Melissa P. Larson Brigham Young University Melissa_larson@byu.edu 12/11/2009 Session 8.7 The Introductory Classes Introducing Accounting: Classroom Application of the Pathways Commission Vision Melissa P. Larson Brigham Young University Melissa_larson@byu.edu

ACC 200: Principles of Accounting Required class for all business majors Required for other majors across campus (public relations, construction management, dietetics) Fulfills a general education requirement Over 1,000 students a semester Class is scheduled 2X a week for 75 min each session Financial Topics 2/3 and Management Topics 1/3 1 Day of Tax Accounting What do they think of Accounting Day 1?

Take out a blank sheet of paper and draw a picture of what you think of when you think of Accounting

Numbers, Math, Alone, Boring

12/11/2009

Taxes

Worker Bee

S T R E

Impossible?

This is also a challenge! 12/11/2009 Objective: To attract the best and brightest students into the profession AND to break down stereotypical mentalities about accounting that students bring into the classroom. To create a meaningful experience to a diverse student body. This is also a challenge!

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

Through this view, the public perceives accounting as a mechanical, black-or-white, right-or-wrong process. This is the public’s perception: Accountants “crunch the numbers” using mechanical, black & white rules that result in black and white accounting reports. Importantly, the key take-away from this image is that this limited perception has consequences to our students and to us as educators. Consequences to our students: Students self-select into a career in accounting with this limited perception and constrains how they learn accounting (memorize vs. connect to the business activity). This also constrains how they look at their jobs as accountants. It can take years for them to see the broader opportunities of how they can contribute. Students also self-select out of accounting as a consequence of this limited perception and don’t see or respect the bigger challenges and rewards of a career in accounting. Importantly, the majority of students in the introductory course don’t become accountants. This limited perception can have even greater consequences as they don’t fully appreciate that accounting information is not ‘black or white’ nor appreciate how to use accounting information to make better decisions in their jobs or as citizens that influence public policy. Limited perception has consequences to ourselves as educators: It can constrain our curriculum to focus on the mechanical aspects of accounting. Like all stereo types, there’s an element of truth: some of accounting is “black and white”; but this is part of a much bigger picture. Or, this can provide us a unique opportunity to change the public’s perception to a broader picture. This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

I’m going to start by previewing three overarching features of the model: First, its elements are interdependent, second, its simple, yet deep, and third, its very inclusive. The arrows connecting the elements illustrate their interdependencies and, in particular, how they affect and are affected by each other. There is a circular flow of cause and effect, starting with economic activity affecting accounting judgments, which affect the usefulness of information, which affect users’ decisions, which have consequences back on economic activity. This is the way most of us were taught accounting. But, this interdependence means all of the arrows can be reversed: Everything affects everything. As drawn, the model emphasizes the supply of information from preparers to users. Reversing the arrows emphasizes the demand for information, starting at the top with users seeking information about economic activity to facilitate decisions. This demand and supply feature is one of many concepts from information economics that are lurking in the background and give the model a sturdy conceptual foundation. This is one of the ways the model’s simplicity masks its depth, but this doesn’t mean this depth is appropriate for an introductory course. Rather, the elements and their interdependencies can be introduced at the big-picture level in introductory courses and increasingly penetrated deeper and deeper in more advanced courses, including on-the-job training courses. The model is inclusive in two ways: First, the scope of the economic activity and related decisions ranges from small entities such as project development teams or individual contributors to companies, not-for profits and governments. Second, it applies to all of the areas we teach, including financial, managerial, tax, auditing, systems, and not-for-profit accounting. The model’s depth and inclusiveness accommodate a broad range of perspectives reflective of our diverse experiences. Sam Leno interprets the model through the lens of a corporate executive with a particular appreciation for the benefits an accounting mindset has for problem solving, strategic planning, and financial reporting. Similarly, David Moss interprets the model through the lens of a sophisticated user; Leslie Knowlton and Ellen Glazerman through the lens of public accounting; Julie Smith David through the lens of systems experts; Lisa Koonze through the lens of behavioral research; Dan Roam through the lens of entrepreneurs; Mike Tiller through the tax lens; and Carolyn and I through the lens of information economics. In this regard, the model embraces many accounting pathways. This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

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

Typical Week Tuesday: Students do not come to class—they use that time to watch software, do homework and learn the mechanics of accounting (there is some black and white here) An accounting lab is available to help students Thursday: The students come to class and we build on what they learned through group case work and and discussion. With each topic, we discuss the judgment that is required.

Take out a blank sheet of paper and draw a picture of what you think of when you think of Accounting

Smiling faces!

Debits on the left, Credits on the right

Business Processes

Decision Making, Judgment

We can’t change every perception….but we can try!

Course Evaluation Comments “I really enjoyed this class. While I probably will not major in accounting, I know that the things I’ve learned will be very beneficial to my life going forward. Great class!” “I am a public relations major graduating this semester and frankly think I would have switched my major had I taken this a few semesters ago. I will (and have) recommend this class to anyone at BYU whether it is required or not.”

“I went into this class scared for my life “I went into this class scared for my life. I am a hard worker, but this class still intimidated me (I am not a business major but this class is required for my major which is communications). I cannot say that I LOVED accounting, or that by the end of the semester I wanted to take acc310, but I can honestly say this has been an amazingly beneficial class. You have given me basic accounting and life knowledge. I have seen how this can apply to my major an why it is important for ANYONE to know. The life lessons and applications I can/use are already endless, especially in the business world. I had to work my tail off to get the grade I am currently getting and it has been extremely rewarding”

“I am not a fan of accounting, but I have learned a lot from this class. My eyes have been opened to the accounting world.” “I really enjoyed this class—it made we want to like accounting! Unfortunately I think I’m not cut out for it, but it definitely helped me to appreciate and respect the field. I always enjoyed class and and feel that what I learned is important life knowledge.” “I didn’t think I would like accounting, but I ended up loving this class.”

“I loved this course. I use to say that being an accountant would be the worst job I could ever imagine—Professor Larson actually made me consider it! I am so excited to be using these skills in real life. Very useful course.” “Incredible course that I believe should be required for any student to graduate from BYU.” “Accounting, a subject I dreaded to take, is something fun that I enjoyed and looked forward to going to every week!”

Questions?