AIR Fall 2009

Integrating Gift Cards into the Accounting Curriculum

Gift cards have become an increasingly popular way of conducting business. Tower Group estimated that $97 billion was spent on gift cards in 2007. Although this figure was expected to decline to about $88.5 in 2008 it still represents a sizeable portion of the retail industry. Since many students are familiar with these cards accounting instructors have a unique opportunity to enhance students’ comprehension of both business and accounting concepts. This paper will discuss the two types of gift cards, review gift cards in comparison to other ways of transacting business and explain the accounting for these cards. The paper concludes by offering suggestions for the effective use of these and for establishing a more consistent accounting for them.
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A Visual Representation of the Statement of Cash Flows

In this article, the authors present a visual representation of the statement of cash flows, which can be used as an illustrative demonstration of related concepts in accounting courses.

This article is from the Accounting Instructors’ Report, an electronic journal that provides teaching tips and insights to those who teach accounting and other business courses.

Contributors:
Dr. David O’Bryan, College of Business, Pittsburg State University
Dr. Jeffrey J. Quirin, School of Accountancy, Barton College of Business, Wichita State University

Read A Visual Representation of the Statement of Cash Flows.


And Now There Are Three: IFRS for SMEs

In May 2008, the AICPA Governing Council recognized the IASB as an accounting body for purposes of establishing high quality accounting standards and with an amendment to Appendix A of AICPA Rules 202 and 203 gives AICPA members the option to use IFRS as an alternative to US GAAP. Thus, private companies were given the option of using IFRS. (The SEC has not made this option available for public companies.) The IASB has now made a third option available for private companies in the U.S. by issuing IFRS for Small, and Medium-Sized Companies (SMEs). This latter development has the potential for significant change in accounting practice and accounting education.
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Accounting Instructors’ Report, Fall 2009: Table of Contents

TRENDS
And Now There Are Three: IFRS for SMEs

Belverd E. Needles, Jr., Ph.D., CPA
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German Cost Accounting vs. Activity-Based Costing

Activity-Based Costing is often used in cost/managerial accounting as a cost measurement, yet accounting practices can differ widely between countries. To be able to recognize difference and similarities in seemingly identical practices between countries provides an opportunity for improvement and allows managers to draw managerial implications in light of the increasing internationalization of companies. This paper compares the USA Activity-based Costing (ABC) and the German (GPK) Activity-based costing. The paper establishes differences based on purpose, cost, concepts construction and cost allocation, and quantity and quality of cost information.

From this research it appears that many of the enterprises in the USA as well as those in other countries should take a look at the ways their international counterparts successfully measure and manage organization performance, in order to resolve limitations in North American practices and in referencing the German Cost Accounting system.

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