The Development of a Conceptual Framework for the Design,Delivery, and Assessment of a Typical Management Accounting Syllabus

This article identifies common issues relating to management accounting education in order to determine whether using a competency‐based approach would assist educators in the design, delivery, and assessment of syllabi at educational institutions. A conceptual framework is developed and discussed with regard to the critical success factors methodology to design syllabi that assist educators in attaining the main outcomes in the delivery and assessment of the curriculum. This framework is applied to a typical management accounting curriculum to demonstrate how this approach will enable educators to design, deliver, and assess their syllabi in line with the critical outcomes required. In following this approach, lecturers would constantly have to focus on the knowledge and issues that are relevant and critical for students to understand and apply in order to achieve the aim of the syllabi.     

Australian not‐for‐profit sector views on the conceptual framework,accounting standards and accounting information

In this paper, we examine the conceptual framework, accounting standards and accounting information relevant to the not‐for‐profit (NFP) sector. Based on the responses of 242 Australian NFP managers, we find support for the inclusion of accountability in the conceptual framework, and for a common set of accounting standards across NFP and for‐profit sectors with additional standards or paragraphs to recognise NFP specific issues. Respondents also rated information within general‐purpose financial reports to be useful for decision making within their organisations. We offer suggestions as to what our findings mean for the development of accounting standards for the NFP sector.     

Excel in the accounting curriculum: perceptions from accounting professors

Public accounting firms emphasize the importance of accounting graduates being proficient in Excel. Since many accounting graduates often aspire to work in public accounting, a question arises as to whether there should be an emphasis on Excel in accounting education. The purpose of this paper is to specifically look at this issue by examining accounting faculty's perceptions of Excel in public accounting and accounting education. We survey 245 faculty members at over 100 accounting programs. We find that a majority of faculty incorporate Excel in their accounting classes consistent with their perception of Excel importance. However, we find that students are not fully proficient in Excel based on faculty's perceptions. This study contributes to the accounting education literature by identifying possible disconnections between Excel skills faculty include in the accounting curriculum and specific Excel skills faculty believe new hires (i.e. recent accounting graduates) most often use in public accounting.     

New development: The conceptual underpinnings of international public sector accounting

The conceptual underpinnings of accounting standards are potentially very important for the future of public sector accounting internationally. The authors explain why and comment on the implications for public sector accounting.     

Management accounting innovations for rationalizing the cost of services: The reassessment of cash and accrual accounting

ABSTRACT

Management accounting can be a useful tool in austerity government because it produces information about the costs of public services and can be used for informed decision-making. Spanish local governments are required to submit data on the cost of their services to central government, which publishes this information online. The calculation of costs is based on budgetary cash accounting instead of accrual accounting; therefore cash accounting is being used for decision-making and accrual accounting has no role in this process. This paper critically analyses the innovation from three perspectives: the use assigned to the cost information in the legal framework; the opinion of academics and experts; and the perception of professionals about the usefulness of the information produced with the new system.     

Students' beliefs,attitudes and intentions to major in accounting

This study extends the literature that uses the theory of planned behaviour in examining the factors that impact on students' intentions to major in accounting and non-accounting disciplines. A survey of a sample of business students enrolled in an introductory accounting course in a New Zealand University was conducted to gather data about their intended academic majors, and their beliefs and attitudes towards majoring in accounting and non-accounting. The results show that three factors (personal, referents, and control) are determinants of students' intention to major in accounting or other business disciplines. Further analysis revealed that the students' major intentions are influenced by important referents' perceptions. In particular, parents appear to have a stronger influence on students' intentions to major in accounting. Comparisons of differential personal perceptions by accounting and non-accounting majors revealed that accounting majors hold positive perceptions of some of the qualities of the study of accounting and the accounting profession. Significant differences were also found in the control perception between accounting and non-accounting major students.     

Trends in research on international accounting harmonization

International harmonization of financial accounting standards has been the goal of many professional and academic accountants during the last 40 years. As of January 1, 2005, international accounting harmonization entered a new and perhaps decisive phase. From that date, all companies domiciled in the European Union with shares listed on securities exchanges are required to prepare their consolidated accounts in accordance with International Financial Reporting Standards (IFRS). This landmark event presents an opportunity for accounting researchers to assess the status of research on international accounting harmonization. In this paper, we review articles published in major English language accounting journals during the period from 1965 through 2004 in order to trace thematic and methodological trends in this line of research and to assess where the research may evolve from here.     

Critical reflections on research approaches, accounting regulation and the regulation of accounting

The design and choice of research approaches, the nature of accounting regulation and the reactions to these regulations in organisations, involving, in effect, the regulation of accounting, are three themes of considerable importance in accounting research. They are the three themes that have dominated the research agenda of the author throughout his academic career. This paper explores the nature of these three key research themes developing some critical reflections on what has been discovered about each of these themes using the author's sole and joint research and publications as a vehicle for this analysis.     

Theoretical studies of the historical development of the accounting discipline: A review and evidence

Many existing studies of the development of accounting thought have either been atheoretical or have adopted Kuhn's model of scientific growth. The limitations of this 35-year-old model are discussed. Four different general neo-Kuhnian models of scholarly knowledge development are reviewed and compared with reference to an analytical matrix. The models are found to be mutually consistent, with each focusing on a different aspect of development. A composite model is proposed. Based on a hand-crafted database, author co-citation analysis is used to map empirically the entire literature structure of the accounting discipline during two consecutive time periods, 1972-81 and 1982-90. The changing structure of the accounting literature is interpreted using the proposed composite model of scholarly knowledge development.     

The Purpose of Financial Reporting: The Case for Coherence in the Conceptual Framework and Standards

This paper proposes a basis for progress in the development of the conceptual framework (CF) as a foundation for developing accounting standards. This topic has gained increased prominence following the IASB's (2013) release of its Review of the Conceptual Framework for Financial Reporting (RCFFR) proposing changes to the CF. In this paper the broad socio‐economic environment is seen as determining the primary purpose of General Purpose Financial Reporting (GPFR), which, in turn, establishes the high‐level properties of a CF suitable to meet that primary purpose. This is to support market stability and efficiency through the provision of an account of the financial position and performance of an entity that accords with economic reality. The case is made that the primary purpose of a CF is to provide the principles for the development of accounting standards that will result in GPFR that is useful. This requires theoretical coherence. The CF should drive the standards and if standards depart from the CF principles, such departures should be justified. This proposal is consistent with the position adopted in the RCFFR. However, in contrast to the RCFFR, this paper accents the purposive approach and links the formation of standards directly to the CF. This approach implies that standards are subordinate to CF principles; therefore compliance with standards should not provide a basis for compromising the faithful representation of economic reality. From the purpose identified for GPFR, the paper argues for a default presumption in favour of Fair Value Accounting, a retreat from the asset/liability approach, and a re‐casting of the income statement to focus on operational flows.     

Financial statement effects of adopting international accounting standards: the case of Germany

Using a sample of German firms, we investigate the financial statement effects of adopting International Accounting Standards (IAS) during 1998 through 2002. We find that total assets and book value of equity, as well as variability of book value and income, are significantly higher under IAS than under German GAAP (HGB). In addition, book value and income are no more value relevant under IAS than under HGB, and HGB (IAS) income is highly persistent (transitory). Finally, we find weak evidence that IAS income exhibits greater conditional conservatism than HGB income. Our results are consistent with the fair-value (income smoothing) orientation of IAS (HGB).

Institutional changes in university accounting education in post-revolutionary China: From political orientation to internationalization

Since the formation of the Peoples’ Republic of China (PRC) in 1949, the broad field of accounting education in China has undergone many changes in the context of a dramatically changing sociopolitical environment. The institutional mechanisms in Chinese university accounting education are examined in this paper, principally through a re-reading of the historical experience since 1949. We utilize an institutional theory frame to examine how action in the regulative, normative, and cultural-cognitive pillars have shaped accounting education from its heavily political orientation in the early years of the PRC to a more internationalized university accounting education system that has begun to take shape in contemporary China. We seek to contribute a contextualized understanding of contemporary China's accounting education, while adapting and extending the role of institutional theory in explaining education changes more broadly.     

Skinner's Thoughts on Professional Judgment and Recent Developments in Canadian Financial Reporting*/ LES RÉFLEXIONS DE SKINNER QUANT AU JUGEMENT PROFESSIONNEL ET LES RÉCENTS DÉVELOPPEMENTS DE L'INFORMATION FINANCIÈRE AU CANADA

In this commentary, we examine recent developments in Canadian financial reporting related to (1) the conceptual framework, (2) accounting standards, and (3) corporate governance issues, in light of Skinner's (1995) thoughts on professional judgment. We consider how effective these developments are in addressing several questions and concerns raised by Skinner.     

Rules, principles and judgments in accounting standards

The distinction between rules-based and principles-based standards is not well defined and is subject to a variety of interpretations ( SEC, 2003 , p. 5). Yet there is a commonly held view that the FASB's standards are rules-based and the IASB's standards are principles-based. This article identifies the basis of this distinction. For research and development, the article compares the FASB standard with two principles-based standards. For each standard we identify and classify rules and judgments, and observe the level of justifications for the rules and assistance to support the judgments. The three standards have rules, are based on principles, and require the exercise of professional judgment; the less conservative standard requires more judgments and, unexpectedly, more rules. The results suggest that the rules-based versus principles-based distinction is not meaningful, except in relative terms. We conclude that a relatively more principles-based standards regime requires professional judgment at both the transaction level (substance over form) and at the financial statement level ('true and fair view' override). Furthermore, it is suggested that any FASB and IASB convergence will require agreement on the weightings given to the qualitative characteristics.     

Discretionary accounting choices: the case of IAS 19 pension accounting

Based on a sample of 3207 firm-year observations for the years 2005–2013, we investigate how stock-listed companies in France, Germany and the UK use two discretionary choices in their accounting for defined benefit pension plans under International Accounting Standard (IAS) 19 Employee Benefits. We first analyse companies’ decision whether to voluntarily early adopt the equity method of accounting for actuarial gains and losses. Second, we analyse companies’ choice to present pension interest cost and expected return on plan assets, or, in 2013, net pension interest cost, in operating or financial income. Our findings provide evidence that companies’ decisions to early adopt the equity method in 2005, the first year this accounting choice was available, were motivated by short-term effects on equity. Our analyses also indicate that the choice regarding where to present interest cost and expected return on plan assets in the income statement is associated with the resulting effect on Earnings before Interest and Tax. Finally, we document country-specific differences in the use of the discretion provided under IAS 19, suggesting that discretionary pension accounting choices may impede comparability.     

Why Consistency of Accounting Standards Matters: A Contribution to the Rules-Versus-Principles Debate in Financial Reporting

A cross-firm consistent application of accounting standards is sought in all major accounting regimes. Since many transactions and events are only vaguely or not explicitly addressed in the standards managers must often use judgment when applying accounting standards to particular transactions or events. This analysis concludes that a consistent application of accounting standards can only be ensured if the accounting standards themselves are internally consistent. By contrast, inconsistent standards—in the absence of clear guidance—permit managers to (more or less arbitrarily) choose between different accounting methods. Moreover, it is found that a consistent application presupposes the existence of specific guidance ('rules') in order to frame management's judgment. It is argued that the reliance on principles only—as requested by many in the accounting literature—fails to ensure a consistent application because it allows management to exert judgment differently in identical cases. The assessment includes arguments and propositions from the international discussion in the accounting literature and also refers to other related fields of research, such as legal theory.     

Accounting Community of Practice pedagogy: a course management invention for developing personal competencies in accounting education

This paper reports the findings of an exploratory qualitative study using the implementation of Wenger’s [(1998). Communities of practice: Learning, meaning, and identity. Cambridge, MA: Cambridge University Press; Wenger, E. (2000). Communities of practice and social learning systems. Organization, 7(2), 225–246] Theory of Communities of Practice to develop an Accounting Community of Practice (ACOP) pedagogy. Students from eight accounting courses who participated, in the120 narratives and 280 surveys used as data, practice and develop critical real-world professional accounting competencies by linking three structural foundations: (1) accountability to joint enterprise, (2) mutual engagement, and (3) shared repertoire of communal resources. Competencies promoted by the AICPA [(1999). Core competency framework of entry into the accounting profession. Retrieved from http://www.aicpa.org/edu/corecomp.htm; AICPA. (2006). Core competency framework of entry into the accounting profession. Retrieved from http://www.aicpa.org/edu/corecomp.htm); International Federation of Accountants (IFAC). (2003). International education standard No. 3, professional skills. Retrieved from www.ifac.org; IFAC. (2015). Meeting future expectations of professional competence: A consultation on the IAESB’S future strategies and priorities. Retrieved from www.iaesb.org; ICAEW. (1996). Added value professionals: Chartered accountants in England and Wales. London: Author], and other professional bodies include problem-solving, leadership, project management, and interaction. ACOP strategy is effective in maintaining dynamic learning environments, increasing students’ awareness of trust, open communication, and creative thinking. Meaning and knowledge are owned in ACOP where the focus of the class shifts from instructor to students. This study adds to limited empirical research in communal forms of learning in accounting.     

The influence of the nature of government accounting and reporting in decision-making: evidence from Switzerland

A key objective of government accounting and reporting has been to achieve accountability and its use in that respect has been well documented, however its use for decision-making has had less coverage. This article addresses the latter issue, providing evidence from Switzerland that the accounting basis used (accrual versus cash) influences decision-making. This is the result of the effect that the different approaches have on the nature of the information used for decision-making. Switzerland was among the first western democracies to adopt accrual accounting at both state (canton) and local levels of government in the 1980s. The Swiss federal government followed in 2007. The main examples of the use of accrual information in decision-making are: the focus on self-financing of investments in order to control borrowing, as well as the fiscal policy targets of debt reduction and maintenance of capital. All three require accrual basis information. Therefore accrual basis information is key in fiscal decision-making in Switzerland.     

Discovering the ‘international’ in accounting and finance

As higher education in accounting and finance moves increasingly in the direction of internationalisation of degree programmes and student populations, this paper reflects on the ways in which contemporary research contributes to the academic community's understanding of the rich potential of evidence available on international convergence and diversity.Reviews of research published in recent years have pointed to strong parochiality in the research questions and data choices of many researchers. This paper looks for a meta-structure of cross-sectional international comparisons across a range of papers at one point in time. Research papers of 2005 are selected from eight journals giving a broad coverage of subject matter.A cultural framework is proposed as a basis for an ethnographic view of the data and findings of empirical research papers. Cultural diversity is found as an explicit discussion in some papers but others are silent or even apologetic for cultural differences.Country-specific studies reveal the potential for comparative studies on a wider geographical basis but the achievement of such an aim will require the academic research community (editors, reviewers and authors) to show flexibility in dealing with smaller data sets and greater uncertainty about the nature of accounting information. Most importantly this review shows the considerable wealth of interest waiting for those who take time to peruse academic journals.