This article is a reply to “On theoretical engorgement and the myth of fair value accounting in China” Nobes (2019) from the authors of “Adaptability to fair value…
This article is a reply to “On theoretical engorgement and the myth of fair value accounting in China” Nobes (2019) from the authors of “Adaptability to fair value accounting in an emerging economy: A case study of China's IRFS convergence” (Peng and Bewley, 2010) and “The Winding Road to Fair Value Accounting in China: A Social Movement Analysis” (Bewley et al., 2018).
This article engages directly with the arguments of the criticism.
This article argues that the author of the commentary misunderstands the purpose, content and findings of both papers. By providing only a narrowly focused technical analysis of the new Chinese accounting standards, the author fails to see that their qualitative research approach reveals important, complex social and political factors at play in China's attempts to adopt modern international accounting principles. The commentary expresses a view that accounting is a neutral technology that needs only to be clearly defined and enumerated to be correctly implemented, whereas this research takes a much broader and deeper perspective. The authors seek to understand how China was able to successfully adopt fair value accounting standards in 2006, whereas an earlier attempt to introduce fair value in 1998 had led to abuse of fair value measurements and the eventual repeal of fair value regulations in 2001.
This article helps clarify the purpose of qualitative accounting research, the role of theory in such research and the usefulness of theory in describing and explaining empirical case facts related to changes in accounting standards, particularly in an international context.
This article contributes to a better appreciation of qualitative accounting research.
Behavioral accounting research has flourished over the past 40 years and vastly improved our understanding of accounting judgment and decision-making, human behavior as it…
Behavioral accounting research has flourished over the past 40 years and vastly improved our understanding of accounting judgment and decision-making, human behavior as it is affected by accounting information and processes, and influences on organizational and social structures. However, to increase the validity and reliability of the work, researchers have generally narrowed the area of study to exclude many of the environmental factors that can influence the resulting behaviors that are observed. One environmental factor that has largely been ignored by the broader accounting research community is the rapidly increasing impact of information technology (IT) on all aspects of accounting. The purpose of this chapter is to elaborate on the predominance of IT in all areas of accounting and to urge behavioral accounting researchers to integrate IT aspects into their research to enhance the value and relevance of our research. Each of the major areas of accounting disciplinary research is considered (i.e., financial accounting, managerial accounting, auditing, and tax). This disciplinary focus is not intended to exclude the area of accounting information systems as is often the case in commentaries on behavioral accounting research but rather to focus on how accounting information systems are fundamentally integrated across the decision environments of every aspect of the accounting discipline.
Communication researchers have observed that students will avoid majors that require the use of certain skills where the individual exhibits a high level of apprehension…
Communication researchers have observed that students will avoid majors that require the use of certain skills where the individual exhibits a high level of apprehension toward those skills. Historically, accounting has been perceived as requiring more math skills and fewer communication skills than other business majors so accounting has typically attracted students with low math apprehension and high communication (written and oral) apprehension. The current study investigates whether business students' perceptions across business majors regarding the level of mathematics, writing, and oral communication skills required for accounting reflect the recent changes in pedagogy and curriculum content for the accounting major.
The results indicate that the perception of skills required to be an accounting major by students in other business majors (more math and less communication) is different from the perception of accounting majors. On the other hand, accounting majors' perceptions of the skills needed to be in an alternative business major is generally similar to students in the respective major. These observations may lead to the interpretation that accounting majors have gotten the word that professional expectations of accountants involve substantial communication skill while that message has apparently not been shared with students who elect to major in other business fields.
High significance for accounting objectives is evident from the support they provide for accounting actions. An inventory of these objectives could be very useful. In such an inventory, the integrity of all account data would be supported by tight identification with the consummated transaction experience of the related enterprise. But since enterprise economic activities are necessarily continuous, the results can only be made understandable by reporting account data periodically. Yet, this allocation to fiscal periods does not call for new measurement of the data. This is so because the center of accounting function is not measurement but that of reporting prior experience. This mistake has come about because of the emphasis on measurement as a function, which invites advocacy of using a “stabilized unit of measure.” This is a useful analytical technique for statistical economics, but it can only represent a revolutionary idea for accounting where the technical function is far more limited.
Introductory accounting courses have the dual objectives of teaching the fundamentals of financial and managerial accounting and creating the environment in which students develop positive attitudes toward the discipline. This study examines the extent to which there are differences in effectiveness in attaining each of these objectives under the financial accounting approach to introductory accounting versus a principles of accounting approach. We analyzed attitudes and quiz scores for non-accounting majors in a managerial accounting class as during the period of a curriculum change. Results indicate that student attitudes toward accounting as a discipline were largely unaffected. Student attitudes toward accounting as a factor affecting their careers after graduation were significantly more positive. There were no differences in quiz scores in the managerial accounting course. These findings suggest that although the financial accounting approach is more efficient, it is equally effective with respect to content delivery and more effective with respect to promoting the importance of accounting to careers.
The aim of this research monograph was to critically examine accounting development and the convergence process in Germany with a particular focus on examining issues and attitudes concerning the exercise of professional judgments in IFRS that may create constraints in achieving the IASB's objectives. This research monograph had two broad objectives, namely, (a) to enhance our understanding of national accounting developments and the convergence process by showing the importance of taking into account contextual factors, power, and legitimacy and (b) to critically examine issues and perceptions regarding the promotion, interpretation, and application of accounting standards requiring exercise of professional judgment. Based on an evaluation of Gray's framework of accounting values, the first chapter addressed the first objective by providing evidence that reliance on simplistic categorizations neglects the distinctiveness of national accounting models and the factors that shape these models. The second chapter examined convergence in Germany from a neo-institutional perspective and reinforced the importance of taking into account contextual factors and specifically legitimacy and power structures to enhance our understanding of the ongoing convergence process. The last two chapters of this research monograph addressed the second objective by exploring general perceptions toward the exercise of professional judgment and by investigating cross-cultural differences in accountants’ judgments. Specifically, the third chapter provided insights into the determinants of attitudes and concerns regarding the promotion of professional judgment by the IASB, while the fourth and the final chapters of the research monograph provided evidence of differences in accountants’ materiality judgments in Germany and Italy.
Behind actions lie objectives, and behind objectives lie motives. Accounting theory undertakes to appraise intentions as goals, to explore reasons, and to see actions geared to intentions. Intentions, in turn, produce actions and the results from this confirm the initial intentions. Furthermore, interrelations among ideas can generate interrelations among actions. Interrelations among its actions and the related ideas indicate that accounting is a highly rational, thoroughly logical, and analytical technology.
Accounting education can be considered as experience, as practice in learning to learn, and as part of education for business. Accounting techniques are important as parts of a data-processing apparatus, providing deeply significant data regarding enterprise prior experience. The objective of accounting is to provide insight into the results of management decisions. The aim of accounting education is to help students learn to learn to become professional accountants. The teacher should often mix theory with practice (the why and the how), and often indicate the contact of the course with non-accounting courses.
This study examines an issue that confronts most instructors in the first financial accounting course at the postsecondary level, that is, some students have had a high…
This study examines an issue that confronts most instructors in the first financial accounting course at the postsecondary level, that is, some students have had a high school accounting course, while others have not. Specifically, this study investigates the effect a high school accounting course has on student performance in their first postsecondary level financial accounting course (midterm examinations and course grades). The results suggest this relationship is significant and positive, yet must be interpreted carefully. For example, scholastic aptitude, time management skills, and other intrinsic values also play an important role in student achievement.