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.

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:
Pearl Tan, Associate Professor (Education), Singapore Management University
Chu-Yeong Lim, Associate Professor (Practice), Singapore Management University

 

Read Visual Representation of Accounting Standards.