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GE-003-067, ACC 388, ECONOMIC, POLITICAL AND BEHAVIORIAL ISSUES IN ACCOUNTING (4) GE AREA D4
CALIFORNIA STATE POLYTECHNIC UNIVERSITY, POMONA
ACADEMIC SENATE
GENERAL EDUCATION COMMITTEE
REPORT TO
THE ACADEMIC SENATE
GE-003-067
ACC 388, ECONOMIC, POLITICAL AND BEHAVIORIAL ISSUES IN ACCOUNTING (4) GE AREA D4
General Education Committee Date: 3/4/08
Executive Committee
Received and Forwarded Date: 7/9/08
Academic Senate Date: 7/16/08
First Reading
10/1/08
Second Reading
BACKGROUND:
This course was offered as a Social Science Synthesis Course since it utilizes multidisciplinary perspectives towards an understanding of accounting information, its development and role in society and its potential behavioral effects. It has been under consideration for over two years (course author was on sabbatical at one point and unavailable for writing revisions).
RESOURCES CONSULTED:
Dale Turner, Associate Dean, CLASS; Bob Hurt; Claudia Pinter-Lucke; Chair, College of Business Curriculum Committee; Chair, Department of Accounting
REVIEW:
This course has been under considered by the GE Committee for two academic years. It was of concern to the committee in both years that the course was too narrow in focus and that it did not meet the more general criteria set out for GE classes in EO 595. After an initial rewrite, the course author did not revise the extended course outline and requested that the course be considered as presented in the below.
RECOMMENDATION:
The GE Committee felt that the course was too specific in its focus and that it seemed to be more of an upper division class specifically for accounting majors, rather than a class for the entire student population. We believed that ACC 388 in its present form did not meet the criteria for GE designation and voted 0-8-1 against approving this course for General Education designation, and now forward it to the Academic Senate Executive Committee for their action.
CALIFORNIA STATE POLYTECHNIC
UNIVERSITY, POMONA
EXTENDED COURSE OUTLINE
I. Catalog Description
ACC 388 Economic, Political and Behavioral Issues in Accounting (4)
Economics and politics of accounting standard-setting. Historical perspectives, cultural connections and behavioral effects, including ethical issues. Interpretation of accounting information. 4 lecture discussion. Fulfills Area D4 General Education.
II. Required Background or Experience
A. Prerequisites. Completion of GE Area A (A1-A3) and GE Area D (D1-D3).
B. Prerequisite justification. Current University general education guidelines specify the completion of Area A and related courses in Area D as prerequisites for Area D synthesis courses.
C. General education contribution. This course looks at accounting’s role in society from a non-technical perspective. It relies heavily on oral and written communication (COM 100, ENG 104), as well as critical thinking (ENG 105).
III. Expected Outcomes
This course is offered as a Social Science Synthesis Course since it utilizes multidisciplinary perspectives towards an understanding of accounting information, its development and role in society and its potential behavioral effects. The course employs a variety of perspectives in the following ways:
· Historical: examination of accounting’s historical development in the U.S. and around the world.
· Political: description and analysis of the political processes associated with the development of accounting rules, practices and information.
· Economic: assessment of the economic effects of accounting information (e.g., in the stock and bond markets), as well as economic strengths and weaknesses of accounting information.
· Anthropological: the relationship between accounting and national culture, such as is conceptualized by Hofstede’s dimensions of culture.
· Behavioral: the behavioral effects of accounting information and processes, including critical examination of ethical issues in accounting
This course thus synthesizes sub-areas D1 (U.S. History, Constitution, and American Ideals), D2 (History, Economics, and Political Science), and D3 (Sociology, Anthropology, Ethnic and Gender Studies). The course also provides students with new information and analytical abilities via interpretation and analysis of accounting’s general-purpose financial statements.
Therefore, upon completion of this course, students should be able to:
1. Describe and critique the accounting standard setting process in the U.S. and around the world.
2. Outline the historical development of financial statements and accounting rules in the U.S.
3. Relate national culture to the development of accounting processes and rules around the world.
4. Critique analytical processes for general-purpose financial statements from economic and behavioral perspectives.
5. Interpret accounting information as a basis for decision making.
IV. Text and Readings
As accounting’s role in society is not a common general education course, few formal “texts” exist in this area. The challenge has been to find sources that examine accounting from critical and analytical perspectives, rather than the technical. A few candidates follow:
Bandler, J. How to Use Financial Statements: A Guide to Understanding the Numbers (1st edition). McGraw-Hill, 1994.
Friedlob, G.T. and R. E. Welton. Keys to Reading an Annual Report (3rd edition). Barron’s Educational Series, 2001.
Hopwood, A. et al. (editors). The Economics and Politics of Accounting: International Perspectives on Trends, Policy and Practice. Oxford University Press, May 2004.
Tracy, J.A. How to Read a Financial Report (5th edition). John Wiley & Sons, 1999.
In addition, to bring in economic, political, cultural and behavioral perspectives, the course would rely on journal / periodical readings and non-accounting texts, such as:
Barr, S. “The Party’s Over.” CFO: The Magazine for Senior Financial Executives, December 1999.
Hofstede, G. Cultures and Organizations. McGraw-Hill, 1996.
Iqbal, M. S. “CPAs Must Stand Firm in the Standard-Setting Process.” California CPA, January 2001.
Quick, P.D. and Goldschmid, M.T. “FASB Statements 141 / 142 and the Business Economist: Where, Oh Where, Have My Intangibles Gone?” Business Economics, January 2002.
Reason, T. “On the Same Page: U.S. and international standard setters are coordinating their efforts to craft a common language for business.” CFO: The Magazine for Senior Financial Executives, May 2002.
Reason, T. “Questions of Value: Is Fair-Value Accounting the Best Way to Measure a Company? The Debate Heats Up.” CFO: The Magazine for Senior Financial Executives, February 2003.
“Spinning the Numbers” HR Magazine, November 2002.
V. Minimum Student Material
Students will need access to email and the Internet for assignments.
VI. Minimum College Facilities
A classroom with computerized audio-visual equipment and Internet access.
VII. Course Outline
1. Course introduction
a. Pre-test
b. Instructor and student expectations
c. Role of accounting in society
2. Standard setting processes
a. Nature of accounting standards (a human creation to meet a human need—no “truth” in the standards)
b. Standard-setting bodies
i. Securities and Exchange Commission
ii. Financial Accounting Standards Board
iii. International Accounting Standards Board
iv. American Institute of Certified Public Accountants
c. Political nature of standard setting
3. General-purpose financial statements
a. Role of accounting in commerce and its historical development
b. Purpose and content
c. Strengths and weaknesses from an economic perspective
i. Consistency, comparability, objectivity
ii. Use of estimates, judgment
iii. Measurement and recognition problems
4. Financial statement interpretation
a. Horizontal analysis
b. Vertical analysis
c. Ratio analysis
5. Periodic examination #1
6. Behavioral effects of accounting information
a. Gamesmanship
b. Capital market reactions
7. Ethical issues in accounting and financial reporting
a. Ethical traditions / decision making frameworks
i. Utilitarianism
ii. Virtues
iii. Rights / duties
iv. Justice
b. Case analysis (examples only—actual cases may change over time)
i. Enron
ii. Martha Stewart
iii. Global Crossing
iv. ZZZ Best Carpet
v. Sears
8. Cultural issues in accounting
a. Hofstede’s dimensions of culture
i. Power distance
ii. Uncertainty avoidance
iii. Masculinity
iv. Long-term orientation
v. Tolerance for ambiguity
b. Schein’s dimensions of organizational culture
i. Behaviors
ii. Values
iii. Assumptions
c. Relationship between cultural variables and accounting processes
9. Periodic examination #2
10. Putting it all together: student presentations of analysis projects
VIII. Instructional Methods
Lectures
Discussions
Debates
Individual and small-group analytical exercises
IX. Evaluation of Outcomes
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GE-003-067, ACC 388, ECONOMIC, POLITICAL AND BEHAVIORIAL ISSUES IN ACCOUNTING (4) GE AREA D4
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GE-003-067, ACC 388, ECONOMIC, POLITICAL AND BEHAVIORIAL ISSUES IN ACCOUNTING (4) GE AREA D4
X. Assessment
Several methods will be utilized to assess the extent to which the course meets the Educational Outcomes appropriate for the Social Science Synthesis sub-areas (D1-3), as well as those specific to the course, including:
1. Student performance on interdisciplinary questions in periodic examinations, developed by the instructor in connection with faculty from the related fields (e.g., history, economics, anthropology, political science)
2. Student performance on a grading rubric for the financial analysis project that incorporates inter-disciplinary considerations.
3. Student feedback, in the form of in-class writing assignments and out-of-class interviews, regarding the degree to which this course synthesized material and perspectives learned in their lower division general education courses, especially those in the social science sub-areas.
4. The course will also be evaluated using the Accounting Department’s standard evaluation tool for lecture courses.
In accordance with good assessment processes, the feedback from those four sources will be used to modify the course in consultation with other faculty.
SECTION C: UNDERGRADUATE LEARNING GOALS (AACSB STANDARDS)
Learning Domains (including primary features):
Cognitive Domain / Affective Domain / Psychomotor Domainq Knowledge / q Receiving
q Comprehension / q Responding
q Application / q Valuing
q Analysis
q Synthesis
q Evaluation
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GE-003-067, ACC 388, ECONOMIC, POLITICAL AND BEHAVIORIAL ISSUES IN ACCOUNTING (4) GE AREA D4
Foundation Knowledge and Skill Learning Goals
Goal / Class Contact Hours*Written and oral communication skills as evidenced by an ability to express complex issues orally and in proper written English. / 40
Analytical, and problem solving skills as evidenced by an ability to organize and utilize quantitative and qualitative information and appropriate methods to make decisions. / 40
Teamwork and interpersonal skills as evidenced by an ability to achieve common objectives in a diverse cultural environment. / 20
Information technical skills as evidenced by an ability to use current information technology to convey information, solve problems, and expedite business processes. / 10
Demonstrate awareness of ethical responsibility to business professions and society. / 20
Management-Specific Learning Goals
Goal / Class Contact Hours*Develop broad knowledge of critical areas of business, including statistics, accounting and finance, economics, information management, management, marketing, and operations management. / 40
Explain the impact of internationalization on the various functional areas of business. / 10
To be able to deal with business problems from the integrated perspective of the business as a whole. / 40
*Explanation of class contact hours: these hours are being collected as part of an AACSB requirement and will be used to assess our undergraduate program.