This exercise should make apparent to introductory accounting students the importance of internal controls both as a deterrent and as an early detector of fraud. We use…
This exercise should make apparent to introductory accounting students the importance of internal controls both as a deterrent and as an early detector of fraud. We use the fraud triangle (PCAOB, 2010) framework to help students understand and evaluate this fraud. We believe completing this exercise will give students a better understanding of fraud in general, the fraud triangle, and internal controls and their use in preventing and detecting fraud.
This exercise presents an actual embezzlement committed by a long-tenured employee of a local not-for-profit organization. Each component of the exercise contains a series of questions to facilitate classroom discussion.
Student surveys confirm that students learn about detecting and preventing fraud. Students also indicate that they find the not-for-profit setting interesting and would use the principles in the exercise if they become affiliated with a not-for-profit organization.
To our knowledge, this is the first fraud exercise directed at educating students in introductory and survey courses in accounting where students likely have only a minimal understanding of accounting and internal controls.
This article investigates the most appropriate accounting treatment for expensing the fair value of employee share options (ESOs) in financial statements. The debate…
This article investigates the most appropriate accounting treatment for expensing the fair value of employee share options (ESOs) in financial statements. The debate centres around whether the grant date or the exercise date is the most appropriate date for determining the value at which the ESOs are eventually accrued within the financial statements. After examining accounting models for each of the above measurement dates, the article concludes that exercise date accounting best reflects the economic substance of the ESO transaction. Therefore, the IASB should consider revising its definition of equity to encompass only existing shareholders, leaving all other financial obligations to be classified as liabilities.
This paper describes a series of cross-curricular exercises intended to introduce students to specific differences between US GAAP and IFRS, while also helping students…
This paper describes a series of cross-curricular exercises intended to introduce students to specific differences between US GAAP and IFRS, while also helping students understand how US GAAP and IFRS differently answer broader fundamental questions about accounting. These questions involve relevance, reliability, and managers’ use of judgment. Students play varying roles of financial statement stakeholders, according to the roles represented by three courses in the accounting curriculum. In all courses, the managers of the hypothetical firm face strong reporting incentives. Students make decisions according to the roles they play in each course. We observed that students not only identified the differences between US GAAP and IFRS, but also came to appreciate the potential impact of IFRS on stakeholders. Students also appreciated the effect of reporting incentives on managers under different reporting regimes.
Selecting the appropriate type of technology to incorporate in the classroom to promote comfort with professional uses of technology is important. In addition, the use of…
Selecting the appropriate type of technology to incorporate in the classroom to promote comfort with professional uses of technology is important. In addition, the use of technology and good oral communication skills are valued by prospective employers. Students are stakeholders in their education, so it is important to obtain their perceptions. The purpose of this study was to obtain students’ perceptions about active learning exercises which were created to promote comfort with professional uses of technology and oral communication skills.
Six accounting classes were asked to complete a survey which assessed various classroom exercises that included the use of technology and oral communication skills while learning course content.
Overall, the students had a positive perception about the classroom exercises.
Few studies have evaluated the students’ perception of using the iternet to assist in the learning process. None have assessed the students’ perceptions as to whether those exercises have improved their comfort with technology. In addition, past studies are greater than 15 years old, and much has changed in technology and the internet. The literature has provided studies on the communications skills required of accounting students but does not study the students’ perceptions of exercises trying to improve their skills. In addition, the exercises included in this study are generalizable and can be applied to other subject matter.
The paper's purpose is to use religious thought to inform accounting, and in particular to make a contribution to the ongoing debates concerning the merits of rules‐ and…
The paper's purpose is to use religious thought to inform accounting, and in particular to make a contribution to the ongoing debates concerning the merits of rules‐ and principles‐based accounting systems and the value of a rule‐overriding requirement of fair presentation in financial reporting.
The paper applies to accounting a conception of religion that is heavily influenced by Jacques Derrida's writings on religion and deconstruction. In order to clarify the nature of this religion and to facilitate appreciation of its significance for accounting it is progressively recast, in the paper, first in terms of deconstruction and then in terms of a demand for an infinite justice.
At the core of the paper, religious responsibility, as a demand for justice, in accounting is explored through Derrida's analysis of the relation between justice and law, which is found to have clear application to accounting in terms of an aporetic tension between an infinite demand for fairness in accounting and accounting regulation.
The analysis implies that the pursuit of justice as fairness in accounting, “doing the truth” in accounting, will always demand the negotiation of an unstable and difficult mediation between the poles of regulation and fairness, the calculable and the incalculable, the possible and the impossible.
The paper draws on the postsecular current in religion to make a novel contribution to the critical and interdisciplinary awareness in accounting that has begun to unsettle the hold that certain modernist dichotomies, such as that of myth and reason, have had on accounting thought.
Explores the use which is made of strategic management accountingin the hotel sector through case studies at six major UK hotel groups.Uses the definition of strategic…
Explores the use which is made of strategic management accounting in the hotel sector through case studies at six major UK hotel groups. Uses the definition of strategic management accounting – “the provision and analysis of management accounting data relating to business strategy: particularly the relative levels and trends in real costs and prices, volumes, market share, cash flow and the demands on a firm′s total resources”. The results demonstrate that the accounting function in hotel groups is becoming increasingly involved in strategic management accounting, both in planning and in ad hoc exercises on the market conditions and competitor analysis. The widespread adoption of strategic management accounting is consistent with the open and relatively homogeneous nature of the industry and the high degree of competitiveness among the hotel groups in the market.
The purpose of this paper is to interpret the use of accounting information relating to the House of Correction, a public safety institution established in Rio de Janeiro…
The purpose of this paper is to interpret the use of accounting information relating to the House of Correction, a public safety institution established in Rio de Janeiro for the control of workers under a tutelage system (1831–1864). The aim of the House of Correction was to develop a disciplined workforce of former slaves and other “Free Africans”. Various control and information procedures were put in place to monitor its achievement of this goal.
This study is based on historical archival research, mainly conducted at the National Archive of Rio de Janeiro and at the Brazilian National Library. The study uses Althusser’s ideology concept and the Marxist concept of reproduction of labour to show how accounting information enabled the administrator of the House of Correction to exercise control over the “Free Africans” consistent with the ideologies of the period and place.
The authors find that the House of Correction pursued a policy of ensuring “Free Africans” were docile, obedient and familiar with State ideology.
The research is based on a single case study and it shows the need for both comparative and interdisciplinary analysis in order to increase an understanding of the use of accounting information in ancient prison contexts, as well as in contemporary situations.
This paper extends our knowledge of the use of accounting for the control of workers, who were either captive or repressed due to their ethnical differences; and it shows how ideology can be imposed through the use of accounting information. The authors extend theory by applying the Marxist and Althusserian concept of reproduction of labour to the case of “Free Africans”.
Increasing trade union pressure for worker participation in industrial decision‐making, and the growing willingness of employers to concede the point, will have important implications for colleges offering accounting courses for the non‐accountant.
This case illustrates the implications of the business challenges faced by an on‐campus student‐run convenience store when an internationally known coffee company opened a…
This case illustrates the implications of the business challenges faced by an on‐campus student‐run convenience store when an internationally known coffee company opened a competing store. The case exercises focus on the application of managerial accounting concepts relevant for future strategic decision making. Students have the task of extracting relevant data from descriptive information. Using the story of an actual student‐run coffee shop that confronted an emerging competitor and thus necessitating these analyses can provide an attractive alternative to teaching managerial accounting concepts that are often considered by students as “dry.”
Case information was obtained from actual student organization and university data slightly modified to facilitate calculation and application of managerial accounting topics. Identities of the institution, the student run store and the international competitor have been disguised at their request. Certain events and dates have been altered to protect identities.
Relevant courses and levels
Relevant courses include but are not limited to: Introductory Managerial Accounting and Cost Accounting at the undergraduate business or accounting and the graduate MBA level.
Teaching opportunities include the application of managerial accounting concepts relevant for future strategic decision making. Topics include cost‐volume‐profit, sales‐mix, and break‐even analyses, conversion of traditional income statements to contribution margin income statements, and internal control issues.