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The Pathways Commission Vision for the First Academic Exposure to Accounting G. Peter and Carolyn R. Wilson AAA 2014 Southeast Region Meeting.

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Presentation on theme: "The Pathways Commission Vision for the First Academic Exposure to Accounting G. Peter and Carolyn R. Wilson AAA 2014 Southeast Region Meeting."— Presentation transcript:

1 The Pathways Commission Vision for the First Academic Exposure to Accounting G. Peter and Carolyn R. Wilson AAA 2014 Southeast Region Meeting

2 Contributors to the Pathways Vision Model:  Sam Leno, formerly Boston Scientific  David Moss, Citigroup - Citi Markets  Leslie Knowlton, Deloitte  Ellen Glazerman, Ernst & Young  Dan Roam, Digital Roam, Inc.  Lisa Koonce, University of Texas  Julie Smith David, American Accounting Association  Mike Tiller, Indiana University, Chair of Vision Committee  Tracey Sutherland, American Accounting Association  Carolyn Wilson, Boston College  Pete Wilson, Boston College 2

3 A widely held perception of accounting is 3 Word Cloud was created with taxedo.com and used under the Creative Commons License. that it’s the process of “bean counting.”

4 The public perceives accounting as a mechanical, black-or-white, right-or-wrong process. 4

5 Reality is that accounting plays a critical role in supporting a prosperous society. 5 Word Cloud was created with taxedo.com and used under the Creative Commons License.

6 6 This is the “Pathways Vision Model.”

7 7 Often it is said that … Accounting is the language of business.

8 The public’s view of accounting following “black and white” rules, while essential, is only the grammar. 8 However, the public’s perception is narrow.

9 9 Rather… A subtle aspect of accounting, like nuances in other languages, is that it both affects and is affected by the business reality and culture.

10 10 Critical Thinking

11 11 Consequences of User Decisions

12 12 Prosperous Society

13 13 Accounting Judgments

14 Education Outside companies Media Voting public Special interests PCAOB FASB GAAP Congress SEC GAAS Inside companies  Board  CFO  Controllers  Record keepers ReportsUsers Auditors Other Decision Making Hierarchy © NavAcc LLC, G. Peter & Carolyn R. Wilson

15 As educators, our goal is to shift the perception toward the reality. 15 Education The first course has the broadest impact.

16 Teaching the Vision Model Elements Concept Extensions & Applications Drill Deeper

17 Wall Street Journal, October 25, 2013 Federal regulators have warned banks to be careful about padding their profits with money set aside to cover bad loans. But some of the nation's biggest banks did more of it in the third quarter than earlier this year. The banks justify the releases. They cite improvements in credit quality and economic conditions – which makes it less necessary for them to hold large amounts of reserves as cushion against loans that go sour – Teaching the Vision Model Elements

18 What is the accounting reality? Wall Street Journal, October 25, 2013 How did readers perceive the article? ? How do we prepare students?

19  Analyze economic activity  Events  Analysis  Accounting Judgments  Entries  Financial-statement effects  Ratio effects  Computations Teaching the Vision Model Elements  Risks & incentives

20 20 All of the elements can be emphasized at various levels based on each school’s mission and students. The Vision Committee recommends the first course cover at least a general awareness of all of the elements and the ways they are connected. The vision accommodates diverse educational missions:

21 Get the Pathways Commission Vision Model at AAA Commons THOUGHTS?


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