Incorporating real-options analysis into the accounting curriculum

In this paper, we argue that accounting curricula should be expanded to cover the topic of real options. Our argument relies on reference to the [American Institute of Certified Public Accountants (AICPA) (1999) (Core Competency Framework, New York, NY: AICPA <http://ceae.aicpa.org/Resources/Education+and+Curriculum+Development/Core+Competency+Framework+and+Educational+Competency+Assessment+Web+Site/> Accessed 21.08.08], the framework for curriculum change espoused by [Arya, A., Fellingham, J. C., & Schroeder, D. A. (2003). An academic curriculum proposal. Issues in Accounting Education, 18(1) 29–35], a global study of core competencies for management accountants [International Federation of Accountants (IFAC), (2002). Competency profiles for management accounting practice and practitioners. New York, NY: International Federation of Accountants], a global capital-budgeting “best practices statement” [International Federation of Accountants (IFAC), (2008). International good practice guidance: Project appraisal using discounted cash flow. New York, NY: International Federation of Accountants], current specifications of the CMA exam [Institute of Management Accountants (IMA), (2008). Certified management accountant (CMA) learning outcome statements (effective 07/01/04), updated 07/2008. <http://www.imanet.org/pdf/CMA%20%20LOS.pdf> Accessed 29.10.08.], and elements of the Albrecht and Sack report [Albrecht, W. S., & Sack, R. J. (2000). Accounting education: Charting the course through a perilous future. Accounting education series, Vol. 16. Sarasota, FL: American Accounting Association]. We make special reference to the linkage of the topic of real options to two broad educational goals: decision-modeling and risk analysis. Existing resources that accounting faculty can use to incorporate real options into the curriculum are limited. As a response, we provide an extended example that accounting educators can use to cover the topic of real options. This example uses a set of binomial trees (one for cash inflows and another for cash outflows). The step-by-step approach presented in this paper allows students without a technical/mathematical background to extend discounted-cash-flow (DCF) decision models (e.g., NPV) to incorporate real options that are embedded in proposed investment projects.     

The associations among accounting program attributes, 150-hour status, and CPA exam pass rates

This study contributes to the extant literature by providing a better understanding of the associations among attributes of schools providing accounting education, 150-hour status, and CPA exam pass rates. We model program-level pass rates as a function of the state’s 150-hour status and several program-specific attributes, including: the level of AACSB accreditation, student selectivity, the percentage of candidates with advanced degrees, and faculty research productivity. We examine the average pass rates of 520 accounting programs that provided 43,711 first-time candidates for CPA exams given in 1998 and 1999. Similar to most prior studies we find that candidates from more selective schools, candidates with advanced degrees, and candidates who attended schools located in jurisdictions with the 150-hour requirement fully in place have higher average pass rates. However, we also find a significant decline in average pass rates during the 150-hour transition period, and in contrast to the strong positive effects of accreditation reported by [Grant, C. T., Ciccotello, C. S., &; Dickie, M. (2001). Barriers to professional entry: how effective is the 150-hour rule? Journal of Accounting and Public Policy, 21, 71–93], we find only weak evidence of an association between program-level pass rates and college-level or separate AACSB accounting program accreditation.     

Dialectical possibilities of thwarted responsibilities

The university’s responsibility in the new world dominated by global organizations is to articulate the contemporary socio-economic challenges brought about by the globalization of capital and capitalistic enterprises, enlighten society to the implications, and formulate and disseminate means for responding in an informed and just manner to the challenges. The paper argues that the colonization of the lifeworld of the university, especially schools and departments of accounting, has, and continues to, inhibit, indeed actively thwarts, the academy in carrying out its social responsibility. In a previous work (Dillard & Tinker, 1996), the authors argue that the international management system is directly implicated in dictating process and content within business schools by, among other things, influencing the accreditation standards of the American Assembly of Collegiate Schools of Business (AACSB).The current paper evaluates the developments subsequent to the total quality management (TQM) based accreditation standards implemented in the early 1990s. The focus is primarily on accounting education, accounting department/schools, and the accounting academic. A case is made for the position that the new Baldridge Award criteria for education performance excellence, the new AACSB accounting accreditation guidelines approved in 2000, the revolutionary changes in the constitution and by-laws of Beta Alpha Psi (the US professional accounting fraternity), and the current position of the American Accounting Association (AAA) as articulated in AAA monograph (Accounting Education Series, No. 16) by Albrecht and Sack are manifestations of the managerialist influence continuing to at best neutralize the academy’s responsibilities to any constituencies other than global capitalism primarily articulated in the demands of the Big 5 professional service (formally accounting) firms. The discussion evaluates the recommendations of each of the four regulative documents in terms of the underlying ideology and concludes with a discussion of the dialectic possibilities confronting accounting education.     

Will the AECC's course delivery recommendations work in the introductory accounting course? Some preliminary evidence

Accounting pedagogy is currently undergoing drastic changes. Combined with the AICPA's 150-hour requirement and the AACSB's new accreditation requirements, the AECC's recommendations for changes in accounting education are redefining what educators do in the classroom. In Position Statement No. 1 “Objectives of Education for Accountants,” the AECC targeted several characteristics of the current accounting education experience for change. These recommendations address both content and delivery issues and are consistent with recommendations made by the AICPA and the AACSB. However, in spite of the strength of the arguments put forth in favor of the AECC's recommendations, one question remains: Will implementation of the AECC's recommendations result in real, positive, measurable changes in the accounting education experience? In this paper, we examined the combined effect of several of the delivery recommendations made in Position Statement No. 1 by comparing the degree to which specific teaching objectives were achieved using a traditional accounting practice set (which did not reflect the AECC's delivery recommendations) versus a business simulation accounting practice set (which did reflect the AECC's delivery recommendations). The results indicate that, with respect to the specific educational experience tested, implementation of selected AECC recommendations will result in positive enhancement of the accounting education experience.     

ECU curriculum responds to the needs of multiple constituents

This paper presents an application of a curriculum reform model to a real world situation at East Carolina University. It reviews accounting curricula and the impetus for change in accounting programs with special attention given to three forces driving accounting curriculum reform:

• 1.1. the American Institute of Certified Public Accountants (AICPA) call for a 150-semester-hour requirement for membership.
• 2.2. the American Assembly of Collegiate Schools of Business' (AACSB) new accreditation standards, and
• 3.3. the changing needs and expectations of the accounting profession.

After an examination of how these and several other factors influence the accounting curriculum, reform strategies are discussed. A case study outlining the process that East Carolina University (ECU) underwent to achieve its new dual track accounting curriculum is presented. The dual tracks consist of a 120-h BSBA with a concentration in managerial accounting and a 150-h BSA/MSA in accounting.     

Accounting education literature review (1997–1999)

By reviewing a subset ot the accounting education literature published during the period 1997–1999, this paper updates literature reviews by Rebele, Apostolou, Buckless, Hassell, Paquette, and Stout [Rebele, J.E., Apostolou, B.A., Buckless, F.A., Hassell, J.M., Paquette, L.R., & Stout, D.E. (1998a). Accounting education literature review (1991–1997), part I: curriculum and instructional approaches. Journal of Accounting Education, 16(1), 1–51.] [Rebele, J.E., Apostolou, B.A., Buckless, F.A., Hassell, J.M., Paquette, L.R., & Stout, D.E. (1998b). Accounting education literature review (1991–1997), part II: students, educational technology, assessment, and faculty issues. Journal of Accounting Education, 16(2), 179–245.]; Rebele, Stout, and Hassell [Rebele, J.E., Stout, D.E., & Hassell, J.M. (1991). A review of empirical research in accounting education: 1985–1991. Journal of Accounting Education, 9(2), 167–231.]; and Rebele and Tiller [Rebele, J.E., & Tiller, M.G. (1986). Empirical research in accounting education: a review and evaluation. In A. C. Bishop, E. K. St. Pierre & R. L. Benke (Eds.), Research in accounting education (pp. 1–54). Harrisonburg, VA: Center for Research in Accounting Education, James Madison University]. We review published articles related to the topics of assessment, curriculum and instructional approaches, educational technology, faculty issues, and students from the following five journals: Journal of Accounting Education, Issues in Accounting Education, Accounting Education, The Accounting Educators’ Journal, and Advances in Accounting Education. A large number of accounting educators have contributed to the literature between 1997 and 1999, with over 390 different authors cited in the body of the text (30 authors published two articles, 11 published three, and one author published four articles). More than 120 individuals are cited as authors of cases and instructional resources (seven authors published two cases and one published three). Recommendations for research are offered at the end of each major section. An appendix identifies instructional cases and educational resources published during the 1997–1999 period by journal and topic.     

Status of public sector accounting education

Public Sector Accounting Education has been receiving increased attention both from academic circles and from the profession. This study describes previous research efforts and expands the research populations to include Non-AACSB accredited schools in an effort to determine the current status of course offerings in public sector accounting. One surprising result indicated that while public sector course offerings have increased, student interest has waned. The implication — Has Public Sector Accounting reached its peak?     

Accounting curriculum responses to the 150-hour requirement

Since the 1959 American Institute of Certified Public Accountants (AICPA) Council resolution on the standards of accounting education, a 5-year post-secondary educational requirement for CPA licensing has been deemed important. Twenty-three states have enacted legislation requiring 150 hours of education before a person may take the national CPA exam. Within these states, many colleges and universities have both graduate business administration or accounting programs to prepare their accounting students for the certification exam. The American Assembly of Collegiate Schools of Business (AACSB) member schools in these 23 states were surveyed to determine the curriculum in their graduate business administration and accounting programs. A significant number (31%) of the schools have installed a 30semester-hour or more accounting post-baccalaureate program. The trends in state licensing and the academic responses have been: 1. An undergraduate concentration in accounting, 2. A graduate degree granted at the completion of the post-baccalaureate hours, 3. Most state legislatures select the state boards of accountancy to determine specific courses of advanced study, 4. Most state boards of accountancy specify broad areas of subject categories, 5. Most surveyed AACSB member schools with advanced accounting programs specify over 60% of their hours in accounting subjects, 6. A majority of surveyed MBA programs with an accounting concentration (72%) required less than 40% of their total graduate credit hours in accounting courses, and 7. A higher percentage of surveyed nonaccredited advanced accounting programs (72%) required 60% of their graduate requirements in accounting courses compared to advanced accounting degree programs with both business and accounting AACSB accreditation (58%).     

Developing benchmarks for evaluating publication records at doctoral programs in accounting

This paper summarizes the publication productivity of 87 accounting doctoral programs in two subsets of the 30 highest-rated academic accounting journals over five years (1992–1996). Three measures are developed as surrogates for the quality, breadth, and depth of the aggregate publication productivity of faculty in each program. Results indicate that the three indices are measuring different dimensions of scholarly productivity. Accounting program administrators should find the results useful for establishing benchmarks for scholarly activity needed for, among other purposes, AACSB accreditation.     

The core competency framework: a new element in the continuing call for accounting education change in the United States

Professional accounting organizations and academicians in the United States have developed numerous frameworks and reports to address changes in the profession and to provide guidance for accounting educators in the implementation of curriculum change. In 1998, the American Institute of Certified Public Accountants (AICPA) released the Core Competency Framework for Entry into the Accounting Profession as an educational component of its CPA Vision Project. The online resource provides direct assistance to educators around the world in the implementation and assessment of the framework's recommendations. The purpose of this paper and the accompanying matrix, Comparison of US Accounting Education Frameworks with the Core Competencies, is to survey the history of contemporary American accounting education frameworks and compare earlier works with the most recent effort by the profession to recommend and institute accounting education change in the United States.     

Faculty perceptions of online homework software in accounting education

Emerging technologies are providing a variety of tools for accounting educators. One of these tools is Online Homework Software (OHS). This study collects survey data from accounting faculty in the U.S.A. who were queried as to the utilization and perception of OHS in undergraduate accounting courses. Analysis of the survey data indicated five differences between OHS users and nonusers: (1) years of teaching, (2) number of course sections taught, (3) Accounting AACSB accreditation status, (4) faculty rank, and (5) courses taught by the respondents. Faculty indicated the tool is helpful when teaching in the online format and that OHS saves faculty time by reducing the time spent grading and processing student work. Users of OHS raised concerns about whether and how the tool helps students learn, how the students view the tool, and the cost of OHS. The data reported in this study are relevant to educators who have never used OHS as well as those who are currently using OHS. The data collected is important in promoting dialog concerning OHS usage and developing recommendations for continued improvements in the software.     

Accounting Education: The Impact of Globalization

This report investigates the impact of globalization on accounting education as set forth by members of a panel at the annual meeting of the American Accounting Association held in New York in August 2009. It addresses the work of the International Federation of Accountants (IFAC) and the International Accounting Education Standards Board (IAESB) in coordinating accounting education globally, research by the International Association for Accounting Education and Research (IAAER) in support of the IAESB, the work of the International Accounting Standards Committee Foundation (IASC Foundation) and its impact on accounting education, and the impact of globalization on accounting education in Japan.     

Accounting education literature review (1991–1997), part I: Curriculum and instructional approaches

This paper updates the work of Rebele, Stout, and Hassell (A review of empirical research in accounting education: 1985–1991. Journal of Accounting Education, I, 167–231, 1991) and Rebele and Tiller (Empirical research in accounting education: A review and evaluation. In A. C. Bishop, E. K. St. Pierre and R. L. Benke (Eds), Research in Accounting Education, 1–54. Harrisonburg, VA: Center for Research in Accounting Education, James Madison University, 1996) by reviewing a subset of the accounting education literature published during the period 1991–1997. Specifically, we review articles (both empirical and nonempirical) related to the accounting curriculum and instructional approaches in accounting that were published in the following journals: Journal of Accounting Education, Issues in Accounting Education, The Accounting Educators' Journal, and Accounting Education: A Journal of Theory, Practice and Research. A second paper, Part II, will review articles published in these same journals during the period 1991–1997 on the topics of assessment, use of technology, students, faculty concerns, cases, and instructional resources.     

回顾与评介——AICPA关于财务会计概念的研究

财务会计与报告的概念框架项目是在1976年由美国会计准则委员会开始的,但此前15年,其前任美国注册会计师协会曾进行了数次的尝试,包括ARS No1、No3,APB Statements No4、Trueblood报告等。美国注册会计师协会的努力既有成功经验,也有失败的教训,可供美国会计准则委员会及各国会计准则制定机构参考。     

The effects of group quizzes on performance and motivation to learn: Two experiments in cooperative learning

This study investigated the effect of group quizzes on accounting students’ performance and motivation to learn. While cooperative learning in accounting education has been studied in recent years, the effects on student performance have been mixed [Lancaster, K.A.S., Strand, C.A., 1999. Using the team-learning model in a managerial accounting class: an experiment in cooperative learning. Issues in Accounting Education 16(4), 549–568; Ravenscroft, S., Buckless, F., Hassall, T., 1999. Cooperative learning – A literature guide. Accounting Education 8(2) (1999) 163–176]. Thus, two experiments were conducted (one using an experimental design and the other using a quasi-experimental design) that examined student performance and motivation to learn. The first experiment used a quasi-experimental design to compare the performance and motivation to learn of students who took a series of group quizzes versus students in comparable classes in a prior semester that did not take group quizzes. Using a series of group quizzes in a mixed factorial design, the second experiment examined the performance of both: (1) long-term groups versus ad hoc groups and (2) self-selected groups versus instructor assigned groups. Findings revealed no performance differences across conditions in either the first or second experiments. However, student subjects in the first experiment (using group quizzes) reported a significantly greater motivation to learn and perception of learning than those in the second experiment (not using group quizzes).     

Attitudes of new appointees to accounting and finance departments in the higher education sector

Holland [Holland, K., 1991. Recruitment by accounting departments in the higher education sector: an analysis of recent employees. British Accounting Review 23, 49–66] and Weetman [Weetman, P., 1993. Recruitment by accounting departments in the higher education sector: a comment on the Scottish experience. The British Accounting Review 25, 287–300] reported studies of appointees to accounting and finance (A&F) departments in the UK and Scotland, respectively. This investigation uses a questionnaire survey, and an analysis of the British Accounting Review Research Register to examine five research questions: (i) the characteristics of recent appointees to UK A&F departments across three time periods, 1998—1999 (N=46), 2000–2001 (N=40), and 2002–2003 (N=55); (ii) subsequent job changes of the populations of appointees in 1998–1999 and 2000–2001; (iii) respondents' motivations for becoming A&F lecturers; (iv) their sources of current occupational discontent; and (v) their proposals for making A&F lecturing posts more attractive. Herzberg's [Herzberg, F., 1968. One more time: How do you motivate employees? Harvard Business Review (reprinted 2003)] motivation–hygiene dual-factor theory is used to conceptualise job satisfaction and dissatisfaction. In turn, issues relating to occupational discontent are described by Rousseau's [Rousseau, D., 1990. New hire perceptions of their own and their employer's obligations: a study of psychological contracts. Journal of Organisational Behaviour 16, 389–400] psychological contract.The findings identify differences in the characteristics of the appointees in both pre-1992 and post-1992 universities. Overall, staff joined with an expectation of flexible hours of working and a desire to carry out research. The most important source of job discontent was the widening salary gap between academe and industry and the profession. Improved salary levels, more time for scholarly activity and better promotion prospects were seen as the most important factors in making the job more attractive. The implications of our findings for new appointees and institutions are discussed, along with suggestions for future research.     

The impact of professional standards on accounting judgments: The role of availability and comparative information

Given scant research on the influence of the AICPA’s Code of Conduct, this study examines the effects of professional standards for advocacy and integrity on a financial reporting decision. Based on the availability and priming literature, we test whether the current wording of two AICPA professional standards influence financial reporting decisions. Prior accounting research has documented cases where professionals were inclined toward a conservative or skeptical bias (Francis & Krishnan, 1999; Jenkins & Lowe, 1999) while other studies have documented an inclination toward a client-confirming bias (Hackenbrack & Nelson, 1996; Roberts, 2010). Our study examines whether using AICPA ethical standards as primes results in a neutral, unbiased financial reporting decision in a context in which there is substantial, yet inconclusive, evidence. Roberts (2010) documents the tendency for professionals to view integrity and advocacy as segregated objectives: one for promoting unbiased reporting, associated frequently with accounting-related decisions, and the other condoning client advocacy, typically associated with tax-related judgments. Hence, we test for availability effects based on separately-stated standards. However, the literature on comparative analysis explains that a combined concept containing counterbalancing features allows the participant to form causal relationships between the distinguishing components. This type of mental process brings the causal knowledge into working memory. Hence, a joint presentation of countervailing standards should result in a more balanced judgment, reflecting neither a conservative nor pro-client tendency.The psychology literature suggests that heuristics, such as availability priming and comparative analysis, are more likely to affect novice decision makers (e.g., jurors, clients, new hires, students) than experts whose work experiences could drive the results. This study examines the responses of upper-level accounting majors, and the results show that the participants are inclined toward conservative decision making. Participants exposed to a separately-stated standard for integrity respond conservatively, just as they do in a control group without explicit access to the professional standard. Similarly, even when exposed to AICPA Rule 102-6 allowing client advocacy, they report conservatively. In contrast, when the prime is a joint presentation of the standards, participants respond with an unbiased decision, which differs significantly from the consistently conservative response by the control group as well as by the participants primed with an isolated standard. We conclude that two AICPA standards (as currently worded) are best understood when they are aggregated. Whether this finding holds for professionals is an empirical question for future research. The implication is that accountants’ decision making could be enhanced by a revised professional standard reminding them to jointly consider the goals of unbiased decision making and justifiable client advocacy.     

Strategic Planning in an Accounting Department using Causal Maps and Cognitive Factions

Strategic planning can be a time-consuming task for academic departments. As such, an effective and efficient strategic planning approach is paramount. This paper presents a strategic planning approach using causal mapping to uncover the factors which faculty members believed would make their department (in the USA) more successful. The information gathered during the session was used as part of an AACSB accounting maintenance of accreditation process. The approach applied here elicits faculty involvement in ways which bring to the surface perspectives held by subgroups/factions of faculty. Additional perspectives are positive in a strategic planning context as they can contribute to devising strategies that might not have resulted by considering only majority views. Content analysis of the strategic plan suggests the range of views uncovered were integrated into the plan, including both the strategic factors and the relative importance of the factors.     

MIS and computer applications in accounting courses—Report of a survey

This paper reports the results of a questionnaire survey of AACSB member universities to determine how the computer is currently used in accounting courses. Faculty attitudes regarding computer utilization in upper-level accounting courses is also reported. Results indicate that educators are actively experimenting in several directions, but integration of the computer into accounting curricula is not yet very extensive.