
Question
What do professors think are the top accounting education programs in the
U.S.?
The Public Accounting
Report on October 30, 2006 published its rankings of the universities
having the top undergraduate, masters, and doctoral programs in accounting.
The University of Texas hung on to the top rankings in all three categories
---
http://www.mccombs.utexas.edu/news/pressreleases/PAR_06.pdf
Of course these rankings
are subject to all the criticisms of college rankings in general ---
http://www.trinity.edu/rjensen/HigherEdControversies.htm#BusinessSchoolRankings
Be that as it may, these rankings are very important for both fund raising
and student recruiting activities.
AHP = Analytic
Hierarchy Process
November 15, 2006 message
from Al-Mashari Gmail
I hope that you are doing well. Could you,
please, send me your papers and any related references that use AHP
especially in the computer filed. As I'm interested in this filed.
Thanks in advance for your expected
cooperation.
Yours B. Al-Mashari
November 20, reply from
Bob Jensen
I’m sorry that most of those old, like me, Analytic Hierarchy
Process papers were discarded when I moved across the U.S. to my
retirement cottage.
I am able to attach my unpublished Working Paper 127 entitled
“COMPARISONS OF EIGENVECTOR, LEAST SQUARES, CHI SQUARE, AND LOGARITHMIC
LEAST SQUARES METHODS OF SCALING A RECIPROCAL MATRIX” ---
http://www.trinity.edu/rjensen/127WP/127WP.HTM
I did find one of our
old published papers online.
"Analytic Hierarchy
Process Multivariate Analysis of Expert Judgment Regarding Alternative
Analytical Review Procedures: An Empirical study," with C.E. Arrington
and W.A. Hillison,
Journal of Accounting Research,
Vol. 22, No. 1, Spring 1984, 298-312 ---
http://www.jstor.org/view/00218456/di008028/00p0193i/0
One of my doctoral
students, Ed Arrington, used AHP in a clever doctoral dissertation at
Florida State University ---
http://wwwlib.umi.com/dissertations/
My published papers on
AHP are available in some libraries ---
http://www.trinity.edu/rjensen/resume.htm#Published
49.
"A Dynamic Analytic Hierarchy Process Analysis of Capital Budgeting
Under Stochastic Inflation Rates and Risk Premiums,"
Advances in Financial Planning and Forecasting,
Vol. 2, 1987, 269-302.
48.
"Extension of Consensus Methods For Priority Ranking Problems:
Eigenvector Analysis of 'Pic-the-Winner'
Paired Comparison Matrices," Decision
Sciences, Vol. 17, Spring 1986, 195-211.
45.
"Matrix Scaling of Subjective Probabilities of Economic Forecasts: An
Empirical Study," Economics Letters,
Vol. 20, 1986, 221-225. With Roger W. Spencer of Trinity University
Economics Department.
42.
"An Alternative Scaling Method for Priorities in
Hierarchical Structures," Journal
of Mathematical Psychology, Vol. 28, No. 3, September
1984, 317-332.
41.
"Analytic Hierarchy Process Multivariate Analysis of Expert Judgment
Regarding Alternative Analytical Review Procedures: An Empirical study,"
with C.E. Arrington and W.A. Hillison,
Journal of Accounting Research,
Vol. 22, No. 1, Spring 1984, 298-312 ---
http://www.jstor.org/view/00218456/di008028/00p0193i/0
39.
"Aggregation (Composition) Schema for Eigenvector Scaling of Priorities
in Hierarchial Structures,"
Multivariate Behavioral Research,
Vol. 18, January 1983, 63-84.
38.
Review of Forecasts: Scaling and Analysis of Expert Judgments Regarding
Cross-Impacts of Assumptions of Business Forecasts and Accounting
Measures, (Sarasota, FL: American Accounting Association,
1983).
36.
"Scaling Multivariate performance Criteria: Subjective Composition
Versus the Analytic Hierarchy Process," with C.E. Arrington and Masao
Takutani (of Seiker
University in Japan), Journal of Accounting
and Public Policy, Vol. 1 Winter 1982, 95-125.
34.
"Competition in Auditing: An Assessment" in
Symposium on Auditing Research IV (Urbana, IL: The Board of
Trustees of the University of Illinois, 1982, 451-468).
33.
"Accounting Futures Analysis: An Eigenvector Model for Subjective
Elicitations of Variations in Cross-Impacts Over Time,"
Decision Sciences, January 1982,
Vol. 13, 15-37.
32.
"Scenario Probability Scaling: An Eigenvector Analysis of Elicited
Scenario Odds Ratios," Futures,
December 1981, Vol. 13, 489-98.
31.
"The Evaluation of Generic Cross-Impact Models: A Revised Balancing Law
for the R-Space Model," Futures,
June 1981, 217-220.
28.
"A Dynamic Programming Algorithm for Cluster Analysis,"
Mathematical Programming in Statistics,
Edited by Arthanari and Dodge, New York,
John Wiley & Sons.
Hope this Helps,
Bob Jensen
Return to the Oxford
Model in U.S. Universities
"Hogwarts U.," by Robert
J. O’Hara, Inside Higher Ed, November 28, 2006 ---
http://www.insidehighered.com/views/2006/11/28/ohara
What does private and wealthy Princeton
University have in common with the public and less-wealthy University of
Central Arkansas? What links Acadia University in the Canadian Maritimes
and Vanderbilt University in the American South? What does the new
International University in Bremen, Germany, share with the Universidad
de las Américas, in Puebla, Mexico?
Each of these institutions has established, is
planning, or is expanding an internal system of residential colleges:
permanent, cross-sectional, faculty-led societies that bring the
educational advantages of a small college into the environment of a
large university. This wave of college founding, taking place in public
and private institutions from Kentucky to Louisiana, from Missouri to
Florida, from Pennsylvania to Arkansas,
and
elsewhere around the world, is one of the most
substantive structural reform movements in higher education today, and
it promises to repair a half-century of destructive bureaucratic
centralization.
Dividing a large university into
cross-sectional residential colleges is not a new idea: it is the
organizational structure of Oxford, Cambridge, and Durham Universities
in Great Britain, and as such is one of the oldest ideas in higher
education. The collegiate organizational model is common in universities
in Canada, Australia, and New Zealand, and it was adopted by the
undergraduate divisions of Harvard and Yale Universities in the 1930s
and by Rice University in the 1950s. But residential college systems
have remained rare in American higher education until quite recently.
Paradoxically, they are better understood by many American
undergraduates today than by American senior faculty and administrators,
since, as students often remind me, the collegiate model is “just like
Harry Potter.” The fictional School of Witchcraft and Wizardry in J.K.
Rowling’s popular young adult novels is divided into a system of four
“houses” that parallel, in their structure, the structure of a
collegiate university.
Although many universities that are in the
process of establishing residential college systems are also embarking
on construction projects at the same time, the two do not have to be
connected. Creating residential colleges within a larger institution is
more a matter of arranging resources that already exist than it
is a matter of acquiring new resources. It need not be expensive, and it
doesn’t require any changes to the curriculum.
The residential college movement today is
guided not by financial concerns or questions of curricular reform, but
rather by four organizational principles: decentralization, faculty
leadership, social stability and genuine diversity. Each of these
principles attempts to repair a portion of the damage that was wrought
during the “industrialization” of higher education in the post-World War
II era, and especially in the post-1960s era, two periods of widespread
bureaucratic massification when student numbers exploded, central
administrative offices proliferated, faculty retreated, high-rise
dormitories sprouted, and alienation spread.
Decentralization is a fundamental principle of
both new and old residential college systems because all education is
local. Real education — the substantive development of intellect and
character — depends on sustained personal contact between students and
teachers over the long term. But universities forgot this basic
principle when they ballooned in size from the 1960s onward. No matter
how many slogans campus public relations people may invent about being
“student-centered” and “caring,” a university with high-rise dormitory
towers, vast impersonal dining halls, and central advising offices that
students report to for 15 minutes each term to have their schedules
checked cannot possibly offer the sustained, local, personal contact
that is fundamental to real education. The slogans are phony, and the
students know it.
Small, decentralized residential colleges
counteract the effects of educational massification by bringing students
and faculty from all academic disciplines together into rich and
cohesive social communities. Because of their small size —
400
members is ideal — residential colleges ensure
that all students are known one by one, and that no student is
anonymous. And while these collegiate societies are usually called
“residential” colleges, they need not be entirely residential, and can
be established within any university regardless of the number of
students who actually live on campus. The emphasis is on the word
college as a small, intimate society of members, rather than on the
word residential.
Faculty leadership of residential college
systems is fundamental because as universities became more centralized
and bureaucratic over the past half-century, the oversight of campus
life within them was largely handed off to a class of full-time
residence life managers. However well-meaning these officials have been,
because they are detached from the academic structure of the university,
they have not been able to create meaningful educational environments
for students. Even more noxiously, some universities have come to see
campus dormitories as income-generating tools analogous to parking lots
and vending machines. For more than a generation these deep structural
flaws have cheated students out of the most important thing a university
can offer them: sustained personal contact with their teachers in a rich
and diverse educational environment for years at a time.
Residential college systems return the
management of campus life to the faculty, and distribute most of the
functions now performed by departments of student affairs and residence
life into the faculty-led residential colleges. And they treat student
life and housing as academic functions of a university, not as business
functions. Residential colleges, as faculty-led academic societies, are
consciously crafted to provide a wide range of informal educational
opportunities for their members day and night, week after week, year
after year. Their object is to ensure that students’ formal learning in
the classroom is integrated in every way with their external life in the
world.
Continued in article
From Dartmouth College
Chance News ---
http://chance.dartmouth.edu/chancewiki/index.php/Main_Page
Tutorial on Statistics (focus is on learning exercises and how to view media
reports critically)
A list of
some useful links related to Statistics Education from Juha Puranen,
Department of Statistics, University of Helsinki ---
http://noppa5.pc.helsinki.fi/links.html
Online Tutorials for
Learning About Statistics and Research
Against All Odds: Inside Statistics ---
http://www.learner.org/resources/series65.html
Bob Jensen's links to
free online mathematics and statistics tutorials are at
http://www.trinity.edu/rjensen/Bookbob2.htm#050421Mathematics
Can I Have A Word?
[Helpers for Writers and Poets] ---
http://www.barbican.org.uk/canihaveaword/
Bob Jensen's writing
helpers are at
http://www.trinity.edu/rjensen/Bookbob3.htm#Dictionaries
Open Sharing Tutorial
on Environmental Water Science
Water on the Web ---
http://waterontheweb.org/index.html
Water on the Web (WOW) helps college and high
school students understand and solve real-world environmental problems
using advanced technology.
WOW is a complete package containing two sets
of curricula, data from many lakes and rivers nationwide, extensive
online primers, data interpretation and Geographic Information System
Tools, and additional supporting materials.
Basic Science consists of individual lessons
for infusion into a wide range of exisiting science cources. Water
Resource Science is a two-semester water resource management curriculum
for second year technical students and undergraduates in water or
environmental management disciplines.
Bob Jensen's threads on
free online science tutorials are at
http://www.trinity.edu/rjensen/bookbob2.htm#Science
Truck Driver Test
Questions & Answers
CDL Online Practice
Questions ---
http://www.testprepreview.com/cdl_practice.htm
"Choosing Who Can See
What on Your Blog: Web Service Offers Features For Privacy, Adding
Media; Registration Is a Turn-Off ," by Walter S. Mossberg and Katherine
Boehret, The Wall Street Journal, November 22, 2006; Page D7 ---
http://online.wsj.com/article/the_mossberg_solution.html
A big problem with blogs is privacy. While some
people -- especially MySpace fans -- don't mind posting personal news,
photos and videos for anyone to read, many of us hesitate to leave
details about our personal lives online.
This week, we tested a new, free blogging
service called Vox, www.vox.com, from Six Apart Ltd., a blogging
software company. One of Vox's best attributes is its ability to label
each individual post, or entry, with a different privacy filter, so that
instead of setting your blog to be entirely private or entirely public,
you can pick and choose what you want to share.
Vox also excels at making it easy to add
photos, audio, videos and book links to your blog without any prior
expertise. It lets you incorporate content from Web sites like YouTube,
Amazon and photo-sharing site Flickr in only a couple of steps. Viewing
of each multimedia element can also be restricted to people you choose.
Vox is supported by ads that aren't intrusive or distracting.
We each made a blog in Vox, and updated them
several times. We found the process to be quick and simple, and the
results to be attractive. We liked the privacy features. But while its
intentions are good, Vox has a few downsides. Its idea of making each
blog post visible to different groups is useful. But everyone who views
your privacy-protected entries must also be registered with Vox, a quick
process, but one that will discourage many potential users.
Also puzzling are Vox's categories for labeling
those who view your blog. Everyone must be labeled as friends, family or
neighbors, but the filters that determine who can view your posts don't
include neighbors at all.
Vox also doesn't do a great job of implementing
many features that are standard in blog services. These features include
interactive elements on a page such as drag-and-drop organizing.
We got started by signing up for Vox -- a
process that involved entering our email address, creating a password
and URL, and entering personal information. A Design section walked us
through choosing a layout and theme from numerous choices. Katie chose
the Cityscape Washington, D.C., theme, which includes the Capitol and
Washington Monument. Walt chose Firefly Night, which includes the moon
and stars and a silhouette of a tree.
To prompt you to blog, the Vox homepage always
offers a Question of the Day, or QOTD. With one click, you can
optionally answer the QOTD in your own blog. When you post your answer,
or enter any post, a drop-down menu lets you choose who can view it: The
World (Public), Your Friends and Family, Your Friends, Your Family or
Just You. If, for example, you choose to allow only your friends to see
a post, other groups won't know that they're not seeing the friends-only
post.
If you see another person's Vox blog and would
like to bookmark it so that his or her latest entries are constantly
updated on a special page just for you, you can add that blogger to your
neighborhood. Friends and family are automatically part of your
neighborhood, but when choosing who can see your content, neighborhood
isn't an option. Vox plans to make the neighborhood concept more
understandable in an updated version due out by December.
Continued in article
Bob Jensen's threads on
Weblogs and blogs are at
http://www.trinity.edu/~rjensen/245glosf.htm#Weblog
"Thinking Machines:
Danny Hillis talks about the real-world challenges of creating artificially
intelligent machines," by Jason Pontin, MIT's Technology Review,
November 14, 2006 ---
http://www.technologyreview.com/InfoTech/17709/
In 1982, when he was still a student at MIT,
Danny Hillis cofounded Thinking Machines, one of the most famous
failures in the history of computing. A hive of wayward and brilliant
researchers, Thinking Machines tried to build the world's first
artificial intelligence. But if the company did not succeed in "building
a machine that will be proud of us" (its corporate motto), its
Connection Machine demonstrated the practicality of parallel processing,
the foundation of modern supercomputing. Today, Danny Hillis is cochair
of Applied Minds, a design and invention company, and he is building the
Clock of the Long Now, a mechanical timepiece meant to last 10,000
years.
TR: Why is creating an
artificial intelligence so difficult?
Hillis: We look to our own
minds and watch our patterns of conscious thought, reasoning, planning,
and making analogies, and we think, "That's thinking." Actually, it's
just the tip of a very deep iceberg. When early AI researchers began,
they assumed that hard problems were things like playing chess and
passing calculus exams. That stuff turned out to be easy. But the types
of thinking that seemed effortless, like recognizing a face or noticing
what is important in a story, turned out to be very, very hard.
TR: Why did Thinking Machines
fail to create a thinking machine?
Hillis: Well, the glib answer
is that we just didn't have enough time. But enough time would have been
decades, maybe lifetimes. It is a hard problem, probably many hard
problems, and we don't really know how to solve them. We still have no
real scientific answer to "What is a mind?"
TR: The Connection Machine was
an effective platform for supercomputing. Why didn't Thinking Machines
prosper as a supercomputing company?
Hillis: Supercomputing turned
out to be a technology, not a business. My friend Nathan Myhrvold, who
was running Microsoft Research at the time, once told me, "It is at
least as hard to make software for a supercomputer as for a PC, but you
only have a few thousand customers, and we have billions. Not only that,
but each of those customers actually expects you to give them exactly
what they need."
TR: What were the successful
commercial applications of the research at Thinking Machines?
Hillis: The commercial
applications were mostly chip design, data mining, text search,
cryptology, computational chemistry, computer graphics, financial
optimization, seismic processing, and fluid flow modeling. Scientific
applications like astronomy, climate modeling, or quantum chromodynamics
were exciting when they helped get a result on the cover of Nature,
but we never made money on them.
TR: What happened to the
patents from Thinking Machines? More than anyone else, you are
responsible for massive parallel processing. You get credit, but no
payment. Who gets it, and why?
Hillis: Well, first of all, I
should be clear that I am just one of many people who contributed to
developing massively parallel computing. As for the patents, one of the
consequences of Thinking Machines' failure is that I lost any rights to
the technologies. In retrospect, that turned out to be a blessing,
because it saved me from spending the next decade of my life in court.
Continued in article
ProQuest Digital
Dissertations --- http://wwwlib.umi.com/dissertations/
Bob Jensen's search
helpers are at
http://www.trinity.edu/rjensen/searchh.htm
Bad FEI Audio With Good
Intentions
FEI had good intentions
when putting out audio clips of a series of interviews with some of the
leaders of the financial reporting community. I thank Denny Beresford for
sending me the link and a warning that the audio was bad ---
http://www.phillivingston.com/FEI CFRI/testing.html
I found the audio to be so
broken up that I could hear these interviews. Perhaps the fact that the file
is named "testing" means that better recordings will be posted later.
I was glad to see Phil is
still with the FEI. I once had lunch with him and was impressed that a
6-foot-ten Super Bowl lineman (Oakland) could be so articulate and
knowledgeable.
From the University of
Illinois Issues in Scholarly Communications Blog on November 21, 2006 ---
http://www.library.uiuc.edu/blog/scholcomm/
Top 100 Global Universities
An August 2006 article in the international
edition of Newsweek evaluated universities from around the
world on their "globalness", providing a ranked list of the top 100.
We're pleased to see that one of their criteria was the size of the
library.
We evaluated schools on some of the measures
used in well-known rankings published by Shanghai Jiaotong
University and the Times of London Higher Education Survey. Fifty
percent of the score came from equal parts of three measures used by
Shanghai Jiatong: the number of highly-cited researchers in various
academic fields, the number of articles published in Nature and
Science, and the number of articles listed in the ISI Social
Sciences and Arts & Humanities indices. Another 40 percent of the
score came from equal parts of four measures used by the Times: the
percentage of international faculty, the percentage of international
students, citations per faculty member (using ISI data), and the
ratio of faculty to students. The final 10 percent came from
library holdings (number of volumes).
The top 10 were:
1. Harvard University
2. Stanford University
3. Yale University
4. California Institute of Technology
5. University of California at Berkeley
6. University of Cambridge
7. Massachusetts Institute Technology
8. Oxford University
9. University of California at San Francisco
10. Columbia University
The University of Illinois at Urbana-Champaign
came in 48th, behind other big ten universities such as Michigan (11), U
Chicago (20), Wisconsin (28), Minnesota (30), Northwestern (35), and
Penn State (40). Others from the Big 10 that made the list of 100
included Michigan State (62), and Purdue (86).
Read the
entire list of the 100 top global universities at MSNBC
as well as a
related story.
Note: You may also be interested in reading the
Times of London's analysis of the "Top
100 Universities", worldwide. By their
accounting, the University of Illinois ranked 58 in 2005 and 78 in 2006.
According to this listing, the top universities are:
1. Harvard
2. Cambridge
3. Oxford
4. MIT
4. Yale
6. Stanford
7. California Institute of Technology
8. UC Berkeley
9. Imperial College, London
10. Princeton
11. University of Chicago
Controversial issues in
rankings of universities are discussed at
http://www.trinity.edu/rjensen/HigherEdControversies.htm#BusinessSchoolRankings
Question
Are there any respected online doctoral programs in accountancy?
November 16, 2006 message
from David Raggay [draggay@TSTT.NET.TT]
Please forgive me bringing up this topic again.
I know that things are rapidly changing and I also ask the question from
a broader perspective than the initial query..
Are any of the current online doctorate
programs in business/accounting and/or finance highly recommended? If so
which ones?
Alternatively, are there any highly recommended
part-time programs in the areas mentioned above? If so which ones?
Regards,
David
November 16, 2006 reply
from Richard Campbell [campbell@RIO.EDU]
David:
Let me relate my experience in investigating an online Ph.D. program in
accounting -
www.sarasota.edu (Florida) - part of Argosy University. They have
revised their web site, and the information that I talk about may not
now be currently referenced on their web site. The web site referred to
the lead accounting professor as being a Ph.D. graduate of the
University of Buffalo. I checked the U of Buffalo web site and his name
was not included on the list of Ph.D graduates on a list that went back
to 1970. There was no link to a vita of that professor. There WAS a
mention, however, that the professor was an excellent woodworker.
Incidentally, I feel strongly that all students have the ability to see
the vita of their professors. I have mine on my own web page. I urge my
local colleagues to do the same.
I called the North Central accrediting agency
and asked if U of Sarasota was accredited - and I was told they were -
as part of the Illinois Argosy connection. I then called the Admissions
counselor at Sarasota U and asked a few questions. I got the "hard sell"
and was told that my studies would be a pleasant journey, although a
costly ($30K) one. I would be able to arrange the quarterly Florida
visits around trips to Disney World, Cape Canaveral and other hot spots.
I then asked the counselor some questions that she could not readily
answer. 1. Could you verify that Accounting Professor X is a Ph.D.
graduate of the University of Buffalo, and could you provide me a vita
for him? 2. Could I have a list of ALL your FULL TIME faculty with their
degrees and vitae? 3. Could you provide me with a list of graduates and
their current professional affiliations? 4. Can you give me more
information about the accreditation process of your Ph.D program?
My questions must have been unanswerable - I
never received a response in return.
Some additional observations - some accrediting
agencies are simply NOT doing their jobs in discriminating diploma mills
from legitimate institutions. And some legitimate institutions are
cheapening their reputations by lending their good names to dubious
ventures who just build a graphically pleasing web site.
So in summary, I don't know if there are
legitimate online business doctoral programs out there.
Richard J. Campbell
School of Business
218 N. College Ave.
University of Rio Grande Rio Grande, OH 45674
http://faculty.rio.edu/campbell
November 17, 2006 reply
from Bob Jensen
Hi David,
I spend a lot of time tracking distance education and training
programs. I know of NO (NONE, NILL) respected alternatives for an online
doctoral degree in accounting. There are a few respected doctoral
programs in selected disciplines like education, pharmacy, and law (a JD
is a doctoral degree) ---
http://www.trinity.edu/rjensen/Crossborder.htm
Since I've made presentations for you in Trinidad, I'm well aware
that you reside outside the U.S. But for U.S. residents, the best
alternative is probably to earn a distance education masters degree in
accounting or tax and then a JD degree in a respected online law school
program or an EED from a respected College of Education.
Remember that above all else the recognizable
name of the university on the diploma means more than anything else on
the diploma (including the discipline of study).
There are many online masters programs in accountancy since so many
highly respected state universities have added online programs to their
onsite masters degree programs ---
http://www.trinity.edu/rjensen/crossborder.htm#MastersOfAccounting
There are some gray zone doctoral programs like
Nova's programs, but I don't yet have high regards for Nova. The Nova
formula is to hire doctoral faculty who moonlight for Nova, but nobody
has ever convinced me that a Nova doctoral degree is respected for a
tenure track position in a respected university even though there may be
some respected baccalaureate Nova alternatives ---
http://www.nova-university.org/
It may be possible to negotiate with some respected doctoral programs
for an increased balance of online courses combined with onsite
requirements. But I doubt that the there is a very serious proportion of
accounting doctoral courses that can be taken online.
Remember that doctoral programs generally have negligible
requirements for accounting and tax courses and don't require many, or
any, of those courses from their masters degree programs. Doctoral
studies courses are in mathematics, statistics, econometrics,
psychometrics, and economic theory. Doctoral program advisors are very
particular about content in those courses and very few online courses
suffice for these accountics, yes I spelled that accountics, foundation
courses ---
http://www.trinity.edu/rjensen/395wpTAR/Web/TAR.htm
I must admit that I've not investigated all foreign alternatives for
distance education doctoral degrees. For example, there might be one or
two popping up among the vast number of distance education alternatives
in the United Kingdom ---
http://www.trinity.edu/rjensen/crossborder.htm#England
But I've not yet encountered a respected doctoral degree program.
The
classic U.K. doctorate entails little course work and heavy private
tutoring such that U.K. doctorates are more conducive to modern online
technology. But respected U.K. universities probably still turn up their
noses at online doctoral degrees. They're still pretty stuffy in the
U.K. and in former nations of the British Empire.
Beware of any program for any degree that grants credit for life
experience. All God's children have life experience ---
http://www.trinity.edu/rjensen/crossborder.htm#CLEP
Bob Jensen
November 17, 2006 reply
from J. S. Gangolly
[gangolly@CSC.ALBANY.EDU]
I too agree with most caveats expressed.
However, I beg to differ with respect to
requiring a PhD in accounting.
In my opinion, the ideal candidate would have a
liberal education background followed by a CPA (with audit experience)
followed by a PhD in any related field (Economics, Criminal Justice,
CSI, ...), and finally motivation to do research in accounting related
areas.
There are very few that fit the bill, but that
I think is the ideal background for an academic.
Having gone through the doctoral hamster mills
in both Operations Research and Accounting (didn't complete PhD in OR
due to the demise of my intended supervisor), accounting doctoral
education, in my opinion leaves much to be desired, relative to that in
other fields. This is as it should be, for accounting is a profession;
it is debatable if it is an academic discipline (though, of course it
can be).
As usual, I am being provocative.
Respectfully submitted,
Jagdish
November 17, 2006 reply
from Tom Lechner
[acttal@BUSINESS.UTAH.EDU]
While I agree with almost everything that was
said, I would add two precautions. First, I am not at all sure that a
Ph.D. in another field would be an acceptable substitute for a Ph.D. in
accounting. When I chaired a search committee at a teaching oriented
school, we would not consider a Ph.D. in another field. As far as I can
recall, the applicant was an MBA/CPA. The applicant lived several
thousand miles from the nearest AACSB school that offered a Ph.D., so
that applicant had gotten a Ph.D. in education. While we understood the
applicant's situation, we did not consider him.
Second, I believe that the LLM in law is more
equivalent to a Ph.D. than a JD. While an MBA + JD would be acceptable
for teaching tax at many schools, it might not provide terminal
qualification for a position in another area of accounting.
I suggest that you contact some schools that
have current openings that you would be interested in. Ask them how they
would view various combinations of credentials.
Tom
Dr. Thomas A. Lechner, CPA
Assistant Professor (Lecturer)
David Eccles School of Business School of Accounting and Information
Systems
University of Utah
November 18, 2006 reply
from Bob Jensen
Hi Tom,
I agree with what you say. I should have pointed out that in the
College of Education there are often two doctoral programs, the EED vs.
the PhD. in Education. The EED is more for school administrators and the
PhD is more of a traditional teaching and research degree.
Although many business programs do not consider either College of
Education degree as a terminal qualification, it will enhance other
qualifications if it was granted from a highly respected university.
Particularly the PhD in Education should enhance both teaching and
research skills. It is not very common to encounter such College of
Education doctoral degrees in AACSB schools, although JD and LLM degrees
are quite common, especially among tax faculty. However, attorneys who
also have CPA licenses commonly teach in areas other than tax.
Bob Jensen
November 17, 2006 reply
from Bernadine Raiskums [berna@GCI.NET]
Hi David,
I am CPA, CIA, MEd. and currently currently
pursuing online PhD in Education from Capella and really would recommend
the school for quality of program as well as administration. Capella
does have a couple of PhD in business, and an MBA in accounting, but
might be worth checking it out.
www.capella.edu
Bernadine Raiskums in Anchorage
November 19, 2009 reply
from Bob Jensen
Hi Bernadine,
We've both written previously and favorably about Capella's distance
education programs. I think Capella sets one of the best examples of a
for-profit corporation that's a good role model for similar online
corporations.
I would like to point out that Capella does not yet have online
doctoral programs in traditional business education disciplines of
accounting, finance, and marketing. It's online organization management
doctoral programs to date are linked at
http://www.capella.edu/schools_programs/degrees/phd.aspx
Specializations:
Capella
has even wider arrays of doctoral programs in education and psychology
---
http://www.capella.edu/schools_programs/degrees/phd.aspx
We are always grateful to hear from students enrolled in distance
education graduate programs.
Thank you,
Bob Jensen
Capella Education’s initial public offering on
Friday sent its stock up by about 25 percent,
The
Pioneer Press reported.
Inside Higher Ed, November 13, 2006
New Thoughts About
Herman Melville's Sexual Orientation and Multiculturalism
Herman Melville: great American novelist or great
American hipster? Well, it isn’t an either/or kind of situation. Rereading
Moby Dick for the first time in ages (now minus the English major’s mental
tic of obsessing over how each little part fit into a vast symbolic
architecture), I recently underwent the astonishing revelation that Melville
(1) definitely has a sense of humor, (2) pretty much invented the postmodern
“maximalist” novel of the sort we now associate with Thomas Pynchon, and (3)
is so
overtly gay and so stridently multiculturalist
that Fox News should probably look into how he ever got into the canon.
Scott McLemee, "Where’s Herman?" Inside Higher Ed, November 22, 2006
---
http://www.insidehighered.com/views/2006/11/22/mclemee
November 21, 2006 message
from Dennis Beresford
[dberesfo@TERRY.UGA.EDU]
Here is a link to an interesting speech by
Secretary of the Treasury Paulson on competitiveness of capital markets,
with particular emphasis on accounting and auditing related matters.
Denny Beresford
http://www.treasury.gov/press/releases/hp174.htm
From
AccountingEducation.com on November 25, 2006 ---
http://accountingeducation.com/
Most football clubs in England and Scotland will make a loss over the next
12 months, according to their finance directors, despite frantic efforts to
rein in spending ahead of the start of the season next month
"How football (Soccer Football that is) got its finances wrong,"
AccountancyAge, November 2006 ---
http://www.accountancyage.com/accountancyage/specials/2162919/football-got-finances-wrong
From CPANet on November
20, 2006
AICPA Financial Literacy Initiative
------------------------------
360 Degrees of Financial Literacy -
http://www.cpanet.com/up/s0611.asp?ID=1270
Financial Literacy Resource Center -
http://www.cpanet.com/up/s0611.asp?ID=1271
Feed the Pig -
http://www.cpanet.com/up/s0611.asp?ID=1272
MySpace: Benjamin Bankes -
http://www.cpanet.com/up/s0611.asp?ID=1273
CPAs Asked to Mobilize the Pig -
http://www.cpanet.com/up/s0611.asp?ID=1274
State-Level Involvement -
http://www.cpanet.com/up/s0611.asp?ID=1275
Financial Literacy Topics -
http://www.cpanet.com/up/s0611.asp?ID=1276
Ask the Money Doctor -
http://www.cpanet.com/up/s0611.asp?ID=1277
Blog Your Business
------------------------------
The Unseen Blogosphere: Internal Blogs -
http://www.cpanet.com/up/s0611.asp?ID=1278
BlogWrite for CEOs -
http://www.cpanet.com/up/s0611.asp?ID=1279
Getting the Word Out -
http://www.cpanet.com/up/s0611.asp?ID=1280
A Crash Course in Corp Blogging -
http://www.cpanet.com/up/s0611.asp?ID=1281
16 Ways to Drive Traffic to Your Business Blog -
http://www.cpanet.com/up/s0611.asp?ID=1282
Blogs for Marketing Purposes? -
http://www.cpanet.com/up/s0611.asp?ID=1283
Romancing the Bloggers -
http://www.cpanet.com/up/s0611.asp?ID=1284
Ethanol Use Has No
Effect On Carbon Dioxide Levels
Oil releases carbon that has been deep within the
earth for millions of years. Ethanol comes from corn, which procured its
carbon from the atmosphere. In other words, ethanol is not introducing any
carbon into the atmospheric system that was not there to begin with.
Therefore ethanol, unlike oil, can have no net effect on atmospheric carbon
dioxide levels. I am no ardent supporter of Big Ethanol. There are plenty of
environmental problems associated with cultivating millions of more acres of
corn. To say nothing of the massive systems required for fermentation and
purification of billions of gallons of fuel. However, it is a step in the
right direction and further scientific breakthroughs that could rectify some
of these problems might be just over the horizon. Aside from this, doesn't
it seem only prudent to diversify our national energy portfolio when facing
such loose cannons as Iran and Saudi Arabia?
James Wagandt, "Ethanol Use Has No Effect On Carbon Dioxide Levels," The
Wall Street Journal, November 25, 2006; Page A9 ---
http://online.wsj.com/article/SB116441989972532456.html?mod=todays_us_opinion
Doomsday Hurricane
Forecasters Blown Away
It was not the hurricane season we expected, thank you. With cataclysmic
predictions that hurricanes would swarm from the tropics like termites, no
one thought 2006 would be the most tranquil season in a decade. Barring a
last-second surprise from the tropics, the season will end Thursday with
nine named storms, and only five of those hurricanes. This year is the first
season since 1997 that only one storm nudged its way into the Gulf of
Mexico.
Neil Johnson, "Hurricane Predictions Off Track As Tranquil Season Wafts
Away," The Tampa Tribune, November 27, 2006 ---
http://www.tbo.com/news/metro/MGBHKNBE0VE.html
Updates from WebMD ---
http://www.webmd.com/
Latest Headlines
on November 24, 2006
Latest Headlines
on November 28, 2006
Latest Headlines
on November 29, 2006
The Glimmering Promise of Gene Therapy
Its history is marred by failures, false hopes, and
even death, but for a number of the most horrendous human diseases, gene
therapy still holds the promise of a cure. Now, for the first time, there is
reason to believe that it is actually working.
Horace Freeland, "Part 1: The Glimmering Promise of Gene Therapy," MIT's
Technology Review, November 14, 2006 ---
http://www.technologyreview.com/BioTech/17725/
Doctors put bite on snake venom for stroke treatment
Ancrod, an anti-clotting drug derived from the
venom of Malaysian pit vipers, is only effective in treating stroke victims
if given within three hours, according to a study that appears in Saturday's
Lancet. European doctors assessed ancrod, when administered within six hours
of a stroke, against a harmless lookalike compound, called a placebo, among
1,220 patients in Europe, Australia and Israel. No significant benefit was
found when the drug was administered beyond three hours, according to the
paper.
"Doctors put bite on snake venom for stroke treatment," PhysOrg,
November 24, 2006 ---
http://physorg.com/news83591511.html
Playing Catch-Up After Lost Time In Alzheimer's Labs
Orthodoxy also stifles research on other
culprits. "Where the field made its mistake was in trying to make everything
fit one common [amyloid] pathway," says Robert Mahley, president of the J.
David Gladstone Institutes, San Francisco. "We've got to realize there are
multiple ways you can wind up with [Alzheimer's]."
Sharon Begley, "Playing Catch-Up After Lost Time In Alzheimer's Labs,"
The Wall Street Journal, November 24, 2006; Page B1 ---
http://online.wsj.com/article/science_journal.html
Scientists to freeze
women's ovaries
U.S. researchers are launching an experimental
program for young female cancer patients in which an ovary is removed and
frozen for possible future use. The Center for Reproductive Research at
Northwestern University said the program is designed for young women who
might be at risk of losing their ovarian function and fertility following
treatment for cancer. Teresa Woodruff, associate director of the
university's Lurie Comprehensive Cancer Center in Chicago says the long-term
goal is to be able to extract and mature eggs from cryopreserved ovarian
tissues to initiate pregnancies once cancer treatment has been completed.
"Scientists to freeze women's ovaries," PhysOrg, November 28, 2006
---
http://physorg.com/news83960481.html
One-off treatment to
stop back pain -- Using patients' own stem cells
A University of Manchester researcher has developed
a treatment for lower back pain using the patient’s own stem cells, which
could replace the use of strong painkillers or surgery that can cause
debilitation, neither of which addresses the underlying cause.Dr Stephen
Richardson, of the University’s Division of Regenerative Medicine in the
School of Medicine (FMHS), has developed the treatment; and in collaboration
with German biotechnology company Arthrokinetics and
internationally-renowned spinal surgeons Spinal Foundation are hoping to
enter pre-clinical trials next year. It is expected to rapidly yield a
marketable product which will revolutionise treatment of long-term low back
pain.
"One-off treatment to stop back pain -- Using patients' own stem cells,"
PhysOrg, November 30, 2006 ---
http://physorg.com/news84113927.html
Consumers Not Warned of Mercury in Fish
Not a single West Virginia grocery store is warning
consumers of the possible dangers of mercury in fish, an environmental group
says, even though the state and federal governments have been issuing
advisories to anglers for at least two years. Oceana, a Washington,
D.C.-based activist group, issued a report this week that concludes fewer
than 20 percent of the nation's grocery stores are posting in-store warnings
about mercury. West Virginia is one of four states with zero in-store
warnings, the report says. The others are Mississippi, Alabama and North
Dakota.
"Consumers Not Warned of Mercury in Fish," PhysOrg, November 23, 2006
---
http://physorg.com/news83476474.html
When it comes to child
porn, it pays to have friends in high places
"Court shocker: 10 months
for kiddie porn producer: Democrat activist faced 81 years in jail on
charges involving kids as young as 6," WorldNetDaily, November 25,
2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53070
Authorities say Andrew Douglas Reed, 53, who
reported for an abbreviated jail term just a few weeks ago, had pleaded
guilty to a page-long list of counts of 2nd-degree sexual exploitation
of a minor.
Court records in the Asheville, N.C., case said
he admitted that he would "record, develop and duplicate material
containing a visual representation of a minor engaging in sexual
activity." That activity is defined by state law as including
masturbation, intercourse and "touching – in apparent sexual stimulation
or sexual abuse – of the genitals, pubic area or buttocks."
However, instead of the 967 months in jail – nearly 81 years – for which
he was liable, Judge Robert Lewis, another Democrat, gave him, in a plea
bargain with the office of District Attorney Ron Moore, who was elected
as a Democrat, a 10-12 month sentence.
Continued in article
November 21, 2006 message
from Naomi Ragen
[nragen@netvision.net.il]
If you want to cheer yourself up in a profound
way, go to the following website:
http://www.arabsforisrael.com/
This is not a hoax, but an actual website,
filled with many letters from Arabs and Muslims who reject anti-Semitism
and who truly love Israel. It is such an amazing thing to read these
letters. For the first time in a long time I realized that real peace
could be possible if only our enemy were not brainwashed with lies and
causeless hatred, had an elementary education, and had ever met real
Jews/Israelis.
Below, a remarkable letter posted on the
website.
Naomi
"Friedman's
Sampler," by Emily Parker and Joseph Rago, The Wall Street
Journal, November 18, 2006 ---
http://www.opinionjournal.com/extra/?id=110009267
On Freedom
It is important to emphasize
that economic arrangements play a dual role in the promotion of a free
society. On the one hand, "freedom" in economic arrangements itself a
component of freedom broadly understood, so "economic freedom" is an end
in itself to a believer in freedom.
In the second place, economic
freedom is also an indispensable means toward the achievement of
political freedom. . . .
A citizen of the United States
who under the laws of various states is not free to follow the
occupation of his own choosing, unless he can get a license for it, is
likewise being deprived of an essential part of his freedom. So economic
freedom, in and of itself, is an extremely important part of total
freedom.
The reason it is important to
emphasize this point is because intellectuals in particular have a
strong bias against regarding this aspect of freedom as important. They
tend to express contempt for what they regard as material aspects of
life and to regard their own pursuit of allegedly higher values as on a
different plane of significance and as deserving special attention. But
for the ordinary citizen of the country, for the great masses of the
people, the direct importance of economic freedom is in many cases of at
least comparable importance to the indirect importance of economic
freedom as a means of political freedom.
Viewed as a means to the end of
political freedom, economic arrangements are essential because of the
effect which they have on the concentration of power. A major thesis of
the new liberal is that the kind of economic organization that provides
economic freedom directly, namely, organization of economic activities
through a largely free market and private enterprises, in short, through
competitive capitalism, is also a necessary though not a sufficient
condition for political freedom.
The central reason why this is
true is because such a form of economic organization separates economic
power from political power and in this way enables the one to be an
offset to the other. I cannot think of a single example at any time or
any place where there was a large measure of political freedom without
there also being something comparable to a private enterprise market
form of economic organization for the bulk of economic activity.
--from "Capitalism and
Freedom: Why and How the Two Ideas Are Mutually Dependent," May 17, 1961

On the Free Market
What most people really object
to when they object to a free market is that it is so hard for them to
shape it to their own will. The market gives people what the people want
instead of what other people think they ought to want. At the bottom of
many criticisms of the market economy is really lack of belief in
freedom itself.
The essence of political
freedom is the absence of coercion of one man by his fellow men. The
fundamental danger to political freedom is the concentration of power.
The existence of a large measure of power in the hands of a relatively
few individuals enables them to use it to coerce their fellow men.
Preservation of freedom requires either the elimination of power where
that is possible, or its dispersal where it cannot be eliminated.
It essentially requires a
system of checks and balances, like that explicitly incorporated in our
Constitution. . . .
The person who buys bread
doesn't know whether the wheat from which it was made was grown by a
pleader of the Fifth Amendment or a McCarthyite, by person whose skin is
black or whose skin is white. The market is an impersonal mechanism that
separates economic activities of individual from their personal
characteristics. It enables people to cooperate in the economic realm
regardless of any differences of opinion or views or attitudes they may
have in other areas.
--from "The New Liberal's
Creed: Individual Freedom, Preserving Dissent Are Ultimate Goals," May
18, 1961

On Free Trade
What we ought to do is practice
what we preach. We have been going around preaching the virtues of free
enterprise, of free competition in a free market. What have we been
doing? We've been practicing the opposite, not only through our foreign
aid program, but also at home. We tell other countries, use the market:
we tell our farmers, look to Washington. We tell other countries, don't
try to be self-sustained; try to develop valuable industries that can
compete on the international market, and then what do we do? We impose
import quotas on oil, we impose tariffs on goods that come in, we dump
agricultural products abroad, and impose quota on their import at home.
The rest of the world listens to what we say and they think, "now there
is a fine bunch of hypocrites," and they are right.
--from "An Alternative to
Aid: An Economist Urges U.S. to Free Trade, End Grants of Money," April
30, 1962

On Inflation
If the Fed does not explain to
the public the nature of our problem and the costs involved in ending
inflation, if it does not take the lead in imposing the temporarily
unpopular measure required, who will?
--From "Why Curbing
Inflation Is the Fed's Job, March 6, 1974

On Taxes
To summarize, deficits are
bad--but not because they necessarily raise interest rates. They are bad
because they encourage political irresponsibility. They enable our
representatives in Washington to buy votes at our expense without having
to vote explicitly for taxes to finance the largesse. The result is a
bigger government and a poorer nation. That is why I favor a
constitutional amendment requiring Congress to balance the budget and
limit taxation.
--from "The Taxes Called
Deficits," April 24, 1984

On the Economy
The Wall Street Journal has
been a firm and dedicated supporter of free markets at home and free
trade abroad. It has repeatedly stressed its view that the invisible
hand of Adam Smith is a far more effective and equitable means of
organizing economic activity than the visible hand of government. Yet
when it comes to foreign economic policy, a recent editorial, "Beyond
Venice" (June 8), relies upon a wholly different and thoroughly
incompatible set of ideas.
According to that editorial,
"The economic summits of leading free-market nations are a sound
recognition that the world economy defies sovereign borders, and can be
run only through international cooperation."
Would the Journal describe the
American economy as being "run," whether through international
cooperation or by the powers that be in Washington or through
cooperation among the individual states? Or would it rather, in
accordance with its general philosophy, describe it as a system that is
coordinated by the voluntary activities of millions of individuals, a
system that runs but is not run?
--from "Please Reread Your
Adam Smith," June 24, 1987

On Social Security
I have long been a critic of
Social Security, basically because I believe that it is not the business
of government to tell people what fraction of their incomes they should
devote to providing for their own or someone else's old age. On a more
pragmatic level, Social Security is another example of the
generalization that government programs typically have effects that are
the opposite of those intended by their well-meaning sponsors (what Rep.
Richard Armey calls the "invisible foot of government").
The well-meaning sponsors
intended Social Security to ensure a minimum income to the poor in their
old age. It has largely done that, but at the cost of what they would
have regarded as a perverse redistribution of income from the young to
the old, from black to white, from the relatively poor to the relatively
well-to-do.
From its inception, Social
Security has been an unholy combination of two items: a flat-rate tax on
earnings up to a maximum with no exemption and a benefit program that
awards subsidies that have essentially no relation to need but are based
on such criteria as marital status, longevity and recent earnings. As I
wrote many years ago, "hardly anyone approves of either part separately.
Yet the two combined have become a sacred cow. What a triumph of
imaginative packaging and Madison Avenue advertising!"
--from "Social Security: The
General And the Personal," March 15, 1988

On the Future
Let us put aside the scarecrows
of the twin deficits and face up to the real problems that threaten U.S.
growth and prosperity: excessive and wasteful government spending and
taxing, including in particular the real time bomb in Social Security,
Medicare and Medicaid programs; concealed taxes in the form of mandated
expenditures on private business; excessive and misguided regulation of
individuals as well as businesses; the changes in tort legislation that
are discouraging innovation; and not least, the recent increase in
protectionism and the threat of a further major increase. We should and
can do something about these problems, not allow ourselves to be
diverted by politically convenient scarecrows.
--from "Why the Twin
Deficits are a Blessing," Dec. 14, 1988

On Health Care Prices
Toward the end of World War II,
I served as an instructor in a quality-control course for Navy
procurement officers. It was held in Hershey, Pa. As I recall, we stayed
at the Hershey Hotel, on the corner of Cocoa Avenue and Chocolate
Boulevard, across the street from the Hershey Junior College, where the
actual instruction took place, a block or so from the Hershey Department
Store, and so on. You get the idea. The stench--or perfume--of
paternalism was heavy in the air.
Early in the century such
company towns, most far less benevolently paternalistic than Hershey,
were common. Workers who were employed at mines or factories located far
from large cities, in towns that typically had only a single major
employer, were often required, or induced, to live in company housing
and buy their food and other supplies at company stores. In effect, they
were paid in kind rather than in cash--the so-called truck system. . . .
The company town has been
revived in one major area: medical care. It is taken for granted that
workers should receive their pay partly in kind, in the form of medical
care provided by the employer. How come? Why single out medical care?
Surely food is no less essential to life than medical care. Why is it
not at least as logical for workers to be required to buy their food at
the company store as to be required to buy their medical care at the
company store?
--from "Pricing Health Care:
The Folly of Buying Health Care at the Company Store," Feb. 13, 1993

On Jobs
Proposed economic policies tend
to be judged in terms of jobs "created." That is the wrong criterion.
The economic problem is not creating jobs. That is easy: Hire people at
minimum wages (or lower) to dig holes and fill them. True, raising taxes
to finance that project would destroy jobs, but the jobs destroyed would
be high-wage jobs, the jobs created low-wage jobs, so for each job
destroyed more than one job would be created--a net gain of jobs.
The real problem is to
establish an economic environment in which there is a demand for workers
at wages that those workers not only regard as satisfactory, but are
qualified to earn: Better qualified workers and better wages--not simply
more jobs--is the real problem.
--from "Better Workers,
Better Wages: The Real Issue," June 1, 1993

On the Federal Reserve
My favorite "moderate" proposal
for the Fed (my "extreme" proposal is to abolish it) is that (1) at the
beginning of each quarter, have it estimate how much it will have to add
net to its holdings during that quarter to achieve its target monetary
growth; (2) divide that number by 12; and (3) announce that every Monday
morning at 11 a.m. it will buy that amount of securities from the lowest
bidder, and then close up shop until the next Monday, except for
replacing maturing securities.
What harm would that do? It
would mean day-to-day and week-to-week fluctuation in the federal-funds
rate. However, the sophisticated financial markets have surely
demonstrated their capacity to handle wide daily fluctuations in all
kinds of securities prices. Dealing with the fluctuations in the
federal-funds rate would be child's play.
--from "End the Fed's
Fine-Tuning," Sept. 15, 1993

On the Flat Tax
The only way we are ever likely
to get it is if there is a drive for a constitutional convention to
repeal the 16th Amendment (which gives Congress the power to tax income)
and replace it with one mandating a flat-rate tax.
However, I regret that that is
not an immediate prospect.
--from "Why a Flat Tax Is
Not Politically Feasible," March 30, 1995

On Government Spending
The typical rhetoric,
Republican as well as Democratic, about the current battle to balance
the budget is that cutting government spending imposes short-term pain
more than compensated by long-term gain. That is utter nonsense. Cutting
government spending and government intrusion in the economy will almost
surely involve immediate gain for the many, short-term pain for the few,
and long-term gain for all.
--from "Budget Cutting: A
Lot of Gain, Little Pain," June 15, 1995

On Hong Kong
By some accident of
officialdom, the colonial office assigned John Cowperthwaite, a Scotsman
and a disciple of Adam Smith, to serve as financial secretary of Hong
Kong. Cowperthwaite's free market policies are widely credited with
producing the subsequent economic miracle that led to a phenomenal rise
in the average level of living despite a nearly 10-fold rise in
population.
It is hard to conceive of a
more severe test of free market policies. Hong Kong is an island devoid
of any significant natural resources other than a great harbor. When the
Communists took over China, refugees came streaming over the borders
with only the possessions they could carry. They and their successors
produced a rapid rise in population. Hong Kong received negligible if
any foreign aid to assist the assimilation of the refugees.
Under these adverse
circumstances, the salvation of Hong Kong has been its complete free
trade and free market policy. No tariffs on imports, no subsidies or
other privileges to exports. (The only restrictions are those that Hong
Kong has been forced to impose by pressure from other countries,
including the U.S., as under the multifiber agreement.) There is no
fixing of prices or wages; few if any restrictions on entry into
business or trade; and government spending and taxes have been kept low.
The top tax rate on personal income is 25%, with a maximum average rate
of 15%. . . .
What a contrast to the
experience of most of the colonies to which Britain gave their freedom
after the war. And what a striking demonstration of how much better free
trade and free markets are for the ordinary citizen than the
protectionism of Mr. Buchanan and the "fair trade" of President Clinton.
"Fair" is in the eye of the beholder; free is the verdict of the market.
(The word "free" is used three times in the Declaration of Independence
and once in the First Amendment to the Constitution, along with
"freedom." The word "fair" is not used in either of our founding
documents.)
--From "Hong Kong vs.
Buchanan," March 7, 1996

On Health Care
The best way to restore freedom
of choice to both patient and physician and to control costs would be to
eliminate the tax exemption of employer-provided medical care. However,
that is clearly not feasible politically. The best alternative available
is to extend the tax exemption to all expenditures on medical care,
whether made by the patient directly or by employers, to establish a
level playing field, in terms of the currently popular cliche.
Many individuals would then
find it attractive to negotiate with their employer for a higher cash
wage in place of employer-financed medical care. With part or all of the
higher cash wage, they could purchase an insurance policy with a very
high deductible, i.e., a policy for medical catastrophes, which would be
decidedly cheaper than the low-deductible policy their employer had been
providing to them, and deposit all or part of the difference in a
special "medical savings account" that could be drawn on only for
medical purposes. Any amounts unused in a particular year could be
allowed to accumulate without being subject to tax, or could be
withdrawn with a tax penalty or for special purposes, as with current
Individual Retirement Accounts--in effect, a medical IRA. Many employers
would find it attractive to offer such an arrangement to their employees
as an option.
--from "A Way Out of
Soviet-Style Health Care," April 17, 1996

On 'Reform'
The present crisis is not the
result of market failure. Rather, it is the result of governments
intervening in or seeking to supersede the market, both internally via
loans, subsidies, or taxes and other handicaps, and externally via the
IMF, the World Bank and other international agencies. We do not need
more powerful government agencies spending still more of the taxpayers'
money, with limited or nonexistent accountability. That would simply be
throwing good money after bad. We need government, both within the
nations and internationally, to get out of the way and let the market
work. The more that people spend or lend their own money, and the less
they spend or lend taxpayer money, the better.
--from "Markets to the
Rescue," Oct. 13, 1998

On Ronald Reagan
To Mr. Reagan, of course,
holding down government spending was a means to an end, not an end in
itself. That end was freedom, human freedom, the right of every
individual to pursue his own objectives and values so long as he does
not interfere with the corresponding right of others. That was his end
in every phase of his remarkable career.
We still have a long way to go
to achieve the optimum degree of freedom. But few people in human
history have contributed more to the achievement of human freedom than
Ronald Wilson Reagan.
--from "Freedom's Friend,"
June 11, 2004

On Communism
In the almost six decades since
the end of World War II, intellectual opinion in the United States about
the desirable role of government has undergone a major shift. At the end
of the war, opinion was predominantly collectivist. Socialism--defined
as government ownership and operation of the means of production--was
seen as both feasible and desirable. Those few of us who favored free
markets and limited government were a beleaguered minority.
In subsequent decades opinion
moved away from collectivism and toward a belief in free markets and
limited government. By 1980 opinion had moved enough to enable Ronald
Reagan to win the presidency on a quasi-libertarian agenda.
The collapse of the Soviet
Union in 1989 delivered the final blow to the belief in socialism.
Hardly anyone today, from the far left to the far right, regards
socialism in the traditional sense of government ownership and operation
of the means of production as either feasible or desirable. Those who
profess socialism today mean by it a welfare state.
--from "The Battle's Half
Won," Dec. 9, 2004

On School Choice
One result has been
experimentation with such alternatives as vouchers, tax credits, and
charter schools. Government voucher programs are in effect in a few
places (Wisconsin, Ohio, Florida, the District of Columbia); private
voucher programs are widespread; tax credits for educational expenses
have been adopted in at least three states and tax credit vouchers (tax
credits for gifts to scholarship-granting organizations) in three
states. In addition, a major legal obstacle to the adoption of vouchers
was removed when the Supreme Court affirmed the legality of the
Cleveland voucher in 2002. However, all of these programs are limited;
taken together they cover only a small fraction of all children in the
country.
Throughout this long period, we
have been repeatedly frustrated by the gulf between the clear and
present need, the burning desire of parents to have more control over
the schooling of their children, on the one hand, and the adamant and
effective opposition of trade union leaders and educational
administrators to any change that would in any way reduce their control
of the educational system.
--from "Free to Choose,"
June 9, 2005
Forwarded by Erika's sister Nancy
The embers glowed softly, and in their dim light,
I gazed round the room and I cherished the sight.
My wife was asleep, her head on my chest,
My daughter beside me, angelic in rest.
Outside the snow fell, a blanket of white,
Transforming the yard to a winter delight.
The sparkling lights in the tree I believe,
Completed the magic that was Christmas Eve.
My eyelids were heavy, my breathing was deep,
Secure and surrounded by love I would sleep.
In perfect contentment, or so it would seem,
So I slumbered, perhaps I started to dream.
The sound wasn't loud, and it wasn't too near,
But I opened my eyes when it tickled my ear.
Perhaps just a cough, I didn't quite know,
Then the sure sound of footsteps outside in the snow.
My soul gave a tremble, I struggled to hear,
And I crept to the door just to see who was near.
Standing out in the cold and the dark of the night,
A lone figure stood, his face weary and tight.
A soldier, I puzzled, some twenty years old,
Perhaps a Marine, huddled here in the cold.
Alone in the dark, he looked up and smiled,
Standing watch over me, and my wife and my child.
"What are you doing? " I asked without fear,
"Come in this moment, it's freezing out here!
Put down your pack, brush the snow from your sleeve,
You should be at home on a cold Christmas Eve!"
For barely a moment I saw his eyes shift,
Away from the cold and the snow blown drift.
Then he sighed and he said "Its really all right,
I'm out here by choice. I'm here every night."
"It's my duty to stand at the front of the line,
That separates you from the darkest of time.
No one had to ask or beg or implore me,
I'm proud to stand here like my fathers before me.
My Gramps died at 'Pearl on a day in December,"
Then he sighed, "That's a Christmas 'Gram will always remember."
My dad stood his watch in the jungles of 'Nam',
And now it is my turn and so, here I am.
I've not seen my own son in more than a while,
But my wife sends me pictures, he's sure got her smile.
Then he bent and he carefully pulled from his bag,
The red, white, and blue... an American flag.
I can live through the cold and the being alone,
Away from my family, my house and my home.
I can stand at my post through the rain and the sleet,
I can sleep in a foxhole with little to eat.
I can carry the weight of killing another,
Or lay down my life with my sister and brother..
Who stand at the front against any and all,
To ensure for all time that this flag will not fall."
"So go back inside," he said, "harbor no fright,
Your family is waiting and I'll be all right."
"But isn't there something I can do, at the least,
"Give you money," I asked, "or prepare you a feast?
It seems all too little for all that you've done,
For being away from your wife and your son."
Then his eye welled a tear that held no regret,
"Just tell us you love us, and never forget.
To fight for our rights back at home while we're gone,
To stand your own watch, no matter how long.
For when we come home, either standing or dead,
To know you remember we fought and we bled.
Is payment enough, and with that we will trust,
That we mattered to you as you mattered to us."
Forwarded by Michael Moore
Cut and Run, the Only Brave Thing to Do ---
http://www.michaelmoore.com/words/message/index.php?id=202
Jensen Comment
We have to be very brave to retreat from the Middle East. Chances for
nuclear winter become very high indeed as nations going nuclear surround
Israel with full intentions to wipe Israel off the map. It takes a great
deal of courage to encourage our enemies to obtain more and more WMDs and
wait at home with our heads in the sand while Israel stands alone on the
front lines. Michel Moore is good for one liners but he never addresses
serious policy issues like how to end terrorist attacks in Israel or whether
Iran should have its fair share WMDs.
Most chilling of all, could the festering
differences precipitate a military confrontation involving the use of
nuclear weapons? It is known that Israel has a major nuclear arsenal and the
capability to launch weapons quickly, and some neighboring states are
believed to be attempting to acquire their own atomic bombs. Without
progress toward peace, desperation or adventurism on either side could
precipitate such a confrontation.
Jimmy Carter,
Palestine: Peace Not Apartheid
There is no terrorist threat in this country.
This is a lie. This is the biggest lie we've been told.
Michael Moore
If someone did 9/11 to get back at Bush, then
they did so by killing thousands of people who DID NOT VOTE for him! Boston,
New York, DC, and the planes' destination of California - these were places
that voted AGAINST Bush!
Michael Moore
I'm a millionaire, I'm a multi-millionaire. I'm
filthy rich. You know why I'm a multi-millionaire? 'Cause multi-millions
like what I do.
Michael Moore
The Iraqis who have risen up against the
occupation are not 'insurgents' or 'terrorists' or 'The Enemy.' They are the
revolution, the Minutemen, and their numbers will grow - and they will win.
Michael Moore
Jensen Comment
As far as I know British soldiers were not standing between warring "tribes"
of Minutemen killing and torturing each other in unimaginable horror. Once
again Michael proves he's never read a history book --- he probably does not
have the time because he's too busy adding more millions to his millions.
Forwarded by Aaron Konstam
WHY ARE WE BADLY PAID... MATHEMATICALLY PROVEN.
Here is a simple explanation that is also mathematical proof:
Knowledge is Power.
Time is Money.
And, as every engineer knows:
Power = Work / Time
If Knowledge = Power, and Time = Money, then
Knowledge = Work / Money
Solving for Money, we get:
Money = Work / Knowledge
Thus, Money approaches infinity as Knowledge approaches zero, regardless
of the Work done. What this means is:
The Less you Know, the More you Make --- QED
From the Readers Digest, December 2006, Page 153
Flying to Toronto at Crhistmastime, I arrived at the airport
check-in. As the security guard cleared my bags, I noticed a sprig of
mistletoe dangling from him.
"What's the mistletoe for?" I asked.
"That?" He smiled. "That's so you can kiss your luggage goodbye."
Professor Robert E. Jensen (Bob)
http://www.trinity.edu/rjensen
190 Sunset Hill Road
Sugar Hill, NH 03586
Phone: 603-823-8482
Email:
rjensen@trinity.edu
My close friends Lon and Nancy Hendersen own the Sunset Hill House down the road from our cottage. There are assorted cross country ski trails up here. The above picture is in their slide show at http://www.sunsethillhouse.com/
Congratulations to Kate Lopez and Trinity University
I want to congratulate Kate Lopez on her recent acceptance of an offer to join the accounting faculty at Trinity University. Kate is finishing her PhD at the University of Texas in San Antonio. Kate was one of my star students in Trinity's undergraduate and masters accounting programs. She joined Arthur Andersen and worked as a CPA auditor and an arbitrage consulting expert right up to the day Andersen closed its doors in San Antonio. She consulted me about her options for the future. With a new baby and her husband and father in business together in San Antonio there were difficulties for her to travel out of town to earn a doctoral degree.
I recommended that she look into applying for the new accounting doctoral program starting up at UTSA. The rest is history. She's done very well and is quite happy with UTSA's program. I anticipate that you will learn much more about this very talented young woman who's joining the Academy. Years ago as an undergraduate she paid close attention when I explained why I was blessed to have fallen into (more accurately skied into) the career of being an accounting educator.
Kate's been teaching accounting part time at Trinity for the past two years. Now she's stepped onto the tenure track.
And Congratulations to Some Old Folks at the Other End of Trinity's Tenure Track
November 30, 2006 message from Dan Walz
Please join me in congratulating Dick Burr (Business Statistics) for being ranked as the top professor for teaching at Trinity University and Petrea Sandlin (Accounting) for being ranked number 3 in Scene in SA Monthly. This is quite an honor! Open the pdf file below to see more.
Dan
--------------------------------------------------------------------------------
Tidbits on December 1, 2006
Bob Jensen
For earlier editions of Tidbits go to http://www.trinity.edu/rjensen/TidbitsDirectory.htm
For earlier editions of New Bookmarks go to http://www.trinity.edu/rjensen/bookurl.htm
Click here to search Bob Jensen's web site if you have key words to enter --- Search Site.
For example if you want to know what Jensen documents have the term "Enron" enter the phrase Jensen AND Enron. Another search engine that covers Trinity and other universities is at http://www.searchedu.com/.
Bob Jensen's past presentations and lectures --- http://www.trinity.edu/rjensen/resume.htm#Presentations
Bob Jensen's Home Page is at http://www.trinity.edu/rjensen/
--------------------------------------------------------------------------------
Bob Jensen's blogs and various threads on many topics --- http://www.trinity.edu/rjensen/threads.htm
(Also scroll down to the table at http://www.trinity.edu/rjensen/ )
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Online Video, Slide Shows, and Audio
In the past I've provided links to various types of music and video available free on the Web.
I created a page that summarizes those various links --- http://www.trinity.edu/rjensen/music.htm
George Clooney and Oprah plead for an end to genocide in Darfur --- http://www.theirc.org/resources/george-clooney-visit-chad-sudan.html
The incoming House Ways and Means Chairman plays loose with the facts by greatly exaggerating African American/ Hispanic disproportions in what turns out to be our mostly white volunteer army ---
http://online.wsj.com/public/page/8_0004.html?bcpid=86195573&bclid=212338097&bctid=336010655
Hillary vs. Condi Ho Down (turn up your speakers) --- Click Here
She's Ready (Hillary Dances) --- Click Here
Hundreds of Clips from Canadian Broadcasting Corporation --- http://archives.cbc.ca/index.asp?IDLan=1
Video Nation (from the United Kingdom) --- http://www.bbc.co.uk/videonation/
Voices on Genocide Prevention (audio) --- http://www.ushmm.org/conscience/podcasts/
PC World's Digital Duo Videos --- http://www.pcworld.com/digitalduo/video/224-0/video.html
Who Wants to Be a Millionaire Game --- http://abc.go.com/games/millionairetv/game/
Audio interview with two articulate Israeli women --- www.israelthisweek.org.
Great Skinny Dip --- http://www.metacafe.com/watch/303513/check_before/
Frank Sings Strangers on My Flight --- http://www.beecy.net/frank/
David Letterman's selection of great presidential moments --- http://www.youtube.com/watch?v=uA0CMb8EoNk
--------------------------------------------------------------------------------
Free music downloads --- http://www.trinity.edu/rjensen/music.htm
Sammy Davis Song and Dance Man --- http://www.npr.org/templates/story/story.php?storyId=6522104
From Jessie
If the sound does not commence after 30 seconds, scroll to the bottom of the page.
You Had Me from Hello --- http://www.jessiesweb.com/fromhello.htm
If I Should Ever Fall Behind --- http://www.jessiesweb.com/fallbehind.htm
Paint the Sky With Stars --- http://www.jessiesweb.com/paint.htm
Have a Little Faith in Me --- http://www.jessiesweb.com/faith.htm
Good Morning Beautiful --- http://www.jessiesweb.com/beauty.htm
Thank You for Loving Me --- http://www.jessiesweb.com/thankyou.htm
Morning Has Broken --- http://www.jessiesweb.com/morningbroken.htm
Holding All My Love for You --- http://www.jessiesweb.com/madworld.htm
Nothing Can Keep Me From You --- http://www.jessiesweb.com/dreams.htm
Love Me --- http://www.jessiesweb.com/beforeido.htm
The River --- http://www.jessiesweb.com/river.htm
Whiskey Bar --- http://www.jessiesweb.com/whiskeybar.htm
From Janie
Elvis singing Memories --- http://mjbreck.com/elvismagicofmemoriesbyjbw.html
From Janie (more Elvis) --- http://mjbreck.com/JanieandElvisFromTheresa.html
Ravi Shankar, Master of the Sitar --- http://www.npr.org/templates/story/story.php?storyId=4578267
Sanjay Mishra: A Cross-Cultural Exploration in Music --- http://www.npr.org/templates/story/story.php?storyId=6502991
The Psychedelic Debut of Jimi Hendrix --- http://www.npr.org/templates/story/story.php?storyId=6491823
OK Go, French Kicks in Concert from D.C. --- http://www.npr.org/templates/story/story.php?storyId=6486100
Tom Waits: The Whiskey Voice Returns --- http://www.npr.org/templates/story/story.php?storyId=6519647
Taylor Fights, Then Follows, Parents' Musical Path --- http://www.npr.org/templates/story/story.php?storyId=6513773
--------------------------------------------------------------------------------
Photographs and Art
The politically correct Iwo Jima --- http://www.goodolddogs3.com/If-IwoJima-Happened2day.html
Waiting for the Season: Celebrating Wildflowers http://www.fs.fed.us/wildflowers/
Kenneth Parker Photographs --- http://www.kennethparker.com/
Wild Things Photography --- http://www.wildthingsphotography.com/detected.php?page=&pass=
Off The Map [Art] --- http://www.pbs.org/independentlens/offthemap/
Time Magazine's historic photos of the most popular 100 musicians of all time ---
http://www.time.com/time/photoessays/2006/all_time_100/
--------------------------------------------------------------------------------
Online Books, Poems, References, and Other Literature
In the past I've provided links to various types electronic literature available free on the Web.
I created a page that summarizes those various links --- http://www.trinity.edu/rjensen/ElectronicLiterature.htm
Yale Book of Quotations (great but not an online freebie) --- http://yalepress.yale.edu/yupbooks/book.asp?isbn=0300107986
This is favorably reviewed by Scott McLemee in "Quote Unquote," Inside Higher Ed, November 29, 2006 --- http://yalepress.yale.edu/yupbooks/book.asp?isbn=0300107986
Bob Jensen's links to free quotations are at http://www.trinity.edu/rjensen/ElectronicLiterature.htm#Quotations
Ocean Flowers: Anna Atkins’s 19th Century Cyanotypes of British Algae --- Click Here
Phantasmagoria and Other Poems by Lewis Carroll (1832-1898) --- Click Here
The Adventure of the Blue Carbuncle by Arthur Conan Doyle (1859-1930) --- Click Here
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
You've got to be taught to hate and fear
You've got to be taught from year to year
It's got to be drummed in your dear little ear
You've got to be carefully taught
You've got to be taught to be afraid
Of people whose eyes are oddly made
And people whose skin is a different shade
You've got to be carefully taught
You've got to be taught before it's too late
Before you are six or seven or eight
To hate all the people your relatives hate
You've got to be carefully taught You've got to be carefully taught
Rogers and Rodgers and Hammerstein in South Pacific
Parents have forced a school trip to a mosque to be abandoned because they objected to their children learning about Islam. Atwood Primary in Croydon was forced to call off a Year 5 class visit to a mosque after nearly a third of parents refused to give consent.
"Class trip to mosque blocked by parents," Canada's Daily Mail, November 22, 2006 --- Click Here
Episcopalians tend to be better-educated and tend to reproduce at lower rates than some other denominations
(e.g., Roman Catholic and Mormon churches that tend to encourage large families)
Bishop Katharine Jefferts Schori, the first woman to head the US Episcopal Church (ECUSA) --- http://www.lifesite.net/ldn/2006/nov/06112106.html
Jensen Comment
I can't believe Bishop Schori made such a statement! She does confirm why Episcopalians, being more educated, are more unfit for military service than prolific and uneducated Roman Catholics who support Senator Kerry and Representative Rangel..
MUSLIM terrorists are no more likely to come from places with large Islamic populations than anywhere else, according to Manchester academics. Dr Ludi Simpson and Dr Nissa Finney studied media reports to map the location of suspects charged under anti-terror laws. The Manchester university researchers found that the proportion of people who have been charged is no greater in areas with large Muslim populations.
Seb Ramsay, "Large Muslim areas 'not breeding grounds for terror'," The U.K Manchester Evening News, November 22, 2006 --- Click Here
With Baghdad shaken by daily outbreaks of sectarian violence, in Iraq's western al-Anbar province, groups of former Iraqi Baathists are battling armed Islamist groups for control of this largely desert region near the Syrian border . . . The former Baathist fighters are believed to be relatively secular while their opponents share al-Qaeda's dream of establishing an Islamic caliphate in Iraq which will then be a launchpad for carrying out attacks around the Middle East.
Maher al-Jasem, "Sunni face new conflict in Iraq war," Al Jazeera, November 24, 2006 --- Click Here
Libyan leader Moammar Gadhafi Sunday accused the West of trying to grab Sudan's oil wealth with its plan to send U.N. troops to Darfur and urged Khartoum to reject them. "Western countries and America are not busying themselves out of sympathy for the Sudanese people or for Africa but for oil and for the return of colonialism to the African continent," he said.
"Gadhafi: U.N. Darfur force is ruse to grab Sudan's oil," CNN News, November 19, 2006 --- Click Here
Jensen Comment
Yeah Right! George Clooney and Oprah secretly conspired with Bush and Cheney to grab the oil wells. See the video for yourself at http://www.theirc.org/resources/george-clooney-visit-chad-sudan.html
The news is that two years after we've said "genocide" that it's still going on and it's increasing — and that somewhere in there we can all talk about this and make speeches and say this is horrible and we have to do something. But every day we don't do something, and every day this goes on, thousands of people are dying and dying horrific deaths . . . Here's the thing: We always see this now. We have tragedy fatigue on television. Every day, 20 kids [are] killed in Iraq or, you know, there's always disaster. Pakistan, Afghanistan, there's always horrible disaster in Nepal now. But this is genocide, and if everybody just got up right now out of their chair and picked up a phone and called their congressman, or called the number that registered with the president, it makes a difference. It always has.
Oscar Winning George Clooney, ABC News, April 30, 2006 --- Click Here
Clooney On Darfur | September 15, 2006 (Video)
We all condemn terrorism, because its victims are the innocent. But, can terrorism be contained and eradicated through war, destruction and the killing of hundreds of thousands of innocents? If that were possible, then why has the problem not been resolved?
Mahmoud Ahmadinejad, "Letter to the American People," President of the Islamic Republic of Iran, November 29, 2006 --- http://www.blogsofwar.com/2006/11/29/mahmoud-ahmadinejads-letter-the-american-people/
“Americans are going to be very puzzled by it (Mahmoud Ahmadinejad's, "Letter to the American People,") ,” said William Beeman, a linguistic anthropologist at Brown University who specializes in Persian. “People are simply not used to being talked to this way.” He added, “It is almost a sermon, which is very much in keeping with his religious background. But I should also point out it is also a lecture.” The letter reminded Americans that “many victims of Katrina continue to suffer, and countless Americans continue to live in poverty and homelessness.” It also lamented: “Civil liberties are increasingly being curtailed. Even the privacy of the individuals is fast losing its meaning.” The president made no reference to the level of poverty, political freedom or judicial independence in his own country.
Michael Slackman, "Iran’s President Criticizes Bush in Letter to American People," The New York Times, November 30, 2006 --- http://www.nytimes.com/2006/11/30/world/middleeast/30iran.html?_r=1&oref=slogin
Anybody who recognizes Israel will burn in the fire of the Islamic nation's fury.
Mahmoud Ahmadinejad --- http://en.thinkexist.com/quotes/mahmoud_ahmadinejad/
Powerful Iran is the best friend of the neighboring states and the best guarantor of regional security
Mahmoud Ahmadinejad
Our religion prohibits us from having nuclear arms and our religious leader has prohibited it from the point of view of religious law. It's a closed road.
Mahmoud Ahmadinejad
We believe that atomic energy is a blessing given by God.
Mahmoud Ahmadinejad
Iran is ready to transfer nuclear know-how to the Islamic countries due to their need.
Mahmoud Ahmadinejad
As the Imam (Ayatollah Khomeini) said, Israel must be wiped off the map.
Mahmoud Ahmadinejad
Jensen Comment
There are academic disputes over the translation of this threat --- http://en.wikipedia.org/wiki/Mahmoud_Ahmadinejad_and_Israel
A synopsis of Mr Ahmadinejad's speech on the Iranian Presidential website states:
He further expressed his firm belief that the new wave of confrontations generated in Palestine and the growing turmoil in the Islamic world would in no time wipe Israel away (however interpreted) --- http://en.wikipedia.org/wiki/Mahmoud_Ahmadinejad_and_Israel
They say it is not possible to have a world without the United States and Zionism. But you know that this is a possible goal and slogan.
Mahmoud Ahmadinejad
CNN host Glenn Beck criticizes the rest of the Western media, including by implication his own station CNN, for drastically failing to properly report on Islamic extremism. This documentary, screened on the American (but not so far on the international) version of CNN --- http://www.youtube.com/watch?v=3PWIK8YTZS8
Researchers have been scouring rivers in Europe and the US for traces of cocaine consumption. The result: Cocaine use is probably much greater than previously assumed -- and New Yorkers are the biggest coke-heads of all.
Markus Becker, "New York Blows Away the Competition," Spiegel (Germany), November 23, 2006 --- http://www.spiegel.de/international/0,1518,450078,00.html
The radioactive poison used to kill the former Russian spy Alexander Litvinenko is being offered for sale over the internet for less than £40. A company in the US claims to supply polonium-210 to anyone for just $69 plus postage and packing. A three-pack set of “alpha, beta, gamma” radioactive isotopes also includes polonium-210. United Nuclear, based in Albuquerque, New Mexico, tells purchasers: “If you’re looking for clean, accurate, certified radiation sources, here they are. . . All isotopes are produced fresh in a nuclear reactor and shipped directly to you.”
Tony Halpin in Moscow, "Polonium-210? it's yours for $69, no questions asked," London Times, November 30, 2006 --- http://www.timesonline.co.uk/article/0,,2-2478908.html
Jensen Comment
This makes little sense since coming near this radiation is dangerous to postal workers and other innocent people who get near the package.
Be unselfish: respect the selfishness of others.
Stanislaw Jerzy Lec (1909-1966) --- Click Here
A patriot must always be ready to defend his country against his government.
Edward Abbey
This world is a comedy for those who think but a tragedy for those who feel.
Horace Walpole
Be nice to people on your way up because you'll meet them on your way down.
Wilson Mizner (1876-1933) --- Click Here
Never mind those promised reforms
The reception thrown by Nancy Pelosi at the Capitol a week after the Democrats prevailed in congressional elections was a party some power players had been waiting more than a decade to attend. The fête was for newly elected freshmen lawmakers, but Pelosi's invited guests included big-name Democratic lobbyists like Jack Quinn, Tony Podesta and Steve Elmendorf. Said a partygoer: "I thought to myself, they're all back, all the same old faces. It was just like old times." . . . Who will win the coming battle between reformers and revanchists? The market is betting against reform. Demand for anyone with access to powerful Democrats on the Hill is soaring. Lobbyists who couldn't get a meeting (before the election) are suddenly a hot commodity. "I've gotten a lot of calls from headhunters in the last two months," says Florence Prioleau, a lobbyist who has maintained close ties with her former boss, New York's Charles Rangel, incoming chairman of the Ways and Means Committee. Pelosi's former chief of staff, George Crawford, has just been hired by Amgen, a biotech company, to represent its interests with the new Congress.
Massimo Calabresi, "When the Democrats Take Back K Street: Democratic lobbyists are enjoying a comeback after 12 years of exile. Never mind those promised reforms," Time Magazine, November 26, 2006 --- Click Here
The City Council here voted late Tuesday to ban certain giant retail stores, dealing a blow to Wal-Mart Stores Inc.'s potential to expand in the nation's eighth-largest city. The measure, approved on a 5-3 vote, prohibits stores of more than 90,000 square feet that use 10 percent of space to sell groceries and other merchandise that is not subject to sales tax.
Elliot Spagat, "San Diego to Ban Wal-Mart Supercenters," Yahoo News, November 29, 2006 --- http://biz.yahoo.com/ap/061129/wal_mart_supercenter_ban.html?.v=4
Jensen Comment
Think of how much better off residents of San Diego will be as a result of this decision supposedly in their best interests. I wonder what would happen if the choice was put to a test in a referendum? The entire state of Vermont banned new Wal-Mart stores of any kind, and now I can't get into my closest New Hampshire Wal-Mart (ten miles away in Littleton) because most of the cars in the overflowing parking lot have green license plates. Claiming that sales tax revenue in San Diego and Vermont will increase without Wal-Mart stores is phony to the point of being fraudulent. The real reason is that local business interests can't compete with Wal-Mart --- which is a much more legitimate argument but it won't sell with voters. I might add that the lowest paying workers are those clerks in small retail stores. These exploited workers would have much better salaries and benefits working for Wal-Mart. But from a selfish standpoint, I hope that my little village never allows any store to have more than 50 square feet. We have only one Sugar Hill store to date (an old fashioned cheese and venison store). One little store's enough for our village as far as I'm concerned. I'd vote against Wal-Mart if it ever came to a vote in Sugar Hill. But then I'd also vote against any new store in Sugar Hill. But I was all in favor of more and more Wal-Mart Supercenters when I lived in San Antonio, because more Wal-Marts beside the many Super K-Marts and other giant stores are not going to affect the ambiance of San Antonio (or San Diego).
The essay — in his collection There’s No Such Thing as Free Speech — ought to be more notorious still. According to Fish, academics will do anything to distinguish themselves from “the realities of the marketplace.” One of whose realities, I am suggesting here, is that bosses do exist in both realms. Perhaps we can’t abide a vocabulary of bosses because the need to distinguish ourselves from the world of business is so crucial. Or, more interestingly, perhaps we already have enough oppression. “In the psychic economy of the academy,” Fish explains, “oppression is the sign of virtue. The more victimized you are, the more subject to various forms of humiliation, the more you can tell yourself that you are in proper relation to the corrupted judgment of merely worldly eyes.”
Terry Caesar, "Who’s the Boss?" Inside Higher Ed, November 21, 2006 ---
http://www.insidehighered.com/views/2006/11/21/caesar
It’s a funny old world. Chinese manufacturers are copying the circuit boards and designs of products from Japan and Korea, and they’re doing it so fast that by the time the originals arrive in the marketplace, they’re seen as the fakes! China is a land of endless factories, with many pumping out the world’s most desirable gadgets, from iPods to portable computers to digital cameras and much more.
Alex Zaharov-Reutt, "Fake chinese electronics selling better than the originals!" ITWire, November 27, 2006 --- http://www.itwire.com.au/content/view/7483/52/
A state office that oversaw a series of controversial charities tied to African-American legislators is being scrutinized by the FBI, Gov. Kathleen Blanco’s office confirmed Tuesday in announcing that it had complied with a subpoena for records from the department. “The governor’s office staff has complied with the FBI’s request for information dating back to 1996 regarding certain programs funded by the former Office of Urban Affairs,”
Gordon Russell, Jan Moller and James Varney, New Orleans Times Picayune, November 22, 2006 --- Click Here
Jensen Comment
Government programs are always ripe for the plucking by ex-generals and criminal politicians, most especially Louisiana politicians who've been notoriously corrupt since the Louisiana Purchase in 1803. Crime just grows and grows hand-in-hand with government programs and Louisiana seems to steal more than its fair share from Federal programs. For Louisiana criminals, of all races, Katrina was indeed a perfect storm.
Each place has its own advantages - Heaven for the climate and Hell for society.
Mark Twain
A church that wanted to do something special for Hurricane Katrina victims gave a $75,000 house, free and clear, to a couple who said they were left homeless by the storm. But the couple turned around and sold the place without ever moving in, and went back to New Orleans. "Take it up with God," an unrepentant Joshua Thompson told a TV reporter after it was learned that he and the woman he identified as his wife had flipped the home for $88,000. Church members said they feel their generosity was abused by scam artists . . . The church was also shocked by an ungrateful interview the couple gave with WHBQ-TV in Memphis. "I really don`t like this area," said Delores Thompson. "I really didn`t, and I didn`t know anybody, so that`s why I didn`t move in and I sold it."
"2 unrepentant about selling Katrina gift," The Angola Press, November 22, 2006 ---
http://www.angolapress-angop.ao/noticia-e.asp?ID=489462
Also see http://community.myfoxmemphis.com/blogs/category/NEWS
"They came in humble like they really needed a new start, and our hearts went out to them," said Jean Phillips, a real estate agent and member of the Temple of Deliverance Church of God in Christ. "They actually begged for the home." . . . "Do I have any legal problems? What do you mean? The house was given to me," Delores Thompson said. "I have the paperwork and everything." She refused further comment and hung up.
WTOP --- http://www.wtop.com/?nid=104&sid=982862
Jensen Comment
We can only hope that God takes it up with scammers like Joshua and Delores Thompson. If we could get a glimpse of them ten years from now my guess is that they will not be so proud and happy that they scammed the Good Samaritans. It would be fantastic if they prospered and became reformed Good Samaritans themselves --- but in the meantime don't hold your breath!
British criminal psychologists are putting together a list of the 100 most dangerous murderers and rapists before they have committed any such crimes, The Times said.
"British police targeting would-be criminals before they offend," PhysOrg, November 27, 2006 ---http://physorg.com/news83838079.html
Jensen Comment
In the U.S., our ACLU would never tolerate such a crime prevention move even against our even our most threatening criminals.
And contrary to the United Nations resolutions, contrary to the official policy of the United States government, contrary to the Quartet so-called road map, all of those things – and contrary to the majority of Israeli people's opinion – this occupation and confiscation and colonization of land in the West Bank is the prime cause of a continuation of violence in the Middle East," he said.
"Carter blames Israel for Mideast conflict: 'Domination' over Palestinians 'atrocious,' ex-prez tells 'Good Morning America'," WorldNetDaily, November 27, 2006 --- http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53120
Carter's book "Palestine: Peace Not Apartheid" is so biased that it inevitably raises the question of what would motivate a decent man like Jimmy Carter to write such an indecent book. Whatever Mr. Carter's motives may be, his authorship of this ahistorical, one-sided, and simplistic brief against Israel forever disqualifies him from playing any positive role in fairly resolving the conflict between Israel and the Palestinians. That is a tragedy because the Carter Center, which has done much good in the world, could have been a force for peace if Jimmy Carter were as generous in spirit to the Israelis as he is to the Palestinians.
Alan M. Dershowitz, (Harvard Law School). New York Sun, November 22, 2006 --- http://www.nysun.com/article/43958
A knowledgeable Lebanese-American casts even more doubt on Carter's scholarship
see http://www.wnd.com/news/article.asp?ARTICLE_ID=53154
Also see http://www.jewishvirtuallibrary.org/jsource/reviews/carter.html
One of the most nefarious elements in the book is Carter’s effort to paint Israel as hostile to Christians. He repeatedly refers to “Christians and Muslims” rather than simply the Palestinians in a transparent effort to suggest that Israeli actions were harming Christians and not just Muslims or Arabs. He claims, for example, that “many priests and pastors” were disturbed by the control of Israeli religious parties over “all forms of worship.” On a visit to Jerusalem in 1990, he said he met with a variety of Christian leaders who he said complained of various abuses. He doesn’t offer a single specific example, but tars Israel with bigotry. He then says that Prime Minister Shamir told him that religious parties had authority over all religious matters because of the needs of the coalition government. Carter says that this conversation made him understand why “there was such a surprising exodus of Christians from the Holy Land.”
These charges are so vile they require a more substantial response. First, while Christians are unwelcome in Islamic states such as Saudi Arabia, and most have been driven out of their longtime homes in Lebanon, Christians continue to be welcome in Israel. Christians have always been a minority in Israel, but it is the only Middle East nation where the Christian population has grown in the last half century (from 34,000 in 1948 to 145,000 today), in large measure because of the freedom to practice their religion.
The "progressive" media grows angry with Democrats who do not endorse Jimmy Carter's rage toward Israel
Instead, Democrats are shoring up their pro-Israel bona fides. They are strikingly anxious because of a courageous new book by President Jimmy Carter that hit American bookstores in mid-November, Palestine: Peace Not Apartheid.
Michael F. Brown, "Dems Rebut Carter on Israeli 'Apartheid'," The Nation, November 20, 2006 --- http://www.thenation.com/doc/20061204/brown
Jensen Comment
I don't find solutions in Carter's book that have not already been advocated and tried even by Israel. Carter insists on Israel's right to exist. He's a man a peace who does not advocate wiping out Israel. Liberals who like to be called "progressives" advocate cessation of military and economic backing of Israel. Do progressives really want Israel so wounded and dying that Israel seriously considers resorting to its huge nuclear arsenal. As usual, the "progressives" are long on criticism but short on alternatives. So is Jimmy Carter. Finding solutions is not nearly as much fun as finding fault.
Most chilling of all, could the festering differences precipitate a military confrontation involving the use of nuclear weapons? It is known that Israel has a major nuclear arsenal and the capability to launch weapons quickly, and some neighboring states are believed to be attempting to acquire their own atomic bombs. Without progress toward peace, desperation or adventurism on either side could precipitate such a confrontation.
Jimmy Carter, Palestine: Peace Not Apartheid
A joint paratrooper and Shin Bet force uncovered an explosive lab in Nablus Friday night. In the lab, the forces found teddy bears with wires hanging from them, apparently slated to be used as explosive devices . . . Captain Assaf Cabra, a company commander at the Haruv battalion, addressed the operation at the time: "We launched a regimental operation in Nablus, which included searches, seizing weapons and arrests. We uncovered the explosive lab in the casba, which contained between 40 to 50 kilograms (88 to 110 pounds) of explosives for preparing explosive devices."
"Nablus: Explosive teddy bears found in lab," YNet News, November 25, 2006 --- http://www.ynetnews.com/articles/0,7340,L-3332360,00.html
Jensen Comment
When the teddy bears blow up in the faces of children, Jimmy Carter reminds them that their parents really caused the pain and suffering. In fairness, Israel's recklessness has killed and maimed children in Palestine. But it is a particularly vile deed to deliberately plant explosives in toys for children.
Denmark, once the symbol of a welcoming welfare state, is becoming part of an anti-immigrant backlash sweeping across Europe. Sentiments once associated with ultra right-wing parties are becoming mainstream.
Sylvia Poggioli, "Danes' Anti-Immigrant Backlash Marks Radical Shift," NPR, November 20, 2006 --- http://www.npr.org/templates/story/story.php?storyId=6505809
French presidential candidate Jean-Marie Le Pen is drawing support again this year for his anti-immigrant stance. The extreme-right politician is pushing for a welfare system that favors indigenous French . . . Immigration -- code for Muslim immigration -- was the convention's hot-button issue.
Sylvia Poggioli, "Anti-Immigrant Policy Boosts France's Le Pen Again," NPR, November 22, 2006 --- http://www.npr.org/templates/story/story.php?storyId=6522463
The second element is definitiveness. Our political figures say they have to concentrate on an overall, long-term, comprehensive answer to the immigration problem. So they huff and puff about the long-term implications of this move or that, and in the end they do nothing. They are like people in a burning house who sit around discussing the long-term efficacy of various kinds of water hoses while the house burns down around them.
Peggy Noonan, "What Grandma Would Say: We don't need to solve the immigration problem forever. We need to solve it now," The Wall Street Journal, November 24, 2006 --- http://www.opinionjournal.com/columnists/pnoonan/?id=110009288
With political junkies looking ahead to the 2008 presidential race, two of the names often mentioned as leading contenders for the GOP nomination – John McCain and Rudy Giuliani – are being called "disastrous" for the Republican Party by Rep. Tom Tancredo, R-Colo. Both of those individuals, of course, would be disastrous for us for a variety of reasons, not the least of which is their position on immigration, which is to open the border," Tancredo told WND in an exclusive interview.
Joe Kovacs, "Tancredo: McCain, Giuliani would be disastrous for GOP," WorldNetDaily, November 22, 2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53039
Jensen Comment
Senator McCain's "open border stance," like a lot of his stances, is no more solid than flubber. He voted both times to build the border fence despised by Mexico and favored heavily by his Arizona constituency. To see how the U.S. Senate (Republicans and Democrats alike) voted overwhelmingly to build a useless wall between the U.S. and Mexico, go to http://www.trinity.edu/rjensen/book06q4.htm#BorderFence
Since being for an open border will be political suicide for the 2008 elections, it's entertaining to watch Congress dance the proverbial sidestep. The great majority of our legislators will proudly point to their votes in favor of building a border wall and then find all sorts of excuses not to fund the actual construction. Even more of a hot potato will be amnesty for millions of illegal immigrants already residing in the U.S. I favor a one-time amnesty coupled with elimination of citizenship of babies born to on U.S. soil to mothers who are not citizens. Bush strongly supports amnesty and citizenship to all babies born in the U.S. in the face of overwhelming opposition among voters. Counterfeiters are now cranking out thousands of phony birth certificates daily in anticipation of bringing in more more parents from Mexico. This will be a booming business until babies are not granted automatic citizenship regardless of citizenship status of the parents.
Half of the 91,516 illegal aliens from terror-sponsoring countries and those of "special interest" apprehended at the border between 2001 and 2005 were released into the U.S. population, according to a report by the inspector general's office of the Department of Homeland Security. The report, "Detention and Removal of Illegal Aliens," released earlier this year with little fanfare or attention, suggests about 85 percent of those aliens – potentially the most dangerous – would abscond and likely never be seen by authorities again. Acknowledging the danger such aliens pose to the national security, the report cites a DHS official testifying that terrorist organizations "believe illegal entry into the U.S. is more advantageous than legal entry for operations reasons."
"45,000 terror-threat illegals released into U.S. population: Half from countries of 'special interest' let go between 2001, 2005, says report," WorldNetDaily, November 29, 2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53151
A South African man has been fined $140 for taking a week off work, telling his employers he was pregnant. Charles Sibindana, 27, stole a certificate from a clinic during his pregnant girlfriend's checkup, a court near Johannesburg heard. He then added his own details to the note and submitted it and took seven days off work, seemingly unaware that only women consult gynaecologists (sic) . His employers became suspicious and investigated the matter.
"'Pregnant' man fined in SA court," BBC News, November 28, 2006 --- http://news.bbc.co.uk/2/hi/6190772.stm?lspan
Jensen Comment
This sort of dashes his hopes for maternity leave, but he might still conjure up a miracle by moving to New Orleans.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
A Primer on Electronic Communication
Often enough we are faced with a question that can best be answered by someone else, possibly a complete stranger. The upside of the Internet is that we can quickly contact folks without much effort. The downside of the Internet is that people can contact us without much effort. This reality is very present in academe today — where senior professors constantly gripe about being overwhelmed by inappropriate e-mail, to the point where some hide their e-mail addresses. Graduate students and researchers of all kinds, meanwhile, agonize over how to approach an eminent scholar with a query, and trade strategies for actually getting an answer.
Eszter Hargittai, "A Primer on Electronic Communication," Inside Higher Ed, November28, 2006 --- http://www.insidehighered.com/workplace/2006/11/28/hargittai
November 29, 2006 reply from Scott Bonacker [aecm@BONACKER.US]
That is good - thanks for posting the link.
Here's another one - http://catb.org/%7Eesr/faqs/smart-questions.html
The subject of this one is different, but the procedures are intended to reach the same result.
Scott Bonacker, CPA
Springfield, Missouri
"How To Ask Questions The Smart Way" by Eric Steven Raymond http://catb.org/%7Eesr/faqs/smart-questions.html
--------------------------------------------------------------------------------
Question
What radio broadcast had the largest audience in history?
You can listen to it here --- http://www.npr.org/templates/story/story.php?storyId=6515548
The 1938 boxing rematch between American Joe Louis and German Max Schmeling is believed to have had the largest audience in history for a single radio broadcast. In 2005, the Library of Congress selected it for the National Recording Registry.
"The Fight of the Century: Louis vs. Schleming," NPR, November 25, 2006 ---
http://www.npr.org/templates/story/story.php?storyId=6515548
--------------------------------------------------------------------------------
2006 Update on WorldCom Fraud
U.S. Judge Denise Cote of the U.S. Court for the Southern District of New York said the distribution should be made "as soon as practicable." More than one dozen investment banks, including Citigroup Inc. and JPMorgan Chase & Co., agreed to pay about $6.15 billion to resolve allegations that they helped WorldCom sell bonds when they should have known the phone company was concealing its true financial condition. The remaining balance from available settlement funds will continue to accrue interest until other claims are processed and disputed claims are resolved, Cote said in her four-page order.
"Judge OKs $4.52 bln payout to WorldCom investors," Reuters, November 29, 2006 --- Click Here
2005 Update on WorldCom Fraud
Former WorldCom Investors can now claim back some of the billions of dollars they lost in a massive accounting fraud, after a federal judge approved legal settlements of "historic proportions." The deal approved Wednesday by U.S. District Judge Denise Cote, will divide payments of $6.1 billion among approximately 830,000 people and institutions that held stocks or bonds in the telecommunications company around the time of its collapse in 2002.
Larry Neumeister, "Judge OKs $6.1B in WorldCom Settlements," The Washington Post, September 22, 2005 --- http://snipurl.com/WorldcomSettlement
University of California gets a settlement from Citigroup as part of its losses in the WorldCom accounting scandal
Citigroup has agreed to pay the University of California more than $13 million to settle a lawsuit over liability for the university’s investments in WorldCom, a company that collapsed in 2002. The university sued over inaccurate analyses of WorldCom, which led UC to pay more than it would have otherwise to buy stock in the company.
Inside Higher Ed, April 7, 2006 --- http://www.insidehighered.com/news/2006/04/07/qt
The WorldCom audit by Andersen is arguably the worst audit in history. Bob Jensen's threads on the WorldCom scandal are at http://www.trinity.edu/rjensen/FraudEnron.htm#WorldCom
--------------------------------------------------------------------------------
Question
What do professors think are the top accounting education programs in the U.S.?
The Public Accounting Report on October 30, 2006 published its rankings of the universities having the top undergraduate, masters, and doctoral programs in accounting. The University of Texas hung on to the top rankings in all three categories --- http://www.mccombs.utexas.edu/news/pressreleases/PAR_06.pdf
Of course these rankings are subject to all the criticisms of college rankings in general --- http://www.trinity.edu/rjensen/HigherEdControversies.htm#BusinessSchoolRankings
Be that as it may, these rankings are very important for both fund raising and student recruiting activities.
--------------------------------------------------------------------------------
AHP = Analytic Hierarchy Process
November 15, 2006 message from Al-Mashari Gmail
I hope that you are doing well. Could you, please, send me your papers and any related references that use AHP especially in the computer filed. As I'm interested in this filed.
Thanks in advance for your expected cooperation.
Yours B. Al-Mashari
November 20, reply from Bob Jensen
I’m sorry that most of those old, like me, Analytic Hierarchy Process papers were discarded when I moved across the U.S. to my retirement cottage.
I am able to attach my unpublished Working Paper 127 entitled “COMPARISONS OF EIGENVECTOR, LEAST SQUARES, CHI SQUARE, AND LOGARITHMIC LEAST SQUARES METHODS OF SCALING A RECIPROCAL MATRIX” --- http://www.trinity.edu/rjensen/127WP/127WP.HTM
I did find one of our old published papers online.
"Analytic Hierarchy Process Multivariate Analysis of Expert Judgment Regarding Alternative Analytical Review Procedures: An Empirical study," with C.E. Arrington and W.A. Hillison, Journal of Accounting Research, Vol. 22, No. 1, Spring 1984, 298-312 --- http://www.jstor.org/view/00218456/di008028/00p0193i/0
One of my doctoral students, Ed Arrington, used AHP in a clever doctoral dissertation at Florida State University --- http://wwwlib.umi.com/dissertations/
My published papers on AHP are available in some libraries --- http://www.trinity.edu/rjensen/resume.htm#Published
49.
"A Dynamic Analytic Hierarchy Process Analysis of Capital Budgeting Under Stochastic Inflation Rates and Risk Premiums," Advances in Financial Planning and Forecasting, Vol. 2, 1987, 269-302.
48.
"Extension of Consensus Methods For Priority Ranking Problems: Eigenvector Analysis of 'Pic-the-Winner' Paired Comparison Matrices," Decision Sciences, Vol. 17, Spring 1986, 195-211.
45.
"Matrix Scaling of Subjective Probabilities of Economic Forecasts: An Empirical Study," Economics Letters, Vol. 20, 1986, 221-225. With Roger W. Spencer of Trinity University Economics Department.
42.
"An Alternative Scaling Method for Priorities in Hierarchical Structures," Journal of Mathematical Psychology, Vol. 28, No. 3, September 1984, 317-332.
41.
"Analytic Hierarchy Process Multivariate Analysis of Expert Judgment Regarding Alternative Analytical Review Procedures: An Empirical study," with C.E. Arrington and W.A. Hillison, Journal of Accounting Research, Vol. 22, No. 1, Spring 1984, 298-312 --- http://www.jstor.org/view/00218456/di008028/00p0193i/0
39.
"Aggregation (Composition) Schema for Eigenvector Scaling of Priorities in Hierarchial Structures," Multivariate Behavioral Research, Vol. 18, January 1983, 63-84.
38.
Review of Forecasts: Scaling and Analysis of Expert Judgments Regarding Cross-Impacts of Assumptions of Business Forecasts and Accounting Measures, (Sarasota, FL: American Accounting Association, 1983).
36.
"Scaling Multivariate performance Criteria: Subjective Composition Versus the Analytic Hierarchy Process," with C.E. Arrington and Masao Takutani (of Seiker University in Japan), Journal of Accounting and Public Policy, Vol. 1 Winter 1982, 95-125.
34.
"Competition in Auditing: An Assessment" in Symposium on Auditing Research IV (Urbana, IL: The Board of Trustees of the University of Illinois, 1982, 451-468).
33.
"Accounting Futures Analysis: An Eigenvector Model for Subjective Elicitations of Variations in Cross-Impacts Over Time," Decision Sciences, January 1982, Vol. 13, 15-37.
32.
"Scenario Probability Scaling: An Eigenvector Analysis of Elicited Scenario Odds Ratios," Futures, December 1981, Vol. 13, 489-98.
31.
"The Evaluation of Generic Cross-Impact Models: A Revised Balancing Law for the R-Space Model," Futures, June 1981, 217-220.
28.
"A Dynamic Programming Algorithm for Cluster Analysis," Mathematical Programming in Statistics, Edited by Arthanari and Dodge, New York, John Wiley & Sons.
Hope this Helps,
Bob Jensen
--------------------------------------------------------------------------------
Return to the Oxford Model in U.S. Universities
"Hogwarts U.," by Robert J. O’Hara, Inside Higher Ed, November 28, 2006 --- http://www.insidehighered.com/views/2006/11/28/ohara
What does private and wealthy Princeton University have in common with the public and less-wealthy University of Central Arkansas? What links Acadia University in the Canadian Maritimes and Vanderbilt University in the American South? What does the new International University in Bremen, Germany, share with the Universidad de las Américas, in Puebla, Mexico?
Each of these institutions has established, is planning, or is expanding an internal system of residential colleges: permanent, cross-sectional, faculty-led societies that bring the educational advantages of a small college into the environment of a large university. This wave of college founding, taking place in public and private institutions from Kentucky to Louisiana, from Missouri to Florida, from Pennsylvania to Arkansas, and elsewhere around the world, is one of the most substantive structural reform movements in higher education today, and it promises to repair a half-century of destructive bureaucratic centralization.
Dividing a large university into cross-sectional residential colleges is not a new idea: it is the organizational structure of Oxford, Cambridge, and Durham Universities in Great Britain, and as such is one of the oldest ideas in higher education. The collegiate organizational model is common in universities in Canada, Australia, and New Zealand, and it was adopted by the undergraduate divisions of Harvard and Yale Universities in the 1930s and by Rice University in the 1950s. But residential college systems have remained rare in American higher education until quite recently. Paradoxically, they are better understood by many American undergraduates today than by American senior faculty and administrators, since, as students often remind me, the collegiate model is “just like Harry Potter.” The fictional School of Witchcraft and Wizardry in J.K. Rowling’s popular young adult novels is divided into a system of four “houses” that parallel, in their structure, the structure of a collegiate university.
Although many universities that are in the process of establishing residential college systems are also embarking on construction projects at the same time, the two do not have to be connected. Creating residential colleges within a larger institution is more a matter of arranging resources that already exist than it is a matter of acquiring new resources. It need not be expensive, and it doesn’t require any changes to the curriculum.
The residential college movement today is guided not by financial concerns or questions of curricular reform, but rather by four organizational principles: decentralization, faculty leadership, social stability and genuine diversity. Each of these principles attempts to repair a portion of the damage that was wrought during the “industrialization” of higher education in the post-World War II era, and especially in the post-1960s era, two periods of widespread bureaucratic massification when student numbers exploded, central administrative offices proliferated, faculty retreated, high-rise dormitories sprouted, and alienation spread.
Decentralization is a fundamental principle of both new and old residential college systems because all education is local. Real education — the substantive development of intellect and character — depends on sustained personal contact between students and teachers over the long term. But universities forgot this basic principle when they ballooned in size from the 1960s onward. No matter how many slogans campus public relations people may invent about being “student-centered” and “caring,” a university with high-rise dormitory towers, vast impersonal dining halls, and central advising offices that students report to for 15 minutes each term to have their schedules checked cannot possibly offer the sustained, local, personal contact that is fundamental to real education. The slogans are phony, and the students know it.
Small, decentralized residential colleges counteract the effects of educational massification by bringing students and faculty from all academic disciplines together into rich and cohesive social communities. Because of their small size — 400 members is ideal — residential colleges ensure that all students are known one by one, and that no student is anonymous. And while these collegiate societies are usually called “residential” colleges, they need not be entirely residential, and can be established within any university regardless of the number of students who actually live on campus. The emphasis is on the word college as a small, intimate society of members, rather than on the word residential.
Faculty leadership of residential college systems is fundamental because as universities became more centralized and bureaucratic over the past half-century, the oversight of campus life within them was largely handed off to a class of full-time residence life managers. However well-meaning these officials have been, because they are detached from the academic structure of the university, they have not been able to create meaningful educational environments for students. Even more noxiously, some universities have come to see campus dormitories as income-generating tools analogous to parking lots and vending machines. For more than a generation these deep structural flaws have cheated students out of the most important thing a university can offer them: sustained personal contact with their teachers in a rich and diverse educational environment for years at a time.
Residential college systems return the management of campus life to the faculty, and distribute most of the functions now performed by departments of student affairs and residence life into the faculty-led residential colleges. And they treat student life and housing as academic functions of a university, not as business functions. Residential colleges, as faculty-led academic societies, are consciously crafted to provide a wide range of informal educational opportunities for their members day and night, week after week, year after year. Their object is to ensure that students’ formal learning in the classroom is integrated in every way with their external life in the world.
Continued in article
--------------------------------------------------------------------------------
From Dartmouth College
Chance News --- http://chance.dartmouth.edu/chancewiki/index.php/Main_Page
Tutorial on Statistics (focus is on learning exercises and how to view media reports critically)
A list of some useful links related to Statistics Education from Juha Puranen, Department of Statistics, University of Helsinki --- http://noppa5.pc.helsinki.fi/links.html
Online Tutorials for Learning About Statistics and Research
Against All Odds: Inside Statistics --- http://www.learner.org/resources/series65.html
Bob Jensen's links to free online mathematics and statistics tutorials are at http://www.trinity.edu/rjensen/Bookbob2.htm#050421Mathematics
--------------------------------------------------------------------------------
Can I Have A Word? [Helpers for Writers and Poets] --- http://www.barbican.org.uk/canihaveaword/
Bob Jensen's writing helpers are at http://www.trinity.edu/rjensen/Bookbob3.htm#Dictionaries
--------------------------------------------------------------------------------
Open Sharing Tutorial on Environmental Water Science
Water on the Web --- http://waterontheweb.org/index.html
Water on the Web (WOW) helps college and high school students understand and solve real-world environmental problems using advanced technology.
WOW is a complete package containing two sets of curricula, data from many lakes and rivers nationwide, extensive online primers, data interpretation and Geographic Information System Tools, and additional supporting materials.
Basic Science consists of individual lessons for infusion into a wide range of exisiting science cources. Water Resource Science is a two-semester water resource management curriculum for second year technical students and undergraduates in water or environmental management disciplines.
Bob Jensen's threads on free online science tutorials are at http://www.trinity.edu/rjensen/bookbob2.htm#Science
--------------------------------------------------------------------------------
Truck Driver Test Questions & Answers
CDL Online Practice Questions --- http://www.testprepreview.com/cdl_practice.htm
--------------------------------------------------------------------------------
"Choosing Who Can See What on Your Blog: Web Service Offers Features For Privacy, Adding Media; Registration Is a Turn-Off ," by Walter S. Mossberg and Katherine Boehret, The Wall Street Journal, November 22, 2006; Page D7 --- http://online.wsj.com/article/the_mossberg_solution.html
A big problem with blogs is privacy. While some people -- especially MySpace fans -- don't mind posting personal news, photos and videos for anyone to read, many of us hesitate to leave details about our personal lives online.
This week, we tested a new, free blogging service called Vox, www.vox.com, from Six Apart Ltd., a blogging software company. One of Vox's best attributes is its ability to label each individual post, or entry, with a different privacy filter, so that instead of setting your blog to be entirely private or entirely public, you can pick and choose what you want to share.
Vox also excels at making it easy to add photos, audio, videos and book links to your blog without any prior expertise. It lets you incorporate content from Web sites like YouTube, Amazon and photo-sharing site Flickr in only a couple of steps. Viewing of each multimedia element can also be restricted to people you choose. Vox is supported by ads that aren't intrusive or distracting.
We each made a blog in Vox, and updated them several times. We found the process to be quick and simple, and the results to be attractive. We liked the privacy features. But while its intentions are good, Vox has a few downsides. Its idea of making each blog post visible to different groups is useful. But everyone who views your privacy-protected entries must also be registered with Vox, a quick process, but one that will discourage many potential users.
Also puzzling are Vox's categories for labeling those who view your blog. Everyone must be labeled as friends, family or neighbors, but the filters that determine who can view your posts don't include neighbors at all.
Vox also doesn't do a great job of implementing many features that are standard in blog services. These features include interactive elements on a page such as drag-and-drop organizing.
We got started by signing up for Vox -- a process that involved entering our email address, creating a password and URL, and entering personal information. A Design section walked us through choosing a layout and theme from numerous choices. Katie chose the Cityscape Washington, D.C., theme, which includes the Capitol and Washington Monument. Walt chose Firefly Night, which includes the moon and stars and a silhouette of a tree.
To prompt you to blog, the Vox homepage always offers a Question of the Day, or QOTD. With one click, you can optionally answer the QOTD in your own blog. When you post your answer, or enter any post, a drop-down menu lets you choose who can view it: The World (Public), Your Friends and Family, Your Friends, Your Family or Just You. If, for example, you choose to allow only your friends to see a post, other groups won't know that they're not seeing the friends-only post.
If you see another person's Vox blog and would like to bookmark it so that his or her latest entries are constantly updated on a special page just for you, you can add that blogger to your neighborhood. Friends and family are automatically part of your neighborhood, but when choosing who can see your content, neighborhood isn't an option. Vox plans to make the neighborhood concept more understandable in an updated version due out by December.
Continued in article
Bob Jensen's threads on Weblogs and blogs are at http://www.trinity.edu/~rjensen/245glosf.htm#Weblog
--------------------------------------------------------------------------------
"Thinking Machines: Danny Hillis talks about the real-world challenges of creating artificially intelligent machines," by Jason Pontin, MIT's Technology Review, November 14, 2006 --- http://www.technologyreview.com/InfoTech/17709/
In 1982, when he was still a student at MIT, Danny Hillis cofounded Thinking Machines, one of the most famous failures in the history of computing. A hive of wayward and brilliant researchers, Thinking Machines tried to build the world's first artificial intelligence. But if the company did not succeed in "building a machine that will be proud of us" (its corporate motto), its Connection Machine demonstrated the practicality of parallel processing, the foundation of modern supercomputing. Today, Danny Hillis is cochair of Applied Minds, a design and invention company, and he is building the Clock of the Long Now, a mechanical timepiece meant to last 10,000 years.
TR: Why is creating an artificial intelligence so difficult?
Hillis: We look to our own minds and watch our patterns of conscious thought, reasoning, planning, and making analogies, and we think, "That's thinking." Actually, it's just the tip of a very deep iceberg. When early AI researchers began, they assumed that hard problems were things like playing chess and passing calculus exams. That stuff turned out to be easy. But the types of thinking that seemed effortless, like recognizing a face or noticing what is important in a story, turned out to be very, very hard.
TR: Why did Thinking Machines fail to create a thinking machine?
Hillis: Well, the glib answer is that we just didn't have enough time. But enough time would have been decades, maybe lifetimes. It is a hard problem, probably many hard problems, and we don't really know how to solve them. We still have no real scientific answer to "What is a mind?"
TR: The Connection Machine was an effective platform for supercomputing. Why didn't Thinking Machines prosper as a supercomputing company?
Hillis: Supercomputing turned out to be a technology, not a business. My friend Nathan Myhrvold, who was running Microsoft Research at the time, once told me, "It is at least as hard to make software for a supercomputer as for a PC, but you only have a few thousand customers, and we have billions. Not only that, but each of those customers actually expects you to give them exactly what they need."
TR: What were the successful commercial applications of the research at Thinking Machines?
Hillis: The commercial applications were mostly chip design, data mining, text search, cryptology, computational chemistry, computer graphics, financial optimization, seismic processing, and fluid flow modeling. Scientific applications like astronomy, climate modeling, or quantum chromodynamics were exciting when they helped get a result on the cover of Nature, but we never made money on them.
TR: What happened to the patents from Thinking Machines? More than anyone else, you are responsible for massive parallel processing. You get credit, but no payment. Who gets it, and why?
Hillis: Well, first of all, I should be clear that I am just one of many people who contributed to developing massively parallel computing. As for the patents, one of the consequences of Thinking Machines' failure is that I lost any rights to the technologies. In retrospect, that turned out to be a blessing, because it saved me from spending the next decade of my life in court.
Continued in article
--------------------------------------------------------------------------------
ProQuest Digital Dissertations --- http://wwwlib.umi.com/dissertations/
Bob Jensen's search helpers are at http://www.trinity.edu/rjensen/searchh.htm
--------------------------------------------------------------------------------
Bad FEI Audio With Good Intentions
FEI had good intentions when putting out audio clips of a series of interviews with some of the leaders of the financial reporting community. I thank Denny Beresford for sending me the link and a warning that the audio was bad ---
http://www.phillivingston.com/FEI CFRI/testing.html
I found the audio to be so broken up that I could hear these interviews. Perhaps the fact that the file is named "testing" means that better recordings will be posted later.
I was glad to see Phil is still with the FEI. I once had lunch with him and was impressed that a 6-foot-ten Super Bowl lineman (Oakland) could be so articulate and knowledgeable.
--------------------------------------------------------------------------------
From the University of Illinois Issues in Scholarly Communications Blog on November 21, 2006 --- http://www.library.uiuc.edu/blog/scholcomm/
Top 100 Global Universities
An August 2006 article in the international edition of Newsweek evaluated universities from around the world on their "globalness", providing a ranked list of the top 100. We're pleased to see that one of their criteria was the size of the library.
We evaluated schools on some of the measures used in well-known rankings published by Shanghai Jiaotong University and the Times of London Higher Education Survey. Fifty percent of the score came from equal parts of three measures used by Shanghai Jiatong: the number of highly-cited researchers in various academic fields, the number of articles published in Nature and Science, and the number of articles listed in the ISI Social Sciences and Arts & Humanities indices. Another 40 percent of the score came from equal parts of four measures used by the Times: the percentage of international faculty, the percentage of international students, citations per faculty member (using ISI data), and the ratio of faculty to students. The final 10 percent came from library holdings (number of volumes).
The top 10 were:
1. Harvard University
2. Stanford University
3. Yale University
4. California Institute of Technology
5. University of California at Berkeley
6. University of Cambridge
7. Massachusetts Institute Technology
8. Oxford University
9. University of California at San Francisco
10. Columbia University
The University of Illinois at Urbana-Champaign came in 48th, behind other big ten universities such as Michigan (11), U Chicago (20), Wisconsin (28), Minnesota (30), Northwestern (35), and Penn State (40). Others from the Big 10 that made the list of 100 included Michigan State (62), and Purdue (86).
Read the entire list of the 100 top global universities at MSNBC as well as a related story.
Note: You may also be interested in reading the Times of London's analysis of the "Top 100 Universities", worldwide. By their accounting, the University of Illinois ranked 58 in 2005 and 78 in 2006. According to this listing, the top universities are:
1. Harvard
2. Cambridge
3. Oxford
4. MIT
4. Yale
6. Stanford
7. California Institute of Technology
8. UC Berkeley
9. Imperial College, London
10. Princeton
11. University of Chicago
Controversial issues in rankings of universities are discussed at http://www.trinity.edu/rjensen/HigherEdControversies.htm#BusinessSchoolRankings
--------------------------------------------------------------------------------
Question
Are there any respected online doctoral programs in accountancy?
November 16, 2006 message from David Raggay [draggay@TSTT.NET.TT]
Please forgive me bringing up this topic again. I know that things are rapidly changing and I also ask the question from a broader perspective than the initial query..
Are any of the current online doctorate programs in business/accounting and/or finance highly recommended? If so which ones?
Alternatively, are there any highly recommended part-time programs in the areas mentioned above? If so which ones?
Regards,
David
November 16, 2006 reply from Richard Campbell [campbell@RIO.EDU]
David:
Let me relate my experience in investigating an online Ph.D. program in accounting - www.sarasota.edu (Florida) - part of Argosy University. They have revised their web site, and the information that I talk about may not now be currently referenced on their web site. The web site referred to the lead accounting professor as being a Ph.D. graduate of the University of Buffalo. I checked the U of Buffalo web site and his name was not included on the list of Ph.D graduates on a list that went back to 1970. There was no link to a vita of that professor. There WAS a mention, however, that the professor was an excellent woodworker. Incidentally, I feel strongly that all students have the ability to see the vita of their professors. I have mine on my own web page. I urge my local colleagues to do the same.
I called the North Central accrediting agency and asked if U of Sarasota was accredited - and I was told they were - as part of the Illinois Argosy connection. I then called the Admissions counselor at Sarasota U and asked a few questions. I got the "hard sell" and was told that my studies would be a pleasant journey, although a costly ($30K) one. I would be able to arrange the quarterly Florida visits around trips to Disney World, Cape Canaveral and other hot spots. I then asked the counselor some questions that she could not readily answer. 1. Could you verify that Accounting Professor X is a Ph.D. graduate of the University of Buffalo, and could you provide me a vita for him? 2. Could I have a list of ALL your FULL TIME faculty with their degrees and vitae? 3. Could you provide me with a list of graduates and their current professional affiliations? 4. Can you give me more information about the accreditation process of your Ph.D program?
My questions must have been unanswerable - I never received a response in return.
Some additional observations - some accrediting agencies are simply NOT doing their jobs in discriminating diploma mills from legitimate institutions. And some legitimate institutions are cheapening their reputations by lending their good names to dubious ventures who just build a graphically pleasing web site.
So in summary, I don't know if there are legitimate online business doctoral programs out there.
Richard J. Campbell
School of Business
218 N. College Ave.
University of Rio Grande Rio Grande, OH 45674
http://faculty.rio.edu/campbell
November 17, 2006 reply from Bob Jensen
Hi David,
I spend a lot of time tracking distance education and training programs. I know of NO (NONE, NILL) respected alternatives for an online doctoral degree in accounting. There are a few respected doctoral programs in selected disciplines like education, pharmacy, and law (a JD is a doctoral degree) --- http://www.trinity.edu/rjensen/Crossborder.htm
Since I've made presentations for you in Trinidad, I'm well aware that you reside outside the U.S. But for U.S. residents, the best alternative is probably to earn a distance education masters degree in accounting or tax and then a JD degree in a respected online law school program or an EED from a respected College of Education. Remember that above all else the recognizable name of the university on the diploma means more than anything else on the diploma (including the discipline of study).
There are many online masters programs in accountancy since so many highly respected state universities have added online programs to their onsite masters degree programs --- http://www.trinity.edu/rjensen/crossborder.htm#MastersOfAccounting
There are some gray zone doctoral programs like Nova's programs, but I don't yet have high regards for Nova. The Nova formula is to hire doctoral faculty who moonlight for Nova, but nobody has ever convinced me that a Nova doctoral degree is respected for a tenure track position in a respected university even though there may be some respected baccalaureate Nova alternatives --- http://www.nova-university.org/
It may be possible to negotiate with some respected doctoral programs for an increased balance of online courses combined with onsite requirements. But I doubt that the there is a very serious proportion of accounting doctoral courses that can be taken online.
Remember that doctoral programs generally have negligible requirements for accounting and tax courses and don't require many, or any, of those courses from their masters degree programs. Doctoral studies courses are in mathematics, statistics, econometrics, psychometrics, and economic theory. Doctoral program advisors are very particular about content in those courses and very few online courses suffice for these accountics, yes I spelled that accountics, foundation courses --- http://www.trinity.edu/rjensen/395wpTAR/Web/TAR.htm
I must admit that I've not investigated all foreign alternatives for distance education doctoral degrees. For example, there might be one or two popping up among the vast number of distance education alternatives in the United Kingdom --- http://www.trinity.edu/rjensen/crossborder.htm#England
But I've not yet encountered a respected doctoral degree program.
The classic U.K. doctorate entails little course work and heavy private tutoring such that U.K. doctorates are more conducive to modern online technology. But respected U.K. universities probably still turn up their noses at online doctoral degrees. They're still pretty stuffy in the U.K. and in former nations of the British Empire.
Beware of any program for any degree that grants credit for life experience. All God's children have life experience --- http://www.trinity.edu/rjensen/crossborder.htm#CLEP
Bob Jensen
November 17, 2006 reply from J. S. Gangolly [gangolly@CSC.ALBANY.EDU]
I too agree with most caveats expressed.
However, I beg to differ with respect to requiring a PhD in accounting.
In my opinion, the ideal candidate would have a liberal education background followed by a CPA (with audit experience) followed by a PhD in any related field (Economics, Criminal Justice, CSI, ...), and finally motivation to do research in accounting related areas.
There are very few that fit the bill, but that I think is the ideal background for an academic.
Having gone through the doctoral hamster mills in both Operations Research and Accounting (didn't complete PhD in OR due to the demise of my intended supervisor), accounting doctoral education, in my opinion leaves much to be desired, relative to that in other fields. This is as it should be, for accounting is a profession; it is debatable if it is an academic discipline (though, of course it can be).
As usual, I am being provocative.
Respectfully submitted,
Jagdish
November 17, 2006 reply from Tom Lechner [acttal@BUSINESS.UTAH.EDU]
While I agree with almost everything that was said, I would add two precautions. First, I am not at all sure that a Ph.D. in another field would be an acceptable substitute for a Ph.D. in accounting. When I chaired a search committee at a teaching oriented school, we would not consider a Ph.D. in another field. As far as I can recall, the applicant was an MBA/CPA. The applicant lived several thousand miles from the nearest AACSB school that offered a Ph.D., so that applicant had gotten a Ph.D. in education. While we understood the applicant's situation, we did not consider him.
Second, I believe that the LLM in law is more equivalent to a Ph.D. than a JD. While an MBA + JD would be acceptable for teaching tax at many schools, it might not provide terminal qualification for a position in another area of accounting.
I suggest that you contact some schools that have current openings that you would be interested in. Ask them how they would view various combinations of credentials.
Tom
Dr. Thomas A. Lechner, CPA
Assistant Professor (Lecturer)
David Eccles School of Business School of Accounting and Information Systems
University of Utah
November 18, 2006 reply from Bob Jensen
Hi Tom,
I agree with what you say. I should have pointed out that in the College of Education there are often two doctoral programs, the EED vs. the PhD. in Education. The EED is more for school administrators and the PhD is more of a traditional teaching and research degree.
Although many business programs do not consider either College of Education degree as a terminal qualification, it will enhance other qualifications if it was granted from a highly respected university. Particularly the PhD in Education should enhance both teaching and research skills. It is not very common to encounter such College of Education doctoral degrees in AACSB schools, although JD and LLM degrees are quite common, especially among tax faculty. However, attorneys who also have CPA licenses commonly teach in areas other than tax.
Bob Jensen
November 17, 2006 reply from Bernadine Raiskums [berna@GCI.NET]
Hi David,
I am CPA, CIA, MEd. and currently currently pursuing online PhD in Education from Capella and really would recommend the school for quality of program as well as administration. Capella does have a couple of PhD in business, and an MBA in accounting, but might be worth checking it out. www.capella.edu
Bernadine Raiskums in Anchorage
November 19, 2009 reply from Bob Jensen
Hi Bernadine,
We've both written previously and favorably about Capella's distance education programs. I think Capella sets one of the best examples of a for-profit corporation that's a good role model for similar online corporations.
I would like to point out that Capella does not yet have online doctoral programs in traditional business education disciplines of accounting, finance, and marketing. It's online organization management doctoral programs to date are linked at http://www.capella.edu/schools_programs/degrees/phd.aspx
Specializations:
Human Resource Management
Information Technology Management
Leadership
Organization & Management General
Capella has even wider arrays of doctoral programs in education and psychology ---
http://www.capella.edu/schools_programs/degrees/phd.aspx
We are always grateful to hear from students enrolled in distance education graduate programs.
Thank you,
Bob Jensen
Capella Education’s initial public offering on Friday sent its stock up by about 25 percent, The Pioneer Press reported.
Inside Higher Ed, November 13, 2006
--------------------------------------------------------------------------------
New Thoughts About Herman Melville's Sexual Orientation and Multiculturalism
Herman Melville: great American novelist or great American hipster? Well, it isn’t an either/or kind of situation. Rereading Moby Dick for the first time in ages (now minus the English major’s mental tic of obsessing over how each little part fit into a vast symbolic architecture), I recently underwent the astonishing revelation that Melville (1) definitely has a sense of humor, (2) pretty much invented the postmodern “maximalist” novel of the sort we now associate with Thomas Pynchon, and (3) is so overtly gay and so stridently multiculturalist that Fox News should probably look into how he ever got into the canon.
Scott McLemee, "Where’s Herman?" Inside Higher Ed, November 22, 2006 --- http://www.insidehighered.com/views/2006/11/22/mclemee
--------------------------------------------------------------------------------
November 21, 2006 message from Dennis Beresford [dberesfo@TERRY.UGA.EDU]
Here is a link to an interesting speech by Secretary of the Treasury Paulson on competitiveness of capital markets, with particular emphasis on accounting and auditing related matters.
Denny Beresford
http://www.treasury.gov/press/releases/hp174.htm
--------------------------------------------------------------------------------
From AccountingEducation.com on November 25, 2006 --- http://accountingeducation.com/
Most football clubs in England and Scotland will make a loss over the next 12 months, according to their finance directors, despite frantic efforts to rein in spending ahead of the start of the season next month
"How football (Soccer Football that is) got its finances wrong," AccountancyAge, November 2006 --- http://www.accountancyage.com/accountancyage/specials/2162919/football-got-finances-wrong
--------------------------------------------------------------------------------
From CPANet on November 20, 2006
AICPA Financial Literacy Initiative
------------------------------
360 Degrees of Financial Literacy - http://www.cpanet.com/up/s0611.asp?ID=1270
Financial Literacy Resource Center - http://www.cpanet.com/up/s0611.asp?ID=1271
Feed the Pig - http://www.cpanet.com/up/s0611.asp?ID=1272
MySpace: Benjamin Bankes - http://www.cpanet.com/up/s0611.asp?ID=1273
CPAs Asked to Mobilize the Pig - http://www.cpanet.com/up/s0611.asp?ID=1274
State-Level Involvement - http://www.cpanet.com/up/s0611.asp?ID=1275
Financial Literacy Topics - http://www.cpanet.com/up/s0611.asp?ID=1276
Ask the Money Doctor - http://www.cpanet.com/up/s0611.asp?ID=1277
Blog Your Business
------------------------------
The Unseen Blogosphere: Internal Blogs - http://www.cpanet.com/up/s0611.asp?ID=1278
BlogWrite for CEOs - http://www.cpanet.com/up/s0611.asp?ID=1279
Getting the Word Out - http://www.cpanet.com/up/s0611.asp?ID=1280
A Crash Course in Corp Blogging - http://www.cpanet.com/up/s0611.asp?ID=1281
16 Ways to Drive Traffic to Your Business Blog - http://www.cpanet.com/up/s0611.asp?ID=1282
Blogs for Marketing Purposes? - http://www.cpanet.com/up/s0611.asp?ID=1283
Romancing the Bloggers - http://www.cpanet.com/up/s0611.asp?ID=1284
--------------------------------------------------------------------------------
Ethanol Use Has No Effect On Carbon Dioxide Levels
Oil releases carbon that has been deep within the earth for millions of years. Ethanol comes from corn, which procured its carbon from the atmosphere. In other words, ethanol is not introducing any carbon into the atmospheric system that was not there to begin with. Therefore ethanol, unlike oil, can have no net effect on atmospheric carbon dioxide levels. I am no ardent supporter of Big Ethanol. There are plenty of environmental problems associated with cultivating millions of more acres of corn. To say nothing of the massive systems required for fermentation and purification of billions of gallons of fuel. However, it is a step in the right direction and further scientific breakthroughs that could rectify some of these problems might be just over the horizon. Aside from this, doesn't it seem only prudent to diversify our national energy portfolio when facing such loose cannons as Iran and Saudi Arabia?
James Wagandt, "Ethanol Use Has No Effect On Carbon Dioxide Levels," The Wall Street Journal, November 25, 2006; Page A9 ---
http://online.wsj.com/article/SB116441989972532456.html?mod=todays_us_opinion
--------------------------------------------------------------------------------
Doomsday Hurricane Forecasters Blown Away
It was not the hurricane season we expected, thank you. With cataclysmic predictions that hurricanes would swarm from the tropics like termites, no one thought 2006 would be the most tranquil season in a decade. Barring a last-second surprise from the tropics, the season will end Thursday with nine named storms, and only five of those hurricanes. This year is the first season since 1997 that only one storm nudged its way into the Gulf of Mexico.
Neil Johnson, "Hurricane Predictions Off Track As Tranquil Season Wafts Away," The Tampa Tribune, November 27, 2006 --- http://www.tbo.com/news/metro/MGBHKNBE0VE.html
--------------------------------------------------------------------------------
Updates from WebMD --- http://www.webmd.com/
Latest Headlines on November 24, 2006
Greater Variation Seen in Human Genome
Bird Flu: Mild to Fatal in 2 Countries
Contact Lens Solution Recall
Eat Your Words? Some Can Taste Them
Exercise May Cut Snoring in Kids
Need Flu Shot? It's Not Too Late
Teen Births Down, Unmarried Births Up
Job Burnout May Increase Diabetes Risk
Beware Bogus Botox
RSS WebMD Health News
Latest Headlines on November 28, 2006
Study: Quit Smoking, Don't Cut Back
AIDS May Become No. 3 Cause of Death
Age, Obesity, and Breast Cancer Risk
Fastest Osteoporosis Drug: Actonel
Statin Drugs May Help the Healthy
Cancer After Bone Marrow Transplant?
Yo-Yo Dieting Ups Men's Gallstone Risk
New Clues on How Cancer Spreads
'Chemo Brain' May Be Temporary
RSS WebMD Health News
Latest Headlines on November 29, 2006
New Urine Test ID's Prostate Cancer
Treating Allergies With Allergic Food
Study: Quit Smoking, Don't Cut Back
AIDS May Become No. 3 Cause of Death
Age, Obesity, and Breast Cancer Risk
Fastest Osteoporosis Drug: Actonel
Statin Drugs May Help the Healthy
Cancer After Bone Marrow Transplant?
Yo-Yo Dieting Ups Men's Gallstone Risk
RSS WebMD Health News
--------------------------------------------------------------------------------
The Glimmering Promise of Gene Therapy
Its history is marred by failures, false hopes, and even death, but for a number of the most horrendous human diseases, gene therapy still holds the promise of a cure. Now, for the first time, there is reason to believe that it is actually working.
Horace Freeland, "Part 1: The Glimmering Promise of Gene Therapy," MIT's Technology Review, November 14, 2006 ---
http://www.technologyreview.com/BioTech/17725/
--------------------------------------------------------------------------------
Doctors put bite on snake venom for stroke treatment
Ancrod, an anti-clotting drug derived from the venom of Malaysian pit vipers, is only effective in treating stroke victims if given within three hours, according to a study that appears in Saturday's Lancet. European doctors assessed ancrod, when administered within six hours of a stroke, against a harmless lookalike compound, called a placebo, among 1,220 patients in Europe, Australia and Israel. No significant benefit was found when the drug was administered beyond three hours, according to the paper.
"Doctors put bite on snake venom for stroke treatment," PhysOrg, November 24, 2006 --- http://physorg.com/news83591511.html
--------------------------------------------------------------------------------
Playing Catch-Up After Lost Time In Alzheimer's Labs
Orthodoxy also stifles research on other culprits. "Where the field made its mistake was in trying to make everything fit one common [amyloid] pathway," says Robert Mahley, president of the J. David Gladstone Institutes, San Francisco. "We've got to realize there are multiple ways you can wind up with [Alzheimer's]."
Sharon Begley, "Playing Catch-Up After Lost Time In Alzheimer's Labs," The Wall Street Journal, November 24, 2006; Page B1 --- http://online.wsj.com/article/science_journal.html
--------------------------------------------------------------------------------
Scientists to freeze women's ovaries
U.S. researchers are launching an experimental program for young female cancer patients in which an ovary is removed and frozen for possible future use. The Center for Reproductive Research at Northwestern University said the program is designed for young women who might be at risk of losing their ovarian function and fertility following treatment for cancer. Teresa Woodruff, associate director of the university's Lurie Comprehensive Cancer Center in Chicago says the long-term goal is to be able to extract and mature eggs from cryopreserved ovarian tissues to initiate pregnancies once cancer treatment has been completed.
"Scientists to freeze women's ovaries," PhysOrg, November 28, 2006 --- http://physorg.com/news83960481.html
--------------------------------------------------------------------------------
One-off treatment to stop back pain -- Using patients' own stem cells
A University of Manchester researcher has developed a treatment for lower back pain using the patient’s own stem cells, which could replace the use of strong painkillers or surgery that can cause debilitation, neither of which addresses the underlying cause.Dr Stephen Richardson, of the University’s Division of Regenerative Medicine in the School of Medicine (FMHS), has developed the treatment; and in collaboration with German biotechnology company Arthrokinetics and internationally-renowned spinal surgeons Spinal Foundation are hoping to enter pre-clinical trials next year. It is expected to rapidly yield a marketable product which will revolutionise treatment of long-term low back pain.
"One-off treatment to stop back pain -- Using patients' own stem cells," PhysOrg, November 30, 2006 --- http://physorg.com/news84113927.html
--------------------------------------------------------------------------------
Consumers Not Warned of Mercury in Fish
Not a single West Virginia grocery store is warning consumers of the possible dangers of mercury in fish, an environmental group says, even though the state and federal governments have been issuing advisories to anglers for at least two years. Oceana, a Washington, D.C.-based activist group, issued a report this week that concludes fewer than 20 percent of the nation's grocery stores are posting in-store warnings about mercury. West Virginia is one of four states with zero in-store warnings, the report says. The others are Mississippi, Alabama and North Dakota.
"Consumers Not Warned of Mercury in Fish," PhysOrg, November 23, 2006 --- http://physorg.com/news83476474.html
--------------------------------------------------------------------------------
When it comes to child porn, it pays to have friends in high places
"Court shocker: 10 months for kiddie porn producer: Democrat activist faced 81 years in jail on charges involving kids as young as 6," WorldNetDaily, November 25, 2006 --- http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53070
Authorities say Andrew Douglas Reed, 53, who reported for an abbreviated jail term just a few weeks ago, had pleaded guilty to a page-long list of counts of 2nd-degree sexual exploitation of a minor.
Court records in the Asheville, N.C., case said he admitted that he would "record, develop and duplicate material containing a visual representation of a minor engaging in sexual activity." That activity is defined by state law as including masturbation, intercourse and "touching – in apparent sexual stimulation or sexual abuse – of the genitals, pubic area or buttocks."
However, instead of the 967 months in jail – nearly 81 years – for which he was liable, Judge Robert Lewis, another Democrat, gave him, in a plea bargain with the office of District Attorney Ron Moore, who was elected as a Democrat, a 10-12 month sentence.
Continued in article
--------------------------------------------------------------------------------
November 21, 2006 message from Naomi Ragen [nragen@netvision.net.il]
If you want to cheer yourself up in a profound way, go to the following website: http://www.arabsforisrael.com/
This is not a hoax, but an actual website, filled with many letters from Arabs and Muslims who reject anti-Semitism and who truly love Israel. It is such an amazing thing to read these letters. For the first time in a long time I realized that real peace could be possible if only our enemy were not brainwashed with lies and causeless hatred, had an elementary education, and had ever met real Jews/Israelis.
Below, a remarkable letter posted on the website.
Naomi
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
"Friedman's Sampler," by Emily Parker and Joseph Rago, The Wall Street Journal, November 18, 2006 --- http://www.opinionjournal.com/extra/?id=110009267
On Freedom
It is important to emphasize that economic arrangements play a dual role in the promotion of a free society. On the one hand, "freedom" in economic arrangements itself a component of freedom broadly understood, so "economic freedom" is an end in itself to a believer in freedom.
In the second place, economic freedom is also an indispensable means toward the achievement of political freedom. . . .
A citizen of the United States who under the laws of various states is not free to follow the occupation of his own choosing, unless he can get a license for it, is likewise being deprived of an essential part of his freedom. So economic freedom, in and of itself, is an extremely important part of total freedom.
The reason it is important to emphasize this point is because intellectuals in particular have a strong bias against regarding this aspect of freedom as important. They tend to express contempt for what they regard as material aspects of life and to regard their own pursuit of allegedly higher values as on a different plane of significance and as deserving special attention. But for the ordinary citizen of the country, for the great masses of the people, the direct importance of economic freedom is in many cases of at least comparable importance to the indirect importance of economic freedom as a means of political freedom.
Viewed as a means to the end of political freedom, economic arrangements are essential because of the effect which they have on the concentration of power. A major thesis of the new liberal is that the kind of economic organization that provides economic freedom directly, namely, organization of economic activities through a largely free market and private enterprises, in short, through competitive capitalism, is also a necessary though not a sufficient condition for political freedom.
The central reason why this is true is because such a form of economic organization separates economic power from political power and in this way enables the one to be an offset to the other. I cannot think of a single example at any time or any place where there was a large measure of political freedom without there also being something comparable to a private enterprise market form of economic organization for the bulk of economic activity.
--from "Capitalism and Freedom: Why and How the Two Ideas Are Mutually Dependent," May 17, 1961
On the Free Market
What most people really object to when they object to a free market is that it is so hard for them to shape it to their own will. The market gives people what the people want instead of what other people think they ought to want. At the bottom of many criticisms of the market economy is really lack of belief in freedom itself.
The essence of political freedom is the absence of coercion of one man by his fellow men. The fundamental danger to political freedom is the concentration of power. The existence of a large measure of power in the hands of a relatively few individuals enables them to use it to coerce their fellow men. Preservation of freedom requires either the elimination of power where that is possible, or its dispersal where it cannot be eliminated.
It essentially requires a system of checks and balances, like that explicitly incorporated in our Constitution. . . .
The person who buys bread doesn't know whether the wheat from which it was made was grown by a pleader of the Fifth Amendment or a McCarthyite, by person whose skin is black or whose skin is white. The market is an impersonal mechanism that separates economic activities of individual from their personal characteristics. It enables people to cooperate in the economic realm regardless of any differences of opinion or views or attitudes they may have in other areas.
--from "The New Liberal's Creed: Individual Freedom, Preserving Dissent Are Ultimate Goals," May 18, 1961
On Free Trade
What we ought to do is practice what we preach. We have been going around preaching the virtues of free enterprise, of free competition in a free market. What have we been doing? We've been practicing the opposite, not only through our foreign aid program, but also at home. We tell other countries, use the market: we tell our farmers, look to Washington. We tell other countries, don't try to be self-sustained; try to develop valuable industries that can compete on the international market, and then what do we do? We impose import quotas on oil, we impose tariffs on goods that come in, we dump agricultural products abroad, and impose quota on their import at home. The rest of the world listens to what we say and they think, "now there is a fine bunch of hypocrites," and they are right.
--from "An Alternative to Aid: An Economist Urges U.S. to Free Trade, End Grants of Money," April 30, 1962
On Inflation
If the Fed does not explain to the public the nature of our problem and the costs involved in ending inflation, if it does not take the lead in imposing the temporarily unpopular measure required, who will?
--From "Why Curbing Inflation Is the Fed's Job, March 6, 1974
On Taxes
To summarize, deficits are bad--but not because they necessarily raise interest rates. They are bad because they encourage political irresponsibility. They enable our representatives in Washington to buy votes at our expense without having to vote explicitly for taxes to finance the largesse. The result is a bigger government and a poorer nation. That is why I favor a constitutional amendment requiring Congress to balance the budget and limit taxation.
--from "The Taxes Called Deficits," April 24, 1984
On the Economy
The Wall Street Journal has been a firm and dedicated supporter of free markets at home and free trade abroad. It has repeatedly stressed its view that the invisible hand of Adam Smith is a far more effective and equitable means of organizing economic activity than the visible hand of government. Yet when it comes to foreign economic policy, a recent editorial, "Beyond Venice" (June 8), relies upon a wholly different and thoroughly incompatible set of ideas.
According to that editorial, "The economic summits of leading free-market nations are a sound recognition that the world economy defies sovereign borders, and can be run only through international cooperation."
Would the Journal describe the American economy as being "run," whether through international cooperation or by the powers that be in Washington or through cooperation among the individual states? Or would it rather, in accordance with its general philosophy, describe it as a system that is coordinated by the voluntary activities of millions of individuals, a system that runs but is not run?
--from "Please Reread Your Adam Smith," June 24, 1987
On Social Security
I have long been a critic of Social Security, basically because I believe that it is not the business of government to tell people what fraction of their incomes they should devote to providing for their own or someone else's old age. On a more pragmatic level, Social Security is another example of the generalization that government programs typically have effects that are the opposite of those intended by their well-meaning sponsors (what Rep. Richard Armey calls the "invisible foot of government").
The well-meaning sponsors intended Social Security to ensure a minimum income to the poor in their old age. It has largely done that, but at the cost of what they would have regarded as a perverse redistribution of income from the young to the old, from black to white, from the relatively poor to the relatively well-to-do.
From its inception, Social Security has been an unholy combination of two items: a flat-rate tax on earnings up to a maximum with no exemption and a benefit program that awards subsidies that have essentially no relation to need but are based on such criteria as marital status, longevity and recent earnings. As I wrote many years ago, "hardly anyone approves of either part separately. Yet the two combined have become a sacred cow. What a triumph of imaginative packaging and Madison Avenue advertising!"
--from "Social Security: The General And the Personal," March 15, 1988
On the Future
Let us put aside the scarecrows of the twin deficits and face up to the real problems that threaten U.S. growth and prosperity: excessive and wasteful government spending and taxing, including in particular the real time bomb in Social Security, Medicare and Medicaid programs; concealed taxes in the form of mandated expenditures on private business; excessive and misguided regulation of individuals as well as businesses; the changes in tort legislation that are discouraging innovation; and not least, the recent increase in protectionism and the threat of a further major increase. We should and can do something about these problems, not allow ourselves to be diverted by politically convenient scarecrows.
--from "Why the Twin Deficits are a Blessing," Dec. 14, 1988
On Health Care Prices
Toward the end of World War II, I served as an instructor in a quality-control course for Navy procurement officers. It was held in Hershey, Pa. As I recall, we stayed at the Hershey Hotel, on the corner of Cocoa Avenue and Chocolate Boulevard, across the street from the Hershey Junior College, where the actual instruction took place, a block or so from the Hershey Department Store, and so on. You get the idea. The stench--or perfume--of paternalism was heavy in the air.
Early in the century such company towns, most far less benevolently paternalistic than Hershey, were common. Workers who were employed at mines or factories located far from large cities, in towns that typically had only a single major employer, were often required, or induced, to live in company housing and buy their food and other supplies at company stores. In effect, they were paid in kind rather than in cash--the so-called truck system. . . .
The company town has been revived in one major area: medical care. It is taken for granted that workers should receive their pay partly in kind, in the form of medical care provided by the employer. How come? Why single out medical care? Surely food is no less essential to life than medical care. Why is it not at least as logical for workers to be required to buy their food at the company store as to be required to buy their medical care at the company store?
--from "Pricing Health Care: The Folly of Buying Health Care at the Company Store," Feb. 13, 1993
On Jobs
Proposed economic policies tend to be judged in terms of jobs "created." That is the wrong criterion. The economic problem is not creating jobs. That is easy: Hire people at minimum wages (or lower) to dig holes and fill them. True, raising taxes to finance that project would destroy jobs, but the jobs destroyed would be high-wage jobs, the jobs created low-wage jobs, so for each job destroyed more than one job would be created--a net gain of jobs.
The real problem is to establish an economic environment in which there is a demand for workers at wages that those workers not only regard as satisfactory, but are qualified to earn: Better qualified workers and better wages--not simply more jobs--is the real problem.
--from "Better Workers, Better Wages: The Real Issue," June 1, 1993
On the Federal Reserve
My favorite "moderate" proposal for the Fed (my "extreme" proposal is to abolish it) is that (1) at the beginning of each quarter, have it estimate how much it will have to add net to its holdings during that quarter to achieve its target monetary growth; (2) divide that number by 12; and (3) announce that every Monday morning at 11 a.m. it will buy that amount of securities from the lowest bidder, and then close up shop until the next Monday, except for replacing maturing securities.
What harm would that do? It would mean day-to-day and week-to-week fluctuation in the federal-funds rate. However, the sophisticated financial markets have surely demonstrated their capacity to handle wide daily fluctuations in all kinds of securities prices. Dealing with the fluctuations in the federal-funds rate would be child's play.
--from "End the Fed's Fine-Tuning," Sept. 15, 1993
On the Flat Tax
The only way we are ever likely to get it is if there is a drive for a constitutional convention to repeal the 16th Amendment (which gives Congress the power to tax income) and replace it with one mandating a flat-rate tax.
However, I regret that that is not an immediate prospect.
--from "Why a Flat Tax Is Not Politically Feasible," March 30, 1995
On Government Spending
The typical rhetoric, Republican as well as Democratic, about the current battle to balance the budget is that cutting government spending imposes short-term pain more than compensated by long-term gain. That is utter nonsense. Cutting government spending and government intrusion in the economy will almost surely involve immediate gain for the many, short-term pain for the few, and long-term gain for all.
--from "Budget Cutting: A Lot of Gain, Little Pain," June 15, 1995
On Hong Kong
By some accident of officialdom, the colonial office assigned John Cowperthwaite, a Scotsman and a disciple of Adam Smith, to serve as financial secretary of Hong Kong. Cowperthwaite's free market policies are widely credited with producing the subsequent economic miracle that led to a phenomenal rise in the average level of living despite a nearly 10-fold rise in population.
It is hard to conceive of a more severe test of free market policies. Hong Kong is an island devoid of any significant natural resources other than a great harbor. When the Communists took over China, refugees came streaming over the borders with only the possessions they could carry. They and their successors produced a rapid rise in population. Hong Kong received negligible if any foreign aid to assist the assimilation of the refugees.
Under these adverse circumstances, the salvation of Hong Kong has been its complete free trade and free market policy. No tariffs on imports, no subsidies or other privileges to exports. (The only restrictions are those that Hong Kong has been forced to impose by pressure from other countries, including the U.S., as under the multifiber agreement.) There is no fixing of prices or wages; few if any restrictions on entry into business or trade; and government spending and taxes have been kept low. The top tax rate on personal income is 25%, with a maximum average rate of 15%. . . .
What a contrast to the experience of most of the colonies to which Britain gave their freedom after the war. And what a striking demonstration of how much better free trade and free markets are for the ordinary citizen than the protectionism of Mr. Buchanan and the "fair trade" of President Clinton. "Fair" is in the eye of the beholder; free is the verdict of the market. (The word "free" is used three times in the Declaration of Independence and once in the First Amendment to the Constitution, along with "freedom." The word "fair" is not used in either of our founding documents.)
--From "Hong Kong vs. Buchanan," March 7, 1996
On Health Care
The best way to restore freedom of choice to both patient and physician and to control costs would be to eliminate the tax exemption of employer-provided medical care. However, that is clearly not feasible politically. The best alternative available is to extend the tax exemption to all expenditures on medical care, whether made by the patient directly or by employers, to establish a level playing field, in terms of the currently popular cliche.
Many individuals would then find it attractive to negotiate with their employer for a higher cash wage in place of employer-financed medical care. With part or all of the higher cash wage, they could purchase an insurance policy with a very high deductible, i.e., a policy for medical catastrophes, which would be decidedly cheaper than the low-deductible policy their employer had been providing to them, and deposit all or part of the difference in a special "medical savings account" that could be drawn on only for medical purposes. Any amounts unused in a particular year could be allowed to accumulate without being subject to tax, or could be withdrawn with a tax penalty or for special purposes, as with current Individual Retirement Accounts--in effect, a medical IRA. Many employers would find it attractive to offer such an arrangement to their employees as an option.
--from "A Way Out of Soviet-Style Health Care," April 17, 1996
On 'Reform'
The present crisis is not the result of market failure. Rather, it is the result of governments intervening in or seeking to supersede the market, both internally via loans, subsidies, or taxes and other handicaps, and externally via the IMF, the World Bank and other international agencies. We do not need more powerful government agencies spending still more of the taxpayers' money, with limited or nonexistent accountability. That would simply be throwing good money after bad. We need government, both within the nations and internationally, to get out of the way and let the market work. The more that people spend or lend their own money, and the less they spend or lend taxpayer money, the better.
--from "Markets to the Rescue," Oct. 13, 1998
On Ronald Reagan
To Mr. Reagan, of course, holding down government spending was a means to an end, not an end in itself. That end was freedom, human freedom, the right of every individual to pursue his own objectives and values so long as he does not interfere with the corresponding right of others. That was his end in every phase of his remarkable career.
We still have a long way to go to achieve the optimum degree of freedom. But few people in human history have contributed more to the achievement of human freedom than Ronald Wilson Reagan.
--from "Freedom's Friend," June 11, 2004
On Communism
In the almost six decades since the end of World War II, intellectual opinion in the United States about the desirable role of government has undergone a major shift. At the end of the war, opinion was predominantly collectivist. Socialism--defined as government ownership and operation of the means of production--was seen as both feasible and desirable. Those few of us who favored free markets and limited government were a beleaguered minority.
In subsequent decades opinion moved away from collectivism and toward a belief in free markets and limited government. By 1980 opinion had moved enough to enable Ronald Reagan to win the presidency on a quasi-libertarian agenda.
The collapse of the Soviet Union in 1989 delivered the final blow to the belief in socialism. Hardly anyone today, from the far left to the far right, regards socialism in the traditional sense of government ownership and operation of the means of production as either feasible or desirable. Those who profess socialism today mean by it a welfare state.
--from "The Battle's Half Won," Dec. 9, 2004
On School Choice
One result has been experimentation with such alternatives as vouchers, tax credits, and charter schools. Government voucher programs are in effect in a few places (Wisconsin, Ohio, Florida, the District of Columbia); private voucher programs are widespread; tax credits for educational expenses have been adopted in at least three states and tax credit vouchers (tax credits for gifts to scholarship-granting organizations) in three states. In addition, a major legal obstacle to the adoption of vouchers was removed when the Supreme Court affirmed the legality of the Cleveland voucher in 2002. However, all of these programs are limited; taken together they cover only a small fraction of all children in the country.
Throughout this long period, we have been repeatedly frustrated by the gulf between the clear and present need, the burning desire of parents to have more control over the schooling of their children, on the one hand, and the adamant and effective opposition of trade union leaders and educational administrators to any change that would in any way reduce their control of the educational system.
--from "Free to Choose," June 9, 2005
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Forwarded by Erika's sister Nancy
The embers glowed softly, and in their dim light,
I gazed round the room and I cherished the sight.
My wife was asleep, her head on my chest,
My daughter beside me, angelic in rest.
Outside the snow fell, a blanket of white,
Transforming the yard to a winter delight.
The sparkling lights in the tree I believe,
Completed the magic that was Christmas Eve.
My eyelids were heavy, my breathing was deep,
Secure and surrounded by love I would sleep.
In perfect contentment, or so it would seem,
So I slumbered, perhaps I started to dream.
The sound wasn't loud, and it wasn't too near,
But I opened my eyes when it tickled my ear.
Perhaps just a cough, I didn't quite know,
Then the sure sound of footsteps outside in the snow.
My soul gave a tremble, I struggled to hear,
And I crept to the door just to see who was near.
Standing out in the cold and the dark of the night,
A lone figure stood, his face weary and tight.
A soldier, I puzzled, some twenty years old,
Perhaps a Marine, huddled here in the cold.
Alone in the dark, he looked up and smiled,
Standing watch over me, and my wife and my child.
"What are you doing? " I asked without fear,
"Come in this moment, it's freezing out here!
Put down your pack, brush the snow from your sleeve,
You should be at home on a cold Christmas Eve!"
For barely a moment I saw his eyes shift,
Away from the cold and the snow blown drift.
Then he sighed and he said "Its really all right,
I'm out here by choice. I'm here every night."
"It's my duty to stand at the front of the line,
That separates you from the darkest of time.
No one had to ask or beg or implore me,
I'm proud to stand here like my fathers before me.
My Gramps died at 'Pearl on a day in December,"
Then he sighed, "That's a Christmas 'Gram will always remember."
My dad stood his watch in the jungles of 'Nam',
And now it is my turn and so, here I am.
I've not seen my own son in more than a while,
But my wife sends me pictures, he's sure got her smile.
Then he bent and he carefully pulled from his bag,
The red, white, and blue... an American flag.
I can live through the cold and the being alone,
Away from my family, my house and my home.
I can stand at my post through the rain and the sleet,
I can sleep in a foxhole with little to eat.
I can carry the weight of killing another,
Or lay down my life with my sister and brother..
Who stand at the front against any and all,
To ensure for all time that this flag will not fall."
"So go back inside," he said, "harbor no fright,
Your family is waiting and I'll be all right."
"But isn't there something I can do, at the least,
"Give you money," I asked, "or prepare you a feast?
It seems all too little for all that you've done,
For being away from your wife and your son."
Then his eye welled a tear that held no regret,
"Just tell us you love us, and never forget.
To fight for our rights back at home while we're gone,
To stand your own watch, no matter how long.
For when we come home, either standing or dead,
To know you remember we fought and we bled.
Is payment enough, and with that we will trust,
That we mattered to you as you mattered to us."
--------------------------------------------------------------------------------
Forwarded by Michael Moore
Cut and Run, the Only Brave Thing to Do --- http://www.michaelmoore.com/words/message/index.php?id=202
Jensen Comment
We have to be very brave to retreat from the Middle East. Chances for nuclear winter become very high indeed as nations going nuclear surround Israel with full intentions to wipe Israel off the map. It takes a great deal of courage to encourage our enemies to obtain more and more WMDs and wait at home with our heads in the sand while Israel stands alone on the front lines. Michel Moore is good for one liners but he never addresses serious policy issues like how to end terrorist attacks in Israel or whether Iran should have its fair share WMDs.
Most chilling of all, could the festering differences precipitate a military confrontation involving the use of nuclear weapons? It is known that Israel has a major nuclear arsenal and the capability to launch weapons quickly, and some neighboring states are believed to be attempting to acquire their own atomic bombs. Without progress toward peace, desperation or adventurism on either side could precipitate such a confrontation.
Jimmy Carter, Palestine: Peace Not Apartheid
There is no terrorist threat in this country. This is a lie. This is the biggest lie we've been told.
Michael Moore
If someone did 9/11 to get back at Bush, then they did so by killing thousands of people who DID NOT VOTE for him! Boston, New York, DC, and the planes' destination of California - these were places that voted AGAINST Bush!
Michael Moore
I'm a millionaire, I'm a multi-millionaire. I'm filthy rich. You know why I'm a multi-millionaire? 'Cause multi-millions like what I do.
Michael Moore
The Iraqis who have risen up against the occupation are not 'insurgents' or 'terrorists' or 'The Enemy.' They are the revolution, the Minutemen, and their numbers will grow - and they will win.
Michael Moore
Jensen Comment
As far as I know British soldiers were not standing between warring "tribes" of Minutemen killing and torturing each other in unimaginable horror. Once again Michael proves he's never read a history book --- he probably does not have the time because he's too busy adding more millions to his millions.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Forwarded by Aaron Konstam
WHY ARE WE BADLY PAID... MATHEMATICALLY PROVEN.
Here is a simple explanation that is also mathematical proof:
Knowledge is Power.
Time is Money.
And, as every engineer knows:
Power = Work / Time
If Knowledge = Power, and Time = Money, then
Knowledge = Work / Money
Solving for Money, we get:
Money = Work / Knowledge
Thus, Money approaches infinity as Knowledge approaches zero, regardless of the Work done. What this means is:
The Less you Know, the More you Make --- QED
--------------------------------------------------------------------------------
From the Readers Digest, December 2006, Page 153
Flying to Toronto at Crhistmastime, I arrived at the airport check-in. As the security guard cleared my bags, I noticed a sprig of mistletoe dangling from him.
"What's the mistletoe for?" I asked.
"That?" He smiled. "That's so you can kiss your luggage goodbye."
Professor Robert E. Jensen (Bob) http://www.trinity.edu/rjensen
190 Sunset Hill Road
Sugar Hill, NH 03586
Phone: 603-823-8482
Email: rjensen@trinity.edu

I snapped this picture while on a walk in the good old
summer time (sigh).
The clouds were hanging low over Franconia Notch between Lafayette and Cannon
mountains.
Don't Believe
Everything Advertised Widely on TV
FreeCreditReport.com is a Scam! ---
http://www.consumerismcommentary.com/2006/11/16/freecreditreportcom-is-a-scam/
This isn’t the first time, but now the State
of Florida Office of the Attorney General is investigating FreeCreditReport.com.
You’ll notice I don’t link to the site. This site, run by credit reporting
agency Experian is taking advantage of the ruling that anyone can receive a free
annual credit report from each of the three major agencies. FreeCreditReport.com
is not the website that offers free credit reports in conjunction with this
directive. It’s misleading, and here’s the fine print on the site:
When you
order your free report here, you will begin your free trial membership in
Triple AdvantageSM Credit Monitoring. If you don’t cancel your membership
within the 30-day trial period, you will be billed $12.95 for each month
that you continue your membership. If you are not satisfied, you can cancel
at any time to discontinue the membership and stop the monthly billing;
however, you will not be eligible for a pro-rated refund of your current
month’s paid membership fee.
Bob Jensen's threads on the
dirty secrets of credit card companies and credit rating agencies are at
http://www.trinity.edu/rjensen/FraudReporting.htm#FICO
I also show you the legitimate place to go for a free credit report.
Tidbits on December 18, 2006
Bob Jensen
For
earlier editions of Tidbits go to
http://www.trinity.edu/rjensen/TidbitsDirectory.htm
For earlier editions of New Bookmarks go to
http://www.trinity.edu/rjensen/bookurl.htm
Click here to search Bob Jensen's web site if you have key words to enter ---
Search Site.
For example if you want to know what Jensen documents have the term "Enron"
enter the phrase Jensen AND Enron. Another search engine that covers Trinity and
other universities is at
http://www.searchedu.com/.
Bob Jensen's past presentations and lectures
---
http://www.trinity.edu/rjensen/resume.htm#Presentations
Bob Jensen's Home Page is at
http://www.trinity.edu/rjensen/
Bob Jensen's blogs and various threads on many topics ---
http://www.trinity.edu/rjensen/threads.htm
(Also scroll down to the table at
http://www.trinity.edu/rjensen/ )
Online Video, Slide Shows, and Audio
In the past I've provided links to various types of music and video available
free on the Web.
I created a page that summarizes those various links ---
http://www.trinity.edu/rjensen/music.htm
The Danes thought that they had a great solution to driver
speed control until they found that it created gridlock ---
http://5x5m.com/files/speedbandits/
I'll have a Danish to go please!
Video: Nuckin Futs 2006 Year in Review Children's Musical ---
http://www.jibjab.com/nuckin_futs
This video follows a video commercial.
Video: One Laptop per Child ---
http://www.technologyreview.com/
Stories of Professors at ThePhantomProf Blog ---
http://phantomprof.blogspot.com/2006/12/post-it.html
For a spirited defense of the life of the mind, intellectual
rigor, meaningful debate and facial hair, we recommend video of Wednesday
night’s “Colbert Report,” which featured an interview with John Sexton,
president of New York University. Video is available in the show’s archive of
“celebrity interviews.” (From Inside Higher Ed on December 8, 2006)
http://www.comedycentral.com/shows/the_colbert_report/videos/celebrity_interviews/index.jhtml
20 voices [Armenian life in the Ottoman Empire] ---
http://www.twentyvoices.com/
AISH (Jewish Spiritual) ---
http://www.aish.com/
The (New) National World War One Museum (includeds video
introduction) ---
http://www.libertymemorialmuseum.org/
Review by Mark Yost, "Why Kansas City ? The Great War gets an official museum of
its own," The Wall Street Journal, November 29, 2006 ---
http://www.opinionjournal.com/la/?id=110009313
Education Secretary Margaret M. Spellings is among the stars
of a White House video to celebrate Christmas ---
http://www.whitehouse.gov/holiday/2006/barneycam.html
Happy Holidays from Ernst & Young ---
http://happyholidays.ey.com/national/bzecards2.nsf/eCard_candles_7.html
President Bush: Hu's on First ---
http://youtube.com/watch?v=WHvFqvd1xg0
Drunk (in the early morning) Danny Devito Bashes Bush on NBC's
"The View" ---
http://www.youtube.com/watch?v=46wakJ8oggM&eurl=
How do I buy online movies and what can I do with them? ---
http://www.technologyreview.com/read_article.aspx?id=17890&ch=infotech
Dave Berry's 2006 commencement address at the University of
Miami --- Click
here to view the archived webcast
Fourteen Things That It Took Me Over 50 Years To Learn, by Dave
Barry ---
http://www.lucidcafe.com/library/pearls.html
1. Never, under any circumstances, take a sleeping pill
and a laxative on the same night.
2. If you had to identify, in one word, the reason why the
human race has not achieved, and never will achieve, its full potential,
that word would be "meetings."
3. There is a very fine line between "hobby" and "mental
illness."
4. People who want to share their religious views with you
almost never want you to share yours with them.
5. You should not confuse your career with your life.
6. Nobody cares if you can't dance well. Just get up and
dance.
7. Never lick a steak knife.
8. The most destructive force in the universe is gossip.
9. You will never find anybody who can give you a clear
and compelling reason why we observe daylight savings time.
10. You should never say anything to a woman that even
remotely suggests that you think she's pregnant unless you can see an actual
baby emerging from her at that moment.
11. There comes a time when you should stop expecting
other people to make a big deal about your birthday. That time is age
eleven.
12. The one thing that unites all human beings, regardless
of age, gender, religion, economic status or ethnic background, is that,
deep down inside, we ALL believe that we are above-average drivers.
13. A person who is nice to you, but rude to the waiter,
is not a nice person. (This is very important. Pay attention. It never
fails.)
14. Your friends love you anyway.
Thought for the day: Never be afraid to try something new.
Remember that a lone amateur built the Ark. A large group of professionals
built the Titanic.
Free music downloads ---
http://www.trinity.edu/rjensen/music.htm
Holiday Music (Free Downloads) ---
http://www.trinity.edu/rjensen/music.htm#Holiday
From Jessie
If the sound does not commence after 30 seconds, scroll to
the bottom of the page.
Bob Jensen's Rusty Chevrolet ---
http://www.jessiesweb.com/chev.htm
Christmas in Dixie (not in New Hampshire) ---
http://www.jessiesweb.com/dixie.htm
Blue Christmas ---
http://www.jessiesweb.com/bluejovi.htm
Jingle Bell Rock (Randy Travis) ---
http://www.jessiesweb.com/jinglebellrock.htm
Jingle Bells (Dean Martin) ---
http://www.jessiesweb.com/jinglebells.htm
Please Come Home for Christmas ---
http://www.jessiesweb.com/bellsjovi.htm
Redneck 12 Days of Christmas ---
http://www.jessiesweb.com/redneck.htm
The Christmas Song ---
http://www.jessiesweb.com/poem.htm
Silent Night ---
http://www.jessiesweb.com/reminder.htm
From Janie
I Want Elvis for Christmas ---
http://www.jbreck.com/elvischristmas.html
Christmas With Elvis ---
http://www.jbreck.com/cmashomeelvis.html
I could not get the audio to work on this ne one from Janie ---
http://mjbreck.com/elvisgracelandchristmasbyjbw.html
Many more Elvis selections that do work ---
http://jbreck.com/myelviswebsite.html
The Best Holiday Jazz CDs Ever, from WDUQ ---
http://www.npr.org/templates/story/story.php?storyId=6594501
-
Nat "King" Cole: The Christmas Song
-
Ella Fitzgerald:
Ella Wishes You a Swingin' Christmas
-
Vince Guaraldi Trio:
A Charlie Brown Christmas
-
Diana Krall Featuring the Clayton-Hamilton
Jazz Orchestra: Christmas Songs
-
Nancy Wilson: A
Nancy Wilson Christmas
-
Dianne Reeves,
Christmas Time Is Here
-
"'Zat You, Santa Claus?" (Louis Armstrong)
-
"Have Yourself a Merry Little Christmas"
(Sean Jones)
-
Wynton Marsalis, Crescent City Christmas Card
- Diane Delin, "Overture from the Nutcracker Suite"
Great Big Band Holiday Music ---
http://www.lulliloodesign.com/figaro_tunes.htm
Great Orchestration of the 12 Days of Christmas
---
http://www.jacquielawson.com/viewcard.asp?code=1017129949136
Santa's Dreaming of a White Christmas ---
http://badaboo.free.fr/merryxmas.swf
Mary Do You Know ---
http://www.youtube.com/v/A1oHJR2g7Tw
The Best, Worst and Weirdest in Holiday CDs ---
http://www.npr.org/templates/story/story.php?storyId=6527454
Mutter, Orkis Explore the Genius of Mozart ---
http://www.npr.org/templates/story/story.php?storyId=6544360
Director's Cuts: Holiday Gift Picks for 2006 ---
http://www.npr.org/templates/story/story.php?storyId=6527803
NPR Online Concerts ---
http://www.npr.org/templates/story/story.php?storyId=5194329
Christian Pop Gets Metaphysical -- and Tuneful
---
http://www.npr.org/templates/story/story.php?storyId=6551361
Digital Sheet Music Collection: University of Colorado
http://ucblibraries.colorado.edu/music/smp/index.html
Witty Tunes Are Jonathan Coulton's 'Thing' ---
http://www.npr.org/templates/story/story.php?storyId=6603466
Ethan Ong The Drummer Drum prodigy and Youngest Busker in
Singapore ---
http://www.metacafe.com/watch/324123/ethan_ong_the_drummer/
Ernst & Young Accounting Firm Happy Days (Video) ---
http://www.youtube.com/watch?v=lmEp0PHHA80
This may secretly be a celebration of Happy Days brought about by Sarbanes.
Photographs and Art
Online Books, Poems, References, and Other Literature
In the past I've provided links to various types electronic literature available
free on the Web.
I created a page that summarizes those various links ---
http://www.trinity.edu/rjensen/ElectronicLiterature.htm
International Spy Museum ---
http://www.spymuseum.org/
Also see "A prowl through the Spy Museum, by George Melloan, The Wall Street
Journal, December 12, 2006 ---
Click
Here
Free from Random House, The 100 Best Novels ---
http://www.randomhouse.com/modernlibrary/100bestnovels.html
Quotiki (quotations) ---
http://www.quotiki.com/
One Sentence Stories ---
http://www.onesentence.org/
New Poems by Robert Louis
Stevenson (1850-1894) ---
Click Here
Fantastic Fables by Ambrose
Bierce (1842 1914) ---
Click Here
Shatter Writer's Block ---
http://www.writinginfo.org/Shatter-Writers-Block/409
Bob Jensen's writing helpers ---
http://www.trinity.edu/rjensen/bookbob3.htm#Dictionaries
Booksellers Pick Their Holiday Favorites ---
http://www.npr.org/templates/story/story.php?storyId=6593957
NPR Picks Holiday Favorites ---
http://www.npr.org/templates/story/story.php?storyId=6582665
NPR Picks Holiday Books for Kids ---
http://www.npr.org/templates/story/story.php?storyId=6631429
Books for Everyone on Your Holiday Gift List ---
http://www.npr.org/templates/story/story.php?storyId=6589823
Never speak of others in a bad way. The negative
energy that you put out into the universe will multiply when it returns to you.
Native American Code of Ethics ---
http://eveningrain.com/Ethics.html
They (9/11
Al Qaeda terrorists) were targeting those people I
referred to as 'little Eichmanns.' These were legitimate targets.
Ward Churchill at New College
on December 6, 2006 ---
http://www.newcollege.edu/
Jensen Comment
Yeah right! Over 3,000 deaths don't matter much according to Ward Churchill
since, in his mind, the 9/11 kills were "legitimate
targets" suffering from capitalistic excesses built and sins of
longtime dead ancestors they never met ---
http://www.trinity.edu/rjensen/HypocrisyChurchill.htm
An ethnic studies professor from the University of
Colorado, Ward Churchill, received a standing ovation last night from a crowd of
more than 200 New School (an
activist college in California) students after
blaming the 2001 World Trade Center attacks on America's support of Israel and
its sanctions against Iraq in 1996. In a two-hour speech at the New School
titled "Sterilizing History: The Fabrication of Innocent Americans," delivered
without notes, Mr. Churchill traced what he called a pattern of mass murder as
American foreign policy from the time of the country's inception to the events
of September 11, 2001, which he said the country...
Annie Karni, "New School Students
Cheer Ward Churchill Speech," New York Sun, December 12, 2006 ---
http://www.nysun.com/article/44971
Jensen Comment
Fiery speakers like Ward Churchill can expect standing ovations when they're
preaching to their own choirs.
Those who don't build must burn. It's as old as
history and juvenile delinquence.
Ray Bradbury, FAHRENHEIT 451
The extreme left (they prefer to be
called progressive) does seem to have abandoned any
idea of creating a socialist utopia; today it is devoted solely to uncreative
destruction.
Opinion Journal, February 11, 2005
Jensen Comment
At least
Karl
Marx, Nozick, and
Heilbroner had a visions
The aim of the university is not to make ideas safe
for students, but to make students safe for ideas.
Clark Kerr as quoted by David
Shapiro at
http://irascibleprofessor.com/comments-03-15-06.htm
Islamic militants are using northern Pakistan to
increase their ties with al-Qaeda and train suicide bombers as well as foreign
fighters. All of this adds up to training that could easily translate into
increased violence in Afghanistan next year. One of the clearest signs of
al-Qaeda's influence in the area is the rising number of suicide bombings, a
tactic that was not common before before 2001. One tribal leader says there are
so many recruits willing to become suicide bombers that volunteers are sent home
and told to wait their turn.
Daniel Politi, "Death Becomes Him,"
Slate, December 11, 2006 ---
http://www.slate.com/id/2155239/
Jensen Comment
Just goes to show you that one bird in hand is not worth
72 in
the bush.
I wanted to give you a heads-up on a story that will
be running this Sunday, Dec. 17 (7PM ET/PT on CBS) on "60 MINUTES" about a
long-secret German archive that houses a treasure trove of information on
17.5 million victims of the Holocaust.
The archive, located in the German town of Bad Arolsen, is massive (there are 16
miles of helving containing 50 million pages of documents) and until recently,
was off-limits to the public. But after the German government agreed earlier
this year to open the archives, CBS News' Scott Pelley traveled there with three
Jewish survivors who were able to see their own Holocaust records. It's an
incredibly moving piece, all the more poignant in the wake of this week's
meeting of Holocaust deniers in Iran. We're trying to get word out about the
story to people who have a special interest in this subject. So we were hoping
you'd consider sending out something to your listserv and/or posting something
on your website. Further information will also be available on our website
(
http://www.cbsnews.com/stories/1998/07/08/60minutes/main13502.shtml
) . . .
December 16, 2006 email message from Naomi Ragen
[nragen@netvision.net.il]
Iran's President reaffirmed his intention to "eradicate" Israel
"The establishment of the Zionist regime was a
move by the world oppressor against the Islamic world," the president told a
conference in Tehran on Wednesday, entitled The World without Zionism. "The
skirmishes in the occupied land are part of a war of destiny. The outcome of
hundreds of years of war will be defined in Palestinian land," he said. "As the
Imam said, Israel must be wiped off the map," said Ahmadinejad, referring to
Iran's revolutionary leader Ayat Allah Khomeini. His comments were the first
time in years that such a high-ranking Iranian official has called for Israel's
eradication, even though such slogans are still regularly used at government
rallies.
"Ahmadinejad: Wipe Israel off map; Iranian
President Mahmoud Ahmadinejad has openly called for Israel to be wiped off the
map," Al Jazeera ---
http://english.aljazeera.net/news/archive/archive?ArchiveId=15816
Also see "Holocaust conference begins in Iran," by Nasser Karimi, Boston
Globe, December 12, 2006 ---
Click Here
"The number of victims
at the Auschwitz concentration camp could be about 2,007,"
Australian Frederick Toben told the conference, according to a Farsi
translation of his remarks. "The railroad to the camp did not have enough
capacity to transfer large numbers of Jews," said Toben, who was jailed in
1999 in Germany for casting doubt on the Holocaust.
The two-day conference was
initiated by President Mahmoud Ahmadinejad in an apparent attempt to burnish
his status as a tough opponent of Israel. The hard-line president has
described the Holocaust as a "myth" and called for Israel to be wiped off
the map. Earlier this year, his government backed an exhibition of
anti-Israel cartoons in a show of defiance after Danish cartoons
caricaturing Islam's Prophet Muhammad were published in Europe, raising an
outcry among Muslims.
Organizers and participants
touted the conference as a scholarly gathering aimed at discussing the
Holocaust away from Western taboos and the restrictions imposed on scholars
in Europe. In Germany, Austria and France, it is illegal to deny aspects of
the Holocaust.
Duke, a former Louisiana
state representative, praised Ahmadinejad for his "courage" in holding a
conference "to offer free speech for the world's most repressed idea:
Holocaust revisionism."
"In Europe, you can freely
question, ridicule and deny Jesus Christ. The same is true for the Prophet
Muhammad, and nothing will happen to you," Duke said. "But offer a single
question of the smallest part of the Holocaust and you face prison."
Also among participants were
two rabbis and four other members of the group Jews United Against Zionism,
who were dressed in the traditional long black coats and black hats of
ultra-Orthodox Jews. The group rejects the creation of Israel on the grounds
that it violates Jewish law.
Rabbi Ahron Kohen urged
participants not to deny the Holocaust. "If we say that this crime did not
happen, it is a humiliation and insult to the victims," he said, according
to a translation of his remarks.
But he added that Zionists
have used the Holocaust to "give legitimacy to their illegitimate project,"
the creation of Israel.
Another participant, Robert
Faurisson, has been convicted five times in France for denying crimes
against humanity -- most recently last month, when he was fined for denying
in an interview with Iranian TV that the Nazis meant to exterminate Jews.
The truth is as difficult to deny as it is to
hide.
Ernesto Che Guevara
(1928-1967) ---
http://en.wikipedia.org/wiki/Che_Guevara
Jensen Comment
The number 2,007 cited above is an accurate-sounding number in Iran but does not
have any backing among world scholars. French scholar George Wellers was one of
the first to use Nazi data on deportations to estimate the number killed at
Auschwitz, arriving at
1.613 million
dead, including 1.44 million Jews and 146,000 Poles. A larger study started
around the same time by Franciszek Piper used time tables of train arrivals
combined with deportation records to calculate 1.1 million Jewish deaths and
140,000-150,000 Polish victims, along with 23,000 Roma & Sinti (Gypsies). This
number has met with "significant, though not complete" agreement among scholars.
Additionally, untold thousands of homosexuals were also killed at Auschwitz.
Iran's President Ahmadinejad is so damaging to
Islamic credibility I sometimes wonder if he was not invented by Israel.
However, Iran's nuclear threat to Israel is now so grave that Jewish factions
are supporting Saudi Arabia's bid for nuclear technology on the Sunni side in
the spreading civil war between Sunni
Islam and Iranian
Shi'a Islam.
Israeli officials this week made two painfully
honest nuclear pronouncements. The first -- Prime Minister Ehud Olmert's
indirect admission on Monday that Israel had nuclear weapons -- got the lion's
share of attention. Another statement, however, was easily as interesting: On
Wednesday Israeli officials publicly applauded Saudi Arabia's announcement that
it and its Gulf Cooperation Council (GCC) neighbors intended to develop
"peaceful nuclear energy." Why Jerusalem's endorsement? Because, as Israeli
officials explained, these Arab nations' announcement was "directed against
Iran." That is, it threatened to check Iran's bomb activities with a Sunni
nuclear-weapons option.
Henry Sololski, "Hair-Raising New
World," The Wall Street Journal, December 15, 2006; Page A20 ---
Click Here
A Canadian professor says he gladly accepted an
invitation from Iran's hardline Islamist government to speak at an international
conference (December 13) questioning the
Holocaust. But Dr. Shiraz Dossa, a soft-spoken political science professor at
Nova Scotia's St. Francis Xavier University, said he doesn't put himself in the
same category as some of the "hacks and lunatics'' attending the event. The
two-day gathering drew some of the world's most notorious Holocaust deniers,
Nazi sympathizers and scholars such as former Ku Klux Klan Grand Wizard David
Duke. Dossa, the lone Canadian at the event, told The Globe and Mail he
presented a paper about how the Holocaust has been used to justify anti-Islamic
policies in the U.S. war on terror. The academic said no one pressured him to
change his point of view, which he says has nothing to do with Holocaust denial.
Dossa describes himself as an admirer of left-wing American scholar Noam
Chomsky. He said the paper he presented was about the war on terrorism, and how
the Holocaust plays into it. "Other people have their own points of view, but
that (Holocaust denial) is not my point of view," he told The Globe.
"Canadian prof shocked by Holocaust gathering," CTV,
December 13, 2006 ---
Click Here
Also see "Professor’s Attendance at ‘Conference’ Stuns Canada," Inside Higher
Ed, December 15, 2006 ---
http://www.insidehighered.com/news/2006/12/14/holocaust
“My essential point is that the Jewish loss — which
is, of course, a reality, and anyone who denies it is a lunatic — the focus here
is on how the Holocaust is a political construct, distinct from the Jewish loss
at the hands of the Nazis. And that political construct has been used to justify
certain policies by people, some of whom are Zionists. And now that whole issue
plays into the war on terrorism, which is essentially a war on Islam,” he told
the newspaper.
Scott Jaschik quoting Shiraz Dossa
(Canadian professor who was an invited speaker at Iran's Holocaust denial
conference), Inside Higher Ed, December 15, 2006 ---
http://www.insidehighered.com/news/2006/12/14/holocaust
A man is rich in proportion to the number of things
he can afford to let alone.
Henry David Thoreau (1817-1862) ---
http://en.wikipedia.org/wiki/Henry_David_Thoreau
It's scary when you start making the same noises as
your coffee maker.
Maxine
Ever get a feeling that your stuff strutted off
without you?
Maxine
It's great to be back in England. I feel like Jack
The Ripper days are back. Nothing ever changes here.
Oliver Stone at the British Comedy
Award Ceremony. His bad-taste attempt at comedy was met with jeers and gasps of
horror from the celebrity audience in light of the recent Suffolk murders.
"Stone's Ripper joke shocks audience," RTE, December 14, 2006 ---http://www.rte.ie/arts/2006/1214/stoneo.html
The New Orleans school system, re-created in the
wake of Hurricane Katrina, is beginning to look like something designed by FEMA.
Lisa Delpit and Charles Payne,
"Katrina's Last Victims?" The Nation, December 14, 2006 ---
http://www.thenation.com/docprem.mhtml?i=20070101&s=delpit
We therefore advocate a revolution against the
industrial system. This revolution may or may not make use of violence: it may
be sudden or it may be a relatively gradual process spanning a few decades. We
can't predict any of that. But we do outline in a very general way the measures
that those who hate the industrial system should take in order to prepare the
way for a revolution against that form of society. This is not to be a POLITICAL
revolution. Its object will be to overthrow not governments but the economic and
technological basis of the present society.
"Full Text: Unabomber's Manifesto," CBS5 San Francisco,
November 28, 2006 ---
http://cbs5.com/reference/local_story_332145319.html
Mexican lawlessness is reaching epidemic
proportions. It is true that AMLO -- as the Mexican press calls the defeated PRD
candidate -- is now mostly an unpopular annoyance even to those who voted for
him. It is also true that if the PRD wants to remain a serious political party
it has to show that it is willing to work within the system. But other violent
actors who prefer the path of terror and extortion to gain power and resources
are threatening national security. Some of the blame lies with Mr. Fox and his
weak response to extreme political groups. Some of it lies with the U.S. demand
for illegal drugs, which is fueling an ever more powerful organized-crime
problem in a country ill-equipped to fight back.
Mary Anastasia O'Grady, "It's High
Noon in Mexico," The Wall Street Journal, December 1, 2006; Page A13 ---
Click Here
How Terrorists Use Civilians for Cover and
Gullible Media Exploitation
The most persuasive evidence here is photographic, so we urge readers to access
the report itself on the Web site of the American Jewish Congress (ajcongress.org).
Hezbollah's headquarters in Aita al-Shaab, for
instance, sits in the heart of the village. Hezbollah leader Hassan Nasrallah's
office and home are in a densely built neighborhood of Beirut. In the town of
Qana--site of an Israeli bombing on July 30 that killed 28 and that Hezbollah's
apologists were quick to label a "massacre"--an arms warehouse can be seen
adjacent to a mosque. There are photographs of rockets in the back seats of
cars, missile launchers adjacent to farm houses, storage bunkers hidden beneath
homes. There is also a trove of before-and-after photography demonstrating the
precision of most Israeli bombing.
"Whose War Crimes? Evidence from Lebanon about how terrorists use
civilians," The Wall Street Journal, December 11, 2006 ---
http://www.opinionjournal.com/editorial/feature.html?id=110009371
" . . . there are a lot of good things that are
happening that aren't covered and I think the drumbeat in the country from the
media...is discouraging" as she hoped for "more balanced coverage" in the
future.
CyberAlert, December 15, 2006 ---
http://www.mrc.org/cyberalerts/2006/cyb20061215.asp
Congressman (Dennis Kucinich)
from Cleveland explains an urgent need for human unity, human security and peace
motivated him to run for President.
Joshua Scheer, "What Makes Kucinich
Run?" The Nation, December 15, 2006 ---
http://www.thenation.com/doc/20070101/scheer
Jensen Comment
Yeah right. His utterly hopeless candidacy more likely has more despicable
motives.
EVERYONE who laughed when the elfin Dennis Kucinich
threw his hat in the ring to run for president in 2004 should realize why he
smiles. He had 2,955,963 reasons to smile. That is how many bucks federal
taxpayers gave his ridiculous campaign for president. Kucinich had no chance.
Yet under the bizarre federal election rules, taxpayers had to give this fool
$2,955,963 just to humor his vanity. Ralph Nader took $798,827 from taxpayers in
2004 to indulge his fantasy of being elected president. Consumers beware. I look
for this demagogue to run again. Lyndon LaRouche is another likely candidate.
Last...
Don Surber, "Demagoguery earns
Kucinich millions," Charlestown Mail, December 15, 2006 ---
Click Here
Anyone who believes exponential growth can go on
forever in a finite world is either a madman or an economist.
Kenneth Boulding (1910-1993) ---
http://en.wikipedia.org/wiki/Kenneth_Boulding
Start Digging and Pave the Streets of the Earth With Gold
Searching for a pot of gold? Try the center of the
Earth. More than 99 percent of Earth's gold is missing—it all sank to the center
of the planet billions of years ago. In fact, says geologist Bernard Wood of
Macquarie University in Australia, there's enough gold in Earth's core to coat
its surface in 1.5 feet of the stuff. How did it get there? Earth formed from a
series of smaller planetesimals that crashed together over the course of 30
million to 40 million years. Wood deduced how much gold ought to be present in
Earth's crust by comparing...
Anne Wootten, "Earth's Inner Fort Knox," Discover Magazine,
September 2006 ---
http://www.discover.com/issues/sep-06/rd/innerfortknox/
Start Digging on the Moon for Nuclear Fuel
NASA's proposed 2024 moon base will be a steppingstone
to Mars, but it may also be a mining outpost. The moon is an abundant source of
helium-3, a potent fuel for next-generation nuclear reactors. Trouble is, China,
India and Russia have their eyes on it too.
John Lasker, "Race to the Moon for Nuclear Fuel," Wired News, December
15, 2006 ---
http://www.wired.com/news/technology/space/0,72276-0.html?tw=wn_index_8
The Best Science Fictions ---
http://www.wired.com/wired/archive/14.12/start.html?pg=15
By Aria Pearson,
Wired Magazine, December 2006
Fiction: If you fall into quicksand, you’ll be sucked
under and die.
Fact: You’ll only sink up to your waist.
Fiction: Sitting too close to the TV will ruin your
eyes.
Fact: It causes fatigue but no permanent damage.
Fiction: Earth’s rotation causes bathtubs, sinks, and
toilets to drain clockwise in the northern hemisphere, counterclockwise in
the southern hemisphere.
Fact: They can go either way in either hemisphere. The
shape of the basin and the direction of the incoming flow overwhelm the
minuscule effect of planetary spin.
Fiction: Benjamin Franklin’s kite was struck by
lightning.
Fact: The kite picked up electricity from the air, causing
an arc between Franklin’s hand and a key tied to his end of the string.
Fiction: A penny dropped from the top of a skyscraper
can kill someone.
Fact: It could never pick up enough velocity to kill, just
to bang you up a little.
Fiction: Swimming after you eat will cause cramps and
lead to drowning.
Fact: There is a very slight risk of cramps, but only for
vigorous swimmers.
Fiction: A drunken teenager can tip over a sleeping cow.
Fact: It would take several semisober people and a
paralyzed cow. Anyway, cows sleep lying down.
Fiction: There’s a dark side of the moon.
Fact: The entire lunar surface receives sunlight during the
moon’s monthly orbit around Earth.
Fiction: Swallowed chewing gum takes seven years to
digest.
Fact: Gum is not digested. It passes through the
gastro-intestinal system, usually within 24 hours.
Joy to the world
I'm getting laid
I'm getting laid tonight.
We'll light the Yule log
Deck the halls
And then we'll play some
Jingle balls.
It's been a real long wait
This is our second date
It's Christmas Eve
And I'm getting laid.
Charlie
Sheen to the tune of a famous Christian hymn, Two and a Half Men,
December 11, 2006
"AFA: 'Fornication' song requires network apology," by Bob Unruh,
WorldNetDaily, December 16, 2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53387
Jensen Comment
In addition to being sacrilegious, this illustrates how low prime time
"family television shows" have sunk --- they should be X-Rated.
More on Science Fiction
Charlie Sheen is one of the most famous proponents of the 9/11 conspiracy
Speaking to The Alex Jones Show on the GCN Radio
Network, the star of current hit comedy show Two and a Half Men and dozens
of movies including Platoon and Young Guns, Sheen elaborated on why he had
problems believing the government's version of events. Sheen agreed that the
biggest conspiracy theory was put out by the government itself and prefaced
his argument by quoting Theodore Roosevelt in stating, "That we are to stand
by the President right or wrong is not only unpatriotic and servile, but is
morally treasonable to the American public."
"Actor Charlie Sheen Questions Official 9/11 Story," PrisonPlanet,
March 20, 2006 ---
http://www.prisonplanet.com/articles/march2006/200306charliesheen.htm
Say What? An Ultraliberal Magazine Debunks the 9/11 Conspiracy Theory
The Reichstag example also holds a lesson for
those who would dismiss the very notion of a conspiracy as necessarily
absurd. It was perfectly reasonable to suspect the Nazis of setting the
fire, so long as the evidence suggested that might have been the case. The
problem isn't with conspiracy theories as such; the problem is continuing to
assert the existence of a conspiracy even after the evidence shows it to be
virtually impossible.
"9/11: The Roots of Paranoia," by Christopher Hayes, The Nation,
December 8, 2006 ---
http://www.thenation.com/doc/20061225/hayes
According to a July poll conducted by Scripps
News Service, one-third of Americans think the government either carried
out the 9/11 attacks or intentionally allowed them to happen in order to
provide a pretext for war in the Middle East. This is at once alarming
and unsurprising. Alarming, because if tens of millions of Americans
really believe their government was complicit in the murder of 3,000 of
their fellow citizens, they seem remarkably sanguine about this fact. By
and large, life continues as before, even though tens of millions of
people apparently believe they are being governed by mass murderers.
Unsurprising, because the government these Americans suspect of
complicity in 9/11 has acquired a justified reputation for deception:
weapons of mass destruction, secret prisons, illegal wiretapping. What
else are they hiding?
This pattern of deception has not only fed
diffuse public cynicism but has provided an opening for alternate
theories of 9/11 to flourish. As these theories--propounded by the
so-called 9/11 Truth Movement--seep toward the edges of the mainstream,
they have raised the specter of the return (if it ever left) of what
Richard Hofstadter famously described as "the paranoid style in American
politics." But the real danger posed by
the Truth Movement isn't paranoia. Rather, the danger is that it will
discredit and deform the salutary skepticism Americans increasingly show
toward their leaders.
The Truth Movement's recent growth can be
largely attributed to the Internet-distributed documentary Loose Change.
A low-budget film produced by two 20-somethings that purports to debunk
the official story of 9/11, it's been viewed over the Internet millions
of times. Complementing Loose Change are the more highbrow offerings of
a handful of writers and scholars, many of whom are associated with
Scholars for 9/11 Truth. Two of these academics, retired theologian
David Ray Griffin and retired Brigham Young University physics professor
Steven Jones, have written books and articles that serve as the
movement's canon. Videos of their lectures circulate among the
burgeoning portions of the Internet devoted to the cause of the
"truthers." A variety of groups have chapters across the country and
organize conferences that draw hundreds. In the last election cycle, the
website
www.911truth.org even produced a questionnaire with pointed
inquiries for candidates, just like the US Chamber of Commerce or the
Sierra Club. The Truth Movement's relationship to the truth may be
tenuous, but that it is a movement is no longer in doubt.
Truth activists often maintain they are simply
"raising questions," and as such tend to focus with dogged persistence
on physical minutiae: the lampposts near the Pentagon that should have
been knocked down by Flight 77, the altitude in Pennsylvania at which
cellphones on Flight 93 should have stopped working, the temperature at
which jet fuel burns and at which steel melts. They then use these
perceived inconsistencies to argue that the central events of 9/11--the
plane hitting the Pentagon, the towers collapsing--were not what they
appeared to be. So: The eyewitness accounts of those who heard
explosions in the World Trade Center, combined with the facts that jet
fuel burns at 1,500 degrees Fahrenheit and steel melts at 2,500, shows
that the towers were brought down by controlled explosions from inside
the buildings, not by the planes crashing into them.
If the official story is wrong, then what did
happen? As you might expect, there's quite a bit of dissension on this
point. Like any movement, the Truth Movement is beset by internecine
fights between different factions: those who subscribe to what are
termed LIHOP theories (that the government "let it happen on purpose")
and the more radical MIHOP ("made it happen on purpose") contingent.
Even within these groups, there are divisions: Some believe the WTC was
detonated with explosives after the planes hit and some don't even think
there were any planes.
To the extent that there is a unified theory of
the nature of the conspiracy, it is based, in part, on the precedent of
the Reichstag fire in Germany in the 1930s. The idea is that just as the
Nazis staged a fire in the Reichstag in order to frighten the populace
and consolidate power, the Bush Administration, military contractors,
oil barons and the CIA staged 9/11 so as to provide cause and latitude
to pursue its imperial ambitions unfettered by dissent and criticism.
But the example of the Reichstag fire itself is instructive. While
during and after the war many observers, including officials of the US
government, suspected the fire was a Nazi plot, the consensus among
historians is that it was, in fact, the product of a lone zealous
anarchist. That fact changes little about the Nazi regime, or its use of
the fire for its own ends. It's true the Nazis were the chief
beneficiaries of the fire, but that doesn't mean they started it, and
the same goes for the Bush Administration and 9/11.
The Reichstag example also holds a lesson for
those who would dismiss the very notion of a conspiracy as necessarily
absurd. It was perfectly reasonable to suspect the Nazis of setting the
fire, so long as the evidence suggested that might have been the case.
The problem isn't with conspiracy theories as such; the problem is
continuing to assert the existence of a conspiracy even after the
evidence shows it to be virtually impossible.
Debunking The 9/11 Myths -Popular Mechanics
examines the evidence and consults the experts to refute the most persistent
conspiracy theories of September 11 ---
http://www.popularmechanics.com/technology/military_law/1227842.html
In India, abortion is not gender neutral
Ten million girls have been killed by their parents
in India in the past 20 years, either before they were born or immediately
after, a government minister said on Thursday, describing it as a "national
crisis" . . . A UNICEF report released this week said 7,000 fewer girls are
born in the country every day
than the global average would suggest, largely because female foetuses are
aborted after sex determination tests but also through murder of new borns.
Palash Kumar, "India has killed 10 mln girls in 20 years," Yahoo News,
December 154 2006 ---
http://news.yahoo.com/s/nm/20061214/india_nm/india280322
How to check on a charity or church before you donate
International Center for
Not-for-Profit Law ---
http://www.icnl.org/
FTC Charity Fraud Site ---
Search at http://www.ftc.gov/
You can begin with IRS Form 990 disclosures, but these may be more
misleading than helpful. You can access them from Guidestar at
http://www.guidestar.org/index.jsp
Guidestar also provides salary disclosures for top executives in the
charity. However, funds can be diverted by cheats in other ways.
Research Tools
Analyst Reports
Charity Check
Grant Explorer
Data Services
Nonprofit Compensation Reports
Salary Search
"Giving Freely—And Wisely: One site names preachers who may be
misusing money and suggests that you 'prayerfully' consider giving to other
ministries instead," Jane Bryant Quinn, Newsweek, December 18, 2006,
Page 51 ---
http://www.msnbc.msn.com/id/16127630/site/newsweek/
Unfortunately, you can't always believe what
the (IRS Form) 990 says. It's supposed to
show how much the nonprofit spends on actual services, as opposed to
fund-raising and administration. But the law isn't much enforced. In a
report covering part of the 1990s, the General Accounting Office found
that 64 percent of public charities claimed to have
zero—zero!—fund-raising expenses. Do you believe that? Neither do I.
Some of the rating
services adjust for these problems. Uncharitably, they often slam each
other's methods while touting their own. I'm a civilian in these wars,
so my advice is to look for good grades from every source. Start your
research here:
1. The Better Business Bureau Wise Giving
Alliance (Give.org). It currently posts reports on more than 900
nonprofits, testing them by a number of standards including good
governance. About 65 percent of them pass. The rest fail, or refuse to
be evaluated (a bad sign, no matter what excuse the charity gives).
2. American Institute of Philanthropy
(CharityWatch.org). It's the toughest of the bunch, rating more than 500
charities on a scale of A+ down to F. Because it disregards certain,
potentially suspect, expenses and donations, it fails some nonprofits
that the other raters approve. Readers of this column can get its latest
Charity Rating Guide free from AIP, P.O. Box 578460, Chicago, IL 60657.
3. CharityNavigator.org rates 5,100 nonprofits
on a scale of zero to four stars. This site draws only from a
nonprofit's latest 990 form, which could mislead. But I like its Top Ten
lists, such as 10 Charities Overpaying Their For-Profit Fund-Raisers.
4. MinistryWatch.com rates more than 500
evangelical groups on a scale of 1 to 5 stars. It's an ardent advocate
for financial disclosure. The site names preachers who may be misusing
money and suggests that you "prayerfully" consider other ministries
instead. Withholding that advice, says MinistryWatch.com, would be
"tantamount to condoning sin." Hear, hear.
5. The Evangelical Council for Financial
Accountability (Ecfa.org) accredits Evangelical churches and charities
based on such standards as audited financial reports and ECFA's own
field reviews. If your group hasn't joined (or is on the lists of those
that left) you should ask why. There's no comparable service for Jewish,
Muslim or Catholic organizations.
You'll find other sources. GuideStar.org gives
no ratings, just access to 990s for nearly 700,000 charities.
Pennsylvania's Department of State lists nonprofits that ran into
trouble there. They may be fund-raising in other states.
Still, most people donate simply because
someone asks them to, says William Meehan, chair of Philanthropic
Research, parent of GuideStar. Charity ratings haven't had much impact,
because they're flawed and not enough people follow them. Besides, the
ratings don't help you choose among similar charities. For that, you
need to know how well they do their jobs. That's the next step—and a new
Web site should help it along. Watch for GreatNonprofits.org, launching
next spring. People familiar with specific charities—clients, donors,
staff and volunteers—will be able to post opinions there, for you to
read before you decide to give.
Continued in article
Bob Jensen's threads on reporting fraudulent charities are at
http://www.trinity.edu/rjensen/FraudReporting.htm#CharityFrauds
Question
Do hybrid vehicles (today, at least) appear to be another feel good/do
nothing hoax?
Comparisons of Hybrid Fuel Saving Automobiles ---
http://avt.inl.gov/pdf/hev/sae_gov_ind_may_2005_hevs.pdf
It's beginning to look like a hoax ---
http://www.freerepublic.com/focus/f-news/1752922/posts
The drop in performance with air conditioning is considerable. Maybe
a Marin County, CA or Cambridge, MA granola cruncher and live
without A/C, but in the Sunbelt we cannot. Driving around in 90+
weather with the windows down won’t cut it.
Given that the acclaimed fuel efficiency of hybrids is much less
with the air on, I wondered how they compared with standard
vehicles. Using Edmunds.com, I made a few direct comparisons. This
is interesting stuff…
2003 CIVIC...
2003 Civic Hybrid
Air Off: 47 MPG
Air On: 36 MPG
2003 Civic LS Auto 4 Cyl.
City: 29 MPG
Hwy: 38 MPG
Avg: 33.5 MPG
2005 ACCORD...
2005 Accord Hybrid
Air Off: 29 MPG
Air On: 24 MPG
2005 Accord LX Auto 4 Cyl.
City: 26 MPG
Hwy: 34 MPG
Avg: 30 MPG
2005 Accord LX Auto 6 Cyl.
City: 21 MPG
Hwy: 30 MPG
Avg: 25.5 MPG
2005 SILVARADO...
2005 Silvarado 2WD Hybrid
Air Off: 16 MPG
Air On: 19 MPG
2005 Silvarado 2WD Hybrid
City: 16 MPG
Hwy: 19 MPG
Avg: 17.5 MPG
2005 ESCAPE...
2005 Escape 2WD Hybrid
Air Off: 25 MPG
Air On: 32 MPG
2005 Escape 2WD 3.0L
City: 20 MPG
Hwy: 25 MPG
Avg: 22.5 MPG
COMPARISON...
I compared the hybrid fuel savings with air on to the conventional
vehicle’s city/highway average. The Civic and Escape hybrids each
got a whopping 2.5 MPG better than the conventional vehicles. The
Accord and Silvarado hybrids performed worse!
Civic: Hybrid +2.5 MPG
Accord 4Cyl: Hybrid -6 MPG
Accord 6 Cyl: Hybrid -1.5 MPG
Silvarado: Hybrid -1.5 MPG
Escape: Hybrid +2.5 MPG
In some parts of the country, people may not need air
conditioning. Where the air is kept on most of the year, the hybrids
aren’t such a good deal. In fact, they may get worse fuel
efficiency. And we haven’t even discussed the energy cost to recycle
the batteries every eight years.
National security costs hidden in every barrel of oil
In his new book, Lives Per Gallon, former secretary
of the California EPA Terry Tamminen examines the health, environmental and
national security costs hidden in every barrel of oil. Wired News interview
by John Gartner.
John Gartner, "The Pernicious Price of Petroleum," Wired News,
December 13, 2006 ---
http://www.wired.com/news/technology/autotech/0,72266-0.html?tw=wn_index_29
Google Plants Solar Trees
The search giant joins a growing trend by
landscaping its headquarters' parking lots with pole-mounted panels that
provide shade and generate clean power in one fell swoop.
Marty Graham, "Google Plants Solar Trees," Wired News, December 13,
2006 ---
http://www.wired.com/news/technology/0,72292-0.html?tw=wn_index_32
Corporate Monopoly: Radio Is Wrecked--But It Can Be Repaired
A handful of homogenized music formats now
dominates the airwaves. Jazz, the classics, folk and new rock are hard to
find. Listeners are tuning out. John Nichols reports on a new study by
musicians and fans that documents how corporate consolidation is killing
American radio--and how the FCC can fix it.
John Nichols, "Radio Is Wrecked--But It Can Be Repaired," The
Nation, December 15, 2006 ---
http://www.thenation.com/blogs/thebeat?pid=148791
The knowledge economy of Europe ---
http://www.theworkfoundation.com/Assets/PDFs/KE_Europe.pdf
(Including how Europe compares with the U.S. in terms of the knowledge
economy.)
Native American Code of Ethics ---
http://eveningrain.com/Ethics.html
Saudi Arabia's Method for Terminating Corruption Investigations
Tony Blair, the British prime minister, has
said he takes full responsibility for the decision to abandon an
investigation into alleged corruption and bribery. The decision to abandon a
two-year corruption inquiry into BAE Systems came after Saudi Arabia
suggested it might cancel an order for 72 Eurofighter Typhoon jets from BAE
Systems.
"Blair defends Saudi arms decision," Al Jazeera, December 16, 2006
---
http://english.aljazeera.net/NR/exeres/1E0DDA3F-CA29-4CD9-9F9F-53C7A783F6B2.htm
Bob Jensen's fraud updates are at
http://www.trinity.edu/rjensen/FraudUpdates.htm
EU leaders still divided on future
European Union leaders have remained far from
united about the future shape of the union, set to grow to 27 members when
Bulgaria and Romania join on January 1. On the final day of a summit, there
were still divisions about further expansion beyond that date and about
whether and how to revive a stalled EU constitution rejected by French and
Dutch voters.
"EU leaders still divided on future," Al Jazeera, December 15, 2006
---
http://english.aljazeera.net/NR/exeres/3BFC3168-27AB-48A2-A1C0-9BC7EBC7DCA2.htm
Taxation of Dividends Creates European Union Stir
The Institute of Chartered Accountants in Ireland
(ICAI) said that the European Court of Justice (ECJ) ruling this week on the
UK dividends case creates issues for other European countries, including
Ireland, which have a similar system of taxation of dividends to that in the
UK. The ECJ ruled on the principles of freedom of establishment and freedom
of movement of capital in relation to the UK dividends system. See further
details in our full news item.
Andy Lymer, "ECJ DIVIDENDS CASE CREATES ISSUES FOR IRELAND,"
AccountingEducation.com, December 14, 2006 ---
http://accountingeducation.com/index.cfm?page=newsdetails&id=144069
True deficit: $3.5 trillion: Analyst
says coming Treasury report will document 'unsustainable' pace
A report scheduled to be released by the Treasury
Department tomorrow is expected to show the true deficit in the
Bush
administration's
2006 federal budget to be an astounding $3.5 trillion
in the red, not $248.2 billion as previously reported.
Jerome R. Corsey, "True deficit: $3.5 trillion," WorldNetDaily,
December 14, 2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53366
Johns Hopkins Gets a Separate B-School
What's better than one Carey B-school? How about
another one? The same person who endowed the W.P. Carey School of Business
at Arizona State has done it again, this time at Johns Hopkins University in
Baltimore. Johns Hopkins officials said Dec. 5 that the school received a
$50 million donation from trustee emeritus William Polk Carey to go toward
the creation of the university's first separate business school. Carey is
chairman of New York real estate investment firm W.P. Carey & Co.
Julie Gordon, "Johns Hopkins Gets a Separate B-School," Business Week,
December 5, 2006 ---
http://www.businessweek.com/bschools/content/dec2006/bs20061205_466430.htm?link_position=link4
Jensen Comment
What a tough
challenge! Can you imagine trying to hire a new business school faculty from
scratch? It is absolutely certain that Johns Hopkins will want prestigious
faculty. It will be interesting to see who they snare. About three weeks ago
I flew into Baltimore and took a limo down to Crystal City, Virginia. I was
truly impressed by the number of trees in full foliage. Our leaves blew off
the trees over six weeks ago.
In spite of legislation and voter mandates, universities will always
have race-based affirmative action
As we wrote at the time, "a cynic might conclude
that the decisions mean universities can still discriminate as long as
they're not too obvious about it." That is exactly what Wayne State is
doing. Its new law school admission guidelines, unveiled last week, avoid
mention of race and other preference criteria explicitly banned by Prop 2.
Instead, applicants will be invited to describe their family's
socio-economic status and educational history, past experiences of
discrimination, any foreign languages spoken at home, etc.
"The Racial Runaround The University of Michigan isn't accepting voters'
rejection of affirmative action," The Wall Street Journal, December
15, 2006 ---
http://opinionjournal.com/taste/?id=110009387
Bob Jensen's threads on affirmative action in college admissions and
grading are at
http://www.trinity.edu/rjensen/HigherEdControversies.htm#AcademicStandards
The press is an evil for which there is no
remedy. Liberty depends upon freedom of the press and that cannot be limited
without being lost.
Thomas Jefferson (1743-1826) ---
http://en.wikipedia.org/wiki/Thomas_Jefferson
"The Media Is in Need of Some Mending," by Peter R. Kann, The
Wall Street Journal, December 11, 2006; Page A18 ---
Click Here
At its best news informs and
enlightens the citizens of a free society and thereby safeguards and
strengthens our democracy. At its worst -- dishonest, unfair,
irresponsible -- the media has potential to erode the public trust on
which its own success depends and to corrode the democratic system of
which it is so indispensably a part. So, let me touch on 10 current
trends in the mass media that ought to disturb us.
The blurring of the lines
between journalism and entertainment. Journalism that puts too high
a priority on entertaining is almost destined to distort and mislead.
Compounding this confusion is a diffusing definition of "journalist."
When political operatives moonlight at moderating news shows, when
people alternate between being political editors and political
consultants, when celebrity newspeople pocket $20,000 fees speaking at
corporate conventions while criticizing congressman for conflicts of
interest -- we jumble public perceptions of newspeople as well as news.
The blurring of lines between
news and opinion. Newspapers have a format that helps maintain the
distinction. The Internet, TV and most magazines have neither that
format nor that tradition. The result is a blending of news and views.
The two are not ingredients to mix together for a tastier meal, they are
different courses. Part of the problem here lies in fashionable new
philosophies that argue there are no basic values of right and wrong,
that news is merely a matter of views. It's a dangerous philosophy for
our society and a dagger at the heart of genuine journalism.
The blending of news and
advertising, sponsorships or other commercial relationships. The
resulting porridges may be called "advertorials" or "infomercials"; they
may be special sections masquerading as news, news pages driven by
commercial interests, or Web pages where everything somehow is selling
something. Without clear distinctions between news and advertising,
readers or viewers lose confidence in the veracity of a news medium. And
advertisers lose the business benefit of an environment of trust.
The problems and pitfalls
inherent in pack journalism. Individually, most reporters are
decent, dedicated, fair-minded people. But the press, en masse, tends to
lose its common sense and its sense of fairness and independence and
what we see all too often is the spectacle of a pack of hounds in
pursuit of a quarry. We frequently see this phenomenon in political
reporting, where the faintest whiff of scandal, or even of weakness, can
send the pack in pursuit. At its worst, the pack, not finding a real
problem, proclaims the "perception" of one and this perception becomes
self-fulfilling.
The issue of conflict and
context. On most issues most Americans are not on polar extremes. On
abortion, for example, most seek a sensible center. Where is that center
reflected in media coverage that mainly portrays rabid feminists or
irate pro-life activists? Balance is not achieved by the talk show
format of two extremists yelling at each other. And how many of us
recognize our own communities from their depiction on local TV news
shows -- a nonstop montage of mayhem, murder, rape, arson, child
molestation and more?
The exaggerated tendency
toward pessimism. Just look back a few years over much of the media
coverage of "American competitiveness." All those news magazine covers
on the coming "Japanese Century." And along with it, all the pessimism
about the ability of U.S. industry to compete globally. It was nonsense.
Similarly, it's one thing -- and an appropriate one -- for the press to
probe particular instances of political corruption. It's quite another
thing to jump to the cynical conclusion that our political process, and
all politicians, are corrupted -- that "they all do it." They don't, and
they aren't. Skepticism and criticism are essential to the media's role;
reflexive pessimism is not.
The growing media fascination
with the bizarre, the perverse and the pathological -- John Mark Karr
journalism. Such so-called journalism helps instantly legitimize
crackpot ideas, deviant behavior, or alleged victimization in our
society. My point is not to argue for "good news" vs. "bad news," but to
ask whether much of this amounts to news at all?
Social orthodoxy, or political
correctness. These are reflected in a media whose job is not to
parrot prevailing fashions, but to question, probe and thereby challenge
them. Businessmen are not, by definition, greedy, and environmentalists,
by definition, saintly. Third World poverty is not, by definition, a
result of overpopulation as opposed to inane economic policies. And so
on.
The media's short attention
span. As the press hops from Baghdad to Beirut, Natalee Holloway to
Valerie Plame, Super Bowls to Super Tuesdays, it justifiably can blame
some combination of the nature of the news and the short attention span
of the public. The public, meanwhile, bombarded and bewildered can blame
a fickle and shallow press. There are too many instant celebrities. Too
many two-day crises. Too many "defining moments" from people in search
of instant history. In a world where everything is considered critical,
nothing needs to be taken very seriously.
The matter of power. The
press is at least partially responsible for greater public skepticism
toward traditional institutions in America. But the truth, not lost on
our public, is that the press is a large and powerful institution, too:
"60 Minutes" is more powerful than almost all of the subjects it
exposes. This newspaper, arguably, has more influence on national
economic policy than do most corporations. Networks are owned by giant
industrial corporations, magazines by entertainment conglomerates, and
most newspapers by national chains. Given these realties, we cannot
plausibly pretend to be a David out there smiting Goliaths and expect
the public to believe it.
Mr. Kann, a Pulitzer-winning journalist, is chairman
of Dow Jones.
Question
What is IBM's new super computer called Deep Thunder?
"Personalized Weather Forecasts: An IBM supercomputer forecasts weather
down to a one-kilometer resolution," by Duncan Graham-Rowe, MIT's
Technology Review, December 12, 2006 ---
http://www.technologyreview.com/InfoTech/17885/
IBM has launched a new weather service called
Deep Thunder that can predict the rain, the
wind, and temperature conditions down to a one-kilometer resolution. In
time, IBM researchers say they should even be able to nail the
resolution down to individual streets.
The idea is to provide weather-sensitive
businesses in metropolitan areas with information that's more accurate
than what government agencies are capable of providing, says
Lloyd Treinish, a researcher at IBM's TJ
Watson Research Center, in Yorktown Heights, NY.
At a local submetropolitan level, the weather
really can vary quite significantly, says Treinish. Yet typical
forecasts will often slap a single simplistic symbol, such as the sun, a
cloud, or a snowflake, on an area representing a small city.
A huge number of businesses really depend on
accurate weather forecasts, says Stephen Lord, director of the National
Oceanic and Atmospheric Administration's
Environmental
Modeling Center, in Camp Springs, MD.
Transportation, energy distribution, shipping, and even sporting events
are all at the mercy of the weather, he says. Indeed, as much as $1
trillion worth of the U.S. economy is weather sensitive, says Treinish.
By providing more-detailed forecasts, IBM hopes to help businesses
streamline their operations and save money.
For example, local municipal services such as
snowplowing could be deployed more efficiently with more-detailed
information about precisely where snow will fall. Similarly, by being
more prepared, utility companies could better manage energy demand and
better cope with outages caused by severe weather. Even airports and
postal services would benefit: they could plan and schedule operations
around weather conditions.
Government agencies, such as the National
Weather Service (NWS), are currently unable to provide the same level of
detail. This is partly because they don't have the technical resources,
but it's also because they are mandated to offer a uniform level of
service across the nation, preventing them from providing higher
resolutions for some areas and not others. Even at a metropolitan level,
where local meteorological services try to improve on NWS forecasts by
factoring in local measurements and conditions, the resolution is rarely
much better than eight kilometers, says Treinish.
When combined, all these factors represent a
gap in the market that companies like IBM could fill by tailoring their
services to individual businesses. "We want to think about the
information in relation to solving particular business problems," says
Treinish.
Continued in article
Deep Thunder ---
http://services.alphaworks.ibm.com/deepthunder/
The FAQ answers about Deep Thunder are at
http://services.alphaworks.ibm.com/deepthunder/faq.html
What is most important is to scroll down the above FAQ page to view the
amazing graphics.
Jensen Comment
To see the limited examples now available, I clicked on the "Try It Now"
link. After I agreed to terms and conditions, a map showing three
metropolitan areas appeared. I tried it for Kansas City. Then I chose
President Truman's birthplace in Independence, Missouri. Instructions are
fairly detailed.
If you're interested in news about related IBM alphaWorks technologies,
probably the best thing to do is create a personalized RSS feed at
http://www.alphaworks.ibm.com/rss
What struck me is how this supercomputing technology may be expanded to
services other than weather reports. Within each square kilometer we may one
day get reports on entertainment, real estate development, local government
initiatives, business services, traffic reports, museums, parks, crime
reports, etc. Eventually there may even be investment reports, accounting
data in XBRL markups, etc. You might even be able to peer, God forbid, into
my front window and watch Bob Jensen in long underwear typing out these
Tidbits while looking over the snow at this morning's spectacular sunrise
and dreaming of a Deep Thunder forecast of summer's wild roses.


Bob Jensen's threads on travel and weather are at
http://www.trinity.edu/rjensen/Bookbob3.htm
December 12, 2006 message from David Raggay
[draggay@TSTT.NET.TT]
Any one aware of any outstanding train the
trainer programs?
Regards,
David
December 12,
2006 reply from Bob Jensen
Hi
David,
I
personally am turned off by some of these so-called train-the-trainer
programs and speakers who are long on form and shallow on substance,
particularly those who sometimes receive over $10,000 for a presentation
on the latest Harvard Business Review fads. The worst
presentations, in my viewpoint, are some of those hired for executive
conferences, AACSB programs, and on rare occasions AAA plenary sessions
(there was a flood of people streaming out early from one of these
plenary sessions at the annual meetings in August 2004.)
If you really want to pursue this type
of thing you might contact Chad Herman at Carnegie Mellon University.
He’s a specialist in Business Communication ---
http://homepage.mac.com/chadhermann/iblog/
Keeping in mind that top teachers are
not always the best presenters, I would still try to study in some way
professors who are deemed truly outstanding teachers. Some may have
helpful Websites. Some may be willing to share thoughts with you (us?)
if approached diplomatically. Some may even appear at a program
sponsored by you down at Trinidad.
Business Week attempted to identify the top teachers in business
schools ---
My Favorite Professor
An
accounting winner was Joe Ben Hoyle at the University of Richmond
according to Business Week, September 20, 2006 ---
Click Here
Also see
http://oncampus.richmond.edu/~jhoyle
I previously mentioned
the popularity of accounting professor Merle Hopkins at the University
of Southern California. He also is rated a "Favorite Professor" by
Business Week.
Edward Hums at Notre
Dame is an accounting "Favorite Professor."
C.J. Skender at the
University of North Carolina is an accounting "Favorite Professor."
(He cheats by handing out candy bar bribes.)
And my personal favorite is Amy Dunbar
at the University of Connecticut (tax). She can do it all --- live
lectures and online. She’s also a veteran user of education
technologies.
Things I bet you did not know Google can do for you
December 10, 2006 message from Glen Gray
[glen.gray@CSUN.EDU]
There is a great little article at
http://www.informit.com/articles/article.asp?p=675528&rl=1
that outlines many of the special searches you
can do on
www.google.com
Glen L. Gray, PhD, CPA
Dept. of Accounting & Information Systems
College of Business & Economics California State University,
Northridge Northridge, CA 91330-8372 818.677.3948
http://www.csun.edu/~vcact00f
Google is a great search engine, but it's also more
than that. Google has tons of hidden features, some of which are quite fun
and most of which are extremely useful— if you know about them. How do you
discover all these hidden features within the Google site?
See
http://www.informit.com/articles/article.asp?p=675528&rl=1
How KB Home CEO's pay went through the roof
KB Home may be the fifth-largest U.S. home builder,
but it was No. 1 when it came to pay for its chief executive. Over the last
three years, former CEO Bruce Karatz made $232.6 million in compensation.
Kathy M. Kristof and Annette Haddad, LA Times, December 17, 2006 ---
http://www.latimes.com/services/site/premium/access-registered.intercept
Jensen Comment
I'd be more impressed if KB homes bought back the fundamentally-flawed
cracked foundations of all those defective homes built in Texas ---
http://ths.gardenweb.com/forums/load/build/msg0122380524478.html?12
Bob Jensen's threads on outrageous executive compensation are at
http://www.trinity.edu/rjensen/FraudConclusion.htm#OutrageousCompensation
Auto and Truck Repair and Advice ---
http://www.econofix.com/
(includes a module on how to listen for problems)
Google added historic map overlays to its free interactive online
globe of the world to provide views of how places have changed with time.
"Google Earth maps history," PhysOrg, November 14, 2006 ---
http://physorg.com/news82706337.html
Google Earth ---
http://earth.google.com/
Bob Jensen's search helpers are at
http://www.trinity.edu/rjensen/searchh.htm
"Credit Card 101: Advice Before Shopping," AccountingWeb,
November 22, 2006 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=102824
Repeated in this edition of Tidbits because it is so important!!!
Bob Jensen's threads on the dirty secrets of credit card and credit
scoring companies are at
http://www.trinity.edu/rjensen/FraudReporting.htm#FICO
Parent Resource Page for Daycare Centers ---
http://www.fccimn.com/parentresource.htm
"How to Bring Our Schools Out of the 20th Century," by Claudia
Wallis and Sonja Steptoe, Time Magazine Cover Story, December 10,
2006 ---
Click Here
Right now we're aiming too low. Competency in
reading and math--the focus of so much No Child Left Behind (NCLB)
testing--is the meager minimum. Scientific and technical skills are,
likewise, utterly necessary but insufficient. Today's economy demands
not only a high-level competence in the traditional academic disciplines
but also what might be called 21st century skills. Here's what they are:
Knowing more about the world. Kids are global
citizens now, even in small-town America, and they must learn to act
that way. Mike Eskew, CEO of UPS, talks about needing workers who are
"global trade literate, sensitive to foreign cultures, conversant in
different languages"--not exactly strong points in the U.S., where fewer
than half of high school students are enrolled in a foreign-language
class and where the social-studies curriculum tends to fixate on U.S.
history.
Thinking outside the box. Jobs in the new
economy--the ones that won't get outsourced or automated--"put an
enormous premium on creative and innovative skills, seeing patterns
where other people see only chaos," says Marc Tucker, an author of the
skills-commission report and president of the National Center on
Education and the Economy. Traditionally that's been an American
strength, but schools have become less daring in the back-to-basics
climate of NCLB. Kids also must learn to think across disciplines, since
that's where most new breakthroughs are made. It's interdisciplinary
combinations--design and technology, mathematics and art--"that produce
YouTube and Google," says Thomas Friedman, the best-selling author of
The World Is Flat.
Becoming smarter about new sources of
information. In an age of overflowing information and proliferating
media, kids need to rapidly process what's coming at them and
distinguish between what's reliable and what isn't. "It's important that
students know how to manage it, interpret it, validate it, and how to
act on it," says Dell executive Karen Bruett, who serves on the board of
the Partnership for 21st Century Skills, a group of corporate and
education leaders focused on upgrading American education.
Developing good people skills. EQ, or emotional
intelligence, is as important as IQ for success in today's workplace.
"Most innovations today involve large teams of people," says former
Lockheed Martin CEO Norman Augustine. "We have to emphasize
communication skills, the ability to work in teams and with people from
different cultures."
Can our public schools, originally designed to
educate workers for agrarian life and industrial-age factories, make the
necessary shifts? The Skills commission will argue that it's possible
only if we add new depth and rigor to our curriculum and standardized
exams, redeploy the dollars we spend on education, reshape the teaching
force and reorganize who runs the schools. But without waiting for such
a revolution, enterprising administrators around the country have begun
to update their schools, often with ideas and support from local
businesses. The state of Michigan, conceding that it can no longer count
on the ailing auto industry to absorb its poorly educated and
low-skilled workers, is retooling its high schools, instituting what are
among the most rigorous graduation requirements in the nation.
Elsewhere, organizations like the Bill and Melinda Gates Foundation, the
Carnegie Foundation for the Advancement of Teaching and the Asia Society
are pouring money and expertise into model programs to show the way.
What It Means to Be a Global Student
Continued in article
A national survey of freshmen has found that
what they most value in a college education is professional preparation,
followed by academic quality and affordability. The survey was conducted by
Eduventures, a consulting company.
Inside Higher Ed, December 12, 2006 ---
http://www.insidehighered.com/news/2006/12/12/qt
"The Failure of Critical Thinking," by John V. Lombardi, Inside
Higher Ed, December 12, 2006 ---
http://www.insidehighered.com/views/2006/12/12/lombardi
The current controversies over admission
practices of elite public and private institutions illustrate what
happens when we allow ourselves to fight about the wrong things. This
lack of critical thinking begins with a false premise and continues with
an attack on institutions that do not conform to the false premise.
Sometimes, rather than pointing out the false premise, institutions and
their leaders react defensively as if the false premise were correct.
Both attacker and respondent in this circumstance fail the test of
critical thinking.
The error is usually at the beginning. Someone
(
most recently the Education Trust, but the
list of commentators who have taken the same tack is long) asserts that
elite public universities should be admitting as many poor people as
there are in the population of high school graduates in their states.
Having asserted this erroneous notion, they compile data (that may also
be flawed) using often unreliable methodologies, and issue a manifesto
damning elite public universities because they don’t meet the original
false premise. Rather than pointing out the error, some elite
universities, sensing a politically correct risk, counter with data
showing how much they do to recruit and subsidize the poor people who
want to come to their university.
All this is not very helpful in addressing
issues of access and affordability. We do indeed have to pay attention
to the possibility that some graduates of high school who have the
preparation and interest might be priced out of an opportunity to
acquire a quality higher education, either by virtue of a high net cost
of attendance or by the imposition of admissions standards that less
affluent students find difficult to meet. This, however, is not a
problem that belongs to elite public or private universities alone but
is a challenge faced by all the providers of higher education in
America. To focus on elite institutions is to make some pernicious and
inaccurate assumptions about all the other institutions of higher
education.
If we assume that everyone should have an equal
opportunityto attend an elite public or private institution (since both
are heavily subsidized by taxpayers), then we must also assume that
attendance at a non-elite public or private institution represents an
unsatisfactory and therefore unequal outcome for a student. If the
community colleges, state colleges, non-flagship state institutions, and
many non-elite private colleges represent an unsatisfactory and
inequitable opportunity, compared to what we call elite institutions,
that would seem to require us to assume that they do a poor job of
educating students; that the results of their educational efforts are
second rate; and that anyone who attends such places is sure to be
deficient upon graduation. This kind of thinking may reflect the
snobbery of some elite groups who can’t imagine a good education coming
from a campus of the California State University system, or a fine
education at a combination of Greenfield Community College and Westfield
State College in Massachusetts. Such an assumption also reflects a
profound ignorance about the actual academic performance of the students
who graduate from these “non-elite” institutions.
The notion of “elite institution” deserves some
attention. We who live and work in institutions labeled elite have every
reason to accept the premise that only an education in our remarkable
places is worth having even if we can present little evidence to
demonstrate that our elite characteristics result in higher performance
after graduation. Research that attempts to demonstrate the higher value
of elite compared to non-elite education seems to indicate that while
some people may benefit from instruction at a small private elite
college, most students do just about as well after graduation, all other
things being equal, whether they go to elite or non-elite institutions.
The elite status of an institution comes from
its ability to spend more money than institutions deemed “non-elite.”
These expenditures do indeed make a different institution. For example,
a state flagship institution may have its faculty teaching only half
time, assigning the other half time to research. The student activities
supported by the elite institution may be more elaborate, the
residential spaces more elegant, the quality of the buildings and other
facilities more impressive, the student recreation center more
comprehensive, and the intercollegiate sports program more nationally
visible. These amenities define elite status for undergraduates, and
many assume that the amenities reflect academic quality. Students and
their parents like these amenities, they ask about them when they visit
campus, and they appear willing to pay a premium for the opportunity to
participate in the residential life of an elite university. Still, the
data that would tell us that the students really learn more and will do
much better after graduation as a result of these amenities is not very
persuasive.
If we figure the cost of attendance at one of
these elite institutions and compare it to the cost of attending a
community college and state college, near where the student lives and
where the student can hold down a job, we find that the best educational
bargain by far is the community college-state college combination.
When we worry about whether poor people can get
access to college, some imagine that a zero cost of attendance will
solve the problem. That doesn’t really work. Even when an institution
pays for the tuition and fees, including room and board, for students
below some income marker, these students still come up short an
additional $10K to make up for the opportunity cost of living away from
home and losing the income from a regular 12-month part-time or
full-time job. The public cost of subsidizing elite education for all is
very high for rather limited gains. And, of course, there are not enough
spots in what we call elite institutions to accommodate all the
deserving students of all income levels.
Because space is limited, even in elite public
institutions with enrollments over 40,000, the institutions select
students based on various criteria, some related to geography, some
related to ethnicity, some related to academic preparation, and some
related to athletic skill. It would certainly be possible to add other
criteria to this list to try and achieve an equal opportunity for all
students. However, the only truly “fair” admission process would do what
we suggested in
an earlier Reality Check: fill the class using
random selection from a pool composed of all high school graduates who
meet the institution’s minimum admission criteria. There is a certain
simplistic charm to this notion.
Continued in article
Bob Jensen's threads on college admission affirmative action
controversies are at
http://www.trinity.edu/rjensen/HigherEdControversies.htm#AcademicStandards
Writing Guidelines for Engineering and Science Students ---
http://www.writing.eng.vt.edu/
Novel Ideas aids for writers (with audio) ---
http://www.npr.org/templates/story/story.php?storyId=6484932
Bob Jensen's writing helpers are at
http://www.trinity.edu/rjensen/Bookbob3.htm#Dictionaries
Helpers for Managing a Restaurant
Restaurant Doctor ---
http://www.restaurantdoctor.com/index.html
Bob Jensen's online training links are at
http://www.trinity.edu/rjensen/Crossborder.htm#Training
DealBook is a financial news service produced by The New York Times.
It is published daily, Monday-Friday, except on U.S. Market holidays and
during the last week of the year. A daily digest of DealBook is also
available via email, delivered before the market opens.
The New York Times ---
http://dealbook.blogs.nytimes.com/
Bob Jensen's investment helpers are at
http://www.trinity.edu/rjensen/Bookbob1.htm
White Collar Crime Pays Even If You Get Caught
(It's
similar to arresting a Mafia boss in Italy)
"Despite convictions, Rigases live in the lap of luxury," by Jerry
Zremski, Buffalo News, December 3, 2006 ---
http://www.buffalonews.com/editorial/20061203/1074150.asp
Instead of facing immediate prison time,
experts say Rigases might win a new trial.
Nearly two and a half years after being
convicted of bank fraud and other corporate crimes, former Buffalo
Sabres owner John J. Rigas and his son Timothy remain comfortably at
home in Coudersport, Pa., awaiting the results of their appeal.
Meanwhile, many other executives who found
themselves on the government's rap sheet in recent years - Andrew Fastow
of Enron, Bernard Ebbers of WorldCom, Dennis Kozlowski of Tyco are all
behind bars.
What's more, lawyers close to the Rigas case
and independent experts are now entertaining a possibility that, to
trial-watchers, seemed laughable at the time of the Rigases' conviction
in July 2004: that they could win their appeal and thus face a retrial.
While it's rare for a federal appeals court to
reverse a criminal conviction, it's also rare for a court to take nearly
six months to decide such a matter. Yet that's how long ago a
three-judge appellate panel in New York City heard the Rigas appeal, and
some lawyers think the long wait for a decision is indication that the
court is taking the appeal very seriously.
"Usually, you expect a decision in a case like
this in about a month and a half," said Mark Mahoney, the Buffalo
attorney who won freedom for one of the Adelphia Communications Corp.
defendants, Michael Mulcahey. "The delay means they are taking more time
because the issues here are somewhat knotty."
Of course, the elaborate frauds concocted at
Enron, WorldCom and Tyco are inherently knotty, but courts were able to
unravel them sufficiently to make sure that the convicts in each case
went to prison comparatively quickly.
Ebbers was convicted in March 2005, lost an
appeal and was sent to a federal prison in Louisiana in September.
Fastow was sentenced in September and joined
Ebbers in Oakdale Federal Detention Facility this month.
And Kozlowski was sent to Mid-State
Correctional Facility in Marcy within weeks after his 2005 conviction
and even before he appealed.
There's one thing that separates all those
cases from the one that ensnared the Rigases, who ran Adelphia, a huge
cable company based in Coudersport. Their appeal raises a serious legal
question that even the judge in their trial agreed ought to be heard.
At a little-noticed court hearing in July 2005,
a month after he sentenced John Rigas to 15 years and Timothy Rigas to
20 years in prison, Judge Leonard B. Sand allowed them to go free on
bail pending their appeal.
He said he did so because the defense raised a
novel argument: the government persuaded the jury to convict the Rigases
of fraud and conspiracy based on their violations of generally accepted
accounting principles but never called an expert witness to explain what
those principles are.
At the hearing, Sand said he didn't necessarily
buy that argument, but added it "is something that I can't call
frivolous."
Mahoney said "a lot of people felt it was
generous" when Sand let the Rigases out on bail, because it's rare that
people convicted in the federal courts win that sort of freedom.
Denise O'Donnell, a former U.S. attorney in the
Western District of New York, agreed.
"There is a presumption against bail in the
federal system, so the Rigases had a very high hurdle to overcome just
to get released pending the appeal," she said.
The fact that they were released shows that
they "raised a substantive question of law" that could lead to the
reversal of their conviction, O'Donnell added.
Attorneys for the Rigases spelled out that
question at a hearing before a three-judge federal appeals panel on June
13.
Without an expert witness explaining accounting
rules, "the jury was never put in a position to decide whether the
Rigases' conduct was proper or improper," argued John Nields, the lawyer
for Timothy Rigas.
Richard Owens, the prosecutor in the case,
countered by saying the government didn't want to prolong an already
lengthy trial by starting "a battle of the experts."
Three federal judges are still pondering that
argument, and independent legal experts agreed with the Rigas attorneys
that the appeal needs to be taken seriously.
"I was surprised" that such an expert witness
wasn't called, said Eugene O'Connor, a former federal prosecutor who now
teaches law and accounting at Canisius College. "The question I have is:
How is the jury to assess with some certainty that these men violated
the accounting standards?"
Then again, the prosecution laid out a case
that, in the court of public opinion at least, might be seen as
difficult to refute.
Arguing that the Rigases treated Adelphia as
their "private piggy bank," Owens showed that John Rigas billed the
company for his Columbia House record club and used the corporate jet to
send Christmas trees to his daughter in New York City.
Timothy Rigas, meanwhile, dipped into corporate
funds to purchase 100 pairs of luxury slippers and a flight meant to
impress an actress friend.
In total, prosecutors said the Rigases "looted"
Adelphia of $100 million while hiding $2.3 billion in debt and
misleading banks and investors about Adelphia's earnings.
The jury convicted John and Timothy Rigas of 18
of the 23 charges against them. A mistrial was declared in the case of
another Rigas son, Michael, who later pleaded guilty and was sentenced
to home confinement.
That's not entirely different than what John
and Timothy Rigas are currently facing. Paul Shechtman, John Rigas'
appeals lawyer, said both John and Timothy Rigas are still in
Coudersport.
"Under the circumstances, John is doing as well
as can be expected," Shechtman said. "He's enjoying his grandchildren."
Of course, those circumstances could change at
any time. Lawyers close to the case said they don't know what to think
about the fact that the appeals court is taking so much time to render a
decision.
"It's usually a good sign," Shechtman said. "I
know they've issued opinions in cases that were heard after ours in
several instances."
However, the Second Circuit U.S. Court of
Appeals is especially busy and may simply want to take its time poring
over the record of the four-month trial, several lawyers said.
One thing is for sure: if the appeals court
rules for the Rigases and orders a retrial, it will be issuing an
opinion that will have ramifications far beyond the borough of 2,600
that the Rigases call home.
"It would be a huge decision with wide
ramifications in financial fraud cases," O'Donnell said. "I can't think
of any other similar case where this could happen."
It was the
largest fine ever imposed on an auditing firm
Deloitte & Touche LLP incurred the wrath of
federal regulators Tuesday over public statements that appeared to shift the
blame away from the auditing firm for failed audits of Adelphia
Communications Corp. and Just for Feet Inc. Deborah Harrington, a Deloitte
spokeswoman, said regulators requested that the firm revise the first press
release it put out. The second release omitted some disputed statements.
Deloitte, the U.S. accounting branch of Big Four accounting firm Deloitte
Touche Tohmatsu, Tuesday agreed to pay $50 million to settle charges by the
Securities and Exchange Commission that it failed to detect fraud at
Adelphia. It was the largest fine ever imposed on an auditing firm.
"SEC Rebukes Deloitte on Adelphia Audit Spin," SmartPros, April 28,
2005 ---
http://accounting.smartpros.com/x48015.xml
You can read more about why white collar crime pays at
http://www.trinity.edu/rjensen/FraudConclusion.htm#CrimePays
You can read more about the Rigas' crimes and the Adelphia accounting
scandals at
http://www.trinity.edu/rjensen/fraud001.htm#Deloitte
The Meaning of Mean (Professors)
"No, you didn't," says a girl in the back row,
admiringly, while a few others clap, saying the first student has done what
they wish they had the courage to do. "I'm paying $50,000 of my own money
for this education," one says. "What these professors don't realize is that
they're working for me! I'm the customer!" "Oh, my goodness," I'm saying.
"Oh, my goodness." Customer service? What is this, a tire store?
Marie Laskas, "The Meaning of Mean," The Washington Post, December 7,
2006 ---
Click Here
"Plagiarism and 'Atonement'," by Eugene Volokh, The Wall Street
Journal, December 12, 2006; Page A18 ---
http://online.wsj.com/article/SB116588497688347029.html?mod=opinion&ojcontent=otep
Two nurses, both aspiring novelists, helped
tend British soldiers during World War II. Briony, the protagonist of
Ian McEwan's award-winning novel "Atonement," is fictional. The late
Lucilla Andrews is real: She became an author, pioneering romantic
"hospital fiction," and also wrote a memoir of her war years. Therein
lies the latest plagiarism scandalette to hit the news, sparked by an
article in the British press. To be a credible character in a historical
novel, Briony had to do the things wartime nurses did, and see the
things they saw. It is no surprise that Mr. McEwan read Andrews's book
when researching his own; and several passages from his book strongly
resemble passages from her memoir.
"Our 'nursing' seldom involved more than
dabbing gentian violet on ringworm, aquaflavine emulsion on cuts and
scratches, lead lotion on bruises and sprains," wrote Andrews (to give
one example). "In the way of medical treatments, she had already dabbed
gentian violet on ringworm, aquaflavine emulsion on a cut, and painted
lead lotion on a bruise. But mostly she was a maid," wrote Mr. McEwan.
Plagiarism? Legally actionable? Ethically
reprehensible? Bad manners? Or good research, needed to produce accurate
historical fiction?
Plagiarism is easy to condemn but
often hard to define. This is partly because the legal rules differ
sharply from the ethical ones, and the ethical rules in scholarship,
journalism and fiction differ from each other. And it is partly because
the rules for using the facts uncovered by writers of history -- whether
memoirists, historians or contemporaneous journalists -- must be
different from the rules for using the original phrases that the writers
created.
Let's start with the law. It
generally bans not plagiarism as such, but rather copyright
infringement. (Trademark law might play a role in extreme plagiarism
cases, but not in the typical ones.) And copyright infringement is both
broader and narrower than what most people see as "plagiarism."
For instance, an author can be
held liable under copyright law even when he credits the original source
from which he copies. The law concerns itself more with protecting
authors' ability to profit from their works than with ensuring credit
where credit is due. So if I translate Mr. McEwan's novel into Russian
without his permission, trumpeting Mr. McEwan's authorship and saying
that I am merely the translator, I am a copyright infringer, though not
a plagiarist.
On the other hand, an author is
not liable for copying the facts that others have discovered, regardless
of whether he gives credit. Copyright law doesn't give authors exclusive
rights to facts, because such a monopoly would undermine debate,
scholarship and literature. If I write a scholarly legal article that
uses without attribution historical facts uncovered by another scholar,
my failure to attribute is a serious ethical breach -- but not copyright
infringement.
So on to professional ethics,
which properly differs depending on the profession. Academics have the
most stringent obligations. If I write an academic work using, without
attribution, facts uncovered by another historian, I commit two sins:
First, I falsely claim originality for my own work. Second, I wrongly
deny a scholar credit that is important to the scholar's reputation. The
academic must therefore scrupulously attribute those facts that others
have uncovered, and the long and heavily footnoted format of academic
books and articles makes this easy.
But the rules for newspaper
articles that mention historical matters are different. Such articles
usually don't claim originality of historical research; no reader would
assume that snippets of history in an article about modern-day Iraq stem
from the journalist's own archival research. The articles do not
generally deny historians due professional credit: Scholars get
professional respect chiefly based on other scholars' use of their work,
not based on citations by reporters. And because space is short, and
good journalism often relies on multiple historical sources, newspaper
articles can't be expected to acknowledge each historian whose work the
journalist used.
The rules for novels are in
between. Novelists are similar to journalists, but they do have space at
the end of the book to briefly acknowledge the historical works on which
they rely, without distracting from the novel's flow. If you've relied
substantially on another's work, acknowledging this is the kind thing to
do. Omitting the acknowledgment probably isn't unethical; it's not a
lie, or the denial of the credit needed for success in the original
author's profession. But it isn't very nice.
Yet what about copying not just
facts, but also another author's words, either literally or in a close
paraphrase? Would a general acknowledgment at the end of the book be
enough to justify this? Or is such copying impermissible, at least
unless you expressly note it using quotation marks, or by writing "as
Lucilla Andrews said"? In academic work, the answer is simple: Quote the
original, and insert a footnote at the place you quote it. But what
about a novel?
A historical novel, to be
accurate, must borrow those words needed to accurately reproduce the
historical facts, even when the facts were uncovered by others. If
nurses treated ringworm by dabbing gentian violet on it, that's what
they did, and novelists must be able to say so. Nor can a novelist note
the borrowing using quotation marks and footnotes, as they would
interrupt the novel's flow. Writers who strive for factual accuracy must
thus remain free to closely paraphrase the factual accounts of others.
On the other hand, when the
historian or memoirist depicted the facts in a colorful way that she
herself created, the particular words shouldn't be copied, at least
without express acknowledgment. A historical novelist is responsible for
creating his own colorful descriptions.
So where does this leave Mr.
McEwan? Likely not guilty on any of the counts, if the account in the
newspaper that first broke the story (the Nov. 26 Daily Mail) is
thorough. Mr. McEwan borrowed facts, and those words that accurately
described the facts. He is not guilty of copyright infringement, or of
taking another's original expression without specific notation. And
while he did rely on Andrews's autobiography, his acknowledgments page
noted being "indebted" to Andrews and her book. Any such acknowledgment
could always be made more prominent; but it appears to have been
prominent enough.
More broadly, we should recognize
that not all use of another's words requires detailed acknowledgment.
Words represent facts; and facts, once revealed, are there to be used,
including in novelists' unfootnoted prose.
Mr. Volokh is a professor of law at UCLA School
of Law.
Bob Jensen's threads on plagiarism are at
http://www.trinity.edu/rjensen/plagiarism.htm
Controversies in Regulation of Distance Education
"All Over the Map," by Elia Powers, Inside Higher Ed, December 8,
2006 ---
http://www.insidehighered.com/news/2006/12/08/regulation
As the distance learning market continues to
grow, state agencies charged with regulating the industry continue to
operate in a “fragmented environment,” according to a report presented
Thursday at the
2006 Education Industry Finance & Investment Summit,
in Washington.
One of the main questions these agencies must
consider is what constitutes an institution having a “physical presence”
in their state. In other words, what is an appropriate test to determine
whether regulation is needed?
More than 80 percent of agencies that are
included in the report said that they use some sort of “physical
presence” test. But few agree on how to define the word “presence,” in
part because there are so many elements to consider.
That’s clear in
“The State of State Regulation of Cross-Border Postsecondary Education,”
the report issued by Dow Lohnes, a firm with a
sizable higher education practice. (The firm plans to release an updated
report early next year after more responses arrive.)
Continued in article
Bob Jensen's threads on the dark side of education technology are at
http://www.trinity.edu/rjensen/000aaa/theworry.htm
Bob Jensen's threads on cross-border distance education and training
alternatives are at
http://www.trinity.edu/rjensen/crossborder.htm
Federal Regulators Fine Grant Thornton $300,000 Over Audit of Failed
Bank
Federal bank regulators have fined the accounting
firm Grant Thornton LLP $300,000 for what they called "reckless conduct" in
its audit of First National Bank of Keystone, a West Virginia institution
whose collapse in 1999 was one of the costliest U.S. bank failures in the
past decade.
Marcy Gordon, "Federal Regulators Fine Grant Thornton $300,000 Over Audit of
Failed Bank, SmartPros, December 11, 2006 ---
http://accounting.smartpros.com/x55776.xml
Bob Jensen's threads on Grant Thornton (especially the Refco audit
failure) are at
http://www.trinity.edu/rjensen/Fraud001.htm#GrantThornton
The seamy underside of asbestos litigation
In the legal trade, this is known as "double
dipping"--the process by which lawyers file claims at many different
bankruptcy trusts on behalf of a single plaintiff. Each trust is told a
different story about how the client got sick, and the plaintiff collects
from all of them. Of course, the lawyers collect too. This practice may well
have remained unexposed had not Brayton Purcell decided to cash in on
Kananian one more time. It sued Lorillard Tobacco, this time claiming its
client had become sick from smoking Kent cigarettes, whose filters contained
asbestos for several years in the 1950s. That suit has now exploded on
Brayton, exposing one of the asbestos bar's more lucrative cash cows.
Kimberley A. Strassel, "Trusts Busted: The seamy underside of asbestos
litigation," The Wall Street Journal, December 5, 2006 ---
http://www.opinionjournal.com/columnists/kstrassel/?id=110009343
Bob Jensen's fraud updates are at
http://www.trinity.edu/rjensen/FraudUpdates.htm
Greater Accounting Transparency Sought by the Community College of
Philadelphia
A faculty and staff union at the Community College
of Philadelphia plans to pose one major question to the institution’s
administration at a demonstration scheduled for today: Teachers and students
open their books every day — why won’t administrators? The Faculty & Staff
Federation of the Community College of Philadelphia, an affiliate of the
American Federation of
Teachers, plans to distribute leaflets and
circulate a “mobile billboard” around the college’s main campus starting at
9 a.m. today to draw attention to their calls for greater financial
transparency on the part of the institution, the latest development in
ongoing contract negotiations.Classes will not be interrupted.
Elizabeth Redden, "Open the Books, Professors Plead," Inside
Higher Ed, December 8. 2006 ---
http://www.insidehighered.com/news/2006/12/08/ccp
Bob Jensen's fraud updates are at
http://www.trinity.edu/rjensen/FraudUpdates.htm
Forwarded by Debbie Bowling
Major breach of UCLA's computer files
In what appears to be one of the largest computer
security breaches ever at an American university, one or more hackers have
gained access to a UCLA database containing personal information on about
800,000 of the university's current and former students, faculty and staff
members, among others. UCLA officials said the attack on a central campus
database exposed records containing the names, Social Security numbers and
birth dates — the key elements of identity theft — for at least some of
those affected. The attempts to break into the database began in October
2005 and ended Nov. 21, when the suspicious activity was detected and
blocked, the officials said.
Rebecca Trounson, "Major breach of UCLA's computer files: Personal
information on 800,000 students, alumni and others is exposed; Attacks
lasted a year, the school says," LA Times, December 12, 2006 ---
http://www.latimes.com/news/local/la-me-ucla12dec12,0,7111141.story?coll=la-home-headlines
The University of California at Los Angeles is
notifying about 800,000 people that some of their personal information may
have been available to a
hacker who intruded
into parts of the university’s computer network. Those whose identifying
information may have been seen include current and former students,
professors and other employees, plus applicants and the parents of
applicants who applied for financial aid.
Inside Higher Ed, December 13, 2006 ---
http://www.insidehighered.com/news/2006/12/13/qt
Bob Jensen's fraud updates are at
http://www.trinity.edu/rjensen/FraudUpdates.htm
Continued Controversies in Assessment of Colleges
"Feeling the Winds From Washington," by Doug Lederman, Inside Higher
Ed, December 11, 2006 ---
http://www.insidehighered.com/news/2006/12/11/accredit
The 600 academic administrators and professors
who gathered in Philadelphia last week for the annual meeting of the
Middle States Commission on Higher Education are on the front lines of
the accreditation. They’re the ones who lead self-studies of their own
colleges or participate on visiting teams that review other
institutions. They are charged with ensuring that their campuses are
fulfilling their missions of educating students, and of enticing or
prodding occasionally recalcitrant faculty members to measure their
effectiveness and change their ways if they come up short.
And to judge by some of the recent rhetoric
coming out of Washington, where the accreditation system has become a
central focus of the Education Department’s early efforts to carry out
the work of the Secretary of Education’s
Commission on the Future of Higher Education,
they and the rest of the accreditation system are falling short.
Although the commission abandoned many of the
harshest words and radical ideas that had been bandied about during its
deliberations — including the possibility of replacing the current
system with a “national” (read: federal) framework — its final report
still offered a highly critical view of accreditation. Accreditors and
higher education officials, the commission concluded, have done far too
little to figure out whether college students are coming out of their
institutions with the skills they need to be productive workers and
citizens.
Accreditors “still focus on process reviews
more than bottom-line results for learning or costs,” the report said.
“The growing public demand for increased accountability, quality and
transparency coupled with the changing structure and globalization of
higher education requires a transformation of accreditation.”
How has the criticism of accreditation played
with those in the trenches? If participants in the Middle States meeting
are any indication, they tend to think the accreditors – or at least
their own accreditor – have gotten a bit of a bum rap. Middle States,
they say, has for several years been pressuring the institutions it
accredits (colleges in Delaware, the District of Columbia, Maryland, New
Jersey, New York, Pennsylvania and Puerto Rico) to better define what
they want their students to know and be able to do, and to find concrete
ways to measure their success.
“This is what the accreditors are trying to
achieve already,” said Warren Olip-Ammentorp, a professor of English at
Cazenovia College, a small, private college in central New York. “We’ve
all been trying to focus on student learning and to use the assessment
results to improve that learning, partly because it’s what we’re
supposed to do as educators and because we know Middle States is going
to hold us accountable on the issue.”
Indeed, virtually every college official
interviewed, at private colleges like Cazenovia and at midsize public
universities such as Indiana University of Pennsylvania, described
efforts – often years in the making – to gauge student outcomes and to
use that information to inform curricular and other changes aimed at
improving how students fare.
The college officials, almost to a one, also
said they worried that the commission’s and the Education Department’s
push for colleges to use common indicators that might allow a consumer
to more easily compare one against another would, almost inevitably,
result in oversimplification. And many of them expressed fears that the
department would, as it signaled at meetings of a panel that advises it
on accreditation last week, start asking accreditors to set minimum
standards for colleges to meet, a role most of them see as
inappropriate.
At the same time, they acknowledge flaws in the system. They generally
accept the criticism that the accreditation process is too internally
focused and that much more disclosure to the public is necessary. And
some – particularly at public institutions – believe that colleges with
similar missions can work together toward agreement on a menu of common
measures that might allow for even more comparisons about their
performance.
Perhaps most importantly, despite the lumps,
many of them see a bright side to the fact that the feds have taken them
to task. “The Spellings commission is having an incredible impact,” said
Brent David Ruben, executive director of the
Center for Organizational Development and Leadership
at Rutgers University. “Sure, some of the
criticism has been unfair. But it is prompting review and reflection,
which I think is a positive thing.”
Assessment in the Air
It would have been hard for Education Secretary
Margaret Spellings or Charles Miller, who headed the Spellings
commission, to walk away from last week’s Middle States meeting — dubbed
“Navigating the Winds of Change in Higher Education” — thinking that
higher education isn’t taking accountability seriously. For the first
time, the entire first day of the meeting was set aside for a special
track on “effective and innovative assessment,” and it sold out at 300
people. In the conference’s subsequent days, many if not most of the
sessions revolved around or at least touched on discussion of the sort
of “outcomes measures” that the Spellings commission says accreditors
and colleges underemphasize.
At one roundtable discussion, for instance,
Cheryl T. Samuels, provost of Indiana University of Pennsylvania,
described her institution’s efforts – begun three years ago, in the wake
of its Middle States self study – to adopt and hold departments
accountable for achieving university-wide student learning outcomes for
undergraduate education.
“We’re at the point where we’ve made a decision
that we need to do this anyway,” said Samuels. “We know that if we do
not take this responsibility ourselves, through accreditation and our
own institutions’ work, and move in this direction, it could be forced
on us. But we’re fairly confident that we can do this ourselves – we’re
the experts.”
She and Rick Ruth, interim provost of
Shippensburg University, noted that the Pennsylvania State System of
Higher Education, to which both institutions belong, has long collected
and published information from its member universities on more than 60
measures of student and other performance. “We’ve been under that
accountability lens for a long time, at least from the system
perspective,” said Ruth.
If anyone at the Middle States meeting hadn’t
been paying attention to the pressure on higher education accountability
out of Washington, the group also heard directly from the Spellings
commission itself, in the form of Charlene R. Nunley, the president of
Montgomery College, who was among the commission members who helped
transform its written report from one focused primarily on
accountability and transparency to one that equally emphasizes student
access and expanding financial aid.
Nunley acknowledged that some members of the
Spellings panel, particularly those representing corporations and the
public, “don’t really understand where you are and what you’ve done, and
that it’s far ahead of where they think you are.” She noted that despite
the early saber rattling about moving to a federal system of
accreditation, the commission’s final report did not dictate excessively
to higher education. “It did not recommend federalization of
accreditation of higher education” and “did not recommend a single
standardized test or even a set of tests,” she said.
But that does not, she said, suggest that
colleges can afford to do nothing to better measure and report their
successes and failures in educating students. “How many of you would say
your institutions are doing enough in terms of measuring student
learning outcomes?” she asked the college presidents, administrators and
professors in the audience. A small scattering of hands, perhaps 25
among the 500 people in the room, went up. “I couldn’t raise my hand
either – I admire your honesty,” Nunley said. “When we are honest with
ourselves as college leaders, there is not nearly enough happening on
our campuses.”
The key going forward, she said, is that “if we
in higher education take leadership, we have a chance of making sure
that these standards recognize the differences in our institutions,”
rather than having oversimplified, inappropriate measures “imposed on
us.”
The accreditors and college officials in the
audience seemed to appreciate that message. But lest they were inclined
to get too comfortable, Jean Avnet Morse, the president of Middle
States, followed Nunley’s speech by telling the audience about what she
had seen in Washington last week at a meeting of an Education Department
advisory panel on accreditation. At that meeting, she said, some of the
panel’s members signaled that they wanted accrediting groups not just to
require the institutions they oversee to set appropriate goals for
student learning, but also to ask: “How do we know that the levels being
met are acceptable?”
Morse’s implication, though she stopped short
of saying it, was that in carrying out the Spellings commission’s
report, the Education Department might be looking to push even harder
than the report itself suggested. Lots of head shaking ensued.
Full Disclosure to
Consumers of Higher Education (including assessment of colleges and the
Spellings Commission Report) ---
http://www.trinity.edu/rjensen/HigherEdControversies.htm#FullDisclosure
Bob Jensen's threads on
assessment are at
http://www.trinity.edu/rjensen/assess.htm
Bob Jensen's threads on
higher education controversies ---
http://www.trinity.edu/rjensen/HigherEdControversies.htm
December 11, 2006 message from Carl Hubbard
Bob:
Did you see the
MSNBC story last night of the murder several years ago of the two
Dartmouth professors at their secluded country home? It was a
sobering story of a thrill killing by two teenage boys. I hope you
still have that Rossi 38 Special and that you have it in your back
pocket when you answer your door. There is a related story. at
Behind the Dartmouth murders - Books - MSNBC.com
Carl
December 11, 2006 reply from Bob Jensen
Hi Carl,
Nobody ever comes to our front door. If it should happen, we have a
mounted video camera that takes their pictures before they even start up
the steps. Then we tell them to go to the garage where we talk with them
over an intercom.
I do remember the Dartmouth case. Fortunately that type of thing is
rare in NH. There’s really no way to prevent a totally random happening.
An unmarried man who lives down the road is the son of a former FBI
Director (Sullivan). He was shot four years ago while walking in the
woods. However, that was a hunting accident. Even though we have
beautiful woods during hunting season, I generally avoid woods trails
during deer and moose season.
I do have 20-40 wild turkeys that come to my front lawn and wait for
me to throw out sunflower seeds. Erika says they’re my relatives.
I do have the 38 that you helped me buy. Now if I just had some idea
where to look for it.
Have a great holiday!
Bob Jensen
From Jim Mahar's Blog on December 9, 2006 ---
http://financeprofessorblog.blogspot.com/
Andrew Metrick: Governance
Index Data (Wharton)
I was recently asked where a reader could find
the corporate governance index, so I figured others might like to
know that it is available through Andrew Metrick's website.
Andrew Metrick: Governance Index Data:
"Governance Index Data by Firm, 1990-2006
"For details on the construction of the
Governance Index, see Gompers, Paul A., Joy L. Ishii, and Andrew
Metrick, 'Corporate Governance and Equity Prices', The Quarterly
Journal of Economics 118(1), February 2003, 107-155."
Bob Jensen's threads on corporate governance are at
http://www.trinity.edu/rjensen/fraud001.htm#Governance
Question
Who is the highest paid actress in the world?
"Nicole
Kidman is the queen of Hollywood when it comes
to money. The Oscar winner, who earns as much as $17 million per movie, tops
the fifth annual list of highest-paid actresses released Wednesday by The
Hollywood Reporter. In second place, with $15 million per movie, was Reese
Witherspoon, 30, who won the best-actress Oscar this year for her
performance in "Walk the Line."
Renee Zellweger, Drew Barrymore and
Cameron Diaz placed third, fourth and fifth,
respectively. They also get $15 million for each film. Rounding out the top
10 are
Halle Berry ($14 million), Charlize Theron ($10
million),
Angelina Jolie ($10 million), Kirsten Dunst ($8
million to $10 million) and Jennifer Aniston ($8 million). The list will
appear in the Women in Entertainment Power 100 issue to be published by The
Hollywood Reporter on Dec. 5. ---
http://www.breitbart.com/news/2006/11/29/D8LN2OFG1.html
Should Christian
fraternities be allowed on campus?
The University of Georgia on Thursday agreed to
recognize a Christian fraternity that sued the institution this week,
The Atlanta Journal-Constitution reported. The
university had previously said that the fraternity was violating the
university’s anti-bias policy, which protects students from discrimination based
on religion, by requiring all members to pledge their belief in Jesus. The
university is now considering an exemption for that policy.
Inside Higher Ed, December 8, 2006 ---
http://www.insidehighered.com/news/2006/12/08/qt
"10 biggest media lawsuit
payouts listed Media Law Research Center: Cash awards often reversed on appeal,"
WorldNetDaily, November 30, 2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53153
Here is the Top Ten list of "trial awards"
in media libel, privacy and related cases, assembled by the
Media Law Research Center:
- $222.7 million. MMAR Group, Inc. vs. Dow Jones & Co. This developed
after The Wall Street Journal ran an article making allegations about
the securities firm and its use of client money. Less than a month later
MMAR went out of business. The $222.7 million is the highest award ever
from a jury in the reports compiled by MLRC. But a trial court later
ruled the plaintiff withheld evidence from the defendant, and the award
was erased.
$58 million. Feazel v. A.H. Belo Corp. Dallas' WFAA-TV reporter
Charles Duncan broadcast an 11-part series of stories critical of the
local prosecutor, discussing various allegations and a pending federal
investigation. Feazell later was indicted on racketeering and bribery
charges but was acquitted and sued. The $58 million judgment was on
appeal when the case was settled.
$40.3 million. Guccione vs. Hustler Magazine. The magazine published
a photograph of a male body which had the head of Bob Guccione, a
publisher of various magazines including Penthouse, superimposed on it.
The award first was reduced by the court, then reversed and dismissed by
the Ohio Supreme Court.
$40 million. Lerman v. Chuckleberry Publishing, Inc. Plaintiff
Jackie Collins Lerman was misidentified in two photographs published by
Adelina magazine that were culled from the movie "Married Men," whose
screenplay was written by Lerman. The jury awarded $40 million, the
court immediately struck $30 million and an appeals court reversed the
case and dismissed it.
$34 million. Sprague (II) v. Philadelphia Newspapers. The defendant
published several articles linking the plaintiff, a local prosecutor, to
an apparent murder coverup. The jury awarded Sprague $34 million, but
the court reduced that by $10 million and it ultimately was settled for
an undisclosed sum.
$29 million. Srivastava vs. Harte-Hanks. The plaintiff was a heart
surgeon when he lost privileges at two San Antonio hospitals. The
Harte-Hanks television station reported that revocation and detailed the
mishandling of several cases based on information given secretly to the
reporter by the plaintiff's secretary. The station appealed, but settled
before that could be heard.
$26.5 million. Pring vs. Penthouse International. A former Miss
Wyoming sued Penthouse after the magazine published a short piece
describing a Miss Wyoming who engaged in oral sex, alleging the
depictions "create the impression" that the story subject was her. The
jury awarded her $26.5 million, which was reversed and dismissed on
appeal.
$25 million. Graves vs. Warner Bros. (This is wrongful death case,
not defamation or libel). Plaintiffs were parents of Scott Amedure, a
guest on the Jenny Jones show who was killed days after he revealed a
homosexual crush on another male guest during a taping of the show. Jury
awarded $25 million in damages.
$24.5 million. Doe vs. TCI Cablevision. Plantiff Tony Twist, a
professional hockey player, sued over the character in a series of Spawn
comic books. Jury awarded $24.5 million, but that was set aside by the
court and a new trial resulted in a $15 million judgment, which was on
appeal.
$19 million. Newton vs. NBC. Inc. Wayne Newton accused NBC of
broadcasting a news report that created the impression he sought and got
financial backing from a man with links to organized crime. The trial
court reduced that to $5 million and an appeals court reversed and
dismissed the case.
Here is the Top Ten list of "final awards"
in media libel, privacy and related cases, assembled by the
Media Law Research Center. All of these cases involve libel, except one
which is noted:
- $58 million. Feazell lvs. A.H. Belo Corp.
- $29 million. Svivastava vs. Harte-Hanks. Settled for $8.5 million.
- $24 million. Sprague (II) vs. Philadelphia Newspapers. Settled for
estimated $20 million.
- $13.5 million. Newcome & Assoc. vs. Plain Dealear Publishing Co.
Settled for unknown amount before appeal.
- $11.9 million. Lee vs. Duddy.
- $11 million. Prozeralik (II) vs. Capital Cities/ABC, Inc. Settled
for unknown amount.
- $5.9 million. Cramlet (II) vs. Multi-Media Program Productions.
Settled for unknown amount. (This was a claim over interference with
parent-child relationship)
- $5 million. Nguyen vs. Nguyen
- $3 million. Brown & Williamson vs. Jacobson.
- $2.9 million. Kentucky Kingdom, Inc., vs. Journal Broadcasting of
Kentucky.
December 14, 2006 message from David Albrecht
[albrecht@PROFALBRECHT.COM]
There's a nice slide show on e-week. Students might
like it.
http://www.eweek.com/slideshow/0,1206,pg=0&s=26705&a=196169,00.asp?kc=EWEWEMNL121106EP23A
David Albrecht
BGSU
"How to Eliminate That
One-Word Page That Trails a Print Job," by Walter S. Mossberg, The Wall
Street Journal, December 7, 2006; Page B1 ---
http://online.wsj.com/article/personal_technology.html
GreenPrint inserts itself between
your Web browser (or any other program that prints) and your printer. It
takes the form of a faux printer. You print to this virtual printer, called
GreenPrint, as if it were real. Then, it analyzes the document, identifies
and eliminates wasted pages, and hands the document off to your actual
printer, which prints it.
The product also has some other nice
features. It can save any Web page as a PDF file, which can be called up
later in the free Adobe Reader program. It can also show you a detailed
preview of a Web page, or any other document you're printing, and allow you
to manually eliminate pages from the printout.
GreenPrint costs $25 after a 14-day
free trial (it goes to $35 after the holidays) and works only on Windows XP
and Windows 2000 for now. A Macintosh version is planned for next summer.
It's available from the company's Web site, printgreener.com.
I tested GreenPrint on two Windows
computers. Each was connected to my home printer, an HP DeskJet 5850 model,
which automatically prints on both sides of the page.
In my tests, GreenPrint worked well,
correctly identifying and eliminating wasted pages and properly creating PDF
copies of Web pages. I tried it with both the Firefox and Internet Explorer
Web browsers, and also with Microsoft Word, for non-Web documents.
After you install GreenPrint, it adds
two new entries to your list of printers. One, called GreenPrint, is the
virtual printer you use to eliminate the extra pages. The other, called
GreenPrint PDF, is used to directly save Web pages and other documents as
PDF files. GreenPrint doesn't erase your actual printer from the Windows
printer list. You can still select your regular printer and bypass
GreenPrint, but you won't get the benefits of GreenPrint. In fact, while it
makes sense to make GreenPrint your default printer, you don't have to do
so.
GreenPrint can work automatically in
the background. But, if you want to make sure it's only eliminating
unimportant pages, or if you want the opportunity to cull the printout
manually, you should use its preview feature. This presents a very nice
print preview, better than the one in the new IE 7 browser.
If you double-click on any page in
this preview, it turns red and won't be printed. You can also right-click on
any page to have GreenPrint eliminate images or text before printing. From
this preview screen, you can also save the document as a PDF file.
You can tweak how GreenPrint works.
For instance, you can specify how few lines of text a page must display
before it's considered worthy of elimination. Or you can add or subtract
other factors GreenPrint uses to decide if printing a page would be a waste,
such as whether a page has nothing but a border, or nothing but a single
image.
If you want, you can set the program
to analyze and eliminate only the final page in a document, or to only
display its preview if it finds a wasted page.
There are some rough edges, however,
and the product is something of a work in progress. At first, GreenPrint
wouldn't allow my printer to print on both sides of the paper. I asked the
manufacturer about that and the company quickly sent me a new version of the
product that fixed the problem. GreenPrint also crashed several times in my
tests after I changed configuration settings. The company says a new version
that avoids those crashes will be available for download by the time you
read this.
Continued in article
"Creating Your Own Photo
Book Becomes Easier: Upgrades Help in Turning Digital Images Into Paper; We
Test Three Offerings," by Walter S. Mossberg and Katherine Boehret, The Wall
Street Journal, December 6, 2006; Page D11---
http://online.wsj.com/article/the_mossberg_solution.html
One of the most satisfying ways to
share digital photos is to do so using an increasingly popular and
delightfully analog item: the photo book. These books contain a collection
of your digital photos, professionally printed on heavy paper and handsomely
bound with hard or soft covers. They are fairly priced and can be made and
ordered with little effort or skill.
MyPublisher Inc. (www.mypublisher.com),
the company that started this business over five years
ago, continues as a main player in the field. It now offers its books in
various sizes and prices, and recently released a new version of its
book-assembling software program, BookMaker 2.0.
But other companies know well the
emotional draw of these books -- and so sell their own photo books that play
to their strengths.
Apple Computer Inc. uses iPhoto, the stellar
photo-organizing program that comes on its computers, as a starting point
for making books, incorporating handy editing within the company's famously
simple user interface.
Eastman Kodak Co.'s Kodak EasyShare Gallery
(www.kodakgallery.com),
one of the most popular Web sites for sharing digital
photos, encourages users to make a book using photos that may already be
uploaded for sharing. Its book-assembling software is a Web-based
interactive program.
Each company offers a hardcover photo
book that measures roughly the same size and costs $30 for 20 printed pages.
The only way to know how each book will look is to assemble and order one
from each company. So this week, we did the job for you, taking time to make
and order books from MyPublisher, Apple and Kodak EasyShare Gallery.
All three contenders use book-making
software that allows you to choose various themes and layouts. With each,
you can either start from scratch, manually placing every photo, or you can
start with an auto-fill feature that initially places your photos throughout
the book, but allows you to rearrange, resize or delete them, or add others.
In our test, MyPublisher, which runs
on Mac and Windows operating systems, reigned supreme,
though Apple wasn't far behind. MyPublisher offers three book sizes, three
cover materials, two ways to display a cover photo, an intuitive assembling
software program and elegant layouts. Though Apple's iPhoto books were a
pleasure to make and produced some of the most artistically appealing books
with 19 optional themes, iPhoto runs only on Macs, leaving out most computer
users. And it doesn't offer as much overall variety as MyPublisher.
Kodak's books cost the same or more
than those from MyPublisher and Apple, yet stood out as the most difficult
to assemble and the least attractive. And because Kodak EasyShare Gallery's
book-making software lives online, it's slower.
We used the same set of photos from
Katie's summer vacation to make each book in standard size -- about 8.5" by
11" for MyPub and Apple and 9" by 10" for Kodak -- and started with each
company's auto-fill feature.
We also created the newest
extra-large books offered by Kodak and MyPublisher; respectively, they
measure 12" by 14" and 11.5" by 15" and cost about $70 and $60 for 20 pages.
Apple doesn't offer larger books.
MyPublisher's BookMaker 2.0 follows
five steps: Get Photos, Organize, Make Book, Preview and Purchase. These
numbered sections appear at the bottom of your screen with your current step
highlighted; moving ahead or back is done by selecting another section. To
get your photos into MyPublisher, you can drag and drop them into BookMaker
2.0 from anywhere on your computer.
We spent most of our time in
MyPublisher's third step: Make Book. Here, we edited images, moved them
around to tweak the auto-fill feature and changed page layouts. A bar at the
top of the screen offers a place for dragging and dropping unused photos or
those you'd rather use later. After assembling a page filled with sailboat
images, we saved one unused sailboat shot for later in the book and this
area served as a reminder that it was there.
Continued in article
This could make a good case
study for an accounting theory course
From The Wall Street
Journal Accounting Weekly Review on December 8, 2006
TITLE: Making Use of Frequent-Flier Miles Gets Harder
REPORTER: Scott McCartney
DATE: Dec 05, 2006
PAGE: D5
LINK:
http://online.wsj.com/article/SB116528094651740654.html?mod=djem_jiewr_ac
TOPICS: Accounting, Auditing
SUMMARY: The Department of Transportation (DOT) has undertaken audit
procedures on airlines to review how they are "living up to their 1999 'Customer
Service Commitment.'" This document was written when "airlines were under
pressure from Congress and consumers for lousy service and long delays" in order
to "stave off new legislation regulating their business." The airlines also
report little about the frequent flier mile plans they offer, and particularly
focus only on the financial aspects of these plans in their annual reports and
SEC filings, rather than, say, information about ease of redeeming miles in
which customers may be particularly interested.
QUESTIONS:
1.) What information do airlines provide about frequent flier mileage offerings
and redemptions in their annual reports and SEC filings?
2.) Why is this information important for financial statement users? In your
answer, describe your understanding of the business model and accounting for
frequent flier miles, based on the description in the article.
3.) Why did the Department of Transportation (DOT) undertake a review of
airline practices? What type of audit would you say that the DOT performed?
4.) What audit procedures did the airlines abandon due to financial
exigencies? What was the result of abandoning these audit procedures? In your
answer, describe the incentives provided by the act of undertaking audit
procedures on operational efficiencies and effectiveness.
Reviewed By: Judy Beckman, University of Rhode Island
"Making Use of Frequent-Flier
Miles Gets Harder Falling Redemption Rate Is One of Many Service Issues,
Government Report Find," by Scott McCartney, The Wall Street Journal,
December 5, 2006; Page D5 ---
http://online.wsj.com/article/SB116528094651740654.html?mod=djem_jiewr_ac
Which airline is the most accommodating when it
comes to letting consumers cash in frequent-flier mileage awards? It's hard
to know, a new government report says, because airlines disclose so little
information.
One thing is clear: Over the past four years, the
percentage of travelers cashing in frequent-flier award tickets has declined
at four of the five biggest airlines, even though miles accumulated by
consumers have increased.
The Department of Transportation's inspector
general went back and checked how airlines were living up to their 1999
"Customer Service Commitment." Back then, airlines were under pressure from
Congress and consumers for lousy service and long delays, and they promised
reform to stave off new legislation regulating their business.
Seven years later, Inspector General Calvin L.
Scovel III found that under financial pressure, many airlines quit auditing
or quality control checks on their own customer service, leading to service
deterioration. Airlines don't provide enough training for employees who
assist passengers with disabilities, the investigation found, and don't
always follow rules when handling passengers who get bumped from flights.
And as travelers have long complained, government
auditors studying 15 carriers at 17 airports found airline employees often
don't provide timely and accurate information on flight delays and their
causes, and don't give consumers straightforward information about
frequent-flier award redemptions.
"They can do better and must do better, and if they
don't do better, Congress has authority to wield a big stick," said U.S. Rep
John Mica, the outgoing chairman of the House Aviation Subcommittee who
requested the inspector general's customer-service investigation. He said
he's eager to hear the airline industry's response before making final
judgments, but the report card gives airlines only "average to poor grades
in a range of areas that need improvement."
Since airlines are returning to profitability and
aggressively raising fares, there's more attention being paid to
customer-service issues. Delays have increased; baggage handling worsened.
As traffic has rebounded, airlines still under financial pressure because of
high oil prices may not have adequate staff to live up to the promises they
made on customer service.
The report called on the DOT to "strengthen its
oversight and enforcement of air-traveler consumer-protection rules" and
urged airlines to get back on the stick for customer service. The inspector
general also reminded consumers that since airlines incorporated the
customer-service commitment into their "contract of carriage" -- the legal
rules governing tickets -- carriers can be sued for not living up to their
customer-service commitment.
The industry says it is paying attention. The
inspector general's Nov. 21 report "is a good report card for reminding us
where we need to improve," said David Castelveter, a spokesman for the Air
Transport Association, the industry's lobbying group, which coordinated the
"Customer Service Commitment." Airlines will "react accordingly," he said.
One of the stickiest areas is frequent-flier
redemptions because airlines are loath to release detailed information about
their programs, considering it crucial competitive information.
Frequent-flier programs have become big money-makers for airlines since they
sell so many miles in advance to credit-card companies, merchants, charities
and others. That allows them to pocket cash years in advance of a ticket,
then incur very little expense when consumers eventually redeem the miles,
if they ever do.
In 1999, airlines pledged to publish "annual
reports" on frequent-flier redemptions. But at most carriers, the disclosure
didn't change at all. Today, as then, carriers typically bury numbers deep
in filings with the Securities and Exchange Commission and report only the
number of awards issued, the estimated liability they have for the cost of
awards earned but not yet redeemed and the number of awards as a percentage
either of passengers or passenger miles traveled.
The inspector general said the hard-to-find
information has only "marginal value to the consumer for purposes of
determining which frequent-flier program best meets their need."
What you'd really want to know is which airline
makes it easiest to get an award, particularly the cheapest domestic coach
ticket, typically 25,000 miles, which is the most popular award. But
airlines don't disclose how many awards are at the lowest level, and how
many consumers have to pay double miles or so for a premium award of an
"unrestricted" coach ticket.
The award market follows ticket prices and
availability, so recent years have seen an increase in the price people have
to pay to get the awards they want, and less availability of award seats,
particularly at the cheapest level, because some airlines have cut capacity
and demand for travel has been strong. Add in the flood of miles airlines
are issuing, and the value of a frequent-flier mile has declined sharply.
The inspector general's report compares
award-redemption rates at big airlines over the past four years and found a
relatively steady drop at four carriers: UAL Corp.'s United Airlines,
Continental Airlines Inc., AMR Corp.'s American Airlines and Northwest
Airlines Corp. US Airways Group Inc. actually saw higher rates of redemption
in 2005 than in 2002, and Delta Air Lines Inc. was unchanged. Both Delta and
US Airways had higher redemption rates than competitors.
to claim short-trip tickets, adding more seats to
award inventory this fall and offering a new credit card with easier
redemption features. Northwest said its numbers have remained relatively
consistent -- roughly one in every 12 seats is a reward seat.
Other airlines said declining redemption rates
result from factors including an increase in paying customers, fuller planes
and shifts in airline capacity. American says the number of awards it has
issued has remained fairly constant, and while the number of passengers it
carries has climbed, its seat capacity hasn't. In addition, several airlines
said customer preferences like using miles for first-class upgrades or
hoarding miles longer to land big international trips can affect the
redemption rate. "Reward traffic does not spool up and absorb capacity
increases as fast as revenue traffic does," said a Continental spokesman.
Those numbers don't include awards that their
customers redeem on partner airlines, so some of the decline could be
attributable to an increase in consumers' opting to grab award seats on
foreign airlines or other partners, says frequent-flier expert Randy
Petersen. American, for example, does disclose more redemption data on its
Web site and showed that last year, it issued more than 955,000 awards for
travel on its partners, compared with the 2.6 million used on American and
American Eagle flights.
"The data can be misleading," said Mr. Petersen,
founder of InsideFlyer.com. He'd like to see more data, including numbers on
how many customers made requests but couldn't find seats.
But further disclosure is unlikely to happen unless
the government forces it. "Left to their own devices," said Tim Winship,
publisher of FrequentFlier.com, "I see no reason to expect airlines to step
up and disclose more."
Bob Jensen's threads on
off-balance-sheet-financing and risk are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#OBSF2
November 28, 2006 message from
a Trinity alum
I'm a former student of Trinity, and I've used your
great collection of misc. links on several occasions´. I would just like to
thank you for the effort put into this quite extensive resource.
As I've noticed that it hasn't been updated for a
while now, I thought that I'd try to come up with a suggestion for you, to
further extend and improve it. I have personally found MortgageLoan.com to
be a great reference for everything related to real estate and mortgage,
with independent information as well as calculators and other tools. Perhaps
it would fit into the "Finance"-section in your bookmarks collection.
Aaron
November 28, 2006 reply from
Bob Jensen
Hi Aaron,
I added MortgageLoan.com
to
http://www.trinity.edu/rjensen/FraudReporting.htm#MortgageAdvice
Bob Jensen
Bob Jensen's investment
helpers are at
http://www.trinity.edu/rjensen/Bookbob1.htm
What an attention grabber!
From The Washington Post on December 11, 2006
Who topped Yahoo's list of popular search
terms?
A.
Paris Hilton
B.
Donald Trump
C.
President Bush
D.
Britney Spears
From The Washington Post
on December 13, 2006
Iran recently blocked access to which Web site?
A.
MySpace.com
B.
YouTube.com
C.
State.gov
D.
Amazon.com
"Five Macroeconomic Myths,"
by Edward C. Prescott, The Wall Street Journal, December 11, 2006; Page
A18 ---
http://online.wsj.com/article/SB116579723019846033.html?mod=opinion&ojcontent=otep
Myth No. 1: Monetary policy causes
booms and busts.
Greg Mankiw, former chairman of the Council of Economic Advisers, wrote the
following in a 2002 paper: "No aspect of U.S. policy in the 1990s is more
widely hailed as a success than monetary policy. Fed Chairman Alan Greenspan
is often viewed as a miracle worker." Or, as Mr. Mankiw later asks, was Mr.
Greenspan just lucky?
One of the mysteries of the 1990s is
how to explain the economic boom when the increase in capital investments --
as measured by the national accounts -- grew at a subdued pace. The numbers
simply don't add up. However, it turns out that something special happened
in the 1990s, and it wasn't monetary policy. In a recent paper, Minneapolis
Fed senior economist Ellen McGrattan and I show that intangible capital
investment -- including R&D, developing new markets, building new business
organizations and clientele -- was above normal by 4% of GDP in the late
1990s.
This difference is key to
understanding growth rates in the 1990s: Output, correctly measured,
increased 8% relative to trend between 1991 and 1999, which is much bigger
than the U.S. national accounts number of 4%. Associated with this boom in
unmeasured investment is the huge amount of unmeasured savings that showed
up in the wealth statistics as capital gains. This was the people's boom,
the risk-takers' boom. We should hang gold medals around these
entrepreneurs' necks. So indeed, it does seem that Mr. Greenspan was lucky
in that a boom happened under his watch; but we can at least say that he did
a pretty good job of keeping inflation in check. Here's hoping for the same
performance from our current chairman.
What about busts? Let's begin with
the assumption that tight monetary policy caused the recession of 1978-1982.
This myth is so firmly entrenched that I could have called this downturn the
"Volcker recession" and readers would have understood my reference. To
accept the myth, you have to accept a consistent relationship between
monetary policy and economic activity -- and as we've just seen, this
relationship is simply not evident in the data.
Between 1975 and 1980, the
inflation-corrected federal funds rate was low; at the same time, output
trended upward until late 1978. So far, things look somewhat promising for
the mythmakers. But looking closer at the data we see that output began its
downward trend in late 1979 while monetary policy was still easy through
most of 1980. Also, output continued its decline through 1982, when it began
to climb at a time when monetary policy remained tight.
These facts do not square with
conventional wisdom. Our obsession with monetary policy in the conduct of
the real economy is misplaced.
One caveat: I am not saying that
there are no real costs to inflation -- there certainly are. And if we get
too much inflation we can exact high costs on an economy (witness Argentina
as an example). However, I am talking here of the vast majority of
industrialized countries who live in a low-inflation regime and who are in
no danger of slipping into hyperinflation. It is simply impossible to make a
grave mistake when we're talking about movements of 25 basis points.
Myth No. 2: GDP growth was
extraordinary in the 1990s.
Even though I referred to the expansion of the '90s as a boom, inasmuch as
it was a period of above-trend growth, and I noted the strong gains due to
unmeasured investment, we have to put things into historical context. So
let's return to the data. GDP growth relative to trend in the early 1960s
was 12%, and in the famous 1980s boom (from the end of 1982 to mid-1989) it
was a very impressive 9.7%.
And how about the boom from the
previous decade? From 1996 to 1999, GDP grew 3.8%, about in line with the
3.9% growth of the early 1970s and less than the 5.5% growth of the
mid-1970s expansion. Even when we account for unmeasured investment and add
four percentage points, the 1990s growth spurt -- fueled by rapid growth in
tech industries -- still falls short of the 1980s boom and does not approach
the 1960s, both of which were fueled by tax cuts.
So we have to be careful about
mythologizing the 1990s and drawing misguided policy lessons; yes, it was a
boom, and it was better than we think, but let's keep that boom in
perspective.
Myth No. 3: Americans don't save.
This is a persistent misconception owing to a misunderstanding of what it
means to save. To get a complete picture of savings we need to investigate
economic wealth relative to income. Our traditional measures of savings and
investment, the national accounts, do not include savings associated with
tangible investments made by businesses and funded by retained earning,
government investments (like roads and schools) and business intangible
investments.
If we want to know how much people
are saving, we need to look at how much wealth they have. People invest
themselves in many and varied ways beyond their traditional savings
accounts. Viewing the full picture -- economic wealth -- Americans save as
much as they always have; otherwise, their wealth relative to income would
fall. We're saving the right amount.
Myth No. 4: The U.S. government
debt is big.
The key measure here is privately held interest-bearing federal government
debt, which includes debt held by foreign central banks, and does not
include debt held by the Fed or government debt held by the government. So
let's turn to the historical data once again.
Privately held interest-bearing debt
relative to income peaked during World War II, fell through the early 1970s,
rose again through the early 1990s, and then fell again until 2003. Even
though that number has been rising in recent years (except for the most
recent one), it is still at levels similar to the early 1960s, and lower
than levels in most of the 1980s and 1990s. This debt level was not alarming
then, and it is not alarming now. From a historical perspective, the current
U.S. government debt is not large.
Myth No. 5: Government debt is a
burden on our grandchildren.
There's no better way to get people worked up about something than to call
on their sympathies for their beloved grandkids. The last thing that I
want to do is to burden my own grandchildren with the sins of profligacy.
But we should stop feeling guilty -- at least about government debt --
because we are in better shape than conventional wisdom suggests.
Theory and practice tell us that the
optimal amount of public debt that maximizes the welfare of new generations
of entrants into the workforce is two times gross national income, or GDP.
This assumes 1% population growth, 2% productivity growth, 4% real after-tax
return on investments, and that people work to age 63 and live to age 85.
Currently, privately held public debt is about 0.3 times GDP, and if we
include our Social Security obligations, it is 1.6 times GDP. In either
case, we could argue that we have too little debt.
What's going on here? There are not
enough productive assets -- tangible and intangible assets alike -- to meet
the investment needs of our forthcoming retirees. The problem is that the
rate of return on investment -- creating more productive assets -- decreases
as the stock of these assets increases. An excessive stock of these
productive assets leads to inefficiencies.
Total savings by everyone is equal to
the sum of productive assets and government debt, and if there is an
imbalance in this equation it does not mean we have too little or too many
productive assets. The fix comes from getting the proper amount of
government debt. When people did not enjoy long retirements and population
growth was rapid, the optimal amount of government debt was zero. However,
the world has changed, and we in fact require some government debt if
we care about our grandchildren and their grandchildren.
If we should worry about our
grandchildren, we shouldn't about the amount of debt we are leaving
them. We may even have to increase that debt a bit to ensure that we are
adequately prepared for our own retirements.
* * *
There are at least three lessons
here. First: Context matters. Take what you read in the paper with a many
grains of historical salt. Second: Current data often provide poor guidance
for effective policy making. To make forward-looking policies you have to
understand the past. Finally: Establish good rules, change them infrequently
and judiciously, and turn the people loose upon the economy. Booms will
follow.
Mr. Prescott is senior monetary adviser at the
Federal Reserve Bank of Minneapolis and professor of economics at the W.P.
Carey School of Business at Arizona State University. He is a co-recipient
of the 2004 Nobel Prize in economics.
Updates from WebMD ---
http://www.webmd.com/
Latest Headlines on
December 12, 2006
Latest Headlines on
December 13, 2006
Latest Headlines on
December 14, 2006
Latest Headlines on
December 15, 2006
"Diabetes breakthrough: Toronto scientists cure disease in mice," by Tom
Blackwell, National Post, December 15, 2006
In a discovery that has stunned even those behind
it, scientists at a Toronto hospital say they have proof the body's nervous
system helps trigger diabetes, opening the door to a potential near-cure of
the disease that affects millions of Canadians.
Diabetic mice became healthy virtually overnight
after researchers injected a substance to counteract the effect of
malfunctioning pain neurons in the pancreas.
"I couldn't believe it," said Dr. Michael Salter, a
pain expert at the Hospital for Sick Children and one of the scientists.
"Mice with diabetes suddenly didn't have diabetes any more."
The researchers caution they have yet to confirm
their findings in people, but say they expect results from human studies
within a year or so. Any treatment that may emerge to help at least some
patients would likely be years away from hitting the market.
But the excitement of the team from Sick Kids,
whose work is being published today in the journal Cell, is almost palpable.
"I've never seen anything like it," said Dr. Hans
Michael Dosch, an immunologist at the hospital and a leader of the studies.
"In my career, this is unique."
Their conclusions upset conventional wisdom that
Type 1 diabetes, the most serious form of the illness that typically first
appears in childhood, was solely caused by auto-immune responses -- the
body's immune system turning on itself.
Continued in article
Can you judge a man’s
faithfulness in advance by his face?
How about whether he would be a good father, or a good
provider? Many people believe they can, according to a University of Michigan
study published in the December issue of Personal Relationships, a peer-reviewed
academic journal. U-M social psychologist Daniel J. Kruger conducted a series of
on-line experiments showing 854 male and female undergraduate students versions
of composite male faces that had been altered to look more or less masculine by
adjusting, for example, the shape of the jaw, the strength of brow ridges and
the thickness of lips. Participants were asked which of the men they preferred
as mates, dates, parents of their children, or companions for their girlfriends.
They were also asked which men were most likely to behave in certain
ways—starting a fight or hitting on someone else’s girlfriend, for example.
"It's remarkable that minor physiological differences lead people to pre-judge a
man's personality and behavior," said Kruger, a research scientist at the U-M
School of Public Health and the U-M Institute for Social Research (ISR). "But
even though physiognomy (the attribution of personality to faces) is thought to
be a pseudoscience, a lot of people believe there's a link between looks and
personality."
"Does he love you so? Maybe it really is in his face…," PhysOrg, December
14, 2006 ---
http://physorg.com/news85337845.html
Moderate drinking may help
older women live longer
A study published in Journal of the American Geriatrics
Society finds that moderate alcohol intake (1-2 drinks/day for 3-6 days/week,
depending on alcoholic content) may lead to increased quality of life and
survival in older women. The Australian Longitudinal Study on Women’s Health
followed nearly 12,000 women in their 70’s over a 6 year period. The group was
comprised of non-drinkers, occasional drinkers and moderate drinkers.
"Moderate drinking may help older women live longer," PhysOrg,
December13, 2006 ---
http://physorg.com/news85253884.html
New hope for wrinkles
A new anti-aging ingredient developed by Australian
researchers is expected to be available in skin products next year. The new
additive - gamma glutamyl cysteine (GGC) - is a precursor for an effective
antioxidant known as glutathione, which has a broad range of potential health
benefits. Glutathione is the body's key defense for detoxifying harmful
compounds implicated in cancer, diabetes, aging along with other diseases and
degenerative conditions. After nine years in development, researchers Dr Wallace
Bridge and Dr Martin Zarka, of the University of New Sotuh Wales (Sydney,
Australia) have established a new, cost-effective process for manufacturing GGC.
"New hope for wrinkles," PhysOrg, December 15, 2006 ---
http://physorg.com/news85400492.html
Reversing Trend, Big Drop
Is Seen in Breast Cancer
Rates of the most common form of breast cancer dropped
a startling 15 percent from August 2002 to December 2003, researchers reported
yesterday. The reason, they believe, may be because during that time, millions
of women abandoned hormone treatment for the symptoms of menopause after a large
national study concluded that the hormones slightly increased breast cancer
risk.
Gina Kolata, "Reversing Trend, Big Drop Is Seen in Breast Cancer," The New
York Times, December 15, 2006 ---
http://www.nytimes.com/2006/12/15/health/15breast.html
Child Stem Cell Recipient
Heads Home
Daniel Kerner's parents knew the experimental brain
surgery was risky, but without it the 6-year-old surely would die. Last month in
Portland, Ore., doctors for the first time transplanted stem cells from aborted
fetuses into his head in a desperate bid to reverse, or at least slow, a rare
genetic disorder called Batten disease. The so-far incurable condition normally
results in blindness and paralysis before death.
"Child Stem Cell Recipient Heads Home," PhysOrg, December 12, 2006 ---
http://physorg.com/news85116317.html
Also see
http://www.technologyreview.com/read_article.aspx?id=17888&ch=biotech
Jensen Comment
My wife Erika has a nephew and niece who both died from Batten's disease. At the
time there was no known cure. It is more common in male rather than female
children. Degenerative symptoms are something like Lou Gehrig's fatal
neuromuscular disease amyotrophic lateral sclerosis. However, Batten's disease
attacks children at a very early age.
More and more people are buying prescription drugs from shady online marketers.
That could be hazardous to their health
From
the outside, it looked like any other white-walled, terra cotta-roofed bungalow
in sun-bleached Belize, perhaps someone's quaint tropical hideaway. Inside,
however, the house's peripatetic occupants didn't act like they were on
vacation. Workers in sneakers, shorts, and rubber gloves produced mountains of
allegedly counterfeit prescription pills. Hundreds of pounds of raw ingredients
came from China via a broker in New Jersey. The drugmakers whipped up their
products in a dented mixing machine and blender. Finished tablets—imitations of
Viagra, the cholesterol medication Lipitor, and Ambien, a sleep aid—were stored
in gray garbage bins before being shipped out in plastic sandwich bags. The
pills allegedly were hawked via spam e-mail and sold, without prescriptions,
from such Web sites as
www.planetpharmacy.bz
"Bitter Pills," Business
Week, December 18, 2006 ---
Click Here
Operating in a legal grey area, their doctors write thousands of
prescriptions for people, sight unseen. Is better regulation required?
Checking his e-mail one day, Schmidt noticed spam pitches for the anxiety drug
Xanax and the painkiller Ultram—quick remedies requiring no doctor's visit and
no waiting on pharmacy lines. He only had to fill out an online questionnaire
and type in his credit-card number. Unknown to Schmidt, two doctors—one in New
Jersey, another in Philadelphia—then clicked on a button to approve the
prescriptions. Neither had ever seen or spoken with Schmidt.
Keith Epstein, "The Deadly Side Effects of Net Pharmacies," Business Week,
December 18, 2006 ---
Click Here
A hobo spider is not a
recluse spider, but it can still be torturous
A small spider bite turned out to be a big problem
for Cindy Pettey. Pettey awoke when she was bitten on the stomach in the middle
of the night a few weeks ago, but thought little else of it. Then she started
running a fever, she felt achy and weak. The bite sore became larger.
"Spider Bite Turns Serious for Ore. Woman," PhysOrg, December 12, 2006 ---
http://physorg.com/news85116424.html
Next thing Pettey knew, a doctor was telling her he
believed she'd been bitten by a dangerous hobo spider.
Pettey had surgery that removed 10 pounds of skin
and flesh, leaving her with an abdomen covered in stitches.
"It looks like I was bit in half by a shark,"
Pettey said.
Rob Hendrickson, a physician and director of the
Oregon Poison Control Center, said the hobo is a non-aggressive spider that
bites only when cornered. For example, when someone puts on a shoe with a
spider inside.
The hobo is one of two dangerous spiders in Oregon.
The other is the black widow. The brown recluse does not exist in Oregon, he
said.
"In reality, most spiders are venomous, but aren't
capable of penetrating human skin," Hendrickson said.
Hobo spider venom may cause necrosis, or death of
the skin. When a spider injects venom below the skin, it reddens, swells,
then turns black. But there is some doubt in the medical community about
whether venom causes the skin death, Hendrickson said.
New research shows big
improvement in survival after stroke
A new research report by The George Institute for
International Health, in collaboration with Auckland City Hospital and The
University of Auckland, has revealed a 40% decline in the number of deaths after
stroke in the total population of Auckland, New Zealand over the past 25 years.
The study attributes the improved survival rate to health care factors
associated with an increase in hospital admission and brain imaging during the
most severe phase of the illness.
PhysOrg, December 11, 2006 ---
http://physorg.com/news85054965.html
U.S. scientists have found
inhibiting glucocorticoid, a type of steroid, can prevent skin abnormalities
induced by psychological stress.
The
study, conducted by researchers from the Veterans Affairs Medical Center in San
Francisco and the University of California-San Francisco, also showed how
psychological stress induces skin abnormalities that could initiate or worsen
skin disorders such as psoriasis and atopic dermatitis. Previous research has
shown psychological stress increases glucocorticoid production. In addition, it
is well recognized psychological stress adversely affects many skin disorders,
including psoriasis and atopic dermatitis.
PhysOrg, December 11, 2006 ---
http://physorg.com/news85073987.html
Carter's Palestine:
Peace Not Apartheid
A new book by former president Jimmy Carter is
generating wide controversy. Pro-Israel groups are offended by Carter's
Palestine: Peace Not Apartheid, and say the book is unworthy of a former
U.S. president . . . In the book, Carter sites failure on all sides -- the
Palestinians, Israel, the U.S. -- to bring about a a peace deal. But the book is
particularly critical of Israel, likening its policies in the Palestinian
territories to the former policy of apartheid in South Africa.
Jackie Northam,
"Jimmy Carter's Book Stirs Criticism, Complaint,"
NPR, December 11, 2006 ---
http://www.npr.org/templates/story/story.php?storyId=6605934
Also "Mideast Fantasies," December 13, 2006 ---
http://www.rep-am.com/story.php?id=16730
Of course, the Palestinians
also have an opinion on that subject. On Friday, Palestinian Prime Minister
Ismail Haniyeh made his first visit abroad since taking office in March --
to Tehran.
He said the United States
"and Zionists ... want us to recognize the usurpation of the Palestinian
lands and stop jihad and resistance and accept the agreements reached with
the Zionist enemies in the past" but that, as The Associated Press reported,
"his Hamas-led government
will never recognize Israel
and will continue to fight for
the 'liberation of Jerusalem.'"
High on Haniyeh's list of
unacceptable "agreements reached with the Zionist enemies in the past" would
have to be the 1978 Camp David Accords that Carter continues to rank among
the greatest achievements of his presidency.
No wonder longtime aide
Kenneth Stein, the first executive director of the Carter Center think tank
in Atlanta and the founder of its Mideast program, late last week resigned
from the center and released a letter denouncing Carter's book as one-sided
and filled with factual errors, material copied from other sources and
"simply invented segments."
Without mentioning the onslaught of attacks by
Palestinian terrorists, former President Jimmy Carter told a national audience
watching the "Tonight Show with Jay Leno" there is "horrible persecution" of
Palestinians at the hands of Israelis, and he is urging a return to peace talks
between the residents of the embattled region."In Palestinian territory, there
is horrible persecution of the Palestinians who live on their own land," Carter
said.
"Carter to Leno: Treatment of Palestinians
'horrible'," WorldNetDaily, December 12, 2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53337
Jensen Comment
Although Carter purportedly has many inaccuracies in his new book, there are
some awful things that Israeli settlers have done to Palestinians and some
reckless actions by the IDF that make it possible to blame all sides in this
never-ending war.
Jimmy Carter, it appears, needed a scapegoat
for his failed presidency and Israel served as a convenient target.
Joseph Puder,
"Palestine: Peace, Not Prejudice," FrontPageMagazine, December 15, 2006
---
http://www.frontpagemag.com/Articles/ReadArticle.asp?ID=26028
Jensen Comment
I don't think that it's quite as simple as that. President Carter was quite
close to
Yasser Arafat and learned a great deal about the plight of the Palestinians
in refuge camps for over 30 years. Carter sincerely believes that worldwide
pressure on Israel might help to resolve this long-standing obstacle to peace in
the Middle East. The problem is that media hammering of Israel is dysfunctional
because terror and media successes fan the fires of deadly jihadists bent of
take over of first the entire Middle East and eventually the world.
Former President Carter has decided not to
visit Brandeis University to talk about his new book "Palestine: Peace not
Apartheid" because he does not want to debate Harvard Law professor Alan
Dershowitz as the university had requested. "I don't want to have a conversation
even indirectly with Dershowitz," Carter told The Boston Globe. "There is no
need ... for me to debate somebody who, in my opinion, knows nothing about the
situation in Palestine."
"Former President Carter says he won't visit
Brandeis," WorldNetDaily, December 15, 2006 ---
Click Here
Jensen Comment
Seems like Carter is passing up a good opportunity to educate a heavily Jewish
student body and a popular Harvard law professor who "knows nothing about the
situation in Palestine." Rather than an academic debate, Carter would rather
appear on late night comedy TV.
HARRY TRUMAN famously said that if you can't take
the heat, stay out of the kitchen. By refusing Brandeis's invitation to take
part in a debate about his new book, "Palestine: Peace Not Apartheid," former
president Jimmy Carter is saying that he can't take the heat -- after giving his
book a controversial title and boasting of a desire to be provocative.
Globe Editorial, "Jimmy Carter vs.
Jimmy Carter," Boston Globe, December 16, 2006 ---
Click Here
Jensen Comment
What struck me about the above quotation is not its content. Rather it is its
source, the very liberal Boston Globe.
Leno said to the president who held office
more than 25 years ago, "But when Israel gives something back, it doesn't seem
like they get anything for it. It seems like it just moves some angry people
closer to them." "No, that's not true at all," responded Carter. "Israel hasn't
really tried to give 'Palestine' back to the Palestinians. They did give up some
of Gaza. And then they moved out, and the Palestinians captured one soldier and
tried to swap [him] for 300 children – some as young as 12 years old – and 94
women, but the Israelis wouldn't swap. So then Israel reinvaded Gaza. But if
Israel ever wants peace – and they do want peace – a majority of Israelis have
always said, 'Let's get rid of the land, and let's have peace.' That's what we
need to have."
"Carter to Leno: Treatment of Palestinians
'horrible'," WorldNetDaily, December 12, 2006 ---
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53337
Jensen Comment
Perhaps Israel has been wrong all along by detaining suicide bombers when
they're women or children as young as 12 years old. Women and young male
children should be given at least a second chance for a kill.
Jimmy Carter's not the only
author criticized for writing a pro-Palestinian book with bad scholarship
First published by Pantheon in 1978 and eventually translated into some three
dozen languages, Said’s book (Orientalism)
was an ambitious effort to use concepts from 20th
century cultural theory to scrutinize the way Western academics and writers
understood “the East” during the era of European imperial expansion. Said
treated Western literature and scholarship as an integral part of the process of
absorbing, assimilating, and policing the colonial Other. That interpretation is
now often taken more or less for granted in some parts of the humanities . . .
Beyond catching Said in various misstatements, Irwin’s argument is that the
field of European research into Middle Eastern language, culture, and history
was by no means so tightly linked to Western imperial ambitions as Orientalism
suggests. He is also very skeptical of the value of analyzing Orientalist
scholarship alongside Western literary texts devoted to the East — evading the
distinctions between kinds of texts by treating them all as manifestations of a
colonialist discourse . . . Said wrote lots of valid political polemic, but
Orientalism
was a rotten book and it was inevitable that someone should blow a whistle on it.
It has been a delusive distraction. It converted real political and social
issues into a campus dog-fight. Soothing displacement activity indeed.
Scott McLemee, "What Said Said,"
Inside Higher Ed, December 13. 2006 ---
http://www.insidehighered.com/views/2006/12/13/mclemee
Forwarded by Dick Haar
Made in the USA --- Spoiled
Brats
The other day
I was reading Newsweek magazine and came across some poll data I found
rather hard to believe. It must be true given the source, right? The
same magazine that employs Michael (Qurans in the toilets at Gitmo)
Isikoff. Here I promised myself this week I would be nice and I start
off in this way.
The Newsweek
poll alleges that
67 percent of
Americans are unhappy with the direction the country is headed and 69
percent of the country is unhappy with the performance of the president.
In essence 2/3s of the citizenry just ain't happy and want a change.
So being the
knuckle dragger I am, I starting thinking, ''What we are so unhappy
about?''
Is it that we
have
electricity
and running water 24 hours a day,
7 days a week? Is our unhappiness the result of having
air
conditioning in the summer and heating in the winter?
Could it be that
95.4 percent
of these unhappy folks have a job?
Maybe it is the ability to walk into a grocery store at any time and see
more food in moments than Darfur has seen in the last year?
Maybe it is
the
ability to
drive from the Pacific Ocean to the Atlantic Ocean without having to
present identification papers as we move through each state?
Or possibly the hundreds of clean and safe motels we would find along
the way that can provide temporary shelter? I guess having
thousands of
restaurants with varying cuisine
from around the world is just not good enough. Or could it be that when
we
wreck our car,
emergency workers show up and provide services to help all involved.
Whether you are rich or poor they treat your wounds and even, if
necessary, send a helicopter to take you to the hospital.
Perhaps you
are one of the
70 percent of
Americans who own a home,
you may be upset with knowing that in the
unfortunate
case of having a fire, a group of trained firefighters will appear in
moments
and use top notch equipment to extinguish the flames thus saving you,
your family and your belongings. Or if, while at home watching one of
your many flat screen TVs, a burglar or prowler intrudes; an officer
equipped with a gun and a bullet-proof vest will come to defend you and
your family against attack or loss. This
all in the
backdrop of a neighborhood free of bombs or militias raping and
pillaging the residents. Neighborhoods where 90 percent of teenagers own
cell phones and computers.
How about the
complete
religious, social and political freedoms we enjoy
that are the envy of everyone in the world? Maybe that is what has 67
percent of you folks unhappy.
Fact is, we
are the
largest group
of ungrateful, spoiled brats
the world has ever seen. No wonder the world loves the U.S. yet has a
great disdain for its citizens. They see us for what we are. The most
blessed people in the world who do nothing but complain about what we
don't have and what we hate about the country instead of thanking the
good Lord we live here.
I know, I
know. What about the president who took us into war and has no plan to
get us out? The president who has a measly 31 percent approval rating?
Is this the same president who guided the nation in the dark days after
9/11? The president that cut taxes to bring an economy out of recession?
Could this be the same guy who has been called every name in the book
for succeeding in keeping all the spoiled brats safe from terrorist
attacks? The commander in chief of an all-volunteer army that is out
there defending you and me?
Make no
mistake about it. The troops in Iraq and Afghanistan have volunteered to
serve, and in many cases have died for your freedom. There is currently
no draft in this country. They didn't have to go. They are able to
refuse to go and end up with either a ''general'' discharge, an ''other
than honorable'' discharge or, worst case scenario, a ''dishonorable''
discharge after a few days in the brig.
So
why then the
flat out discontentment in the minds of 69 percent of Americans?
Say what you want but I
blame it on
the media.
If it bleeds it leads and
they
specialize in bad news.
Everybody will watch a car crash with blood and guts. How many will
watch kids selling lemonade at the corner? The media knows this and
media outlets are for-profit corporations.
They offer
what sells.
Just ask why they are going to allow a murderer like O.J. Simpson to
write a book and do a TV special about how he didn't kill his wife but
if he did … insane!
Stop buying
the negative venom
you are fed everyday by the media. Shut off the TV, burn Newsweek, and
use the New York Times for the bottom of your bird cage.
Then start
being grateful for all we have as a country.
There is exponentially more good than bad.
I close with
one of my favorite quotes from B.C. Forbes in 1953:
''What have Americans to be thankful for? More than any other people on
the earth, we enjoy complete religious freedom, political freedom,
social freedom. Our liberties are sacredly safeguarded by the
Constitution of the United States, 'the most wonderful work ever struck
off at a given time by the brain and purpose of man.' Yes, we Americans
of today have been bequeathed a noble heritage. Let us pray that we may
hand it down unsullied to our children and theirs.''
I suggest we
sit back and count our blessings for all we have. If we don't, what we
have will be taken away. Then we will have to explain to future
generations why we squandered such blessing and abundance.
If we are not
careful this generation will be known as the ''greediest and most
ungrateful generation.''
A far cry from the proud Americans of the ''greatest generation'' who
left us an untarnished legacy.
December 13, 2006 message from Roger Lewis
[rplewis@stcloudstate.edu]
Here's a little song in the holiday spirit for our first final today . . .
The tune should be familiar.
It’s the most wonderful time of the year.
While the students are yelling
Professors are telling them
“Finals are here!”
It’s the most wonderful time of the year.
It’s the hap, happiest season of all.
But some students are crying
while pencils are flying ‘round
in Stewart Hall.
It’s the hap, happiest season of all!
There’ll be cramming till midnight
books open till just right
before all the finals will start.
There’ll be scary old stories of
finals so gory and teachers
who don’t have a heart.
It’s the most wonderful time of the year.
There’ll be much celebrating
with “A’’s for the taking
but some students will hear
“Kid, you failed, so we’ll see you next year!”
Roger P. Lewis, MAc, CPA (exp)
Instructor, Department of Accounting
G.R. Herberger College of Business
Saint Cloud State University
720 Fourth Avenue South - BB 259
Saint Cloud, MN 56301-4498
(320)308-4950
e-mail: rplewis@stcloudstate.edu
Forwarded by Auntie Bev
Children Writing
About the Sea..
1) This is
a picture of an octopus It has eight testicles.
(Kelly age 6)
2)
Oysters' balls are called pearls. (James age 6)
3) If you are surrounded by sea you are an Island. If you don't
have sea all round you, you are in continent. (Wayne age 7)
4) Sharks are ugly and mean, and have big teeth, just like Emily
Richardson. She's not my friend no more. (Kylie age 6)
5) A
dolphin breaths through an asshole on the top of its head.
(Billy age 8)
6)
My uncle goes out in his boat with pots, and comes back with
crabs.(Millie age 6)
7) When ships had sails, they used to use the trade winds to
cross
the ocean.
Sometimes, when the wind didn't blow, the sailors would
whistle to
make the wind come. My brother said they would be
better off
eating beans. (William age 7)
8) I like mermaids. They are beautiful, and I like their shiny
tails. How do mermaids get pregnant? (Helen age 6)
9)
I'm not going to write about the sea. My baby brother is
always
screaming and being sick, my Dad keeps shouting at my
Mom, and my
big sister has just got pregnant, so I can't think
what to
write. (Amy age 6)
10) Some fish are dangerous. Jellyfish can sting. Electric eels
can give
you a shock. They have to live in caves under the sea
where I
think they have to plug themselves into chargers.
(Christopher age 7)
11) When you go swimming in the sea, it is very cold & it makes
my willy
small. (Kevin age 6)
Forwarded by Team Carper
Husband's note on refrigerator for wife:
Someone from the Gyna Colleges called.
They said the Pabst beer is normal.
I didn't know you liked beer.
Forwarded by Dick Haar
Cannibal restaurant
A cannibal was walking through the jungle and came upon a restaurant opened
by a fellow cannibal. Feeling hungry, he sat down and looked over the menu...
Broiled Missionary: $10.00
Fried Explorer: $15.00
Baked Politician: $100.00.
The cannibal called the waiter over and asked, "Why such a price difference
for the politician?"
The cook replied: "Have you ever tried to clean one?"
Forwarded by Michael Schweitzer
GIFT-WRAPPING TIPS FOR MEN:
1. Whenever possible, buy gifts that are
already wrapped. If, when the
recipient opens the gift, neither one of you recognizes it, you can claim
that it's myrrh.
2 If you're giving a hard-to-wrap gift, skip
the wrapping paper! Just put it
inside a bag and stick one of those little adhesive bows on it. This creates
a festive visual effect that is sure to delight the lucky recipient on
Christmas morning:
YOUR WIFE: "Why is there a Hefty trash bag
under the tree?"
YOU: "It's a gift! See? It has a bow!"
YOUR WIFE (peering into the trash bag): "It's a leaf blower."
YOU: "Gas-powered! Five horsepower!"
YOUR WIFE: "I want a divorce."
YOU: "I also got you some myrrh."
3. The editors of Woman's Day magazine
recently ran an item on how to make
your own wrapping paper by printing a design on it with an apple sliced in
half horizontally and dipped in a mixture of food coloring and liquid starch
They must be smoking crack!
In conclusion, remember that the important
thing is not what you give, or how you wrap it. The really important thing,
during this very special time of year, is that you save the receipt.
More Tidbits from the Chronicle
of Higher Education ---
http://www.aldaily.com/
Fraud Updates ---
http://www.trinity.edu/rjensen/FraudUpdates.htm
For earlier editions of New Bookmark s go to
http://www.trinity.edu/rjensen/bookurl.htm
Archives of Tidbits: Tidbits Directory ---
http://www.trinity.edu/rjensen/TidbitsDirectory.htm
Click here to search Bob Jensen's web site if you have key words to enter ---
Search Site.
For example if you want to know what Jensen documents have the term "Enron"
enter the phrase Jensen AND Enron. Another search engine that covers Trinity and
other universities is at
http://www.searchedu.com/.
Three Finance Blogs
Jim Mahar's FinanceProfessor Blog ---
http://financeprofessorblog.blogspot.com/
FinancialRounds Blog ---
http://financialrounds.blogspot.com/
Karen Alpert's FinancialMusings (Australia) ---
http://financemusings.blogspot.com/
Some Accounting Blogs
Paul Pacter's IAS Plus (International Accounting) ---
http://www.iasplus.com/index.htm
International Association of Accountants News ---
http://www.aia.org.uk/
AccountingEducation.com and Double Entries ---
http://www.accountingeducation.com/
Gerald Trite's eBusiness and XBRL
Blogs ---
http://www.zorba.ca/
AccountingWeb ---
http://www.accountingweb.com/
SmartPros ---
http://www.smartpros.com/
Bob Jensen's Sort-of Blogs ---
http://www.trinity.edu/rjensen/JensenBlogs.htm
Current and past editions of my newsletter called New
Bookmarks ---
http://www.trinity.edu/rjensen/bookurl.htm
Current and past editions of my newsletter called
Tidbits ---
http://www.trinity.edu/rjensen/TidbitsDirectory.htm
Current and past editions of my newsletter called Fraud
Updates ---
http://www.trinity.edu/rjensen/FraudUpdates.htm
Richard
Torian's Managerial Accounting Information Center ---
http://www.informationforaccountants.com/
Professor Robert E. Jensen (Bob)
http://www.trinity.edu/rjensen
190 Sunset Hill Road
Sugar Hill, NH 03586
Phone: 603-823-8482
Email:
rjensen@trinity.edu
Humor Between December 1 and December 31, 2006
The Comedy Corner ---
http://www.comedycorner.org/
Forwarded by Dick Haar
Cannibal restaurant
A cannibal was walking through the jungle and came upon a restaurant opened
by a fellow cannibal. Feeling hungry, he sat down and looked over the menu...
Broiled Missionary: $10.00
Fried Explorer: $15.00
Baked Politician: $100.00.
The cannibal called the waiter over and asked, "Why such a price difference
for the politician?"
The cook replied: "Have you ever tried to clean one?"
Forwarded by Bob Booth
An older lady gets pulled over for speeding...
Older Woman: Is there a problem, Officer?
Officer: Ma'am, you were speeding.
Older Woman: Oh, I see.
Officer: Can I see your license please?
Older Woman: I'd give it to you but I don't have one.
Officer: Don't have one?
Older Woman: Lost it, 4 years ago for drunk driving.
Officer: I see...Can I see your vehicle registration papers please.
Older Woman: I can't do that.
Officer: Why not?
Older Woman: I stole this car.
Officer: Stole it?
Older Woman: Yes, and I killed and hacked up the owner.
Officer: You what?
Older Woman: His body parts are in plastic bags in the trunk if you want to
see.
The Officer looks at the woman and slowly backs away to his car and calls for
back up.
Within minutes 5 police cars circle the car. A senior officer slowly
approaches the car, clasping his half drawn gun.
Officer 2: Ma'am, could you step out of your vehicle please! The woman steps
out of her vehicle.
Older woman: Is there a problem sir?
Officer 2: One of my officers told me that you have stolen this car and
murdered the owner.
Older Woman: Murdered the owner?
Officer 2: Yes, could you please open the trunk of your car, please.
The woman opens the trunk, revealing nothing but an empty trunk.
Officer 2: Is this your car, ma'am?
Older Woman: Yes, here are the registration papers. The officer is quite
stunned.
Officer 2: One of my officers claims that you do not have a driving license.
The woman digs into her handbag and pulls out a clutch purse and hands it to
the of ficer.
The officer examines the license. He looks quite puzzled.
Officer 2: Thank you ma'am, one of my officers told me you didn't have a
license, that you stole this car, and that you murdered and hacked up the owner.
Older Woman: Bet the liar told you I was speeding, too.
MORAL:
Don't Mess With Little Old Ladies
An actual drawing and note sent to the pilot by an eight year old girl ---
http://tlf.cx/bilder/qantas.jpg
We recent attended a wonderful 70th birthday party up the street for a neighbor
named Sid (this is true).
He's a retired military officer, and friends from all over the world traveled in
to celebrate the occasion.
They roasted Sid a bit in good humor.
One friend named Bob recalled the time he and Sid were walking in New York when
they spotted a huge German Shepherd doing what male dogs do best --- licking its
genitals.
Bob smiled and purportedly said "I wish I could do that."
Sid responded, "I think it would be wise to first simply try to pet the dog on
the head."
The Oops List ---
http://www.micom.net/oops/
Funny Air Traffic Controller Quotations ---
http://www.businessballs.com/airtrafficcontrollersfunnyquotes.htm
A military pilot had been
having difficulty with smooth landings and the crew was required to make
note of the exact time the plane landed at different bases. One particular
landing took several bounces before staying on the ground. The crew
reportedly called up to the pilot, "Which landing shall we note for the
record, Sir?" (Ack A & M Martin)
Tower: "Delta 351, you have
traffic at 10 o'clock, 6 miles!"
Delta 351: "Give us another hint! We have digital watches!"
"TWA 2341, for noise
abatement turn right 45 Degrees."
"Centre, we are at 35,000 feet. How much noise can we make up here?"
"Sir, have you ever heard the noise a 747 makes when it hits a 727?"
From an unknown aircraft
waiting in a very long takeoff queue: "I'm f...ing bored!"
Ground Traffic Control: "Last aircraft transmitting, identify yourself
immediately!"
Unknown aircraft: "I said I was f...ing bored, not f...ing stupid!"
Control tower to a 747:
"United 329 heavy, your traffic is a Fokker, one o'clock, three miles,
Eastbound."
United 239: "Approach, I've always wanted to say this.... I've got the
little Fokker in sight."
A DC-10 had come in a little
hot and thus had an exceedingly long roll out after touching down. San Jose
Tower noted: "American 751, make a hard right turn at the end of the runway,
if you are able. If you are not able, take the Guadalupe exit off Highway
101, make a right at the lights and return to the airport."
A military pilot called for
a priority landing because his single-engine jet fighter was running "a bit
peaked." Air Traffic Control told the fighter pilot that he was number two,
behind a B-52 that had one engine shut down. "Ah," the fighter pilot
remarked, "The dreaded seven-engine approach."
Allegedly, a Pan Am 727
flight waiting for start clearance in Munich overheard the following:
Lufthansa (in German): "Ground, what is our start clearance time?"
Ground (in English): "If you want an answer you must speak in English."
Lufthansa (in English): "I am a German, flying a German airplane, in
Germany. Why must I speak English?"
Unknown voice from another plane (in a beautiful British accent): "Because
you lost the bloody war."
Tower: "Eastern 702, cleared
for takeoff, contact Departure on frequency 124.7"
Eastern 702: "Tower, Eastern 702 switching to Departure. By the way, after
we lifted off we saw some kind of dead animal on the far end of the runway."
Tower: "Continental 635, cleared for takeoff behind Eastern 702, contact
Departure on frequency 124.7. Did you copy that report from Eastern 702?"
Continental 635: "Continental 635, cleared for takeoff, roger; and yes, we
copied Eastern... we've already notified our caterers."
One day the pilot of a
Cherokee 180 was told by the tower to hold short of the active runway while
a DC-8 landed. The DC-8 landed, rolled out, turned around, and taxied back
past the Cherokee. Some quick-witted comedian in the DC-8 crew got on the
radio and said, "What a cute little plane. Did you make it all by yourself?"
The Cherokee pilot, not about to let the insult go by, came back with a real
zinger: "I made it out of DC-8 parts. Another landing like yours and I'll
have enough for another one."
Allegedly the German air
controllers at Frankfurt Airport are renowned as a short-tempered lot. They,
it is alleged, not only expect one to know one's gate parking location, but
how to get there without any assistance from them. So it was with some
amusement that we (a Pan Am 747) listened to the following exchange between
Frankfurt ground control and a British Airways 747, call sign Speedbird 206.
Speedbird 206: "Frankfurt, Speedbird 206 clear of active runway."
Ground: "Speedbird 206. Taxi to gate Alpha One-Seven." The BA 747 pulled
onto the main taxiway and slowed to a stop.
Ground: "Speedbird, do you not know where you are going?"
Speedbird 206: "Stand by, Ground, I'm looking up our gate location now."
Ground (with quite arrogant impatience): "Speedbird 206, have you not been
to Frankfurt before?"
Speedbird 206 (coolly): "Yes, twice in 1944, but it was dark,... and I
didn't land."
Allegedly, while taxiing at
London's Gatwick Airport, the crew of a US Air flight departing for Ft.
Lauderdale made a wrong turn and came nose to nose with a United 727. An
irate female ground controller lashed out at the US Air crew, screaming: "US
Air 2771, where the hell are you going?! I told you to turn right onto
Charlie taxiway! You turned right on Delta! Stop right there. I know it's
difficult for you to tell the difference between C and D, but get it right!"
Continuing her rage to the embarrassed crew, she was now shouting
hysterically: "God! Now you've screwed everything up! It'll take forever to
sort this out! You stay right there and don't move till I tell you to! You
can expect progressive taxi instructions in about half an hour and I want
you to go exactly where I tell you, when I tell you, and how I tell you! You
got that, US Air 2771?" US Air 2771: "Yes, ma'am," the humbled crew
responded. Naturally, the ground control communications frequency fell
terribly silent after the verbal bashing of US Air 2771. Nobody wanted to
chance engaging the irate ground controller in her current state of mind.
Tension in every cockpit out around Gatwick was definitely running high.
Just then an unknown pilot broke the silence and keyed his microphone,
asking: "Wasn't I married to you once?"
Continued
Forwarded by Dick Haar
A woman married three times walked into a bridal shop one day and told the
sales clerk that she was looking for a wedding gown for her fourth wedding.
"Of course, madam," replied the sales clerk, "exactly what type and color
dress are you looking for?"
The bride to be said: "A long frilly white dress with a veil."
The sales clerk hesitated a bit, then said, "Please don't take this the wrong
way, but gowns of that nature are considered more appropriate for brides who are
being married the first time - for those who are a bit more innocent, if you
know what I mean? Perhaps ivory or sky blue would be nice?"
"Well," replied the customer, a little peeved at the clerk's directness, "I
can assure you that a white gown would be quite appropriate. Believe it or not,
despite all my marriages, I remain as innocent as any first-time bride.
You see, my first husband was so excited about our wedding, he died as we
were checking into our hotel.
My second husband and I got into such a terrible fight in the Limo on our way
to our honeymoon that we had that wedding annulled immediately and never spoke
to each other again."
"What about your third husband?" asked the sales clerk?
"That one was a Democrat," said the woman, "and every night for four years,
he just sat on the edge of the bed and told me how good it was going to be."
Forwarded by Paula
A husband and wife go to a counselor after 15 years of marriage.
The counselor asks them what the problem is and the wife goes into a tirade
listing every problem they have ever had in the 15 years they've been married.
She goes on and on and on.
Finally, the counselor gets up, walks around the desk, embraces the wife and
kisses her passionately.
The woman shuts up and sits quietly in a daze.
The counselor turns to the husband and says, "This is what your wife needs at
least three times a week. Can you do this?"
The husband thinks for a moment and replies:
"Well, I can drop her off here on Mondays and Wednesdays, but on Fridays, I
ride my Harley "
Forwarded by an old and decrepit professor
A wealthy old lady decides to go on a photo safari in Africa , taking her
faithful aged poodle named Cuddles, along for the company.
One day the poodle starts chasing butterflies and before long, Cuddles
discovers that he's lost.. Wandering about, he notices a leopard heading rapidly
in his direction with the intention of having lunch.
The old poodle thinks, "Oh, oh! I'm in deep doo-doo now!" Noticing some bones
on the ground close by, he immediately settles down to chew on the bones with
his back to the approaching cat. Just as the leopard is about to leap the old
poodle exclaims loudly, "Boy, that was one delicious leopard! I wonder if there
are any more around here?"
Hearing this, the young leopard halts his attack in mid-strike, a look of
terror comes over him and he slinks away into the trees. "Whew!", says the
leopard, "That was close! That old poodle nearly had me!"
Meanwhile, a monkey who had been watching the whole scene from a nearby tree,
figures he can put this knowledge to good use and trade it for protection from
the leopard. So off he goes, but the old poodle sees him heading after the
leopard with great speed, and figures that something must be up. The monkey soon
catches up with the leopard, spills the beans and strikes a deal for himself
with the leopard.
The young leopard is furious at being made a fool of and says, "Here, monkey,
hop on my back and see what's going to happen to that conniving canine!
Now, the old poodle sees the leopard coming with the monkey on his back and
thinks, "What am I going to do now?", but instead of running, the dog sits down
with his back to his attackers, pretending he hasn't seen them yet, and just
when they get close enough to hear, the old poodle says.
"Where's that damn monkey? I sent him off an hour ago to bring me another
leopard!
Moral of this story....
Don't mess with old farts...age and treachery will always overcome youth and
skill! Bullshit and brilliance only come with age and experience.
Forwarded by Paula
How to know when a lawyer is lying --- then again maybe he's telling the truth!
A car was involved in an accident in a street. As expected a large crowd
gathered. A lawyer, anxious to get there first, could not get near the car.
Being a clever sort, he started shouting loudly, "Let me through! Let me
through! I am the son of the victim."
The crowd made way for him.
Lying in front of the car was a donkey. (Probably was his relative!)
Forwarded by Aaron Konstam
WHY ARE WE BADLY PAID... MATHEMATICALLY PROVEN.
Here is a simple explanation that is also mathematical proof:
Knowledge is Power.
Time is Money.
And, as every engineer knows:
Power = Work / Time
If Knowledge = Power, and Time = Money, then
Knowledge = Work / Money
Solving for Money, we get:
Money = Work / Knowledge
Thus, Money approaches infinity as Knowledge approaches zero, regardless of
the Work done. What this means is:
The Less you Know, the More you Make --- QED
Funny Signs (not for children) ---http://thefunniest.info/recent/
Also see
http://www.xmarkjenkinsx.com/outside.html
Forwarded by Aaron Konstam
Yesterday
All those backups seems a waste of pay.
Now my database has gone away.
Oh, I believe in yesterday.
Suddenly,
There's not half the files there used to be.
And there's a milestone hanging over me,
The system crashed so suddenly.
I pushed something wrong
What it was I could not say.
Now all my data's gone away.
I long for yesterday_ay_ay_ay
Yesterday
The need for backup seemed so far away
I knew my data was all here to stay,
Now I believe in yesterday.
Forwarded by Aaron Konstam
WHISKEY
The tea-totaler teacher of 5th grade wanted to teach a lesson about the evils
of Demon Rum, et al, so he took a glass of water, a glass of whiskey, and a
couple of angler worms (so called for their use in fishing). Asking the class to
observe closely, he dropped one worm in the water, where it was about as happy a
worm in water could be.
Then he took the other and dropped it in the whiskey, where it writhed
painfully and fell to bottom, dead as a doornail.
"Now, class", he asked, "what lesson can we learn from this demonstration?"
From the back row, Little Johnny answered wisely, "Drink whiskey and you
won't get worms".
Forwarded by Team Carper
Idiot Awards for 2004
These people are actually allowed out in public ~ without supervision!
Number One Idiot of 2004 - I am a medical student currently doing a
rotation in toxicology at the poison control center. Today, this woman
called in very upset because she caught her little daughter eating ants. I
quickly reassured her that the ants are not harmful and there would be no
need to bring her daughter into the hospital. She calmed down and at the
end of the conversation happened to mention that she gave her daughter some
ant poison to eat in order to kill the ants. I told her that she better
bring her daughter into the emergency room right away. Here's your sign,
lady. Wear it with pride.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Number Two Idiot of 2004 - Early this year, some Boeing employees
on the airfield decided to steal a life raft from one of the 747s. They
were successful in getting it out of the plane and home. Shortly after they
took it for a float on the river, they noticed a Coast Guard helicopter
coming towards them. It turned out that the chopper was homing in on the
emergency locator beacon that activated when the raft was inflated. They
are no longer employed at Boeing. Here's your sign, guys. Don't get it wet;
the paint might run.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Number Three Idiot of 2004 - A true story out of San Francisco: A
man, wanting to rob a downtown Bank of America, walked into the branch and
wrote "this iz a stikkup. Put all your muny in this bag" While standing in
line, waiting to give his note to the teller, he began to worry that someone
had seen him write the note and might call the police before he reached the
teller's window. So he left the Bank of America and crossed the street to
Wells Fargo. After waiting a few minutes in line, he handed his note to the
Wells Fargo teller. She read it and, surmising from his spelling errors that
he wasn't the brightest light in the harbor, told him that she could not
accept his stickup note because it was written on a Bank of America deposit
slip and that he would either have to fill out a Wells Fargo deposit slip or
go back to Bank of America. Looking somewhat defeated, the
man said, "OK" and left. He was
arrested a few minutes later, as he was
waiting in line back at Bank of America. Don't bother with this guy's
sign. He probably couldn't read it anyway.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Number Four Idiot of 2004 - A guy walked into a little corner store
with a shotgun and demanded all of the cash from the cash drawer. After the
cashier put the cash in a bag, the robber saw a bottle of Scotch that he
wanted behind the counter on the shelf. He told the cashier to put it in
the bag as well, but the cashier refused and said, because I don't believe
you are over 21. " The robber said he was, but the clerk still refused to
give it to him because he didn't believe him. At this point, the robber
took his driver's license out of his wallet and gave it to the clerk. The
clerk looked it over and agreed that the man was in fact over 21 and he put
the Scotch in the bag. The robber then ran from the store with his loot.
The cashier promptly called the police and gave the name and address of the
robber that he got off the license. They arrested the robber two hours
later. This guy definitely needs a sign!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Idiot Number Five of 2004 - A pair of Michigan robbers entered a
record shop nervously waving revolvers. The first one shouted, "Nobody
move!" When his partner moved, the startled first bandit shot him. This guy
doesn't need a sign, he probably figured it out himself.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Idiot Number Six of 2004 - Seems this guy wanted some beer pretty
badly. He decided that he'd just throw a cinder block through a liquor
store window, grab some booze, and run. So he lifted the cinder block and
heaved it over his head at the window. The cinder block bounced back and
hit the would be thief on the head, knocking him unconscious. It seems the
liquor store window was made of Plexiglas. The whole event was caught on
videotape. Oh, that smarts. Give him his sign.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Idiot Number Seven of 2004 - Ann Arbor: The Ann Arbor News crime
column reported that a man walked into a Burger King in Ypsilanti, Michigan
at 12:50 A.M., flashed a gun and demanded cash. The clerk turned him down
because he said he couldn't open the cash register without a food
order. When the man ordered onion rings, the clerk said they weren't
available for breakfast. The man, frustrated, walked away. Sign please.
Please note that all of the above people are allowed to vote and have
children!
History Exam forwarded by Auntie Bev
1. In the 1940's, where were automobile headlight dimmer switches located? a.
On the floor shift knob b. On the floor board, to the left of the clutch c. Next
to the horn
2. The bottle top of a Royal Crown Cola bottle had holes in it. For what was
it used? a. Capture lightning bugs b. To sprinkle clothes before ironing c.
Large salt shaker
3. Why was having milk delivered a problem in northern winters? a. Cows got
cold and wouldn't produce milk b. Ice on highways forced delivery by dog sled c.
Milkmen left deliveries outside of front doors and milk would freeze, expanding
and pushing up the cardboard bottle top.
4. What was the popular chewing gum named for a game of chance? a. Blackjack
b. Gin c. Craps!
5. What method did women use to look as if they were wearing stockings when
none were available due to rationing during W.W.II a. Suntan b. Leg painting c.
Wearing slacks
6. What postwar car turned automotive design on its ear when you couldn't
tell whether it was coming or going? a. Studebaker b. Nash Metro c. Tucker
7. Which was a popular candy when you were a kid? a. Strips of dried peanut
butter b. Chocolate licorice bars c. Wax coke-shaped bottles with colored sugar
water inside
8. How was Butch wax used? a. To stiffen a flat-top haircut so it stood up b.
To make floors shiny and prevent scuffing c. On the wheels of roller skates to
prevent rust
9. Before in-line skates, how did you keep your roller skates attached to
your shoes? a With clamps, tightened by a skate key b. Woven straps that crossed
the foot c. Long pieces of twine
10. As a kid, what was considered the best way to reach a decision? a.
Consider all the facts b. Ask Mom c. Eeny-meeny-miney-mo
11. What was the most dreaded disease in the 1940's-50's?
a. Smallpox b. AIDS c. Polio
12. "I'll be down to get you in a ________, Honey" a. SUV b. Taxi c.
Streetcar
13. What was the name of Caroline Kennedy's pet pony? a. Old Blue b. Paint c.
Macaroni
14. What was a Duck-and-Cover Drill? a. Part of the game of hide and seek b
What you did when your Mom called you in to do chores c. Hiding under your desk,
and covering your head with your arms in an A-bomb drill.
15. What was the name of the Indian Princess on the Howdy Doody show? a.
Princess Summerfallwinterspring b. Princess Sacajawea c. Princess Moonshadow
16. What did all the really savvy students do when mimeographed tests were
handed out in school? a. Immediately sniffed the purple ink, as this was
believed to get you high b. Made paper airplanes to see who could sail theirs
out the window c. Wrote another pupil's name on the top, to avoid their failure
17. Why did your Mom shop in stores that gave Green Stamps with purchases? a.
To keep you out of mischief by licking the backs, which tasted like bubble gum
b. They could be put in special books and redeemed for various household items
c. They were given to the kids to be used as stick-on tattoos
18. Praise the Lord, and pass the _________? a. Meatballs b. Dames c.
Ammunition
19. What was the name of the singing group that made the song "Cabdriver" a
hit? a. The Ink Spots b. The Supremes c. The Esquires
20. Who left his heart in San Francisco ? a. Tony Bennett b. Xavier Cugat c.
George Gershwin
-------------------------------------------------------------------------
ANSWERS
1. b) On the floor, to the left of the clutch. Hand controls, popular in
Europe , took till the late '60's to catch on.
2. b) To sprinkle clothes before ironing. Who had a steam iron?
3. c) Cold weather caused the milk to freeze and expand, popping the bottle
top.
4. a) Blackjack Gum.
5. b) Special makeup was applied, followed by drawing a seam down the back of
the leg with eyebrow pencil.
6. a) 1946 Studebaker.
7. c) Wax coke bottles containing super-sweet colored water.
8 a) Wax for your flat top (butch) haircut.
9. a) With clamps, tightened by a skate key, which you wore on a shoestring
around your neck.
10. c) Eeny-meeny-miney-mo.
11. c) Polio. In beginning of August, swimming pools were closed, movies and
other public gather- ing places were closed to try to prevent spread of the
disease.
12. b) Taxi. Better be ready by half-past eight!
13. c) Macaroni.
14. c) Hiding under your desk, and covering your head with your arms in an
A-bomb drill.
15. a) Princess Summerfallwinterspring. She was another puppet.
16. a) Immediately sniffed the purple ink to get a high.
17. b) Put in a special stamp book, they could be traded for household items
at the Green Stamp store.
18. c) Ammunition, and we'll all be free.
19. a) The widely famous 50's group: The Inkspots.
20. a) Tony Bennett, and he sounds just as good today..
SCORING
17 - 20 correct: You are older than dirt, and obviously gifted with mental
abilities. Now if you could only find your glasses. Definitely someone who
should share your wisdom!
12 -16 correct: Not quite dirt yet, but you're getting there.
0 -11 correct: You are not old enough to share the wisdom of your
experiences.
Forwarded by Aaron Konstam
THE 12 DAYS OF AOL
On the first day of AOL those Bozos gave to me, a jerk cursing in a chat
room.
On the second day of AOL those Bozos gave to me, 2 pieces of junk mail, and a
jerk cursing in a chat room.
On the third day of AOL those Bozos gave to me, 3 error messages, 2 pieces of
junk mail, and a jerk cursing in a chat room.
On the fourth day of AOL those Bozos gave to me, 4 idiots at tech help, 3
error messages, 2 pieces of junk mail, and a jerk cursing in a chat room.
On the fifth day of AOL those Bozos gave to me, 5 web crashes, 4 idiots at
tech help, 3 error messages, 2 pieces of junk mail, and a jerk cursing in a chat
room.
On the sixth day of AOL those Bozos gave to me, 6 disconnections, 5 web
crashes, 4 idiots at tech help, 3 error messages, 2 pieces of junk mail, and a
jerk cursing in a chat room.
On the seventh day of AOL those Bozos gave to me, 7 frozen IMs, 6
disconnections, 5 web crashes, 4 idiots at tech help, 3 error messages, 2 pieces
of junk mail, and a jerk cursing in a chat room.
On the eight day of AOL those Bozos gave to me, 8 hours of busy signals, 7
frozen IMs, 6 disconnections, 5 web crashes, 4 idiots at tech help, 3 error
messages, 2 pieces of junk mail, and a jerk cursing in a chat room.
On the ninth day of AOL those Bozos gave to me, 9 frozen chat rooms, 8 hours
of busy signals, 7 frozen IMs, 6 disconnections, 5 web crashes, 4 idiots at tech
help, 3 error messages, 2 pieces of junk mail, and a jerk cursing in a chat
room.
On the tenth day of AOL those Bozos gave to me, 10 hours without mail, 9
frozen chat rooms, 8 hours of busy signals, 7 frozen IMs, 6 disconnections, 5
web crashes, 4 idiots at tech help, 3 error messages, 2 pieces of junk mail, and
a jerk cursing in a chat room.
On the eleventh day of AOL those Bozos gave to me, 11 channels not working,
10 hours without mail, 9 frozen chat rooms, 8 hours of busy signals, 7 frozen
IMs, 6 disconnections, 5 web crashes, 4 idiots at tech help, 3 error messages, 2
pieces of junk mail, and a jerk cursing in a chat room.
On the twelveth day of AOL those Bozos gave to me, 12 reasons to cancel, 11
channels not working, 10 hours without mail, 9 frozen chat rooms, 8 hours of
busy signals, 7 frozen IMs, 6 disconnections, 5 web crashes, 4 idiots at tech
help, 3 error messages, 2 pieces of junk mail,
and a jerk cursing in a chat room.
From Free Republic on November 9, 2006
Microsoft Christmas
'Twas the night before Christmas, when all through the house
Not a creature was stirring, except Papa's mouse.
The computer was humming, the icons were hopping,
As Papa did last-minute Internet shopping.
The stockings were hung by the modem with care
In hope that St. Nicholas would bring new software.
The children were nestled all snug in their beds,
While visions of computer games danced in their heads.
PageMaker for Billy, and Quicken for Dan,
And Carmen Sandiego for Pamela Ann.
The letters to Santa had been sent out by Mom,
To santaclaus@toyshop. northpole. com
Which has now been re-routed to Washington State
Because Santa's workshop has been bought by Bill Gates.
All the elves and reindeer have had to skedaddle
To flashy new quarters in suburban Seattle.
After centuries of a life that was simple and spare,
St. Nicholas is suddenly a new billionaire,
With a shiny red Porsche in the place of his sleigh,
And a house on Lake Washington that's just down the way
From where Bill has his mansion. The old fellow preens
In black Gucci boots and red Calvin Klein jeans.
The elves have stock options and desks with a view,
Where they write computer code for Johnny and Sue.
More rapid than eagles the competitors came,
And Bill whistled, and shouted, and called them by name.
"Now, ADOBE! now, CLARIS! now, INTUIT! too,
Now, APPLE! and NETSCAPE! you are all of you through,
It is Microsoft's SANTA that the kids can't resist,
It's the ultimate software with a traditional twist -
Recommended by no less than the jolly old elf, And on the package, a picture
of Santa himself.
Get 'em young, keep 'em long, is Microsoft's scheme,
And a merger with Santa is a marketer's dream.
To the top of the NASDAQ! to the top of the Dow!
Now dash away! dash away! dash away - wow!"
And Mama in her 'kerchief and I in my cap,
Had just settled down for a long winter's nap,
When out on the lawn there arose such a clatter,
The whir and the hum of our satellite platter,
As it turned toward that new Christmas star in the sky, The SANTALITE owned
by the Microsoft guy.
As I sprang from my bed and was turning around,
My computer turned on with a Jingle-Bells sound.
And there on the screen was a smiling Bill Gates
Next to jolly old Santa, two arm-in-arm mates.
And I heard them exclaim in voice so bright,
Have a MICROSOFT CHRISTMAS, and TO ALL A GOOD NIGHT.
Replies from Santa forwarded by Auntie Bev
deer santa: I wud like a kool toy space ranjur fer Xmas. Iv ben a gud boy all
yeer. Yer Frend, BiLLy
Dear Billy, Nice spelling. You're on your way to a career in lawn care. How
about I send you a frigging book so you can learn to read and write? I'm giving
your older brother the space ranger. At least HE can spell! Santa
Dear Santa, I have been a good girl all year, and the only thing I ask for is
peace and joy in the world for everybody! Love, Sarah
Dear Sarah, Your parents smoked pot when they had you, didn't they? Santa
Dear Santa, I left milk and cookies for you under the tree, and I left
carrots for your reindeer outside the back door. Love, Susan
Dear Susan, Milk gives me the trots and carrots make the deer fart in my face
when riding in the sleigh. You want to do me a favor? Two words, Jim Beam. Santa
Dear Santa, Do you see us when we're sleeping, do you really know when we're
awake, like in the song? Love, Jessica
Dear Jessica, Are you really that gullible? Good luck in whatever you do. I'm
skipping your house. Santa
Dearest Santa, We don't have a chimney in our house, how do you get into our
home? Love, Marky
Mark, First, stop calling yourself "Marky", that's why you're getting your
ass kicked at school. Second, you don't live in a house, you live in a low-rent,
ghetto apartment complex. Third, I get inside your pad just like all the
burglars do, through your bedroom window. Sweet Dreams, Santa
Forwarded by Michael Schweitzer
GIFT-WRAPPING TIPS FOR MEN:
1. Whenever possible, buy
gifts that are already wrapped. If, when the
recipient opens the gift, neither one of you recognizes it, you can claim
that it's myrrh.
2 If you're giving a
hard-to-wrap gift, skip the wrapping paper! Just put it
inside a bag and stick one of those little adhesive bows on it. This creates
a festive visual effect that is sure to delight the lucky recipient on
Christmas morning:
YOUR WIFE: "Why is there a
Hefty trash bag under the tree?"
YOU: "It's a gift! See? It has a bow!"
YOUR WIFE (peering into the trash bag): "It's a leaf blower."
YOU: "Gas-powered! Five horsepower!"
YOUR WIFE: "I want a divorce."
YOU: "I also got you some myrrh."
3. The editors of Woman's
Day magazine recently ran an item on how to make
your own wrapping paper by printing a design on it with an apple sliced in
half horizontally and dipped in a mixture of food coloring and liquid starch
They must be smoking crack!
In conclusion, remember
that the important thing is not what you give, or how you wrap it. The
really important thing, during this very special time of year, is that you
save the receipt.
The Ultimate Rejection Letter (actually a reply to a
rejection letter) ---
http://www.chaosmatrix.org/library/humor/reject.html
Dilbert has a blog ---
http://dilbertblog.typepad.com/the_dilbert_blog/

November 30, 2006
Bob Jensen's New Bookmarks on November
30, 2006
Bob Jensen at
Trinity University
For
earlier editions of Tidbits go to
http://www.trinity.edu/rjensen/TidbitsDirectory.htm
For earlier editions of New Bookmarks go to
http://www.trinity.edu/rjensen/bookurl.htm
Click here to search Bob Jensen's web site if you have key words to enter
--- Search Site.
For example if you want to know what Jensen documents have the term "Enron"
enter the phrase Jensen AND Enron. Another search engine that covers Trinity
and other universities is at
http://www.searchedu.com/.
Bob Jensen's
Blogs ---
http://www.trinity.edu/rjensen/JensenBlogs.htm
Current and past editions of my newsletter called
New Bookmarks ---
http://www.trinity.edu/rjensen/bookurl.htm
Current and past editions of my newsletter called
Tidbits ---
http://www.trinity.edu/rjensen/TidbitsDirectory.htm
Current and past editions of my newsletter called
Fraud Updates ---
http://www.trinity.edu/rjensen/FraudUpdates.htm
Bob
Jensen's past presentations and lectures
---
http://www.trinity.edu/rjensen/resume.htm#Presentations
Bob Jensen's various threads ---
http://www.trinity.edu/rjensen/threads.htm
(Also scroll down to the table at
http://www.trinity.edu/rjensen/
)
Click here to search this Website if
you have key words to enter --- Search Site.
For example if you want to know what Jensen documents have the term "Enron"
enter the phrase Jensen AND Enron. Another search engine that covers Trinity
and other universities is at
http://www.searchedu.com/.
Bob Jensen's Home Page is at
http://www.trinity.edu/rjensen/
Click Here for Tidbits and
Quotations Between November 1 and November 30, 2006
Click Here for Humor Between
November 1 and November 30, 2006
Links to Documents on Fraud ---
http://www.trinity.edu/rjensen/Fraud.htm
Bob Jensen's search helpers are at
http://www.trinity.edu/rjensen/searchh.htm
Bob Jensen's Bookmarks ---
http://www.trinity.edu/rjensen/bookbob.htm
Bob Jensen's links to free electronic
literature, including free online textbooks ---
http://www.trinity.edu/rjensen/ElectronicLiterature.htm
Bob Jensen's links to free online video,
music, and other audio ---
http://www.trinity.edu/rjensen/Music.htm
Bob Jensen's documents on accounting
theory are at
http://www.trinity.edu/rjensen/theory.htm
Bob Jensen's links to free course
materials from major universities ---
http://www.trinity.edu/rjensen/000aaa/updateee.htm#OKI
Bob Jensen's links to online education
and training alternatives around the world ---
http://www.trinity.edu/rjensen/Crossborder.htm
Bob Jensen's links to electronic
business, including computing and networking security, are at
http://www.trinity.edu/rjensen/ecommerce.htm
Bob Jensen's links to education
technology and controversies ---
http://www.trinity.edu/rjensen/000aaa/0000start.htm
Bob Jensen's home page ---
http://www.trinity.edu/rjensen/
Bob Jensen's complete set of Enron Updates are at
http://www.trinity.edu/rjensen/FraudEnron.htm#EnronUpdates
Bob Jensen's threads on the Enron scandal are at
http://www.trinity.edu/rjensen/FraudEnron.htm
I think this is a good deal for accounting students everywhere!
November 9, 2006 message from Tracey E. Sutherland
[membership@aaahq.org]
I am proud to announce that student
membership in the American Accounting Association is now available to
full-time students residing anywhere in the world. Student members pay
discounted membership dues and receive their selected Association
journals online. Student membership also allows students to attend
national, section, and regional meetings of the Association without vote
but at reduced rates. Student members are also eligible to purchase
Association publications at member prices.
Student membership dues in the AAA are
as follows:
One electronic journal option -
$25
Two electronic journal option -
$35
Three electronic journal option -
$45
Also included in student membership
are electronic and hard copy versions of the AAA newsletter and
updates/emails about upcoming events and conferences. Student members
are also welcome to join any of our 15 interest sections at the
discounted rate of only $6 per section.
Please encourage your students to take
advantage of this new option to participate in the accounting education
community, and share the news of this new opportunity with your
colleagues.
Information about student
membership in the AAA and an online student membership application can
be found online at
http://aaahq.org/membership/student_member.htm.
If you have any questions about student
membership, please feel free to contact Deirdre Harris at
membership@aaahq.org or 941-921-7747, ext. 319.
Best regards,
Tracey Sutherland
Executive Director
American Accounting Association
Phone: 941/921-7747 ext. 311
Fax: 941/923-4093
AAA website:
http://aaahq.org
Email:
tracey@aaahq.org
Although current issues of AAA publications are not free, I remind
readers that back issues of The Accounting Review (up to I think year
2000) can be downloaded free as images (not PDF text) from
http://maaw.info/TheAccountingReview.htm
You have to click on the "(Non USF user link)".
I've never found sources for free back issues of
other AAA publications, although most college libraries subscribe to
databases that provide free downloads of page images (not PDF text for older
editions).
Congratulations Bill (Well Deserved)
The Management Accounting Section of the American Accounting Association is
pleased to announce that it has awarded the Lifetime Contribution to
Management Accounting Award to Professor William L. Ferrara. The AICPA
sponsored award recognizes individuals who have made significant
contributions to management accounting education, research, and practice
over a sustained period of time through scholarly endeavors, teaching
excellence, educational innovation, and service to the Management Accounting
Section. The award extends profession-wide recognition to the recipient and
promotes role models in management accounting.
"LIFETIME ACHIEVEMENT AWARD GIVEN TO WILLIAM FERRARA FOR CONTRIBUTIONS TO
MANAGEMENT ACCOUNTING," AccountingEducation.com, December 7, 2006 ---
http://accountingeducation.com/index.cfm?page=newsdetails&id=144010
Study: Most Audit
Committees Do Not Have Even One Accountant
Then why call
them audit committees?
A new report says that in 2005 the number of
accountants sitting on audit committees doubled compared to four years
prior, but that six out of 10 companies still did not have at least one
accountant on their committee. The research from
Huron
Consulting is based on a sample of more than
700 audit committee members at 178 public companies from the NASDAQ 100 and
Fortune 100 listings. The report analyzed patterns of audit committee
composition between 2002 and 2005 using information contained in the
companies' annual proxy statements and 10-K disclosures filed with the U.S.
Securities and Exchange Commission.
"Study: Most Audit Committees Lack Accountant ," SmartPros, November
30, 2006 ---
http://accounting.smartpros.com/x55639.xml
Bob Jensen's threads on proposed
reforms are at
http://www.trinity.edu/rjensen/FraudProposedReforms.htm
December 4, 2006 --- Dennis Beresford
[dberesfo@TERRY.UGA.EDU]
The first of the PCAOB's inspection reports on Big 4 firm audits for
the 2004 year end has been posted to the PCAOB's web site. It can be
accessed at:
http://www.pcaobus.org/Inspections/Public_Reports/2006/Deloitte.pdf
Denny
December 9, 2006 reply from Bob Jensen
I'm getting
increased messaging from companies who complain that the PCAOB
inspections of Audits are making auditors highly conservative,
especially regional auditing firms.
In particular auditors are becoming very tough
about testing for hedge ineffectiveness under FAS 133. No auditing firm
wants to get caught up anything like KPMG got caught up in before being
fired from the Fannie Mae audit.
You can
read more about ineffectiveness testing under the term "Ineffectiveness"
at
http://www.trinity.edu/rjensen/acct5341/speakers/133glosf.htm#I-Terms
Because Denny is the new
head of Fannie Mae's Audit Committee, I suspect he's heard a lot about
ineffectiveness testing as of late.
Bob Jensen
December 9, 2006 reply from Denny Beresford
[DBeresfo@TERRY.UGA.EDU]
Bob,
Without commenting on specific situations, it
appears that the regulators would like companies and their auditors to
actually follow the accounting literature. Seems pretty reasonable to
me.
Denny
"FASB Proposes Improved Derivatives, Hedging Disclosures,"
SmartPros, December 11, 2006 ---
http://accounting.smartpros.com/x55778.xml
The Financial Accounting Standards Board issued
a proposal that would provide investors and others with better
information about the effects of derivative and hedging activities on a
company's financial statements.
The proposed statement specifically addresses
constituents' concerns that existing disclosure requirements associated
with FASB Statement No. 133, Accounting for Derivative Instruments and
Hedging Activities, do not provide adequate information to financial
statement users.
"The proposed disclosure requirements are
intended to enhance understanding of how and why entities use
derivatives, how they are accounted for in an entity's financial
statements, and how they affect an entity's financial position, results
of operations, and cash flows," said Kevin Stoklosa, FASB Project
Manager.
The exposure draft would enhance the current
disclosure framework by requiring that objectives and strategies for
using derivative instruments be discussed in terms of underlying risk
and accounting designation. The exposure draft would require tabular
disclosure of notional and fair value amounts of derivatives instruments
and the gains and losses on derivatives instruments and related hedged
items. Additionally, the proposed statement would require disclosure of
information about counterparty credit risk and the existence and nature
of contingent features in derivative instruments.
The requirements of the proposed Statement
would be effective for financial statements issued for fiscal years and
interim periods ending after Dec. 15, 2007, with early application
encouraged. The proposed statement would encourage but would not require
disclosures for earlier periods at initial adoption. In years after
initial adoption, the proposed statement would require disclosures for
earlier periods.
The board is seeking written comments on the
proposal by March 2, 2007.
For a short time you can download the proposed FAS 133 amendment from
http://www.fasb.org/draft/ed_derivatives_disclosure.pdf
Bob Jensen's tutorials on FAS 133 and IAS 39 are at
http://www.trinity.edu/rjensen/caseans/000index.htm
A slide show on FAS 133 and IAS 39 disclosure rules is available at
http://www.cs.trinity.edu/~rjensen/Calgary/CD/JensenPowerPoint/
Accounting Snags Push Dresser to Restate Problems with derivative
transactions, inventory controls
Dresser Inc. said it will restate its financial
statements for 2001 through 2003 based on a host of accounting errors. In
May, the industrial engineering company had warned that it would restate its
2004 annual filing, its 2004 and 2005 quarterly financial statements, and
would be evaluating the potential need to restate prior periods. The
accounting errors relate to inventory valuation and derivative transactions
under the Financial Accounting Standards Board's FAS 133. Other accounting
errors relate to the company's businesses which were sold in November 2005.
Stephen Taub, "Accounting Snags Push Dresser to Restate Problems with
derivative transactions, inventory controls, keep IPO on hold," CFO
Magazine, November 26, 2006 ---
http://www.cfo.com/article.cfm/8346406/c_8347143?f=FinanceProfessor.com
Dresser Inc. changed its
independent auditor to Pricewaterhouse Coopers (PwC) in 2002 and with plans
to restate its 2001 financial statements after it changed auditors. The
previous auditor was KPMG.
Bob Jensen's threads on KPMG are at ---
http://www.trinity.edu/rjensen/Fraud001.htm#KPMG
Monster says it made monster accounting errors
Monster Worldwide Inc. said on Wednesday it
overstated profit from 1997 to 2005 by a total of $271.9 million, a result
of its investigation into historical stock option grants and accounting. In
a filing with the U.S. Securities and Exchange Commission, the parent of job
search Web site Monster.com recorded a net charge of $9.2 million for 2005,
$14.4 million for 2004, $27 million for 2003, $44.9 million for 2002, $65.6
million for 2001, and $110.8 million for the cumulative period of 1997
through 2000.
"Monster says overstated '97-'05 profit by $271.9 m," Rueters,
December 13, 2006 ---
Click Here
The Independent Auditor for Monster Worldwide is KPMG ---
http://www.trinity.edu/rjensen/Fraud001.htm#KPMG
It just gets deeper and deeper for KPMG
Fannie Mae Sues KPMG
The mortgage lending company Fannie Mae filed suit
on Tuesday against its former auditor KPMG, accusing the firm of negligence
and breach of contract for its part in the flawed accounting that led to a
$6.3 billion restatement of earnings. Fannie Mae states in its complaint
that KPMG applied more than 30 flawed principles and cost it more than $2
billion in damages. Fannie Mae fired the accounting firm in mid-December
2004, just a week after the Securities and Exchange Commission ordered the
company to restate more than two years of flawed earnings. A KPMG spokesman,
Tom Fitzgerald, said the company planned to “pursue our own claims against
Fannie Mae.”
"Fannie Mae Sues KPMG," The New York Times, December 13, 2006 ---
http://www.nytimes.com/2006/12/13/business/13kpmg.html?_r=1&oref=slogin
KPMG fired back at former audit client Fannie
Mae this week, saying it would counter the mortgage giant’s $2 billion
negligence and breach of contract lawsuit. KPMG “will pursue our own claims
against Fannie Mae” in the U.S. District Court in Washington, D.C.,
spokesman Tom Fitzgerald told reporters Tuesday. Fannie Mae filed its
lawsuit Tuesday in the Superior Court of the District of Columbia.
Fitzgerald said the issues raised in Fannie Mae's lawsuit “are already
pending" in shareholder lawsuits before the federal district court. He did
not elaborate on what claims KPMG would make against Fannie Mae, Reuters
reported.
"KPMG Plans Counter Suit of Fannie Mae," AccountingWeb, February 14,
2006 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=102902
Bob Jensen's threads on KPMG are at ---
http://www.trinity.edu/rjensen/Fraud001.htm#KPMG
"Fannie Mae Faces Work After Restatement," by Marcy Gordon,
SmartPros, December 8, 2006 ---
http://accounting.smartpros.com/x55766.xml
Mortgage giant Fannie Mae has taken a
significant stride in its march out of an accounting scandal by
completing a restatement of past earnings but still faces tough work to
make its financial reporting current.
The restatement for 2001 through June 30, 2004,
made public on Wednesday, wiped out $6.3 billion in profit for the
government-sponsored company, which finances one of every five home
loans in the United States. But it was well below Fannie Mae's earlier
estimate of $10.8 billion. Ordered by the government two years ago, the
massive reworking of its accounting has cost the company some $1 billion
this year to carry out.
Shares of Fannie Mae rose $1.64, or almost 3
percent, to $60.14 in early trading Thursday on the New York Stock
Exchange. It has traded in a range of $46.17 to $62.37 over the last 52
weeks, compared with its peak of around $80 in early 2004.
It was the first earnings statement filed by
Fannie Mae since late 2004. The scandal erupted in the fall of that year
when federal regulators accused Washington-based Fannie Mae - with its
long-standing prestige, vaunted political clout and reputation for
financial excellence - of serious accounting problems and earnings
manipulation to meet Wall Street targets.
Fannie Mae also announced Wednesday an increase
in its quarterly dividend to 40 cents from 26 cents, where it had been
since being slashed in half in January 2005.
"We believe that returning higher levels of
capital back to shareholders is a top priority at Fannie Mae, and this
marks an important first step," Moshe Orenbuch, an analyst at Credit
Suisse, said in a research note issued Thursday.
The company hasn't said when it will get caught
up and report its results for 2005 and 2006; it could take a year or
two.
The restatement "is a key step forward for the
company and represents two years of hard work," James B. Lockhart,
director of the Office of Federal Housing Enterprise Oversight, said in
a statement Wednesday. "Much remains to be done. ... Fannie Mae faces
enormous challenges in fixing its operational and risk management
systems, in (financial controls) compliance, and in producing audited
financial statements for 2005 and 2006."
Jim Vogel, an analyst with FTN Financial
Capital Markets, said in a research note that for Wall Street, the
concern is "if there's a pattern of sustained quarterly losses that
appear to reflect more difficulties in risk management than the market
had thought."
OFHEO is the federal agency that regulates
Fannie Mae and Freddie Mac, its smaller sibling in the $8 trillion
home-mortgage market. Last May, it issued a blistering report alleging a
six-year accounting fraud at Fannie Mae, the second-largest U.S.
financial institution after Citigroup Inc. Regulators said the scheme
included manipulations to reach quarterly earnings targets so that
company executives could pocket hundreds of millions in bonuses from
1998 to 2004.
Lockhart also said Wednesday the agency plans
to file a lawsuit before year's end to recover tainted bonus money from
former Fannie Mae officials, including ex-chief executive Franklin
Raines and chief financial officer Timothy Howard. Raines, a prominent
Washington figure who was White House budget director in the Clinton
administration, was swept out of office in December 2004 along with
Howard. A number of senior executives and board directors have left the
company.
Fannie Mae paid a record $400 million civil
fine in a settlement with OFHEO and the Securities and Exchange
Commission. It also agreed to limit the growth of its
multibillion-dollar mortgage holdings, capping them at $727 billion, and
to make top-to-bottom changes in its corporate culture, accounting
procedures and ways of managing risk.
The company also disclosed Wednesday that its
chief executive, Daniel Mudd, received a pay package of $13.1 million,
including a $2.6 million bonus, for 2005. Mudd, who was the top
operations official at the time of the accounting misdeeds, was elevated
to the CEO in a management shakeup in December 2004.
In detailing its restatement, Fannie Mae cited
a $7 billion net decrease from previously reported earnings for periods
prior to 2002, a $705 million reduction for 2002, a $176 million
increase for 2003 and a $1.2 billion increase for the first six months
of 2004.
Over the last two years, Fannie Mae has
disclosed a passel of new accounting problems that had been uncovered in
several areas, including its core business of issuing securities backed
by the billions of dollars of home mortgages annually that it buys from
lenders and bundles together for resale to investors worldwide. Other
problems were revealed in loans, houses acquired through foreclosures,
interest on delinquent home loans and reverse mortgages.
They all were in addition to the
accounting-rule violations that came to light in September 2004
involving derivatives, the financial instruments that Fannie Mae and
Freddie Mac use to hedge against swings in interest rates.
Fannie Mae escaped criminal prosecution over
the accounting failure. The Justice Department had pursued a criminal
investigation, but federal prosecutors said in August that they had shut
down their probe without bringing any action. The SEC still could bring
civil actions against individual executives, including people no longer
at Fannie Mae, with the burden of proof less stringent than in criminal
prosecutions. Several shareholder lawsuits have been filed against the
company and current and former executives.
Fannie Mae and Freddie Mac were created by
Congress to pump money into the home-mortgage market to keep interest
rates low and make home ownership affordable for low- and
moderate-income people.
Freddie Mac, which also is government-sponsored
and has its stock publicly traded, had its own accounting scandal that
came to light in June 2003. The company misstated earnings by some $5
billion - mostly underreported - for 2000-2002 to smooth out volatility
in profit and uphold its image on Wall Street as a steady performer.
Bob Jensen's threads on Fannie Mae are
http://www.trinity.edu/rjensen/caseans/000index.htm
Where can you learn more about FAS 133?
February 15, 2006 message from XXXXX
Bob,
. . . .The purpose of my email is to solicit
your opinion on the best resources I can leverage to answer various
issues that arise and generally broaden my understanding of FAS 133.
work in risk management but have difficulties with the accounting side
of FAS 133. [Other portions of message deleted]
Thanks for your time!
XXXXX
February 15, 2006 reply from Bob Jensen
Hi XXXXX,
I receive inquiries like this almost daily. Usually these questions
come from accountants who do not have sufficient background in
derivative instruments contracting and economic hedging and, as a
result, have not been able to tackle FAS 133 and IAS 39. Sometimes the
inquiries come from people like your self who have good background in
finance and risk management but cannot comprehend the quirks of
accounting that led to this monstrous set of incomprehensible rules for
booking and/or disclosing derivative financial instruments.
When accountants do not understand derivatives and risk management, I
tell them to work through one of the best textbooks I've ever seen
(which has no accounting whatsoever inside):
Derivatives: An Introduction by Robert A Strong, Edition 2
(Thomson South-Western, 2005, ISBN 0-324-27302-9)
When people like yourself who understand derivatives and risk
management but cannot understand the quirks of accounting, I begin with
an illustration of a basic quirk in accounting--- a quirk discussion
that also introduces the concepts of "forecasted transaction" and "firm
commitment" hedging under FAS 133 rules.
Unbooked Financial Risks
One of the first things we learned in Accounting 101 is that accountants
traditionally do not book (and usually do not even disclose)
purchase/sales contracts until legal title to the goods and services
actually changes hands. Reasons are complicated, but the most
fundamental reason is that defaulted purchase/sales contracts are
usually settled in court or out of court for a small fraction of
contracted amounts, i.e., settlements are usually based upon damages
rather than contracted amounts in full. For example, when Dow Jones
contracts with St. Regis Paper Company for paper purchases over the next
50 years of publishing The Wall Street Journal it would be absurd
to try to book a soft estimate of the billions of the actual contracted
dollars of this contract. Damage estimates are virtually impossible to
estimate and change from month to month as more trees for paper
harvesting are planted.
Hence the biggest problem finance and economics professors have with
accounting professors is that purchase/sales contracts entail financial
risks that accounting professors refuse to book. Furthermore these
purchase/sales contract risks are commonly hedged. When the notional
(quantity) and underlying (price or rate) are contracted, the
purchase/sales contract is called a "firm commitment" under FAS 133.
There is no cash flow risk in firm commitments, but they can be hedged
for fair value (when future spot prices differ from contracted prices).
When the notional (quantity) is contracted or otherwise reasonably
certain and the underlying is not specified there is cash flow risk that
can be hedged with a cash flow hedge defined in FAS 133. Also firm
commitments and forecasted transactions can be hedged for foreign
currency (FX) risk apart from U.S. dollar risks. Most accountants do not
even understand that it is impossible to simultaneously hedge for fair
value and cash flow.
FAS 133 as Source Material for Comedy Central TV
My purpose here is not to launch into a tutorial about purchase/sales
contract hedge accounting rules under FAS 133. Rather my purpose is to
illustrate the dilemma caused by traditional quirks in accounting. Where
finance and accounting professors differ is on the basic concept of
financial risk. Finance professors are confused
when there are financial risks that can be hedged even though those
risks are virtually ignored by accountants because legal title has not
changed hands. Then along comes
FAS 133 that declares the hedge contracts for unbooked hedged items must
be booked and maintained at fair value even though the hedged items
themselves are not booked until title passes. This begins to sound like
great source material for Comedy Central TV --- perhaps the Cobert
Report!
Where To Begin
Adding pain to misery is the fact that FAS 133 rules for fair value
hedges differ greatly from rules for cash flow and FX hedges. Finance
professors find the stated reasons in FAS 133 incomprehensible.
Accounting professors don't bother to open FAS 133 and never get out of
the starting gate in understanding derivatives, hedging, risk
management, and FAS 133.
So where do you begin to understand the accounting quirks in FAS 133?
My first piece of advice is to totally ignore accounting textbooks,
including those that may claim to be derivatives accounting textbooks.
These are worthless. Second ignore the finance and economics textbooks
since authors of these books do not understand accounting quirks.
You mentioned Ira Kawaller. Ira is an economist who admits to having
difficulties understanding accounting quirks. This is why he sometimes
brings me into partner with him on teaching FAS 133 --- my role is to
teach accounting quirks of FAS 133. I also give my own workshops on this
topic ---
http://www.trinity.edu/rjensen/resume.htm#Presentations
I also provide free online FAS 133 and IAS 39 tutorials and videos
---
http://www.trinity.edu/rjensen/caseans/000index.htm
But the bottom line is that my audiences and my readers conclude that
my biggest success in life is confusing them about accounting for
derivatives. My defense is that it is very difficult to explain the huge
gap between financial risk versus what accountants book. I get a lot of
compliments for what I provide online, but the most common complaint is
that my online materials are a nightmare to navigate
Where should you dig into to learn about the accounting quirks of FAS
133? The bottom line is that I don't know! You can pay thousands of
dollars to attend one of our seminars, but these are so broad brushed
that our audiences feel like they've just had a meal on hors'deovers.
The bottom line is that it is probably best to dig into the FASB's
"Green Book" line for line as painful as that becomes for 873 pages of
jargon ---
http://fasbpubs.stores.yahoo.net/dc133-3.html
Also request the FASB's supplemental documentation (119 pages to
date) of error corrections in the Green Book.
Secondly, memorize the FAS 133 and IAS 39 rules rather than try to
find a rationale. For example, it is utterly frustrating trying to
reason why hedge accounting for cash flow/FX hedges use OCI offsets that
are verboten fair value hedges (never OCI for FV hedges).
You should just to do or die, not reason why.
I do suggest that you especially look at my Excel workbooks at
http://www.cs.trinity.edu/~rjensen/Calgary/CD/FAS133AppendixB/
I also suggest that you look at my PowerPoint files at
http://www.cs.trinity.edu/~rjensen/Calgary/CD/
There is much pressure outside and within the FASB and the IASB to
simplify rules for accounting for derivative financial instruments. This
is a bit like appeals to reduce felony statutes to a mere Ten
Commandments on stone tablets. Simplification sounds great as a
principle, but in my viewpoint oversimplification will be disastrous.
The reason is that there are thousands of different kinds of risk
management contracts, and it's impossible to derive ten commandments
covering all the variations arising in the practice of risk management.
Some argue that fair value accounting (in place of historical cost
accounting) is the answer, but I have my doubts about this
oversimplification ---
http://www.trinity.edu/rjensen/FairValueDraft.htm
Also see
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#FairValue
For example, fair value accounting is no panacea to accounting for
purchase/sales contracts.
Bob Jensen
Federal Regulators Fine Grant Thornton $300,000 Over Audit of Failed
Bank
Federal bank regulators have fined the accounting
firm Grant Thornton LLP $300,000 for what they called "reckless conduct" in
its audit of First National Bank of Keystone, a West Virginia institution
whose collapse in 1999 was one of the costliest U.S. bank failures in the
past decade.
Marcy Gordon, "Federal Regulators Fine Grant Thornton $300,000 Over Audit of
Failed Bank, SmartPros, December 11, 2006 ---
http://accounting.smartpros.com/x55776.xml
Grant Thornton LLP said it will challenge recent
Treasury Department (DoT) findings and penalties stemming from the firm’s
audit of a bank that collapsed in 1999. The Office of the Comptroller of the
Currency, the Treasury agency that regulates nationally chartered banks, on
Friday announced the telling $300,000 fine against the Chicago-based CPA
firm that audited First National Bank of Keystone in 1998.
"Grant Thornton to Fight Claim of “Reckless” Audit," AccountingWeb,
December 12, 2006 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=102894
Bob Jensen's threads on Grant Thornton (especially the Refco audit
failure) are at
http://www.trinity.edu/rjensen/Fraud001.htm#GrantThornton
"Accounting Firms Seek Overhaul," by Tad Kopinski,
Institutional Shareholder Services ISS, November 20, 2006 ---
http://blog.issproxy.com/2006/11/accounting_firms_seek_overhaul.html
The six biggest international audit firms
have called for a complete overhaul of corporate financial
reporting as the U.S. and Europe move toward convergence of
international audit standards.
In a Nov. 8 report, the accounting
firms propose to replace static quarterly financial statements
with real-time, Internet-based reporting that encompasses a
wider range of performance measures, including non-financial
ones. The report was signed by the chiefs of
PricewaterhouseCoopers International, Grant Thornton
International, Deloitte, KPMG International, BDO International,
and Ernst & Young. The report can be downloaded
here.
"We all believe the current model is
broken," Mike D. Rake, KPMG's chairman, told the Financial
Times. "There are significant shortcomings to U.S. GAAP
[Generally Accepted Accounting Principles] and issues of concern
with International Financial Reporting Standards. We're not in a
very happy situation."
Rake noted that quarterly reporting and
the short-term focus on companies' ability to meet Wall Street
earnings expectations helped foster accounting scandals. The
firms have been working on their proposals for more than a year.
The large discrepancy between the
"book" and "market" values of many listed companies is clear
evidence that the content of traditional financial statements is
of limited use, the report said. The audit firms recommend using
non-financial measures that would provide more valuable
indications of a company's future prospects, such as customer
satisfaction, product or service defects, employee turnover, and
patent awards.
The report said the following
developments need to occur to ensure capital market stability,
efficiency, and growth:
--Investor needs for information are
well defined and met;
--The roles of the various stakeholders in these
markets--financial statement preparers, regulators, investors,
standards setters, and auditors--are aligned and supported by
effective forums for continuous dialogue;
--The auditing profession is vibrant, sustainable, and provides
sufficient choice for all stakeholders in these markets;
--A new business-reporting model is developed to deliver
relevant and reliable information in a timely way;
--Large, collusive frauds are more and more rare; and
--Information is reported and audited pursuant to globally
consistent standards.
ICGN Expresses Concerns Over
ConvergenceMeanwhile,
the International Corporate Governance Network (ICGN) has
expressed concerns about a draft proposal on harmonizing
international and U.S. accounting standards. The ICGN argues
that the draft doesn't pay sufficient attention to shareholder
rights and the stewardship role of boards and investors.
"Convergence must be there to raise
standards," ICGN Executive Director Anne Simpson told the
Financial Times. "Convergence for its own sake is not of value."
The ICGN letter was in response to a
request for comment by the International Accounting Standards
Board (IASB) and its U.S. counterpart, the Financial Accounting
Standards Board (FASB) on a discussion paper on harmonization
objectives. The IASB and the FASB have been working on
harmonizing the two accounting systems since October 2002 and
have set 2008 as the goal for finalizing the process.
Unlike the current IASB auditing
framework, the discussion paper endorses a model more similar to
U.S. standards, dropping a key shareowner safeguard embedded in
U.K.-style standards, the ICGN noted. Rather than focusing
audits on past transactions, the discussion paper calls for
audits to focus on "decision-usefulness" that can affect company
cash flows, the letter said.
"We are concerned that this emphasis on
the ability to forecast the future does not fully capture the
requirements of stewardship, which is concerned with monitoring
past transactions and events," Mark Anson, the CEO of Hermes
Pensions Management who chairs the ICGN, wrote in the Nov. 2
letter. (A Hermes affiliate is a part owner of ISS.)
"In many jurisdictions, financial
statements provide significant input into the decisions we make
as shareholders, by providing an account of past transactions
and events and the current financial position of the business,"
the ICGN letter noted. "In de-emphasizing things that are
particularly [relevant to shareholders' risks and rights], the
standards setters could achieve the perverse effect of actually
increasing the cost of capital."
The ICGN includes more than 400
institutional and private investors, corporations, and advisers
from 38 countries with capital under management in excess of $10
trillion, according to its Web site. The ICGN letter also was
signed by Claude Lamoureux, CEO of the Ontario Teachers' Pension
Plan.
A copy of the IASB discussion paper,
which was published in July, can be downloaded
here.
Bob Jensen's threads on standard setting are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#MethodsForSetting
Bob Jensen's threads on fair value accounting are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#FairValue
Bob Jensen's threads on troubles in the big international accounting
firms are at
http://www.trinity.edu/rjensen/Fraud001.htm
Bob Jensen's threads on proposed reforms are at
http://www.trinity.edu/rjensen/FraudProposedReforms.htm
Bob Jensen's threads on audit firm litigation instances are at
http://www.trinity.edu/rjensen/Fraud001.htm
From The Wall Street Journal Accounting Weekly Review on November
3, 2006
TITLE: Booming Audit Firms Seek Shield From Suits
REPORTER: David Reilly
DATE: Nov 01, 2006
PAGE: C1
LINK:
http://online.wsj.com/article/SB116235111161209823.html?mod=djem_jiewr_ac
TOPICS: Auditing, Auditing Services
SUMMARY: The Big Four U.S. audit firms--PricewaterhouseCoopers, Deloitte
& Touche, Ernst &Young, and KPMG--want legal limits on court damages granted
to investors and others after failure of publicly traded companies they
audit. "Their argument is being championed by an influential group recently
formed to study the competitiveness of U.S. financial markets with the
encouragement of Treasury Secretary Henry Paulson." Others, including the
U.S. Chamber of Commerce and the European Commission, are considering
similar measures.
QUESTIONS:
1.) The argument against limiting legal liability of public accounting firms
argues that auditors should "be held to a high standard of performance."
Explain this argument and describe who in business and investing activities
likely holds this view.
2.) The argument for limiting legal liability includes the point made by
the chief executive of Deloitte Touche Tohmatsu in the article that "the
cost of ...audits was never built for insuring capital markets." Summarize
the argument in support of limiting legal liability for audit firms,
including and explanation of this statement.
3.) How did the Arthur Andersen firm failure result from the Enron
scandal? How was the possibility of a similar fate for KPMG avoided? How do
these events contribute to the debate on this issue?
4.) How did the Committee on Capital Markets Regulation become involved
in the debate on limiting audit firms' legal liability?
5.) How does the discussion in the article indicate the international
focus on this issue? Cite all points you can find in the article.
Reviewed By: Judy Beckman, University of Rhode Island
--- RELATED ARTICLES ---
TITLE: Panel's Mission: Easing Capital-Market Rules
REPORTER: Alan Murray
PAGE: A2
ISSUE: Sep 12, 2006
LINK:
http://online.wsj.com/article/SB115802003723560082.html?mod=djem_jiewr_ac
"Booming Audit Firms Seek Shield From Suits," by David Reilly,
The Wall Street Journal, by November 1, 2006; Page C1 ---
http://online.wsj.com/article/SB116235111161209823.html?mod=todays_us_money_and_investing
Business is booming at the world's biggest
accounting firms, so their top lobbying priority may seem ironic: They
want government protection from a big financial hit.
Revenues at the Big Four --
PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young and KPMG --
have grown at a double-digit pace in recent years as audit fees soared.
Regulatory overhauls enacted in the wake of accounting scandals earlier
this decade have led to new work for firms. One of the biggest problems
facing the Big Four these days is a lack of staff to meet the huge
demand for services.
Yet the Big Four want to limit court damages
that investors and others can seek from them for flawed audits of public
companies. Without such a shield, the firms say, it's only a matter of
time before one of them is felled by a massive court award.
Their argument is being championed by an
influential group recently formed to study the competitiveness of U.S.
financial markets with the encouragement of Treasury Secretary Henry
Paulson. The group is expected to recommend in coming weeks that the
government enact new protections for auditors. A panel set up within the
powerful U.S. Chamber of Commerce is sounding a similar theme. In
Europe, the European Commission is studying the issue and is likely to
recommend limitations on the damages accounting firms can face.
How much risk the big firms actually face has
been largely absent from the debate over auditor liability. Despite a
slew of big-ticket lawsuits that emanated from corporate scandals
earlier this decade, none of the firms suffered a fatal blow from those
legal actions. The one big firm that folded, Arthur Andersen LLP in
2002, fell victim not to a lawsuit but to a criminal
obstruction-of-justice conviction, later overturned on appeal.
"I don't see that auditors have a real need for
any kind of special protections," said Bill Kelley, general counsel at
the Retirement Systems of Alabama, which has sued accounting firms
following corporate blowups. "Auditors need to be held to a high
standard. Those are the outsiders we rely on. It's tough to have that
responsibility, but that's what they're getting paid for."
Mr. Kelley and likeminded critics say it's also
difficult to quantify the risk the firms face from a big court award.
That's because the accounting firms are private partnerships that don't,
in most cases, disclose their financial condition or results. So
outsiders don't know how much capital the firms have, their level of
profitability or even how much insurance they carry.
If anything, the risk from class-action
lawsuits appears to be dwindling. The number of class actions that cite
auditors as defendants declined to five last year from 14 in 2002,
according to the Stanford Law School Securities Class Action
Clearinghouse.
The bigger threat to firms has stemmed not from
civil litigation, but from alleged criminal actions related to their
conduct. In addition to the Arthur Andersen case, KPMG LLP suffered a
near-death experience last year due to its sale of improper tax
shelters; federal prosecutors ultimately decided not to indict the firm,
a move that likely would have put it out of business.
The Andersen and KPMG cases have led some
lawyers to claim that the Big Four are already seen by government as too
big to fail. "The fact is that the government couldn't indict KPMG for
policy reasons," said Sean Coffey, a partner at New York law firm
Bernstein Litowitz Berger & Grossmann LLP, who has sued several
accounting firms. "These folks are effectively immune to being put out
of business and now they're trying to find ways to further inoculate
themselves from accountability."
The firms also have shown they can weather
pretty big hits. Over the past two years, KPMG has agreed to pay out
nearly $700 million in fines and settlements related to criminal and
civil actions. In 2000, Ernst & Young LLP settled for $335 million a
shareholder suit related to its work for Cendant Corp.
Accounting firms argue the danger they face
from civil litigation is real and that there are still many scandal-era
actions that have yet to work their way through the courts. What is
needed, the firms say, are litigation caps similar to those many states
have enacted to protect doctors from malpractice suits.
The firms say special protection is warranted
because they can be sued not just by the companies whose books they
audit, but also by others, such as investors. These investors, the firms
add, try to use auditors to recoup stock-market losses.
"The cost of our audits was never built for
insuring the capital markets," said William G. Parrett, chief executive
of Deloitte Touche Tohmatsu, the international arm of Deloitte & Touche.
"I don't think we're saying we shouldn't have any liability, but it has
to be in proportion to our participation in any problem."
The firms also say they can't get sufficient
insurance because their liability is almost unlimited, encompassing in a
worst-case scenario the total stock-market value of the companies they
audit. So they are forced to settle lawsuits rather than risk a trial.
A study for the European Commission, released
in September, said the total costs of judgments, settlements, legal fees
and related expenses for the U.S. audit practices of the Big Four firms
had risen to $1.3 billion in 2004, or 14.2% of revenue, up from 7.7% in
1999. In addition, according to a study by insurer Aon, there were 20
claims outstanding against U.S. auditors as of September 2005 where
damages sought or estimated losses topped $1 billion. Accounting firms
say they couldn't survive an award of that size.
Advocates of liability caps frame the issue
around the broader debate over U.S. market competitiveness.
"I think the whole issue of liability is one of
the major reasons why foreign companies aren't coming here" to list
their stocks on U.S. exchanges, said Hal S. Scott, a Harvard Law School
professor and a founding member of the Committee on Capital Markets
Regulation, the group formed with Mr. Paulson's blessing to study market
competitiveness. Mr. Scott added that while court awards can serve as a
deterrent to shoddy audit work, "if we left this to the legal process,
we might come up with the right amount of damages to deter bad behavior
but have just two or three accounting firms" because one will have gone
out of business.
Recognizing, though, that auditor liability
overhaul might be a tough sell on Capitol Hill, the committee may
suggest that the U.S. Securities and Exchange Commission come up with a
solution, Mr. Scott said. "The SEC could modify their own rules
regarding liability," he added. One idea under study: Allowing
accounting firms to negotiate liability caps with clients, a practice
now barred to preserve auditors' independence.
November 2, 2006 reply from Mark Eckman, Rockwell Collins
[mseckman@ROCKWELLCOLLINS.COM]
With tongue firmly planted in cheek, why don't
we let the audit firms become insurance companies and let them charge
premiums based on the risk of material misstatement and deny coverage
when the risk is too high? Turn auditors into underwriters and I believe
you would see a vast difference in how audits are conducted.
Mark S. Eckman
November 2, 2006 reply from Deborah Johnson
[vicjohn@SPRINTMAIL.COM]
I have to agree. Even though you regard it as
tongue in cheek, it actually sounds more rational than the current
situation. Let each company comply with Sarbanes, and purchase two Bonds
from an Insurer. The first Bond for the materiality of the Financial
Statements. The Second Bond for Fraud Insurance.
November 5, 2006 reply from Bob Jensen
For years some professors like Josh Ronen (NYU) have made arguments
for auditing firms to insure financial reports (not necessarily internal
fraud that does not materially affect annual reports).
There are some very good reasons why it makes sense to do this,
especially from the perspective of reducing litigation costs for
misleading financial reports. However, there are some huge differences
between auditing and insurance risks. Insurance risks are measured by
actuarial studies of relatively stable systems such as mortality, home
fires, wind damage, etc. Insurance companies tend to write in coverage
exceptions for things that are less predictable like nuclear war and
earthquakes that arise in non-stationary systems. Financial fraud and
auditor errors that hugely impact financial statements are more like
nuclear war and earthquakes.
Audits are conducted in much less stationary systems that defy
actuarial prediction of losses. One problem is that the systems
themselves are reactionary. The current rash of executive option
backdating is a good example. Who could've predicted that thousands of
executives would commence to backdate options? Events transpired to
inspire these frauds, including changes in FAS 123, changes in tax
constraints, and a window of opportunity before SOX went into effect. My
point is that each new accounting standard, EITF, interpretation, law
change (especially tax law), and political outcomes (with power shifting
between conservatives and liberals) changes the entire system being
audited such that actuarial calculations are impossible.
Bob Jensen
Bob Jensen's threads on proposed reforms are at
http://www.trinity.edu/rjensen/FraudProposedReforms.htm
November 5, 2006 reply from Mark Eckman, Rockwell Collins
[mseckman@ROCKWELLCOLLINS.COM]
Very good analysis. Still, I would raise the
point that there are specialty underwriting segments available; viz.,
one can insure for exceptional things such as war, inconvertibility of
currency, expropriation, kidnap & ransom, etc. that have no actuarial
basis. However, where a need exists and the pvt insurance sector cannot
or will not take on the entire risk, govt insurance entities as primary
insurers, reinsurers, or insurers of last resort are frequently seen. My
former employer, the Overseas Private Investment Corporation, is an
example. Whether these coverages can provide indemnity in the same way
as auto insurance is doubtful. Even so, as one looks for solutions to
the increasingly complex problem of the modern role of financial
auditing, these alternatives should be carefully examined.
Paul Bjorklund, CPA
Bjorklund Consulting, Ltd.
Flagstaff, Arizona
November 9, 2006 reply from Tom Hardy
[thardy@IVESINC.COM]
In response to several inquiries that we have
received regarding the Nov 1, 2006 Wall Street Journal article on Big 4
Litigation cases entitled “Booming Audit Firms Seek Shield on Suits,” I
am making the attached analysis available to AECM.
“Big
4 Securities Class Action Litigation- Citing Auditor as Defendant”
highlights the number of security class action cases involving Big 4
Accounting Firms between 2002 and 2005. It also lists each case by year.
This research was compiled using the Audit
Analytics Litigation Module. If you would like additional information or
a demonstration of this new AuditAnalytics.com database please give me a
call or send me an e-mail.
Tom Hardy
AuditAnalytics.com
IVES Group, Inc.
9 Main St. Suite 2F
Sutton, MA 01590
508-476-7007 Ext. 28
thardy@ivesinc.com
Taxation of Dividends Creates European Union Stir
The Institute of Chartered Accountants in Ireland
(ICAI) said that the European Court of Justice (ECJ) ruling this week on the
UK dividends case creates issues for other European countries, including
Ireland, which have a similar system of taxation of dividends to that in the
UK. The ECJ ruled on the principles of freedom of establishment and freedom
of movement of capital in relation to the UK dividends system. See further
details in our full news item.
Andy Lymer, "ECJ DIVIDENDS CASE CREATES ISSUES FOR IRELAND,"
AccountingEducation.com, December 14, 2006 ---
http://accountingeducation.com/index.cfm?page=newsdetails&id=144069
"2007 Excellence in
Project Accounting Philosophy Essay Scholarship Contest Begins,"
AccountingWeb, December 8, 2006 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=102883
The 2007 Excellence in Project Accounting
Philosophy essay scholarship contest launches on January 1, 2007. The
winning essayist will receive $500 toward college tuition and fees from
Journyx, the first company to provide Web-based time-tracking and
project accounting solutions that guide customers to per-person,
per-project profitability.“Journyx is
committed to eradicating cost ignorance from our knowledge worker
society and leading organizations to the highest levels of profitability
through innovation,” Curt Finch, chief executive officer (CEO) of
Journyx said in a prepared statement. “We developed this essay
scholarship so that we could educate and share our philosophy with some
of the bright minds about to enter the workforce, as well as learn new
ideas from them. We will choose the submission that is the most creative
and has the most real-world business applicability.”
The scholarship is open to full-time student
enrolled in a graduate level masters or doctoral level degree program at
a university in the United States. Interested students should contribute
an essay of 1,000 words or less on one of the following two topics:
- Persuade someone who doesn’t want to track
his time on a per product per-activity basis why it is in his best
interests to do so.
- Describe a real situation that you’ve
encountered where project oriented time tracking has made a positive
difference in the world.
Complete rules and details, including how the
essays will be scored, where to send the entries, etc., can be found
at
www.journyx.com/company/scholarship.html All
entries must be received by 5:00 p.m. CST on June 1, 2007.
Question
What happens when you don't qualify for the "Shortcut Method" for interest
rate swaps under FAS 133?
How to avoid ineffectiveness testing for interest rate
swaps using the Short-Cut Method ---
http://www.trinity.edu/rjensen/acct5341/speakers/133glosf.htm#Shortcut
Also see ---
http://www.cs.trinity.edu/~rjensen/000overview/mp3/133summ.htm#ShortCut
December 2006 article by Ira
Kawaller on Long Haul Hedge Accounting ---
http://www.kawaller.com/pdf/BALM_Long_Haul.pdf
Pension
Fund Accounting Fraud in San Diego
"San Diego Charges," by
Nicole Gelinas, The Wall Street Journal, November 27, 2006; Page A12
---
http://online.wsj.com/article/SB116459315111633209.html?mod=todays_us_opinion
The SEC has announced that it has resolved its
pension-fund fraud case against San Diego, with the city agreeing not to
commit illegal shenanigans in the future and to hire an "independent
monitor" to help it avoid doing so. Although the SEC went easy on the
residents and taxpayers of San Diego in its settlement, it still has an
opportunity to make an example of the former officials who the SEC
determined committed the fraud. The feds should seize that chance to
show they're serious about policing a sector of the investment world
that remains vulnerable to similar fraud.
San Diego ran into legal trouble with its
pension fund because elected officials wanted to keep its municipal
workers happy by awarding them more generous pension and health-care
benefits, but also wanted to keep taxpayers happy by sticking to a lean
budget. The two goals were mathematically irreconcilable. So San Diego
officials, with the cooperation of the board members of the city
employees' retirement system (the majority of whom were also city
officials), intentionally underfunded the pension plan for years. They
used the "savings" to award workers and retirees more benefits, some
retroactive. Because taxpayers couldn't see how much retirement benefits
for public employees eventually would cost them, they couldn't protest
against those high future costs. The fund also violated sound investment
principles by using "surplus" earnings in boom years to pay extra
benefits to retirees, including a "13th check" in some years. Trustees
should have put such "surpluses" aside for years in which the market was
down.
But the alleged escalated in 2002 and 2003,
when city officials brushed aside warnings from outside groups, as well
as from an analyst it had itself commissioned, about the fund's parlous
financial straits. Although figures clearly showed that the pension fund
would face a seven-fold increase in its deficit, to more than $2
billion, over less than a decade, San Diego didn't disclose what,
according to the SEC, it "knew or was reckless in not knowing" was an
inevitability, instead maintaining its charade. City officials disclosed
not a word of the fund's financial troubles to potential investors or
bond analysts as it raised nearly $300 million in new municipal
securities during those two years.
The SEC elected to go easy on the city. The
feds won't levy a fine against it, reasoning that it would end up being
the taxpayers who would pay. This argument has merit, since these
taxpayers are already on the hook for the $1.5 billion deficit --
roughly equal to the city's operating budget -- the pension-fund fraud
had concealed. Taxpayers could face fallout if wronged investors sue the
city. But while SEC won't punish taxpayers, it can't afford to go so
easy on the officials it's still investigating. (The SEC doesn't name
the current and former officials under its scrutiny, but former Mayor
Dick Murphy, former city manager Michael Uberuaga and former auditor Ed
Ryan, as well as members of the City Council, all had degrees of
responsibility for and knowledge of the pension fund's operations.) The
SEC must demonstrate that it considers the fraud officials committed
against the city's bondholders to be just as grave as similar frauds in
the private sector.
People who invest in municipal bonds do so
because they feel that such investments are safer than investing in the
common stocks of corporations. That's why cities and states enjoy access
to capital at affordable interest rates. And, for tax reasons,
municipal-bond investors often invest in the bonds of the city in which
they reside, so they face double jeopardy. In the first place, if city
officials are committing fraud, their bonds will turn out not to be as
sound (and thus not as valuable) as they thought they were. The second
risk is that they will have to pay higher taxes, or suffer lower
government services, to cover pension-funding shortfalls in their city's
budget if that is the case.
Continued in article
Bob Jensen's threads on pension fund and
post-retirement accounting are at
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#Pensions
The Cost Approach for Financial Reporting
From IASPlus on November 21, 2006 ---
http://www.iasplus.com/index.htm
The International Valuation Standards Committee
has published
Proposed Revisions to International Valuation Guidance Note 8 – The
Cost Approach for Financial Reporting {PDF 193k).
The proposed revisions are the result of requests
for clarification and suggestions of minor improvements to the 2005
version of GN8. Comment deadline is 31 December 2006. The
IVSC
has also released an update of its work programme:
Bob Jensen's threads on underlying bases for balance sheet valuation
---
http://www.trinity.edu/rjensen//theory/00overview/theory01.htm#UnderlyingBases
The CEO Who Jousted With Regulators
Options Backdating Takes Its Toll at Cyberonics
The tumultuous tenure of Robert P. Cummins as
chairman, president and chief executive of the medical device maker
Cyberonics has ended, the company disclosed yesterday. Mr. Cummins, 52, who
is known as Skip, is a former venture capitalist who joined the board of
Cyberonics in 1988 and became chief executive in 1995. He gained a
reputation as one of nation’s most passionate and intimidating business
leaders in dealing with critics, regulators and investors.
Barnaby J. Feder, "Head of Cyberonics Resigns as Options Inquiry Expands,"
The New York Times, November 21, 2006 ---
http://www.nytimes.com/2006/11/21/business/21device.html?_r=1&oref=slogin
Bob Jensen's threads on accounting for employee stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
Maybe Apple Corporation will backdate its 2006 annual report
Apple Computer Delays Filing Annual Report With SEC
Due to Ongoing Stock Option Investigation NEW YORK (AP) -- Apple Computer
Inc. said Friday it has delayed filing its annual report with the Securities
and Exchange Commission due to its ongoing investigation into stock option
grants. In a filing with the SEC, the company said it needs to restate
historical financial statements to record charges for compensation related
to past grants. As a result, Apple was unable to file its 10-K Form for the
fiscal year ended Sept. 30 by the required filing date of Dec. 14.
"Apple Delays Filing Its Annual Report," Yahoo News, December 15,
2006 ---
http://biz.yahoo.com/ap/061215/apple_options.html?.v=3
Executive Compensation Fraud at Apple Corporation:
Apple's mea culpa on backdating last week was eloquently incomplete
Apple's mea culpa on backdating last week was
eloquently incomplete, and all the more intriguing because the gaps seemed
almost Socratically mapped to invite the media to fill the holes by asking
obvious questions. The big joke here is that the logic of the witch hunt
will stop the media from asking the obvious questions, not least because CEO
Steve Jobs is a hero to much of the press and there's little appetite for
bringing him down. Don't misunderstand. We believe it would be a gross
injustice if he were defenestrated over backdating, just as we have serious
doubts about the prosecutions launched against other backdating CEOS. And
Apple's likely purpose in issuing its statement, naturally, was not lexical
comprehensiveness but saving Mr. Jobs's job.
Holman W. Jenkins, Jr., "A Typical Backdating Miscreant, The Wall Street
Journal, October 11, 2006; Page A15 ---
http://online.wsj.com/article/SB116052823194588801.html?mod=opinion&ojcontent=otep
"Apple C.E.O. Apologizes for Stock Practices," The
New York Times, October 5, 2006 ---
Click Here
Now that an internal investigation over Apple
Computer Inc.'s stock-option practices has helped abate investor worries
over Steve Jobs' role as CEO, a key lingering concern will be the impact
of pending earnings restatements.
Apple said Wednesday its three-month
investigation did not uncover any misconduct of any current employees
but did raise ''serious concerns'' over the accounting actions of two
unnamed former officers.
The iPod and Macintosh maker also said its
former chief financial officer, Fred Anderson, had resigned from the
company's board of directors.
Jobs -- his position intact -- apologized.
The probe found that Jobs knew that some option
grants had been given favorable dates in ''a few instances,'' but he did
not benefit from them and was not aware of the accounting implications,
the company said.
''I apologize to Apple's shareholders and
employees for these problems, which happened on my watch,'' Jobs said in
a statement. ''We will now work to resolve the remaining issues as
quickly as possible and to put the proper remedial measures in place to
ensure that this never happens again.''
Apple said it will likely have to restate some
earnings due to revised tax and stock option-related charges. Auditors
are still reviewing the situation, and Apple said it has not yet
determined the extent of the financial impact.
The looming restatements could dramatically
reduce some of the windfall generated during the company's recent run of
record profit, analysts said.
Shares of Apple shed 10 cents to $75.28 in
midday trading Thursday on the Nasdaq Stock Market. The stock has traded
between $47.87 and $86.40 over the past year.
Apple has reported profit totaling $3.1 billion
during the past four years. If the restatements are severe, it could
dent Apple's stock, said IDC analyst Richard Shim.
''The restatements have the potential to bite
them again depending on how large they end up being,'' Shim said. ''That
said, the company is certainly firing on all cylinders so investors may
be willing to forgive them, but it's something that will linger in the
backs of their minds.''
Piper Jaffray analyst Gene Munster said he and
other investors are breathing a sigh of relief that Jobs kept his job
throughout the scandal.
''The risk was that if something bizarre
happened and Steve Jobs got fired over it,'' Munster said from his
office in Minneapolis. ''That could have significantly impacted the
company in a negative way. Steve Jobs is Apple. Ultimately, the scope of
the backdating was bigger than we thought, but the impact turned out to
be less severe.''
Apple is one of the most prominent among more
than 100 companies caught in the nationwide stock options mishandling
scandal. Cupertino-based Apple initiated its own stock-options
investigation in June after problems at other companies began to
unravel.
In many instances, the problem has centered on
the ''backdating'' of stock options -- a practice in which insiders
could make the rewards more lucrative by retroactively pinning the
option's exercise price to a low point in the stock's value.
Apple said its probe found irregularities in
the recording of stock option grants made on 15 dates between 1997 and
2002, with the last one involving a January 2002 grant, the company
said. The grants had dates that preceded the approval of those grants.
Apple spokesman Steve Dowling said the 15
grants represented 6 percent of the total issued during that period. He
said he did not have further details regarding the specific grants or
whether they were awarded to officers or employees.
The company did not identify the two former
officers whose accounting, recording and reporting of option grants
raised ''serious concerns'' during the probe.
Apple said Anderson, who served as the
company's chief financial officer from 1996 until 2004, resigned from
the board, citing he did so in ''Apple's best interest.''
Dowling said the company will provide more
details about the probe to the Securities and Exchange Commission.
The company's special committee conducting the
investigation examined more than 650,000 e-mails and documents, and
interviewed more than 40 current and former employees, directors and
advisers.
"Apple Says Jobs Knew of Options," by Laurie J.
Flynn, The New York Times, October 5, 2006 ---
Click Here
The external auditor for Apple Corporation is KPMG ---
http://www.trinity.edu/rjensen/Fraud001.htm#KPMG
Bob Jensen's threads on accounting for employee stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
They not only teach about options backdating at the University of
Phoenix
The Apollo Group, which as owner of the University
of Phoenix is the largest player in for-profit higher education in the
United States, on Thursday
announced that some former officials may have
concealed information about the handling of stock-option grants, a key issue
in light of ongoing investigations by various authorities into stock-option
violations at many top American corporations. As a result of Apollo’s
continuing investigation, the company announced that it would need to delay
the release of quarterly and annual financial reports that would normally be
due on December 31.
Bloomberg reported on some of the details of the
problems at Apollo.
Inside Higher Ed, December 15, 2006 ---
http://www.insidehighered.com/news/2006/12/15/qt
Bob Jensen's threads on accounting for employee stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
Home Depot may see fallout over options backdating
Home Depot Inc.'s admission this week that some
stock option grants were backdated could spur lawsuits, result in fines and
have tax implications, analysts and other experts said. The disclosure of 19
years of backdating tops off a difficult year for the world's No. 1 home
improvement retailer as it continues to be dogged by criticism about
executive pay, a disappointing stock performance and the fallout from the
slower U.S. housing market.
"Home Depot may see fallout over options backdating," Reuters,
December 8, 2006 ---
Click Here
Jensen Comment
Those that blame back dating on changes in tax laws and/or newer options
expense requirements under FAS 123(R) should note the 19 years of backdating
by Home Depot.
"Options backdating might never have happened if
reasonable options accounting had been required years ago," by Floyd
Norris, The New York Times, October 13, 2006 ---
http://norris.blogs.nytimes.com/?ref=business
Bob Jensen's threads on accounting for employee stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
"How Backdating Helped Executives Cut Their Taxes: Evidence
Suggests Recipients Of Some Stock-Option Grants Manipulated Exercise Dates,"
by Mark Maremont and Charles Forelle, The Wall Street Journal,
December 12, 2006; Page A1 ---
http://online.wsj.com/article/SB116589240479347248.html?mod=todays_us_page_one
New evidence suggests that corporate executives
may have found another way to manipulate their stock options, this time
to cheat on their income taxes.
In a paper that began circulating in recent
days, a Securities and Exchange Commission economist concludes there is
strong statistical evidence that executives manipulated the exercise
dates of their options as part of a tax dodge. And a review of corporate
filings turns up some companies with startling options-exercise
patterns.
The new information could open
another front in the options-backdating scandal. Backdating already has
sparked the broadest corporate-fraud probe in decades, with more than
130 companies under investigation by federal authorities. So far,
attention has focused on the practice of retroactively selecting
favorable dates to grant options. The new wrinkle involves rigging the
dates on which options are exercised, sometimes years after they're
granted.
The tax dodge related to options,
however, almost certainly involves fewer executives than are caught up
in the furor over the backdating of grants. (See
related article.)
The reason it can be tempting to
backdate the exercise of options lies in the way the Internal Revenue
Service treats different types of income for tax purposes. Options, a
common part of executive pay packages, give the recipient the right to
buy a company's stock at a fixed price in the future. That price, known
as the strike price, is usually the stock's market price on the day the
options were granted.
About three-quarters of the time,
executives immediately sell the shares they buy when they exercise
options. Under IRS rules that typically apply, those executives must pay
ordinary income tax, as well as payroll taxes, on the difference between
the stock's value on the date the option was exercised and the option's
strike price. The highest federal marginal income tax rate is 35%.
But for a variety of reasons,
including corporate rules that require top managers to own a certain
amount of stock, some executives don't sell immediately. Those who hold
the shares for at least a year pay a much lower capital-gains tax --
currently 15% -- on any profit between the time they exercise and when
they eventually dispose of the shares. That lower rate gives the
executive an incentive to exercise the options at a relative low point
for the stock: The move reduces the amount of money that would be owed
at the ordinary income tax rate, and shifts the difference so it is
potentially taxed at the much-lower capital gains rate.
Consider an executive who holds options on
100,000 shares with a strike price of $10. If he exercises and sells
when the price is $20, he realizes $1 million in income and must pay
$350,000 in income taxes.
If he instead can claim an exercise price of
$16, he lowers his income tax to $210,000. If he then sells a year later
and the stock is at the same price of $20, he pays $60,000 in
capital-gains levies, for a total tax bite of $270,000. In other words,
he has the same $1 million gain but saves $80,000 in taxes. The problem
arises if the executive misrepresents when the exercise occurred to
claim a lower exercise price.
Determining which executives or companies might
be involved is difficult, and it's impossible to know what information
they may have included in their tax returns. But some executives have
exhibited unusual timing in their options exercises.
At Maxim Integrated Products Inc., a Sunnyvale,
Calif., chip maker, chief executive John F. Gifford exercised options
and held shares seven times between 1997 and 2002, according to
regulatory filings and insider-trading data from Thomson Financial. In
all but one case, Mr. Gifford's reported exercise date was the very day
the stock reached its lowest closing price of the month. After the
Sarbanes-Oxley corporate-reform law took effect in 2002, drastically
reducing the opportunity to backdate by tightening reporting
requirements, his fortunate timing vanished.
Maxim is facing investigations by the SEC and
federal prosecutors in California over its option-granting practices. A
special committee of directors is also probing the matter.
Chuck Rigg, a Maxim vice president, said the
company is "looking into" questions about Mr. Gifford's options
exercises, but said initial data don't indicate any problems. Mr. Rigg
added that the company used an outside broker to handle options
exercises. "There's not a way you can backdate that," he said. Mr.
Gifford didn't respond to requests for comment.
Continued in article
Bob Jensen's threads on accounting for employee stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
Evidence that options backdating scandals are not uniquely caused by
U.S. tax law
"Options backdating: The latest U.S. corporate scandal involves
executives falsifying the dates on stock options. A series of reviews in
Canada is starting to reveal worrisome patterns," by Janet McFarland and
Paul Waldie, The Globe and Mail, January 12, 2006 ---
Click Here
In the spring of 2001, the two founders and
co-chief executive officers of Research In Motion Ltd. were each granted
100,000 stock options. Back then, the company relied heavily on stock
options for its compensation, and often granted its executives 100,000
options at a time.
The timing was fortuitous for the executives.
RIM's share price was $33.60 on April 2 when the options were granted --
its lowest point so far that year and its lowest level since the
previous May, almost a year earlier.
By the time investors learned of the grant when
it was disclosed publicly on June 8, the share price had climbed to $50,
an increase of $16.40. That means within five weeks of the grant date,
each CEO already had seen a gain of $1.64-million in the value of his
options.
It wasn't the first time RIM had granted its
CEOs options before a healthy climb in the company's share price. In
1998 and 1999, RIM granted options at a particularly low point, just
prior to an increase in the share price.
How did this good luck come about?
This is the question being pondered by
investors and regulators. The company itself has launched an internal
review of its past stock option grants. RIM is not saying anything about
what it is specifically examining, but co-CEO Jim Balsillie has said
that RIM is "in the same position as a lot of other companies" these
days.
Canadian companies haven't been drawn into the
stock option backdating scandal that has swept through the United
States, where regulators have launched more than 180 investigations of
backdating cases, and many top executives have been forced to resign in
disgrace.
But legal and accounting experts believe Canada
will not remain immune to the scandal. They say many Canadian companies
have quietly launched internal reviews of their options practices to
determine whether they have scandals lurking in their corporate closets.
And while Canada had tougher rules for options than the U.S., these same
experts believe they do not prevent options backdating.
Backdating involves manipulating the date that
stock options are granted to executives. Normally options are granted at
the price of the company's stock that day. That means the options only
have value if the share price climbs in the future. Many companies,
including RIM, don't allow executives to cash out options right away,
often making them wait several years.
Companies involved in backdating use the
benefit of hindsight to look back and choose a date when their share
price was low, then falsely claim that the options were granted on that
date. It's as if a participant in a hockey pool could retroactively pick
winners of games after they were played.
A Report on Business review of option grants to
CEOs at more than 30 large Canadian companies between 1997 (when company
filings were first available electronically) and 2005 found numerous
examples of especially well-timed option grants just before an increase
in the company's share price. But it is hard to draw conclusions from
individual examples because an outsider cannot easily determine which
cases were lucky timing and which, if any, were manipulation.
Some studies have suggested there is a problem
in Canada based on a broader market review. Independent analysis firm
Veritas Investment Research, for example, looked at all companies
comprising the S&P/TSX 60 index and examined their option grants between
2003 and 2006. It concluded option timing "is alive and well in Canada,"
with stock prices over all tending to drop toward the date of option
grants and climb afterward.
University of Manitoba economists have done a
more detailed review of the same period, examining 5,644 options granted
to senior executives by companies listed in the S&P/TSX 60 between June,
2003, and October, 2006.
According to a preliminary review of the data,
"the evidence is suggestive of the occurrence of backdating in Canada,"
the researchers found.
"We expected to find nothing with that kind of
data, and the fact that we found something is sort of like, wow," said
Lindsay Tedds, an assistant professor who led the study. Prof. Tedds
said the results don't confirm that backdating is necessarily occurring,
but she added: "There's something going on. We didn't expect to find
much of a pattern in this aggregate data."
Continued in article
Hundreds of old-economy companies also committed backdating fraud
Abuses of stock option grants are perceived to have
spread like a virus among high-technology companies. But a new study
suggests that hundreds of old-economy companies may also have caught the
backdating bug. In a paper to be released today, researchers estimate that
590 nontechnology companies appear to have manipulated options so their
chief executives received them at the lowest price of the month. That
compares with 130 technology companies that appear to have backdated their
chief executives’ options to a monthly low.
Eric Dash, "Study Charts Broad Manipulation of Options," The New York
Times, November 17, 2006 ---
http://www.nytimes.com/2006/11/17/business/17options.html?_r=1&oref=slogin
From The Wall Street Journal Accounting Weekly Review on November
10, 2006
TITLE: UnitedHealth Expects Probe to Result in 'Greater' Charges
REPORTER: Steve Stecklow and Vanessa Fuhrmans
DATE: Nov 09, 2006
PAGE: B1
LINK:
http://online.wsj.com/article/SB116299996219517252.html?mod=djem_jiewr_ac
TOPICS: Accounting, Accounting Changes and Error Corrections, Sarbanes-Oxley
Act, Securities and Exchange Commission, Stock Options
SUMMARY: "UnitedHealth Group Inc. said it would have to take charges
related to its backdated stock options that will be 'significantly greater'
than its previous estimates and expects the charges to impact more than 10
years of previously reported earnings."
QUESTIONS:
1.) Describe the options backdating scandal that has developed since March,
2006. If you are unfamiliar with the issue, you may click on the link for
"Perfect Payday: Complete coverage" on the left hand side of the on-line
article.
2.) For how long has options backdating been going on at UnitedHealth?
Have the accounting requirements remained the same throughout that period of
time? Summarize the required accounting and other financial reporting
practices for executive and employee stock options over the last 10 years.
3.) Suppose that, once UnitedHealth finishes its review, the restatement
of earnings nearly doubles to $500 million and that the restatement applies
equally to each of the preceding 10 years. What accounting entry must be
made to correct this $500 million error? What will be the ultimate impact on
each year's earnings and on stockholders' equity at the end of each year?
How will this correction be disclosed? In your answer, cite the accounting
standards which require the treatment you present.
4.) Click on "Read the full text" of UnitedHealth's Nov. 8 filing with
the SEC on the right-hand side of the on-line article. What Form number did
UnitedHealth file? Summarize the implications of the depth of the options
backdating problem found at this company.
5.) Refer to the related article. What role does the Public Accounting
Oversight Board fill in assisting accountants to audit companies' accounting
for stock options?
Reviewed By: Judy Beckman, University of Rhode Island
--- RELATED ARTICLES ---
TITLE: Guidelines Set for How to Audit Stock Options
REPORTER: Siobhan Hughes
PAGE: A10 ISSUE: Oct 18, 2006
LINK:
http://online.wsj.com/article/SB116114078518696161.html?mod=djem_jiewr_ac
"HealthSouth Agrees to $445 Million Settlement,"
AccountingWeb, October 2, 2006 ---
http://www.accountingweb.com/cgi-bin/item.cgi?id=102629
HealthSouth Corp. announced on Wednesday that
it will pay $445 million to settle several lawsuits that were filed
against the company and some of its former directors after an accounting
scandal.
HealthSouth will pay $215 million in common
stock and warrants, and its insurance carriers will pay $230 million in
cash, the company said. Also, federal securities class-action plaintiffs
will get 25 percent of any future judgments obtained by or on behalf of
HealthSouth regarding certain claims against fired CEO Richard Scrushy,
former auditors Ernst & Young, and the company’s former investment bank,
UBS. Each party remains a defendant in the derivative actions and the
federal securities class actions.
A judge must approve the settlement, which is
nearly the same as a preliminary settlement that was reached in
February.
"This settlement represents another significant
milestone in HealthSouth's recovery and is a powerful symbol of the
progress we have made as a company," said HealthSouth President and CEO
Jay Grinney. HealthSouth, the Birmingham, Ala.-based rehabilitation and
medical services chain, does not admit any wrongdoing in the settlement,
nor does any other settling defendant, the company said.
The settlement does not include Ernst & Young,
UBS, Scrushy or any former HealthSouth officer who entered a guilty plea
or was convicted of a crime in connection with the company's financial
reporting activities ending in March 2003.
Scrushy and more than a dozen top executives
were accused of recording as much as $2.7 billion in bogus revenues on
the company's books over six years. UBS and Ernst & Young have denied
knowing about the fraud. Last year, Scrushy was acquitted of all
criminal charges in the fraud. He was convicted of conspiracy, bribery
and mail fraud charges in a separate government corruption trial.
Note that the above settlement does not include a
settlement with Ernst & Young auditors.
Bob Jensen's threads on the HealthSouth Corp. fraud are at
http://www.trinity.edu/rjensen/Fraud001.htm#Ernst
Bob Jensen's fraud updates are at
http://www.trinity.edu/rjensen/FraudUpdates.htm
Bob Jensen's threads on accounting for employee stock options are at
http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm
Scrushy to Pay HealthSouth $31 Million
Richard M. Scrushy, founder of the HealthSouth
Corporation, has agreed to pay the company $31 million as part of a
settlement of litigation over his bonuses and legal fees. Mr. Scrushy
dropped a lawsuit seeking $21 million for legal fees after HealthSouth
agreed to credit that amount against the $52 million he owed for inflated
bonuses, said Teresa Tomlinson, one of his lawyers. HealthSouth ousted Mr.
Scrushy in 2003 after auditors uncovered a $2.7 billion accounting fraud at
the chain of rehabilitation centers.
"Scrushy to Pay HealthSouth $31 Million," The New York Times,
November 30, 2006 ---
http://www.nytimes.com/2006/11/30/business/30health.html
Link forwarded by Roger Collins
How dominant shareholders screw the small investors
What matters, though, is that the non-family
shareholders have not fully benefited from deals over the years. Moreover,
because of these transactions, investors have lost influence over their
company to a dominant shareholder. In essence, the Bouygues' financial
cunning enabled the family to acquire stakes in companies that arguably
should have been entirely in the hands of Bouygues SA. But the dealing was
extremely subtle; any ordinary investor living through the drawn-out
creation of the Bouygues family's stake would have found it almost
impossible to follow. This raises a broader lesson. Investors battered by
scandals over stock-options and golden parachutes sometimes look to
family-run companies for salvation. Although professional managers, with the
advantages of time and inside knowledge, can run a business to suit their
own interests, family owner-managers are often thought to be less prone to
such “agency risk”. Yet the story of Bouygues SA suggests that family
capitalism, so common in continental Europe, can sometimes backfire as much
as any share-option scheme.
"Creative construction," The Economist, November 30, 2006 ---
http://www.economist.com/business/displaystory.cfm?story_id=8348645&fsrc=nwlbtwfree
Complicated Accounting Rules and Employee Pressures
November 7, 2006 message from Amy Dunbar
[Amy.Dunbar@BUSINESS.UCONN.EDU]
I am teaching a class, Research for Accounting
Professionals, and I have been thinking about how to prepare my students
for the "real world." I am looking for some insight re: the apparent
increased pressure on accountants. For example, some say that the
financial reporting environment is rivaling the tax world for the number
of new rules that come out every year. I counted the number of
statements issued since per year and found that the 1980s was the
busiest period, with 1982 being the highest year with 18 statements.
Does anyone know why that was? If the number of statements isn't
increasing, is it the guidance from SEC that has increased, or is the
pressure coming from the SOX environment with its emphasis on internal
controls? Has the internal control guidance stepped up? Or is the
pressure simply the same pressure that all business people are facing
from increased global competition?
1 1973
2 1974
9 1975
2 1976
6 1977
4 1978
10 1979
10 1980
9 1981
18 1982
7 1983
4 1984
6 1985
3 1986
6 1987
4 1988
3 1989
2 1990
2 1991
5 1992
4 1993
2 1994
7 1995
3 1996
4 1997
3 1998
3 1999
3 2000
4 2001
4 2002
3 2003
4 2004
1 2005
5 2006
Amy Dunbar
University of Connecticut
School of Business
Department of Accounting
2100 Hillside Road, Unit 10