Can Innovative Assignments Engender
Can Innovative Assignments Engender
Can Innovative Assignments Engender “Real World” Learning and Positive Emotions in the Introductory Financial Accounting Class?
Abstract
Purpose: This paper describes three active learning activities developed for use in the introductory financial accounting class – an interview of a financial statement user, an internal control paper, and a financial statement project where students analyze two competing businesses.Student surveys were administered to see if these activities added valueto the introductory accounting course.
Methodology: The learning activities are developed using Fink’s (2003) Taxonomy of Significant Learning, aligning the activities with Fink’s learning dimensions which also support the higher order learning skills in Bloom’s revised taxonomy. In addition, students were surveyed on the how well traditional class activities (e.g. homework and tests) and the new activities support the AICPA core competencies. Students were also asked open-end questions and how they felt about these new activities.
Findings: Based on faculty comments and student survey results, the three innovative learning assignments appear to be effective in developing higher-order learning skills, positive affect, and those “real world” skill sets valued by professionals. When it came to developing the AICPA core competencies, the new learning activities provided more value than traditional teaching methods for many of the competencies. The projects also engender a more positive emotional affect in terms of student accomplishment, interest, engagement and meaning in their learning.
Value: The paper presents and validates three learning activities that attract students to the accounting profession, improving both faculty and student affect in the introductory accounting class, and exposing students to the ubiquity of accounting – qualities desired by the Pathways Commission.
Keywords: active learning, AICPA core competencies, Pathways Commission, financial accounting course, introductory accounting, student engagement
Introduction
Introductory accounting students often learn accounting from a lecture model where memorization of content and individual work is emphasized and their grade is determined almost exclusively by exam, quiz, and homework scores.[1]
The issue of the adequacy of accounting education has been a hot-button topic among accounting educators for many years, starting with the Bedford Committee of the American Accounting Association in 1986 and running through to the Pathways Commission in 2012, that recommend that accounting educators “develop curriculum models [and] engaging learning resources” for accounting education (Behn et al., 2012, p. 12).
Certainly, if there is a problem facing accounting educators in general, the problem facing those teaching the introductory accounting course is greater. In fact, the Pathways Commission made transforming the first accounting course one of its twenty-two objectives in improving accounting education (Behn et al., 2012, p. 15).
First off, the introductory accounting course (typically financial accounting or the principles of accounting) is often required not only for those desiring to be accounting majors, but also for all students in business, as well as, in some cases, students in other professional career paths (criminal justice, hospitality management, dietetics, computer information systems). The instructor is faced with at least three groups of students (accounting majors, business majors, and nonbusiness majors) with very different personal preferences, motivations, and learning goals for the course. Many students seem to want little more than to pass the class with the minimum level of engagement and commitment, so that they can then forget the entire experience as they move on to what they consider really important.
Another problem is that a major part of many accounting courses centers on the use and understanding of double-entry bookkeeping. While accounting majors may be very interested in learning the ways in which accountants communicate (journal entries, T accounts, schedules, and financial statements), many other students are not only uninterested, but dislike learning and following the structure of bookkeeping.
Furthermore, the introductory course is the gateway into the profession. Students who are already interested in and motivated about accounting and students who have the underlying skills and aptitude for accounting may not give accounting the consideration it deserves, if the introductory course is poorly taught or structured and provides little exposure to the bigger vision of accounting as a discipline.
Moreover, the rush to cover content and the lack of emphasis on learning activities in the classroom obscures the vibrancy of accounting as a discipline and a profession. Students don’t learn of the real service accountants provide to people who make financial and business decisions, nor do theyunderstand the ubiquity of accounting in terms of personal recordkeeping and decision-making, business communication and transactions, and the effect accounting systems have on the structure and functioning of business.
If you want to build a ship, don’t herd people together to gather wood, and don’t assign them tasks and work; but rather, teach them to yearn for the endless immensity of the sea. -- Antoine de Saint-Exupery[2]
Although the task of the accounting professor is not quite as dramatic as the task of the shipbuilder alluded to in the quote above, the more the professor can create learning activities that put students in contact with the vibrancy of accounting as a process and profession, the more likely that students will be more engaged in class and more appreciative of (if not more interested in) accounting.
The first problem of multiple constituencies in introductory accounting can be addressed by creating a different accounting course for the nonbusiness students who may only need a survey course, separate from the one taught to business andaccounting majors. This split can allow the faculty teaching the introductory accounting to business and accounting majors to focus more on how financial accounting captures and communicates business transactions and less on teaching about business in general to nonbusiness students.
However, the other problems of introductory accounting remain, including engaging non-accounting business students in the class material. The challenge remains, “Can financial accounting be taught in such a way where business majors find value in the class even after they finish with accounting as an academic subject?”
We believe the three projects we developed not onlyenliven the introductory accounting class, but also provide value not only for accounting majors, but all those who take the course, no matter what their major or interest level. These projects are:
1. Financial Statement User Interview: Students interview financial statement usersin their own disciplines to understand howusers actually utilize financial statement information in their organizations. As a result of this assignment, students are exposed to the ubiquity of accounting as a profession and a tool used in all business situations.
2. The Internal Control Paper: Students pick an organization and analyze five internal control activities and one or two weaknesses for any company they worked or volunteered for. Upon completing this assignment, students have deepened understanding of the importance of internal controls in the workplace.
3. The Financial Statement Analysis Project: Teams pick two companies in the same industry and provide a detailed financial analysis of each, using information garnered from the companies’ 10-K report. The project deliverables include a written report in which teams show their analyses, both quantitative and qualitative, and their recommendations of which company is the better investment; a PowerPoint slideshow of their findings, and an oral presentation of their results. Students not only learn how to dig into the financial statements of the selected companies, but learn to use tools that will help them in the future as they manage their own career and investing decisions.
This article is organized as follows. In the next section, we review the literature about the first accounting course, next we present the motivation for this study, followed by a detailed description of context and each innovation. Faculty and student feedback from the priorsemesters is presented followed by a short conclusion. The three innovations, rubrics, and how the innovations tie to the AICPA core competencies of education are presented in the appendices.[3]
Review of Literature
A great deal of attention in academic research has been given to the pedagogy and content of the first course in accounting. Yet, the effective curricular models of the first course remain an area of concern. The Pathways Commission, in Charting a National Strategy for the Next Generation of Accountants, states
“As a fundamental element, the first course in accounting should provide information to students about the important role accountants play in society as well as information about various careers, what individuals do in those careers, and the potential earnings levels of those careers” (Behn et al., 2012, p. 88).
Therefore, the first accounting course should be designed in a way that helps students explore careers related to the profession of accounting, engendering respect for the profession and developing their higher order learning skills such as analyzing, evaluation, and creating to prepare them for their future careers (Bloom, 1989).
The Need for Change
Both practitioners and academics tend to agree on the need to change the way introductory accounting courses are delivered. Recently, the Pathways Commission reported that despite the changes in accounting practice and mindsets of a new generation of college students, “many accounting programs and requirements have remained constant” (Behn et al., 2012, p. 12).
Practitioners have been calling for changes in accounting education for more than two decades. In 1989, the partners of the largest accounting firms issued a “White Paper” highlighting their concern about improving accounting students’ competencies before they join the profession. The White Paper points to the distance between the pedagogical content of accounting courses and the reality of practice (Arthur Andersen et al., 1989). Similarly, the Bedford committee in 1986 proposed that educators should “approach accounting education as an information development and distribution function for economic decision-making’’ (American Accounting Association 1986, P. 169).
In response to the weak alignment between the real world of business and accounting education in classrooms, Albrecht and Sack (2000), in their seminal work Accounting Education: Charting the Course through a Perilous Future, call for a significant change in the content of the introductory course of accounting where the focus shifts from the preparation of financial statements to exploring the role that accounting plays in business. In particular, Albrecht and Sack suggest that the content of the first accounting course should introduce materials that develop skills that students need to be successful professionals.
If the world of accounting is changing, then the curriculum of accounting programs and the contents of accounting courses should follow suit. Positive course experiences can overcome the negative perception of accounting that some students might have picked up as early as in high school. With engaging learning approaches, the first accounting course can serve as a pathway to draw undecided majors to accounting (Behn, et al, 2012). Using the cognitive-based theory of planned behavior, Cohen and Hanno (1993) examined students’ choices of an academic major. In order to attract top students to major in accounting, student perceptions of the profession will change if they understand the important role accountants play in business decision-making (Deines, et al, 2012; AECC, 1992).
Ultimately, accounting educators need to reassess and reinvent the accounting curriculum to prepare the next generation of accountants for the future. Most of us readily agree to this, but may disagree onhow to make the changes. The authors believe the changes must go beyond slight modifications to the traditional introductory accounting course;rather we must create learning experiences that transform the course. We also believe our innovations can improve our students’higher learning skills and engender respect for accounting related careers.
Transforming the First Accounting Course
The first course in accounting can be a “tug-of-war” between the necessity to build students’ technical accounting skills and the importance of introducing the dynamic role that accounting plays in modern economies (Behn et al. 2012, p. 41). In addition,accounting educators need to heighten students’ awareness of today’s business and society so that they can apply their technical skills to new environments (Black 2012).
Crafting the first course in accounting is extremely important to initiate interest in the accounting profession and to attract students to the major. The first accounting course is perhaps the most important factor business students consider when they decide whether to major in accounting (Cohen and Hanno 1993; Killian et al. 2012; Opdecam and Everaert 2012; Warren and Young 2012). Therefore, learning outcomes of the first accounting course are essential for students not only to decide their majors but also to attract more high potential students to the accounting profession.
Killian et al. (2012) argue that the first accounting course should develop students’ respect for the accounting profession by exploring their future accounting careers. To help students explore accounting related careers and develop the broad skills and habits of inquiry, the authors introduce the financial statement interview exercise in the financial accounting course. In this exercise, students identify professionals to interview regarding the uses and limitations of financial statements and reflect on their experiences. Results show that the exercise helps students achieve intentional learning in the first accounting course, engenders their respect for the accounting profession, and aids students in exploring potential careers in accounting.
Encouraged by trends in accounting education and the profession, Killian and Brandon (2009) apply the first four steps of Fink’s (2003) Significant Learning Taxonomy (STL) as a template for redesigning the introductory course of accounting.[4] The authors develop significant learning objectives and design learning activities and assessment methods that align with these objectives. Using a pre and post self-assessment rubric, results show that the redesigned course promotes a more active and engaged classroom and helps students achieve higher level of competencies. The authors propose that accounting instructors should forgo some customary coverage of the content of the introductory course in order to make time for significant learning activities.
In response to prompts from several professional bodies including accounting stakeholders and visionaries such as the Pathways Commission, accounting educators have been paying greater attention to group work. Cooperative learning techniques, including team learning, can foster student’s interpersonal skills such as time management, networking, and communication. The capability of employees to work together has been recognized as a vital competency for successful careers within the profession (AICPA 2005; Berry 1993).
Opdecam and Everaert (2012) examine students’ preferences for either a team learning approach or a lecture-based approach in the first accounting course. Findings reveal a significantly higher score for generic skills of team learners relative to those of lecture-based learners. More specifically, the authors conclude that collaborative learning enhances students’ critical thinking skills and prepares students to be active members in their future careers. Working in teams gives students an opportunity to practice skills from the AICPA core competency, specifically, professional demeanor, interaction, and communication.
The practice of accounting is changing rapidly and technology plays an increasingly prominent role in the accounting profession. A new generation of students spends substantial amount of their time with technology. Albrecht and Sack (2000) have recognized technology as one of the three main change drivers that affect business. Students need to know how technology is used to facilitate business. Accounting educators can use technology in collecting and analyzing data for the purpose of evaluating a company performance or comparing the performance of two different companies. Accounting students can be introduced to the interactive data called eXtensible Business Reporting Language (XBRL) that facilitates the financial statements analysis and the dissemination of information to users in a much easier way than that used with traditionally produced (non-interactive) financial reports.
Since The US Securities and Exchange Commission (SEC) has mandated XBRL for publicly traded companies, it is crucial for business students to be familiar with the XBRL as a tool of communicating financial information. Debreceny and Farewell (2010) recommend integrating XBRL at relevant points in the accounting curriculum. The authors propose the introduction of XBRL to accounting students in the introductory accounting course from the end users’ perspective. In the same line of research, Gomaa et al. (2011) introduce business and accounting students to the application of XBRL through a financial statements analysis project. Through this project, students learn how to use XBRL to extract the financial reports of two companies and facilitate the analysis of their financial statements. XBRL data of specific firms provided through SEC can be imported into Excel where students can analyze the financial performance of firms, generate key financial ratios and present graphs. It is worth noting that accounting educators should use the technology only when it maximizes student learning and achieves the ultimate educational objective (Bryant and Hunton, 2000).
It is important to explore a wide range of perspectives in the first accounting course that engender students’ respect of the accounting profession, attract students to major in accounting, promote a more active and engaged classroom, enhancing students’ critical and technical skills, encouraging collaborative learning, and integrating technology in the curriculum. Based on insights from the literature review, we present three assignments that we use to enhance the content and the delivery of our first accounting course.