| Abstract: | In this paper three frameworks are presented that can be used by accounting instructors to explain some of the economic issues surrounding the external reporting process. The first framework explains accounting numbers in terms of the relationships among capital providers, managers, and auditors. The second framework explains external reporting in terms of its role in determining capital market allocations. The third framework focuses on the policymaking process and the notion of “economic consequences.” In each case the framework is first described and then some suggestions are provided on how it might be used in the classroom. The frameworks have been developed for use in introductory, intermediate, and advanced accounting courses at both the undergraduate and graduate level. |
