Pathways Commission Vision Model for Accounting Education G. Peter and Carolyn R. Wilson AAA Advisory Group Meeting, August 3, 2014

Agenda  Introduce Vision Model  Discussion: How can the Model enhance your new hires’ skills?  Drilling deeper  Discussion: What must happen for recruiters to stress these skills?  Consequences of the current public perception  Discussion: How can we work together to transform the public perception?

What is the public perception of accounting?

Public Perception of Accounting

What is the reality of accounting?

Pathways Vision Model Reality of Accounting  Inclusive  Interdependent elements  Simple, yet deep

Reporting entity Pathways Vision Model Inclusive Sales activities Sales department

Pathways Vision Model Interdependent Elements How will accounting likely motivate you to work harder and smarter? How can the Vision Model help you think more critically? How does accounting benefit society?

Pathways Vision Model Consequences of Users’ Decisions Corporate executives Bonus decisions Sales report Assess usefulness When should revenue be recognized Sales activities

Pathways Vision Model Consequences of Users’ Decisions + or - Anticipated + or - How will accounting likely motivate you to work harder and smarter?

Pathways Vision Model Consequences of Users’ Decisions + or - Anticipated + or - Everything affects everything

Pathways Vision Model Critical Thinking How can the Vision Model help you think more critically?

Pathways Vision Model Prosperous Society How does accounting benefit society?

How can the model enhance your new hires’ skills?

 Analyze economic activity  Events  Analysis  Accounting Judgments  Entries  Financial-statement effects  Ratio effects  Computations  Risks & incentives Pathways Vision Model Drilling Deeper

A balance sheet is a fuzzy, but useful, picture of a company’s financial health at a reporting date, if properly interpreted. Picture of company’s financial health at reporting date Pathways Vision Model Drilling Deeper

How are we going to deal with complexity? Success Factors  Internalize concepts  Apply concepts repeatedly in diverse contexts Pathways Vision Model Drilling Deeper

COMPLEXITY SIMPLICITY

COMPLEXITY “I wouldn’t give a fig for the simplicity this side of complexity but I’d give my life for simplicity on the far side of complexity” Oliver Wendell Holmes SIMPLICITY

SIMPLICITY ON THIS SIDE OF COMPLEXITY SIMPLICITY ON THE FAR SIDE OF COMPLEXITY Simple but shallow Simple yet deep

What must happen for recruiters to stress these skills?

Pathways Vision Model Consequences of Public Perception for Judgment Hierarchy

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

How can we work together to transform the public perception?

Questions or comments?