AIR Summer 2014

Visual Representation of Accounting Standards

The new normal in the regulatory environment of financial reporting is the rapid change in accounting standards with large philosophical and conceptual shifts in underlying principles. The rate of change and increasing complexity in accounting standards make teaching of advanced level courses in financial accounting difficult and challenging. For example, in the realm of the International Financial Reporting Standards (IFRS), newly issued IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 13 Fair Value Measurement and IFRS 15 Revenue from Contracts with Customers have significant impact on the future of financial reporting. Further, the exposure draft on lease accounting is likely to be released in the near future that would change well-established accounting approaches. Accounting professors face the tremendous challenge of equipping students to deal with the rapid change in accounting standards. This paper explains how a project assignment has been used in an Advanced Financial Accounting course to instill in students the skills of analyzing and deconstructing the logical flow of a new accounting standard.
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Promoting Experiential Learning in an Introductory Managerial Accounting Course

This paper describes an instructional approach that introduces students to entrepreneurial decision-making and a practical way of learning the basics of short-term profit planning. Using a familiar frame of reference, students conceive of a food product to sell in a booth at a one-week carnival or local community festival, estimate the costs involved in producing and selling the product, ascertain an appropriate selling price for the product, and examine the feasibility of the one-week venture using cost-volume-profit (CVP) analysis. The project involves research, analysis, decision-making, and written communication-all of which are sought-after competencies in the marketplace. In addition, the project affords students an opportunity to enhance their Excel-based skills. The project is intended to engage students in a realistic context that reinforces core profit-planning concepts learned in the classroom.
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An Effective Strategy to Introduce IFRS into the Advanced Accounting Curriculum

This paper describes an innovative cooperative learning project set in the context of current discussions on International Financial Reporting Standards (IFRS). Student partners were tasked to become champions on specific IFRS standards and share their understanding with the fellow students in an advanced accounting class. First, students were required to individually research an area of IFRS based on a local CPA presentation. Afterwards, a local CPA firm made a formal IFRS presentation to the advanced accounting class. This was followed by students working independently in pairs to research a specific IFRS standard and synthesizing their findings into a formal oral presentation to educate their classmates. Finally students wrote individual reflection papers on learning IFRS. A key feature of the project was building learning interdependence within and across groups. Student feedback suggest this project enhanced student learning and interest in IFRS by moving away from the passive “chalk and talk” pedagogical approach towards an active, deeper learning experience. The paper is focused on instructors with limited or no prior experience on teaching IFRS.

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Experiential Learning In Cost Accounting

Experiential learning is a fancy term for something we all learned as children. As children, we quickly learned not to touch a hot stove. This was learning from experience. Experiential learning is learning from experience. A Chinese proverb, listed as quotation #12,274 in the Columbia World of Quotations also describes experiential learning. Confucius, the Chinese philosopher and reformer, is credited with the proverb, which states: I hear and I forget, I see and I remember, I do and I understand. Experiential learning is learning by doing. Thus, the essence of experiential learning is that experiential learning emphasizes active Read More…


Accounting for Normal Rework Common to All Jobs – Capturing the Essence of Manufacturing Overhead

The essence of manufacturing overhead is to capture all manufacturing costs other than direct materials and direct labor and then assign, apply or allocate these overhead costs to products in an organized and evenhanded way. When teaching Cost Accounting, direct materials and direct labor present few problems – but a good grasp on the essence of overhead can be elusive. Perhaps the best illustration of overhead at work is found in accounting for normal rework common to all jobs, whereby manufacturing overhead can be both a debit and a credit in a single journal entry.

This paper first presents an overview of manufacturing overhead, followed by a discussion of all types of rework: normal rework for a specific job, abnormal rework, and normal rework common to all jobs. A normal rework common to all jobs detailed example is also presented to show the purpose of manufacturing overhead and the efficiency with which this purpose is accomplished.

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Now I’m Going To Teach Accounting: What Do I Do Now?

In the three previous Trends (Fall 2013; Winter and Spring 2014) I addressed managing change through continuous improvement, identified the learning activities as building blocks for constructing a successful course, and addressed how to implement these learning strategies. Even as an experienced instructor I find it helpful to focus periodically on the basics of preparing to teach a class as if I was doing it for the first time. This article provides suggestions for new instructors and reminders for experienced instructors on how to prepare your Accounting course and conduct classes most effectively. You are encouraged to adopt the Read More…


Accounting Instructors’ Report, Summer 2014: Table of Contents

TRENDS
Now I’m Going To Teach Accounting: What Do I Do Now?
Belverd E. Needles, Jr., Ph.D., CPA

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