Archive for October 31st, 2011
Transparent accounting: Based on revenue, away with totally biased Net Profit gimmick
Posted by: adonis49 on: October 31, 2011
Transparent accounting: Based on revenue, away with totally biased Net Profit gimmick
Revenue is the one item in the balance sheet that no corporation is about to cheat on, not even gang and drug criminal organizations. Why?
Board of director members take their cuts directly from the total revenue.
They know how much the company is generating in gross profit, excluding side revenues and under the table bonuses and favors…The percentage on the revenue cut must correspond to 50% of the gross profit, and they get first cut, ahead of time, and all other items can be changed to correspond to the expected net profit.
You cannot have a balance sheet or working statement or any other accounting gimmick without accurate revenue…
Even without the huge amount of data, financial and economical data, companies in particular line of business have an appreciation of the gross profit before the legal year starts, based on the previous revenue and accurate forecasting…
Every item in the balance sheet is known as a percentage of the revenue. You change a percentage and you know what the managers should be doing as consequences: Fire employees and how many, reduce facility costs, save on energy, training, quality of spare parts, inspection, quality control,…
Actually, all the accounting standards and accounting schools and degrees are not meant to fine-tune the accounting records of anything.
The government and the corporations have no need for all the accurate numbers and inspection of records and papers: They know the revenue and the proper percentage on the revenue that each item is measured accordingly.
Government can as easily and more accurately get the taxes on revenue, instead of waiting for the gross profit computation, and saving the citizens the exacerbation of enacting loopholes as large as the State of Montana.
If the financial and business communities consider the tax rate on revenue high or exaggerated, they can lobby to simply reduce the rate of the percentage on the revenue…What’s the big deal?
Is transparency anathema to governing?
Should government persist on creating more mysteries than the citizens are ready to swallow?
Is governing meant to constantly resume the financial emulation of cult organizations with code-names, secrecy, childish gimmick…?
Why the top 1% of corporations have to skim 20% of total revenue, then rearrange all the items in the balance sheet, so that the workers and employees sweat out negotiating on a better minimum wage?
Who is taking advantages of the small prints as footnotes in the balance sheet and other accounting gimmicks? Why should the nation needs expert on how to comprehend the meaning of the footnotes, if transparency is the goal in transactions?
Occupy Wall Street protests should demand that accounting ratios should be transparent on a special accounting sheet: Citizens must know how much the top 1% are actually paid, how much the middle management is paid, and how much the rank-and-file of workers are paid as a proportion of the total revenue…
Actually, who is generating the profit if not the workers and employees, and who is making the economy grow, and who is defending the interests of the top 1%?
Occupy Wall Street protests task is to demand transparency in all financial undertaking, starting with a transparent accounting.
Are there differences among Conventional Wisdom, common sense, idioms of the land, and “obvious lessons” in applications?
Posted by: adonis49 on: October 31, 2011
Are there differences among Conventional Wisdom, common sense, idioms of the land, and “obvious lessons” in applications?
I much prefer to base my essay on a published opinion, dissect the article and explain my position. For example, I read this post from notesby.me, titled “Why do obvious lessons never work“? It says:
- You won’t really learn obvious lessons until you’ve done the mistakes yourself.
- Focus on one project at a time.
- Don’t be afraid to fail.
- Fall down 7 times, get up 8.
- People come before anything else.
- Treat people the way you’d like to be treated.
- Don’t wait for the perfect time, start now.
- Etc.
We know all these obvious lessons. Or maybe not.
Why don’t we all abide my them? Why does it take years until a few of (these lessons) become part of our system?
I’ve come to realize that they are a huge difference between two edges. The first edge is knowing and accepting these obvious lessons. The second edge is Having these obvious lessons as part of our belief system.
We all know about Jesus, Buddha, Muhammad, and so on. But one or none of these religious figures is part of our belief system. We will not act according to the teachings of any one of these religious figures, until one of them becomes part of our belief system.
And I’m not advocating adopting one religion. I’m only using religion because it’s an example we can all identify with. I, at the moment, adopt none.
That’s the challenge.
Adopting obvious lessons as part of our belief system doesn’t happen on a rational level. It takes a strong emotional experience. A huge failure perhaps. Or a loved one turning their back on us. Or a “life changing” lost opportunity. Or a close person truly appeals to our emotions.
The problem is obvious, those of us who have experienced these obvious lessons on an emotional level, go on to share them on a rational level. It never works this way.
Belief systems or world views are always amended on an emotional level. That’s why you won’t really learn obvious lessons until you’ve done the mistake yourself.
Please share with me your experience in the comments. Twitter @williamchoukeir” End of post
Do you think these are obvious lessons?
The economist John Kenneth Galbraith is credited to have coined the term “Conventional Wisdom” as he wrote:
“We associate truth with convenience, with what most closely accords with self-interest and personal well-being or promises best to avoid awkward effort or unwelcome dislocation of life. We also find highly acceptable what contributes most to self-esteem…Economic and social behaviors are complex, and to comprehend their character is mentally tiring. Therefore, we adhere, as though to a raft, to those ideas which represent our understanding…” It is sort of we stick to community habits, customs, and consensus for acknowledgment, as one normal person, and not the designated fool of the community.
How do you understand “having common-sense” to mean?
Does it mean you have enough normal social-intelligence capacity to recognize how things are done in a community, to understand the customs and traditions within a community, and to behaving as it is expected of a normal member?
I have learned in Industrial Engineering the many pitfalls and errors committed in designing a system or product by simply relying on a designer common sense.
Countless people, consumers, soldiers, operators have died or were seriously injured because companies failed to conduct experiments on how people behave, using a particular system or product. Most experiments have demonstrated that someone common sense of a behavior, particularly the designer, is counter-intuitive to the majority of the subjects tested.
It is not clockwise but counterclockwise, it is not to the left but to the right, it is not up but down that the majority of people in a specific community tend to act, prefer, or behave…
The common sense attitude of people is mostly idiosyncratic to other communities that have their own preferences and opinions…
Have you read a set of idioms from another culture, civilization, country…?
Do idioms resemble closely what you have learned in school or overheard in your community? More often than not, you discover idioms with opposite meaning and carrying different value standards…
Are idioms retained because the idiot of the village was a good rhymer and very funny and the idiom was retained for its humor content…? Or many idioms were rhymed so that common people who could not read or write memorize what is to be done and how to behave under particular situations…?
How obvious is it to learn after making “the mistake”?
Aren’t all the knowledge and courses we have taken meant to know the correct answer before hand? Are we learning our lessons the wrong way, according to our idiosyncratic predisposition, or we failing to attend to details, or we are opting for shortcuts when doing our due diligence is the norm…?
Are we applying equations mindlessly that are not appropriate to the case-study? Are we failing to double-check our procedures or asking a second opinion on problems that are more complex than expected?
If to err is human, should mankind basic characteristic is to be in the wrong most of the time?
Is “Don’t be afraid to fail” such an obvious lesson?
How many teachers, bosses, or superiors… do you know who have given you a second chance to making another mistake? How often did your community or close family “condescended” to let bygone be bygone and told you “It is okay to fail once, twice, 77 times, as long as you are diligent in avoiding repeating the same error…?”
How obvious is “People come before anything else…?”
Do wars, particularly preemptive wars put people before anything else? Do the board of director members of any corporation think that people come first? Why 50% of the profit is distributed to the 1% and the other half to the hundreds of workers and employees? Why enterprises with monopoly over a section of the economy force upon the customers products and designs that should be redesigned for a healthier and safer usage…?
How about you develop and reflect on the remaining “obvious lessons”?
Deterministic or free-will behavior: What is priming the “Thief Program”?
Posted by: adonis49 on: October 31, 2011
Deterministic or free-will behavior: What is priming the “Thief Program”?
Do you know that a few universities have opened courses in “experimental philosophy“?
This new field of study combine neurosciences research with theoretical philosophical concepts such as finding out whether people believe that their behaviors and actions are determined (or perceived as predetermined) or if the “free-will factor” is a working concept…
This field of study wants to associate reflective and elaborate concepts with experimental studies.
Last September, the John Templeton Foundation contributed $4.4 million to a 4-year program in interdisciplinary research projects among natural scientists, philosophers, and theologians…
Apparently, Joshua Knobe and Shaun Nichols are working on 3 domains: One, using neurosciences tools to study cerebral activities of subjects confronted with philosophical problems;
Two, adopting questionnaires to clarify intuitions and modalities of everyday reasoning, and
Three, conducting field experiences for observing the manners individuals behave in particular circumstances and situations.
US philosopher Daniel Dennett published “Theory of the evolution of liberty, (2004)” claims that we have tendency to dissociate the “I” from “my brain”. For example, is there a specific zone in the brain exclusively reserved for the “I” or the “Cartesian theater of operations“?
The neuropsychology Benjamin Libet demonstrated that we become conscious of a decision half a second after our body gets prepared to react to a decision.
For example, the disparate “I” in our constitution and brain parts contribute to the decision. It is sort every single muscle has an “I”, our genetic constitution has an “I”, every section and network of neurons has an “I”.
All our “I” have to reach a working consensus before the body react and a decision can be carried out. Isn’t that how a skill is described?
Neuroscientist Patrick Haggard wrote: “When we talk of free-will, we mean the richness of the act, of our capacity of acting intelligently, of not reacting in the same manner to the same stimuli…”
Scientists, neuroscientists, neuropsychologists, philosophers, theologians, and the legal profession have to agree on baseline consensus principles before any reasonable set of experiments can be carried out for the purpose of resolving this critical question.
First, operational definitions of “what is free-will decision” and “what is understood by deterministic behavior” we are measuring?
For example, how can these concepts be measured and quantified in any experiment? So far, neuroscientists consider an excitation of neurons in the brain as indication of a decision to act. Their preferred measuring sticks are time of onset of the excitation and its duration…
Second, what kinds of excitations and their intensity level can be indicators of a particular decision? Sort of we need to agree on a taxonomy of decision.
For example, pushing a button, decisions for submitting to a test, an exam…considering an opportunity, running for election, committing a crime…
Third, the legal institutions must be involved in the definition and operational decisions. For example, will the court accept the definition and findings of the neuroscientists as valid in court under the principle of “individual responsibility”? Otherwise, how pragmatic any results can contribute to better mankind existence?
Four, how to separate community moral and ethical standards from how the real world functions and how people actually have tendency to behave?
For example, experiments demonstrated that group of subjects who were induced to believe in a deterministic world tended to cheat significantly (statistically) more often than the compared groups… Does cheating an indicator of community culture or an individual moral value…?
In Jan. 23, 2010, I published an article titled “Abduction field” or a priori “stealing” program” behavior.
I coined the term “abduction field” to describe and explain how people manage to function in their daily routine. People move and act as if executing an “a priori program”: They seem to mentally “pick up” objects and event as they go about. People seem to know in advance what they want to do.
Hazards are just obstacles that the “abduction field” in the brain failed to adjust, in a timely manner, to redesign the plan. It might be a good idea to explain what abduction reasoning means before I venture into this topic, and I urge you to read note#1, before you resume reading.
People use the abduction reasoning technique as routine behavior to decide, move, or act. People have implicitly a priori (idea, plan, concept, hypothesis, path, or line of actions) before they get moving.
People move as if they already know what will happen next; they adjust their plan as frequently as obstacles occur. Thus, abduction reasoning is the rule instead of the exception in most commonly used strategies. We either start our “conscious day” with a priming thief program or we opt for the default “Habit thief program” to carry on our daily decisions and activities.
The abduction field explains the contradictory feeling we have that our actions are frequently determined or occasionally following a free-will course of action.
For example, if we consciously start with a thief program that is pre-programmed to suit what we want today, we tend to steal objects, events, opportunities on our way. Otherwise, the default value is the “habit thief program”, and we feel that the day is pretty much determined.
The individual “I” is spread all over our organism, physical, genetics, and mental (brain). Decisions are delayed until all the different varieties of “I” reach a working consensus, or a particular “I” or a set of “I” override the other I, depending on which thief program we launched at the start of the day, rejump it during the day according to our circadian cycles.
For a set of “I” to be able to override the many other “I” it requires a conscious effort of training and awareness for a long time. That is why, we have the feeling that our behavior is pretty much determined because we allow the “conventional wisdom”, habit of convenience, comfort, and “common sense” attitude to taking over our decision processes.
A good way to explaining the abduction field theory is by observing someone who is familiar with a particular supermarket. The customer moves around and pick up items in a determined manner.
A few times, the customer stops and study particular varieties of the “same” items for prices, weight and chemical contents. The supermarket guide the customer to pose and attend to special new items displayed on shelves. The customer might look as if he just woke up or is disoriented, but his action is kind of planned: he behaves pretty “sober” in his decisions.
People move and act within abduction fields of reasoning, otherwise, how can we imagine extending a step forward without advanced planning? The initial schemas of abduction fields are not that well oiled, and many errors and pitfalls occur during the abduction plans. By the by, the human brain gets adjusted and trained to secure better fit in forecasting next steps and moves.
Highly intelligent people differ from normal intelligence in that, more frequently than not, they consciously apply deductive and inductive reasoning on their initiated abduction fields. The implicit purpose is to optimize the “abductive field” performance by supporting it with better formal or coded laws among the working laws.
With conscious training and application of the other two reasoning methods, the individual acquire higher intelligence reasoning choices or diversified perspectives to viewing and resolving a problem.
Brainwashing is an application phenomenon of abduction field distortion. Brainwashing is not so much a process of feeding misinformation or disinformation as in ideologically and dogmatic State-controlled government. Brainwashing is the process of altering the abduction field so that an individual lacks the objective flexibility to pick up the appropriate objects, tools, or events to place on his “abduction path”.
For example, the individual is picking what is available on his path, including ready-made terminology and definitions, and not what his brain was more likely to select in normal conditions. The more institutions restrict the freedom of choices, the more the citizen is expected to select what is available to him.
The citizen starts emulating the “ideology” or the opinions of what have been displayed to him. Most State institutions control people in restricting the availability of choices and opportunities, regardless what names are given to them (communist, socialist, democratic, capitalist, theocratic…)
When we say “this guy is a one track-mind or one-dimensional mind”, we basically means that his abduction field has been restricted by habit: His brain ended up lacking the potential flexibility and versatility to train and develop his abduction field reasoning.
Note 1: It might be a good idea to explain what abduction reasoning means before I venture into this topic. Human mind uses many reasoning methods such as deduction, induction, and abduction.
Deductive reasoning is a process that starts from a set of basic propositions (proved or considered the kind of non provable truths) and then prove the next propositions based on the previous set. In general, a law, natural or social, or a theorem in mathematics guides the demonstration. Practically, it is like using a function to find the appropriate pieces of data or information that are available on a well drawn path or trend.
Inductive reasoning is a process of selecting samples from a phenomenon or a basket of items and then studying the samples. If the items are the “same” in each sample then the individual is prone to recognize that a law is guiding that phenomenon. The sample taker is ready to form a law, though he knows that logically, if in the future one sample is wrong, then the law is logically invalid. In the mean time, the sample taker can resume his life as if the law is valid, as long as it is working (more frequently than not).
We call a “paradigm shift” the period when accumulated samples or observations are showing to be “false” and that the law has to be dropped for a better performing law. The process needs time before the scientific community reaches a consensus for a change in venue, simply because it was comfortable using well-known mental structures. The paradigm shift period is shortened if a valid alternative is demonstrated to work far better, not just slightly better, than the previous theory.
Abduction reasoning is an “intuitive” process such as having a few facts or data and we manage to find a connection among these facts. In a way, we got an idea that the facts follow a definite trend.
For example, the astronomer and mathematician Kepler started with the notion that planets move in circles around the sun; his observations of Mars detected two positions that didn’t coincide with any circle. Kepler selected another trajectory among those mathematically described in geometry that might be appropriate. The elliptical shape accounted for the two observed positions of Mars.
Kepler got convinced that planet trajectories are elliptical, but he needed to convince the “scientific community”. Thus, Kepler worked for many years waiting for Mars to cross different positions that he knew would inevitably be on the ellipse anyway.
Note 2: I am under the impression that Spinoza had the same philosophical theory when he wrote: “The movements of our investigative spirit obey real laws”. If we think well, we are bound to think according to rules that link things one to another. Kant adopted this reasoning and offered the “a priori” dispositions of the mind.
Note 3: You may access experimentalphilosophy.typepad.com
Note 4: I stumbled on this topic reading a piece in the French weekly “The International Courrier” #1095.