Kudos to Russia: Kudos to Russia (In retrospect, a Tuesday due date would have been better.) A Game: try to make it real.: A Game: try to make it real. Imagine you are the sole income earner supporting a spouse and three young children. You’ve cleared the six-figure salary mark, but realize that enhanced income opportunities are needed to support your lifestyle and the inevitable braces & college dynamic due. A Game: try to make it real.: A Game: try to make it real. A few years ago, you started an “on the side” business venture involving construction contracts…it’s pulling in an extra $20k per year, and you consider the cost (your time) / benefit tradeoff worthwhile.
You are confident that expansion could be profitable…specifically… A Game: try to make it real.: A Game: try to make it real. If you take out a loan for $200,000, there is a 60% chance you will win a contract worth $400,000 (enough to pay back the loan and have $200,000 left for the braces / college fund).
Unfortunately, if you don’t win the contract, you will get nothing…but you will still owe the bank $200,000 (which is consumed forming plans for your bid).
What will you do???
Take the loan / Don’t take the loan??? A Game: try to make it real.: A Game: try to make it real. What if you could take a 1/10th ownership interest?
(In other words, now the choice involves putting up $20,000…you have a 60% chance of turning it into $40,000 and a 40% chance of losing your investment.)
What if you could take a 1/100th ownership interest?
Did anyone change their tune? If so, why? A Question from North Korea: A Question from North Korea Why do life reinsurance companies exist in our business society? Do cendant companies actually benefit from full life reinsurance policies?
(NK’s direction-following discussion omitted) Are Professors Contestable or Negotiated Jobs? : Are Professors Contestable or Negotiated Jobs? Are we talking
pre- or post-tenure? Leamer files, Part 1 Oh ye of tenured status…: Oh ye of tenured status… At this point in your career, are you better off critical or uncritical feedback?
Why? To the extent possible…: To the extent possible… I will do what I think is in your (collectively speaking) best interest.
You might disagree with my views and opinions, but – in this class – my views and opinions count a whole bunch…for example… Month #1 of this course: Month #1 of this course In my opinion, a success.
Two (or three) recurring economic concepts were explored…I thought that was good…hopefully, you thought it was educational (if you disagree, keep in mind my opinion counts a whole bunch). A Tangent on Grading: A Tangent on Grading The feedback loop is relatively long.
In my opinion, developing your writing skill is a crucial part of being a successful auditor.
All non-rejected Leamer questions were forwarded to our technical writing assistant this afternoon…you should received these (along with my feedback) next week.
All rejected Leamer questions must be redone (remember… ‘free’ second chances occur in this class…more on this later). A Tangent on Leamer: A Tangent on Leamer He’s pretty glib, pompous, etc…huh?
A difficult read?
Similarities to accounting standards?
Notes for the Future: Notes for the Future Don’t hand in a weekly assignment saying, “I just didn’t understand what was going on” (note the ending preposition).
That’s unacceptable in Public Accounting and in this class.
If you have put forth effort and don’t understand, what should you do?
End of the Tangent(s).: End of the Tangent(s). The Political Economy: The Political Economy Insiders know the politics
The KPMG take on the unexpectedly fast rules-to-principles path
The SEC is very likely to begin accepting IAS instead of US GAAP - reconciles financials for foreign listings…it’s moving “much quicker than anyone expected”
What will happen next???? Slide17: A VERY NOTABLE Hierarchical DIFFERENCE US GAAP:
Textbooks and stuff like that IAS GAAP:
Stuff similar to EITF stuff
Textbooks and stuff like that IN CLASS QUIZ: IN CLASS QUIZ Be yourself, not your country….
Would this hierarchical change have affected Arthur Anderson’s relationship with Enron? If so, how? General Questions: General Questions How would Principles-based accounting standards affect SOX?
How would Principles-based standards affect client / auditor relationships (see Canada)?
How would P-b standards affect legal proceeding against auditors? A Tangent on Grading: A Tangent on Grading If I put “RET 1” on your first business question…it was for not following directions. In retrospect, this was petty on my part…but on the first three of four RET 1’s, I couldn’t tell why you were interested in the question…and later, I tried to stay consistent (although, again, this is a bit petty)….if you have a RET1 and would like to change your question, feel free.
Please put your country’s revised Business Q #1 in my mailbox by next Wednesday. “RET 1”s: “RET 1”s No need to pick these up…but I have them if you didn’t save your question.
Again, redo by following the directions (which typically means, explain why you find your question so interesting). Also, feel free to change your question if, in retrospect, you don’t find it interesting. A Question from South Korea and Spain…: A Question from South Korea and Spain… Will regulations by SOX ever be relaxed and, if so, would that reduce the demand for accountants causing newly hired Big 4 auditors to lose their jobs? Verbal reading of SK/S comments Is that a Business and Economics related question?: Is that a Business and Economics related question? (I’m not sure…but two countries had this question…) Refining “Three Questions”(refer back to the syllabus): Refining “Three Questions” (refer back to the syllabus) Start reading the WSJ regularly.
Business Questions #2 must come from a specific WSJ article.
No current due date…but find something interesting or something you don’t understand very well.
More Grading: More Grading If I put “RET 2” on your first business question… I genuinely appreciate the sincerity of your question; however, RET2’s are either ‘self answerable’ (in my opinion) or maybe interesting but ‘un-aswerable’… instructions for how to proceed have been individually marked on your country’s paper.
Please put your country’s response in my mailbox by next Wednesday. “RET 2”s: “RET 2”s You need to pick these up…after I leave class.
Again, follow the individual instructions on your sheet. Next Week’s Assignments: Next Week’s Assignments Address Iran’s question (part of it).
Put your country’s response in my mailbox by next Tuesday at noon.
Q: Will America be able to find a reasonable solution to the social security funding issue? Assignment: Assignment List available data sources you would use to address the question and outline the analysis you would perform (in less than two pages).
Don’t actually perform the analysis…just outline relevant factors (that have available information). Slide29: Leamer files, Part 2: Weekly Assignment #1 Although a spectrum of quality exists, my quality assurance responsibility is to decide when the glass is more empty than full. “RET 2” Classification : “RET 2” Classification Nigeria: re-write and return your assignment to my mailbox by next Monday at noon…I’m not giving this assignment to the technical writing grader. Leamer files, Part 2: Weekly Assignment #1 “RET 1” Classification : “RET 1” Classification The general ‘do over’ classification.
Think more critically about your assignment. Leamer files, Part 2: Weekly Assignment #1 “RET 1” Classification : “RET 1” Classification Things to think about:
Are you answering the question that was asked?
Are you misrepresenting Leamer’s views?
Do your arguments contain real content, or are you writing a bunch of words with little meaning? Leamer files, Part 2: Weekly Assignment #1 “RET 1” Classification : “RET 1” Classification Leamer files, Part 2: Weekly Assignment #1 Trying to put myself in your shoes, there is a legitimate claim that I’m not “telling you how to improve”. “RET 1” Classification : “RET 1” Classification Leamer files, Part 2: Weekly Assignment #1 Be more self-critical on the important second attempt.
Feel free to clarify &/or change your responses.
At least two responses need more thought.