Bridging the Gap: Engaging in Scholarship with Accountancy Employers to Enhance Understanding of Skills Development and Employability

Abstract

This paper reports on the author's experiences of working with accountancy employers to develop a deeper understanding of skills development and employability in the accountancy profession. It notes that while there is a well-developed literature that examines skills development amongst university accounting students, there is also evidence of a gap between skills development in the university setting and the reported experiences of new entrants into the accountancy profession. The paper examines the nature of this gap and attempts to bridge it, using the experiences of working together with employers. The evidence from this study is that accountancy employers seek new recruits with the capacity to establish professional credibility amongst colleagues and clients through their attitudes and behaviours, something subtly different from much of the literature, which focuses on the importance of discrete generic skills.     

Higher Education Finance in the UK*

The introduction of top‐up fees for home‐domiciled undergraduate tuition in England from 2006–07 – and their planned increase in 2012–13 – raises important issues for university funding in Scotland, since it abolished tuition fees for Scottish and EU students in 2000–01. This paper focuses on what the increase in resources directed at English universities arising from top‐up fees means for the relative funding of English and Scottish undergraduates. Widely‐used funding‐per‐head figures do not provide an accurate picture of home‐ and EU‐domiciled undergraduate funding, as they include funding for research, postgraduate degrees and overseas students. The empirical work of this paper focuses on creating a consistent series of funding per full‐time equivalent undergraduate over time for England and for Scotland, stripping out funding for research, non‐EU students and postgraduate degrees to create a more accurate picture of the funding gap between the two countries. It also takes into account the different composition of undergraduate degree subjects taken in England and Scotland. The findings indicate that the apparent historical advantage in funding per head in Scottish institutions compared with English ones has been largely driven by compositional differences: Scotland has a high proportion of medical, science and engineering undergraduates – subjects that command greater funding due to their relative complexity to teach. The top‐up fee introduced in 2006–07 brought funding per head in England to a level similar to that experienced in Scotland, and the future increase will result in funding per head in England outstripping that in Scotland by some magnitude. This suggests that the funding of Scottish students will fall significantly behind that of English students unless additional new sources of public or private funding for nScottish universities are found.     

Corporate Insurance and Debt: The Case of China*

Finance theorists have long argued that corporate purchases of property insurance can reduce the probability and hence the expected costs of financial distress. And by so doing, the corporate use of insurance can reduce borrowing costs and/ or increase debt capacity, reduce the overall cost of capital, and increase firm value. This article attempts to apply this argument to the case of publicly traded companies in China, which provides a particularly interesting environment given the significant presence of both foreign direct investment and state shareholdings in its corporate sector. From their study of several hundred Chinese companies during the period 1997‐2003, the authors report the following conclusions: Companies with higher borrower costs tend to purchase more property insurance, which in turn has the effect of increasing their debt capacity. Smaller companies are more likely than larger firms both to insure their assets and to purchase more property insurance (as a percentage of assets), reflecting their greater vulnerability to financial shocks and larger potential benefit from insurers' real advisory services (such as loss prevention advice). Companies with more and larger growth opportunities are more likely to purchase insurance, reflecting their higher expected costs of financial distress (from possible underinvestment) than firms with limited growth opportunities. Companies with higher levels of state ownership tend to insure their assets to a greater extent, suggesting that the managers of such companies insure to protect their job security, particularly as the availability of state subsidies to the Chinese corporate sector has declined since market reforms were initiated in 1978.     

The Economic Cost of Growing Up Poor: Estimating the GDP Loss Associated with Child Poverty*

One of the motivations for the UK government's target to reduce (and eventually eliminate) child poverty is the perception of a significant long‐term economic cost of growing up in poverty. This perception arises from the observation that individuals who experience poverty in their childhood earn less as adults, are less likely to be in employment, are more likely to engage in criminal or anti‐social activities and are more likely to experience poor health and lower life satisfaction. This paper quantifies these effects, and expresses them in terms of GDP losses to the nation. We begin by focusing on lost earnings that arise from poorer skills and reduced employment opportunities, and then move on to the wider costs associated with the higher crime rates, poorer health and reduced well‐being that are linked with growing up poor. We find a sizeable economic cost, with the cost of growing up in poverty amounting to at least 1 per cent of GDP.     

Ex-Dividend Day Stock Price Behavior: The Case of the 1986 Tax Reform Act*

This paper analyzes the behavior of stock prices around ex-dividend days after the implementation of the 1986 Tax Reform Act that dramatically reduced the difference between the tax treatment of realized long-term capital gains and dividend income in 1987 and completely eliminated the differential in 1988. We show that this tax change had no effect on the ex-dividend stock price behavior, which is consistent with the hypothesis that long-term individual investors have no significant effect on ex-day stock prices during this time period. The results indicate that the activity of short-term traders and corporate traders dominates the price determination on the ex-day.     

Horizontal Inequity and Vertical Redistribution with Indirect Taxes: The Greek Case*

Non‐uniform indirect taxes treat equals and those unequal differently (horizontal inequity and vertical redistribution). Horizontal inequity is caused by taste differences among similar households, but some excises are designed to reflect social, not revealed, preferences. We apply two methodologies for decomposing the overall redistributive effect of the present and three alternative indirect tax structures into vertical and horizontal effects for Greece, using the 1998–99 Household Expenditure Survey micro‐database. In all cases, the taste component is considerable, even when we allow for social preferences, while improvements in vertical redistribution can be achieved, albeit at the cost of increased horizontal inequity.     

Private Landowners Cooperate to Sustain Wildlife Habitat: The Case of the Sabi Sand Game Reserve*

Now over 60 years old, the Sabi Sand Game Reserve is a cooperative “for‐profit” arrangement among a group of private landowners in South Africa that has succeeded in protecting wildlife and wildlife habitat while substantially increasing the economic value of the landowners' property. On a per acre basis, the Sabi Sand's wildlife populations are at least as large and healthy as those of the adjoining Kruger National Park. The lands that make up the reserve were once several fenced‐off properties that were managed unsuccessfully as cattle ranches in the early 20th century. The founding members concluded they would be better off using their land as a game reserve. To do that, they had to pool their landholdings to accommodate populations of large animals such as elephant, rhino, and buffalo that required more room than any one property could provide. The authors describe how the rules governing Sabi Sand evolved in ways similar to those in other successful cases of common resource management that have been studied by, among others, the late Nobel laureate Elinor Ostrom. The asset is managed by a local community where those with a right to its use are clearly identified and others are clearly excluded. The reserve's private property owners use a mix of collective and individual decision‐making procedures, have procedures for resolving conflict, and have ways to punish those who would abuse the land or wildlife.     

The UK National Minimum Wage in Retrospect*

This paper provides a retrospective summary of the effects of the UK national minimum wage (NMW) on labour market performance since its introduction in 1999. We use an ‘incremental differences‐in‐differences’ (IDiD) estimator to look at the effects of the NMW in each year through its differential impact across local labour markets. We find that the NMW is associated with a significant fall in wage inequality in the bottom half of the distribution. This suggests that geographical areas where the NMW ‘bites’ more have experienced larger declines in wage inequality than elsewhere. While the overall effect of the NMW on employment rates averaged over its existence is neutral, we do find small positive employment effects from 2003 onwards. Likewise, the association of the NMW with unemployment has been negative in recent years. NMW effects on hours have been mixed, but overall there is no compelling evidence to indicate that the NMW upratings have had an adverse effect on full‐time total hours of work. Notwithstanding the clarity of these results, any causal interpretation of them might be compromised by the presence of concomitant policies that might have been correlated with the ‘bite’ of the NMW.     

雇主提供给雇员住房的价值在何种情况下可不计入雇员的毛所得? --美国1969年赫伯特G·哈特案例解析

1969年,由美国税务法院做出最终判决的赫伯特 G.哈特案,是美国税收历史上有关在何种情况下,雇主提供给雇员的住房的价值(指雇员在市场上租用同样的住房所需支付的租金)可以不计入雇员毛所得的著名案例.     

Dr. PC: A Multimedia Management Control Case*

Dr. PC is a 50–80‐minute, in‐class management control case. The case asks students to develop a management control system for a small computer repair business. Informed initially by personal experiences, and then from viewing a consumer affairs video that depicts an employee repeatedly violating his firm’s code of conduct, students work together to outline key management controls. After viewing the video and discussing key management controls, students are then exposed to Simons’s levers of control framework and asked to develop a comprehensive management control system for the small business. The case was developed over three years with the help of 344 undergraduate, master’s, and executive students. Student feedback from earlier versions of the case indicates they found the case stimulating and effective at reaching its learning objectives of understanding the purpose of and how to design a management control system for a small business.     

我国非正规就业的发展研究

非正规就业在现实经济中已经大量存在,在缓解就业压力方面发挥了较大作用。随着市场化、非国有化、开放型经济的迅速建立,我国就业模式的非正规化严重滞后,这是造成我国失业率不断上升的重要原因。积极促进非正规就业的发展将成为符合我国基本国情的就业模式转变的基本方向;非正规就业将在今后10~15年间,成为我国就业的主要模式。     

中国城镇正规就业与非正规就业的工资差异演变研究——基于非条件分位数回归的分解方法

基于CHNS历次调查的数据资料,利用非条件分位数回归与分解方法,实证研究1989-2011年三个时期中国城镇正规就业与非正规就业的工资差异问题.研究表明:(1)两个就业群体间的工资差距在不断扩大,正规就业的个体禀赋优势在工资决定中发挥了关键作用;(2)正规就业与非正规就业的工资差距存在不对称性现象,且在工资分布的末端表现明显,符合"黏地板效应",而造成这一现象的主要原因在于低收入群体存在较为严重的市场分割和就业歧视;(3)由个体禀赋所解释的特征差异呈现上升趋势,而由非市场因素解释的参数差异则在不断下降,反映出我国劳动力市场在整体上趋于公平和完善,工资的决定机制更加以市场为导向.     

毕业生择业就业劳动权益法律保障

毕业生在择业就业过程中其合法的劳动权益经常受到侵害。在对毕业生择业、就业过程中劳动权益受侵害的现状进行分析的基础上,结合2008年实施的《劳动合同法》和《就业促进法》的相关内容提出,应该建立国家、学校与毕业生各负其责、相互配合的合谐的就业体系,以保障毕业生合法的劳动权益。     

毕业生择业就业劳动权益法律保障

毕业生在择业就业过程中其合法的劳动权益经常受到侵害。在对毕业生择业、就业过程中劳动权益受侵害的现状进行分析的基础上,结合2008年实施的《劳动合同法》和《就业促进法》的相关内容提出,应该建立国家、学校与毕业生各负其责、相互配合的合谐的就业体系,以保障毕业生合法的劳动权益。     

Thunder Bay Transportation: A Case of Business Valuation and Negotiation*

Thunder Bay Transportation (TBT) is a very versatile case that can be used in several milieus and at various levels of difficulty. The case describes the process involved in the purchase and sale of a private business. Mr. Getzko, owner/manager of TBT, is attempting to sell his business to pursue retirement. Sudbury Systems (SS) is pursuing an acquisition of TBT. Students are required to assume the role of either Mr. Getzko’s accountants (seller) or Sudbury Systems’ accountants (buyer) to: (1) develop a preliminary business value, (2) negotiate adjustments, and (3) arrive at an agreed‐upon business value to finalize the sale. Students will explore both business valuation approaches (earnings based and asset based) and various business valuation concepts (e.g., normalized earnings, sustaining capital reinvestment, earnings multiple, redundant assets, etc.).     

The Saving Gateway: Implications for Optimal Saving*

The Saving Gateway is a government saving initiative aiming to ‘kick‐start a saving habit among people on lower incomes’. Funds saved in a Saving Gateway account up to a monthly limit are matched by the government after two years at a rate of £0.50 per £1 saved. In this paper, a Saving Gateway account is embedded alongside an ordinary interest‐bearing account in a simple life‐cycle model of saving to assess the implications of the scheme for optimal saving. Among the findings are that, for agents with access to credit, the Saving Gateway is associated with a fall in saving during the life of the account and a rise in consumption. However, the scheme increases saving by the credit‐constrained. On their own, empirically plausible levels of habit formation in consumption preferences have too small an effect on saving to justify the scheme.     

Development of the informal economy: A strategy for resolving the crisis of the welfare state

This article is about the factors and conditions which would influence an expansion of the informal sector (jobs which at present are not registered or taxed and which are done on a voluntary or self-help basis). The need and the opportunity for a stronger informal sector are assessed and the social forces which could support such a strategy are identified. There is a danger of a situation arising where the dominant economic system would use the informal sector for its own stabilization; this reflects the limitations of such independent activities as a model for solving our problems.     

A Case Study of a Variance Analysis Framework for Managing Distribution Costs*

Managing the distribution function as part of an overall supply‐chain management strategy has become increasingly important given rising fuel costs in recent years. This paper presents a comprehensive variance analysis framework developed by supply‐chain managers at Catalyst Paper Corporation as a tool for reporting and controlling distribution costs. The model decomposes the overall static‐budget variance into four primary variance categories: volume, customer mix, distribution mix, and carrier charges. The framework addresses key limitations in the coverage of variance analysis contained in many management accounting textbooks. Specifically, Catalyst's framework incorporates: (a) mix variance calculations where there is more than one mix factor within a single cost element; (b) the impact of unplanned and unrealized activities; and (c) multiple nested mix variance calculations. Although developed in the context of distribution costs, the framework can be applied to the analysis of other manufacturing and non‐manufacturing costs where multiple mix factors exist. L'importance de la gestion de la fonction de distribution dans le cadre de la stratégie globale de gestion de la chaîne d'approvisionnement s'est accrue avec la hausse des coûts du carburant des dernières années. Les auteurs présentent un cadre complet d'analyse des écarts, élaboré par les gestionnaires de la chaîne d'approvisionnement chez Catalyst Paper Corporation aux fins de la présentation et du contrôle des coûts de distribution. Le modèle décompose l'écart global du budget fixe en quatre grandes catégories d'écarts: les écarts sur volume, les écarts sur composition de la clientèle, les écarts sur composition de la distribution et les écarts sur frais de transport. Le cadre résout les principales limites de la couverture de l'analyse des écarts évoquées dans de nombreux manuels de comptabilité de management. Le cadre d'analyse de Catalyst Paper Corporation englobe: a) les calculs de l'écart sur composition lorsqu'il existe plus d'un facteur de composition dans un même élément de coût; b) l'incidence des activités non planifiées et non réalisées; et c) les calculs de l'écart sur composition à multiples critères de classification. Bien qu'il ait été élaboré dans le contexte des coûts de distribution, ce cadre peut être appliqué à l'analyse d'autres coûts liés ou non à la fabrication, lorsque les facteurs de composition sont multiples.     

Financial Reporting for Private Companies: The Canadian Experience*

The issue of whether small and/or private companies should be allowed to use simplified accounting standards in financial reports has concerned the accounting profession for decades. It has been argued that preparing financial reports in accordance with the large volume of promulgated standards contained in generally accepted accounting principles (GAAP), some of which are relatively complex, has put a significant strain on the resources of small/private business. Moreover, information produced and presented in accordance with at least some accounting standards within GAAP may not be relevant for the users of small/private companies' financial statements. In this paper we look at differential reporting in Canadian GAAP, which gives nonpublicly accountable enterprises the ability to opt out of certain CICA Handbook requirements with unanimous consent of the shareholders. We look at lobbying activity in response to the proposed differential reporting standard and at nonpublicly accountable company experience with the differential reporting opportunity in the period since the standard was promulgated.