Steve Job’s health, accounting materiality and disclosure..

We know already bout what happened to Apple’s Steve Job’s current health. What is seemingly intriguing to me is the impact of his condition to what happened on the stock floor. According to the SEC’s Regulation Fair Disclosure (Reg FD), public companies are required to disclose “material information” to all investors simultaneously. Obviously, this rule attempts to limit insider trading that occurred because of the information leak that might lead to action imbalances due to information asymmetry of selective disclosure.

The disclosure of SJ’s health made Apple shares plumed to $192.24 from May 2008. Following to the story, rumors over the need to have SEC further investigation arises. The question is, does Apple screw up the investors with this health information? Here comes accounting practice on materiality and disclosure to play the role. From my viewpoint, determining whether Apple violates the rule should be considered from two consecutive factor, putting aside that the information is potentially misleading (validity). First, identify the level of materiality and second, examine what level of disclosure taken to respond the materiality.

The definition of “material information” is somewhat subjective, but it’s essentially anything that investors would likely thing as important driving forces on every investment decision will be taken. In Apple case, though materiality is quite subjective, it’s more black and white conclusion that its disclosure cousin. Anything that has substantial effect on corporate’s earning, and off course eventually owner’s wealth, is material. And to me, for company like Apply, SJ figure is determining, hence material to accounting reporting. Bottom line, if you’re not sure, disclose it. Ok, done with materiality. Did Apple disclose it? sure they did..but how they disclose?…let’s jump to disclosure.

Disclosing a particular information is more tricky than materiality. Say you wanna disclose this health problem to the dance floor, but in what ways?. Article by Steve Tobak from provides a nice way of doing disclosure in one sentence, “how long can a company keep material information confidential before it leaks?”. So, if company feels that the leak to become reality is highly likely, it better discloses the information sooner than later. But be careful not to think that disclosure should be done after the information is leak. I’m not saying that disclosure equivalent with the leak of information.

So, question should be posed first is whether leak takes place in relation to SJ’s email to his employee? if yes, is it intentional? The answer should be seen to the action that follows the leak. If the time the leak precedes the disclosure is long,than violation of Reg FD happens. But if the disclosure is issued immediately, Apple’s hand should be clean.

Anyone wants to comment?


SAP ERP Business Process

I guess this short description about SAP would attract accountant to make a career no only in audit and tax.

Demand for finished products from customer will be recorded by Sales department in a sales order document. Sales order data can be analyzed by Inventory department. If there are not enough finished products in
current stock, the sales order can trigger a production order that request the Production department to start producing the finished products. In order to produce the finished products maybe it requires some raw materials that have to be bought from vendors. The production order can trigger a purchase requisition for the raw materials. The purchase requisition will be processed by Procurement department to be a purchase order that is sent to vendor. Vendor will deliver the raw materials and Inventory department will receive them.
Accounting department will record the vendor’s invoice and Finance department will process the payment. Once the raw materials are available, the Production process begins. Then the finished products will be
delivered to the customer, and Finance department will send invoice to the customer.All of the above processes need man powers that are managed by HR department and paid by Payroll Accounting department.

All of the above processes can be recorded by SAP R/3 in:
* Sales and Distribution (SD) module.
* Production Planning (PP) module.
* Material Management (MM) module.
* Finance & Controlling (FI/CO) module.
* HR Module.

Certain transactions in the above example also trigger accounting business process. FI/CO module posts accounting documents for some transactions that have an accounting effect in SD, PP, and MM module,
such as finished products issue for sale to customer, raw materials receipt from vendor, etc. These processes will affect the financial reports such as Balance Sheet and Profit & Lost Statement.

Pusat Studi ERP Indonesia

[Call For Papers] Asia Modelling Symposium 2009

Deadline : 31 Januari 2009.
AMS2009 will be held over 3 day period in Indonesia, with days 1 and 2 on 25 and 26 May in Bandung and day 3 on 29 May in Bali. For participants starting their trip in the UK, the conference organizers are preparing a 10 day travel and accommodation package to include 4 days in Bandung and 6 days in Bali, details will be made available on this website in due course.


Call for Papers
The Symposium will focus on all aspects of modelling and simulation techniques, particularly those involving intelligent and hybrid intelligent systems in engineering, remote sensing and wireless technologies. Models in computational intelligence, hybrid and connectionist systems, evolutionary algorithms and fuzzy systems are used by designers, implementers and managers to improve understanding, evaluation and assessment. Modelling and Simulation techniques provide fundamental support at all stages of the life cycle in application areas such as industry, business, energy, transport and the environment.

Papers are invited in these and other areas:
– Industry, Business and Management
– Algorithms, Methods and their Applications
– Methodologies and Tools
– Energy, Power Generation and Distribution
– Distributed Systems and Networks
– Geographical Information Systems (GIS)
– Environment and Health
– Education and Training
– Bioinformatics
– Remote Sensing applications & technologies – Robotics, Fuzzy modelling, Control and Automation
– Software Agents and Agent Based Simulation
– Knowledge and Data Mining
– Neural Networks and Evolutionary Computation
– Swarm Intelligence & Technology
– Architectures of Intelligent Systems
– Image, Speech and Signal Processing
– Internet Modelling, Semantic Web and Ontologies
Submission Guidelines
You are invited to submit:
– full paper of 6 pages (A4 format) for oral presentation,
– proposal to organize a technical session and/or workshop.

Submissions must be original, unpublished work containing new and interesting results that demonstrate current research in all areas of intelligent systems modelling and simulation and their applications in science, technology, business and commerce. As in previous years (see AMS2007 and AMS2008 on the IEEE website) the proceedings of the Conference will be published in the IEEE Digital Library. The conference is organised by Asia Modelling and Simulation Society and is co-sponsored by

– IEEE UK &RI Computer Chapter
– Asia Modelling & Simulation Society
– UK Simulation Society
– European Council for Modelling & Simulation

Submission implies the willingness of at least one of the authors to register and present the paper. All papers are to be submitted electronically,- see full instructions under Paper Submission below, in PDF or Word format. All papers will be peer reviewed by at least three independent referees of the international program committee of AMS2009.

Authors of the best papers will be invited to revise and extend their work for publication in a special issue of theInternational Journal of Simulation: Systems, Science and Technology.
Conference website:

The power of Community(2.0)

Did you ever feel that every pieces of your footstep in your life at a point in time may at least lead you to a wiser and bigger meaning of something? well I maybe one of those who thing that way. I see that mailing list and my reading during the last two weeks lead me to to start understanding how collaborative working can rule the new competition.
I’ve been reading this cool book for about two weeks from the first day I bought it at a bookstore in Bandung. Oh yeah, I forget. Anyway, the book is entitled Wikinomics. Pretty eye catching for an impulse book reader like me by just looking at the cover. Though I read its Indonesian translated version, the message is pretty clear and delivered nicely. It’s a pity that I’m in the middle of my peak time to finalize some stuff for the end of January.
Authored by Don Tapscott and Anthony D. Williams, the book is promising a new look of how information society revolutionizes. It’s not food company vs food company anymore. It’s not also rivalry between two competing value chains. It’s way bigger than that. What happened now is global competition. I’m not talking global in a “multinational” or “enterprise-wide” sense, but global in the sense that all people are powered by the new version of the little e- (e-business, e-commerce, e-money, e-banking) to enhance new innovation, new product and even bigger, a new paradigm. Collaboration, seems to be the most looked up buzzword to define how people are now enabled to create a new kind of working style, dumping self and license protected product and services.Whole range of collaborations now exist to demonstrate the capability of shared-working: blogs, wikis, peering, open source application, and to my knowledge, mailing list.

In Indonesia, the wave of collaboration is also moving on. I realize the going by looking how community media is having its evolution. From 20 mailing list I have been joining so far, at least now I’m part of some mailing lists that serve for certain domain of knowledge. One community/ mailing list, KOM-TEK, stands for KOMputer TEKnologi, is an Indonesian -based mailing list dedicating for improving the member skill. It is a place where few humble and IS experienced people are dedicating themselves for the development of Indonesia human resources, especially in ERP and other enterprise application. They hold ranges of free ERP trainings given that internet connection is available. As a result, now more people are coming that are competitive for ERP human resources market after they graduate from the training.

Another mailing list, IPOM-APICS are opening opportunity for those who are interested in industrial engineering and its related field. The mailing list is associated with APICS (a non profit organization that offers three internationally recognized professional certification programs:CPIM – Certified in Production and Inventory Management, CFPIM – Certified Fellow in Production and Inventory Management, and CSCP – Certified Supply Chain Professional designation. Since its formation, the mailing list has been able to provide its member access to knowledge in operation management.

Having read this, I guess it’s not impossible to create new innovation from this community controlled area. And that’s what I call the power of community.

Dr. Doom

A nice article I saw from

Who Is Nouriel Roubini?
By Alice C. Chen
published on 1/05/2009

Is economist Nouriel Roubini a prophet or a perpetual pessimist who happened to get it right? In 2004, the New York University professor started to see disturbing trends he thought would lead to a crippling U.S. recession and a global slowdown. While other economists echoed his view at times, Roubini was the most consistent and bearish, even when his predictions failed to happen. So, most mainstream economists dismissed him simply as a perma-bear.
Five years after his initial warnings, he’s one of the most sought-after advisers in the world, strategizing with entities like Congress and international finance ministries.
Key Stats
• Name: Nouriel Roubini
• Also known as: “Dr. Doom”
• Age: 50
• Profession: NYU economics professor, co-founder of the economic-analysis firm RGE Monitor.
• Why he matters: Since 2004, Roubini has been the most pessimistic — and most accurate — predictor of the economic crisis. People ignored him then. They don’t anymore.

His Predictions
While other economists thought the real estate bubble would burst, they didn’t realize the extent of the devastation because housing is only about 6 percent of America’s GDP. Roubini, however, was one of the few who saw the link between housing and consumer spending, which makes up more than 70 percent of the U.S. GDP and about 25 percent of the world’s purchases of goods and services. As real estate prices soared, consumers used home equity loans to finance more expenditures.“(T)he only way you can liquefy your wealth is by using your home as your ATM machine, and that is exactly what has happened in the last few years,” Roubini told an audience at the International Monetary Foundation in 2006.


Roubini also saw the makings of a massive, global trade imbalance. The U.S. was borrowing from China to purchase Chinese goods. China was buying commodities from Latin America and the Middle East to produce those goods. If China experienced any internal disruptions and it stopped financing the U.S., the dollar would devalue, consumer spending would drop, and a global economic slowdown would result.

Bottom line: America was borrowing from other countries to fund consumption and housing rather than productive investments that create exportable goods and services. Roubini concluded the trend was unsustainable. “The bursting of the housing bubble is going to lead to broader systemic banking problems,” he told the IMF audience. “The rest of the world is not going to be able to decouple from the U.S. even if it is not going to experience an outright recession like the United States.”

His Method
While many economists rely mostly on rigorous econometric formulas, Roubini assumes that quantitative methods alone can’t explain unprecedented moves in the global economy. So, he adds a heavy dose of intuition, historical analogies, and circumstantial observation to his work. He derives most of his forecasts from simple data like supply-and-demand models and ratios of home price versus rent and home price versus income. Other economists use computers to crunch data, but Roubini uses his brain, says Christian Menegatti, lead analyst at Roubini’s firm RGE Monitor. His nontechnical framework has been likened to those used by noted economists Joseph Stiglitz and Paul Krugman. And Roubini told the New York Times that Alan Greenspan and John Maynard Keynes have influenced his methodology. His approach to economics isn’t radical, but his style can be considered flamboyant, says Brad Setser, who co-wrote a book with Roubini and is now a fellow at the Council on Foreign Relations Center for Geoeconomics. A recent Roubini blog post illustrates the point: “(T)hese Bush hypocrites who spewed for years the glory of unfettered wild west laissez faire jungle capitalism allowed the biggest debt bubble ever to fester without any control (and) have caused
the biggest financial crisis since the Great Depression.”

The Debate
Anirvan Banerji, director of research at the Economic Cycle Research Institute, praises Roubini for correctly capturing the nature of the crisis but points out that his timing was repeatedly off. What if the Fed had adjusted interest rates or businesses stopped hiring based on impending recessions that didn’t occur?
But, Darrell Duffee, a finance professor at Stanford’s Graduate School of Business, says timing is not so important. “His skeptical commentary has been very, very useful,” says Duffee, who added that Roubini’s warnings were meant to straighten out the financial sector. Indeed, in November 2004, Roubini warned on his blog, “(S)erious financial distress from unsustainable fiscal and current account deficits cannot be ruled out.”
Banerji also criticizes Roubini for changing his justifications for the recession as he kept missing the timing. First it was the trade deficit, then oil price shocks, then the housing downturn, and finally the credit crisis, Banerji says. “There’s something lacking in terms of understanding what triggered the recession,” he adds.
Supporters argue that Roubini emphasized different vulnerabilities but his overarching argument remained the same. “The U.S. wasn’t borrowing from the world to finance productive investment (and) that process would end badly,” says Setser.

His Solution
Roubini expects things to get worse before they get better and predicts the recession will last at least until the end of 2009. In general, he advocates for the government to stabilize the economy through monetary and fiscal policy. Here are his recommendations to stop the credit crisis:
• Temporarily freeze all foreclosures.
• Create massive fiscal stimulus packages of at least $400 billion for public works, infrastructure spending, unemployment benefits, and tax rebates to lower-income households. Provide grants to state and local governments in dire need of funding.
• Coordinate interest-rate cuts globally.
• Temporarily insure all bank deposits. Allow insolvent banks to shut down and partially nationalize solvent but distressed banks.
• Open credit lines to solvent financial institutions and companies.
• Inject money into banks by buying equity.
• Coordinate a global effort to gradually adjust trade imbalances.
Policy makers around the world have heeded most of Roubini’s suggestions. Hopefully the one who saw it all coming sees the correct solution as well.

Information Relevancy-past&present

I want to propose a hypothesis or anything similar like that. You may or may not agree with my opinion.But if you put yourself back in early 90s or perhaps much further than that, say 80s, many of us really find it’s hard to get needed information channel for your decision making purpose in the sense that the channel was not provided sufficient enough. Organization business process data still being captured in a proprietary IS infrastructure in a so called legacy. Different division means different data structure, application logic/algorithm and communication standard. The premature stage of communication protocol like TCP/IP had not provided a quick way to obtain information. Put it in simple word, biggest problem is the lack of information channel that caused inability to get proper information for next course of action.
On the other hand, the emergence of web 2.0, search engines, browsers development, and many embedded web based applications are seen a milestone of present information processing age. The now act now as the frontier to open a new order of information discovery. Yet, organization still suffer from getting right information in right time, right context and right way. Even worse, we are drawn and chocked in a drastically huge volume of data or information, coined as Information Overload. Try googling with the word “computer”, n you’ll see 1,020,000,000 search result out of it. But to identify which context nicely fit to your desire is another problem I suppose.
Reflecting to said above explanation, I think that management or organization still face difficulties in obtaining a relevant information for decision making, only to a different extent. In the past we deal with information shortage, n now we face information overload. Until business and IS align together, the problem of information relevance will remain unsolved.

Wall Street’s 2008 Auditor Opinion

I quote and paraphrase my friend’s posting to my email…damn good

We have reviewed the management balance sheet for December 31st, 2008. Basically, from accounting equation rule, assets is positioned on the left side and capital is on the right side. Based on our finding and analysis of the company’s financial position, we conclude that on the right side, there is nothing right and on the left side there is nothing left.

Cuil..the next google rival?

Have a go with this new google like search engine named cuil. It has a very google atmosphere, only dominated with black. If I’m not mistaken, the way cuil works differs from google in that, at least for my own interest, it keeps my search history private. You, computer heroes probably have a comment on this? if this is true, how they’re supposed to get the money to run their business?



Also quite interesting some comments I quoted from saying that it’s just gonna faded and a would never take over google dominant position as incumbent. I don’t know. So far, I did a very small experiment. I typed a word I usually type on google on google and cuil. Normally, google always returns answer as I expect, so I use it as my benchmark. Quite surprising, cuild doesn’t do as what google has done.

Perhaps one day the would eventually refine their performance. For the mean time, I stick with google, albeit its ads and my scanned search history.

Proud to be an Accountant

Thanks to Salomo for the great share..hope you don’t mind if I reshare it again.

HR and Accountant

3 Real Life Stories…
The First …
Eleven people were dangling below a helicopter on a rope. There were ten HR people and one Accountant.
Since the rope was not strong enough to hold all the eleven, they decided that one of them had to let go to save all the others.
They could not decide who should be the volunteer. Finally the Accountant said he would let go of the rope since Accountants are used to do everything for the company. They forsake their family, don’t claim all of their expenses and do a lot of overtime without getting anything in return.
When he finished his moving speech all the HR people began to clap… so they fell!!!
Never underestimate the powers of the Accountants.

The Second …
A group of Accountants and a group of HR people take a train to a conference. Each HR person holds a ticket. But the entire group of Accountants has bought only one ticket for a single passenger. The HR people are just shaking their heads and are secretly pleased that the arrogant Accountants will finally get what they deserve.
Suddenly one of the Accountants calls out: “The conductor is coming!”. At once, all the Accountants jump up and squeeze into one of the toilets. The conductor checks the tickets of the HR people. When he notices that the toilet is occupied he knocks on the door and says: “Ticket, please!” One of the Accountants slides the single ticket under the doors and the conductor continues merrily on his round.
For the return trip the HR people decide to use the same trick. They buy only one ticket for the entire group but they are baffled as they realize that the Accountants didn’t buy any tickets at all. After a while one of the Accountants announces again: “The conductor is coming!” Immediately all the HR people race to a toilet and lock themselves in.
All the Accountants leisurely walk to the other toilet. Before the last Accountant enters the toilet, he knocks on the toilet occupied by the HR people and says: “Ticket, please!”, takes the ticket and show it to the conductor!!!!
And the moral of the story? HR people like to use the methods of the Accountants, but they don’t really understand them.

The Third …
Once upon a time three HR people were walking through the woods and suddenly they were standing in front of a huge, wild river. But they desperately had to get to the other side. But how, with such a raging torrent? The first HR guy knelt down and prayed to the Lord: “Lord, please give me the strength to cross this river! ”

The Lord gave him long arms and strong legs. Now he could swim across the river. It took him about two hours and he almost drowned several times.

BUT… he was successful!
The second HR guy, who observed this, prayed to the Lord and said: “Lord, please give me the strength AND the necessary tools to cross this river!”

The Lord gave him a tub and he managed to cross the river despite the fact that the tub almost capsized a couple of times.

BUT… he was successful!
The third HR man who observed all this kneeled down and prayed: “Lord, please give me the strength, the means and the intelligence to cross this river!”

The Lord converted the HR man into an Accountant. He took a quick glance on the map, walked a few meters upstream and crossed the bridge.
Moral? You have to be an Accountant to think intelligent, Otherwise…
Send this to your Accountant friends so that they have something to smile about;
and to the HR people if you think they can stomach the truth!