How to Teach the Pathways Vision Model Elements

How to Teach the Pathways Vision Model Elements
G. Peter and Carolyn R. Wilson Boston College 2014 AAA Southeast Region Meeting April 4, 2014 Slides posted at CRW: Thanks to the CTLA for giving us an opportunity to share how we extend and apply the Pathways Vision Model in our introductory course. As we do so, we have two goals: First, we hope you will see how the courses you are currently teaching, regardless of the level, fit into the model. In fact, the Vision Model was only introduced at last year’s annual meeting, so today’s session shows how our course content, developed over the past 20 years, fits into the Vision Model. Second, we hope you will get ideas about ways you can take your courses deeper into the model. In this regard, we will present a menu of related choices at the end of the session. We want to emphasize that we are NOT here to convince you “our way is the best way.” Rather, with a good deal of humility we are sharing how we currently teach the model in the honors financial accounting course, knowing we will significantly change our approach in the future as we continue strive to “up our game”. In fact, we plan to reduce the intensity and workload when we teach the intro course to the general student population this coming fall.

How to Teach the Pathways Vision Model Elements
Agenda Framing: Biggest challenges Levers to address challenges Learning framework How we teach the intro course: First day: Shattering misconceptions Developing concept maps and related skills Applying concept maps: Allowance for bad debts Comparing companies’ future prospect Last day: Pulling it all together CRW: Here is our agenda. There are two parts…. As we describe how we teach the intro course and apply the Vision Model, we will be giving an overview of the entire course. So don’t let this overwhelm you, just focus on identifying ONE thing that you can take and modify to make your own. It’s ambitious but we’re not bent on getting through it and will gladly modify it as time and your preferences dictate. So, what are our biggest challenges? Note: here is a link to our Course Map (syllabus). Select the Introductory Financial Accounting Course Map used in this presentation:

Framing Our Biggest Challenges
How do we accommodate students’ differences? How do we put 20 pounds of sugar into a 5 pound bag? How do we respond to MOOC threats? GPW: The three biggest challenges we face as educators. We’re going to start by explaining how the Vision Model helps us address our biggest challenges as educators. Over the years, a good deal of our effort to improve student learning, and we suspect your effort, has focused on two challenges that have proven to be increasingly problematic and largely insurmountable: 1. How do we accommodate students’ differences? Students increasingly come to us with diverse experiences, aptitudes, aspirations, and learning styles. 2. How do we put 20 pounds of sugar into a 5 pound bag? On the one hand, we are increasingly held accountable for ensuring students learn more and more details. On the other hand, current events underscore our responsibility to prepare students to think more critically about ethical considerations and the usefulness of reported numbers when preparing, auditing, or using them. 3. A third challenge has emerged recently that is equally daunting: MOOCs (Massive Open Online Courses) Highly motivated individuals in developing countries can currently learn introductory financial accounting on-line for free from outstanding educators and they are willing to work for $50 a month, which is 1.5% of what our students expect to earn. We suspect similar MOOCs will soon be offered for most of undergraduate accounting courses. Not surprisingly, the Big-4 are responding by increasingly outsourcing tasks requiring lower level thinking to developing countries. As this trend continues, we, our students, and the firms that hire them, must all up our game to stay competitive. How can we address these challenges?

Framing Levers We Use to Address Challenges
TODAY’S FOCUS Robust concepts & frameworks applied extensively to global companies Technology Incentives to motivate preparation and participation Flipping CRW: We use four levers to address the challenges and free up class time for higher level thinking: We utilize robust concepts, frameworks and extensive applications – including the Pathways Vision Model This allows us to teach one big concept and reinforce it with several applications rather than teach each application as a separate topic We take advantage of resources and technology Videos to outsource lectures Clickers to engage students and do real-time assessments of learning We identify incentives – intrinsic and extrinsic – to motivate preparation and participation We are constantly seeking ways to help students see the value of our course content and pedagogy We flip our classroom to free up time for critical thinking during class. To this end, we give students a highly detailed course map to set expectations on their level of preparation and to identify resources to help them learn as much material as possible on their own before class. Today, our focus is to illustrate how all of the concepts we teach in all of our courses are embedded in the Pathways Vision Model. This will underscore what we mean when we say the model is simple but deep. As we shall see next, our learning framework is a key element of our pedagogy and ties to the Vision Model.

Outsider-Insider-Outsider (O-I-O) Learning Framework
Framing Outsider-Insider-Outsider (O-I-O) Learning Framework Step 1 What do I see on the surface? Step 3 How do I use what I see and my understanding of what’s behind what I see? Step 2 What’s behind what I see? GPW: To continually reinforce the Vision Model’s interdependencies, especially those between preparers and users, we use a 3-step OIO framework for every topic we teach: In Step 1, as outsiders students learn terms and concepts associated with what they see on the surface of real companies’ financial statements and footnotes. They also learn inferences they can draw from these surface items without understanding the underlying business and accounting issues. For example, when starting our study of balance sheets, students learn about assets, liabilities, and how to interpret financial leverage and asset risk. In Step 2, as insiders of fictitious companies, students learn about the underlying economic activity and accounting behind real companies’ disclosures. The depth of these inquiries increases as we get further into the course. In Step 3, students return to their role as outsider-users with a much richer understanding of reported disclosures. Next, we will demonstrate how we apply all of these elements in our intro honors course. When we teach the general student population this coming fall, we plan to reduce the intensity and workload – but still introduce all the elements of the Vision Model. Now we begin Part II of our agenda on how we teach our intro course and highlight specific class sessions…

First Day: Shattering Misconceptions Balance Sheet Elements and Measurement Judgments
1st Session Explore measurement judgments in settings students understand Illustrate how lessons apply to more complex real-world settings GPW: Our first day is all about shattering misconceptions, especially the notion that accounting is always precise. We do this by introducing students to measurement judgments through an interactive role-playing exercise, which helps students internalize measurement judgments and appreciate that financial-statement numbers are generally estimates that can be quite noisy in some contexts. We then apply the concepts to a real company’s balance sheet to better interpret what they see as an outsider. At the end of the day, we want students to comprehend that while balance sheets are pictures at points in time, they are much more like fuzzy medical images than photographs. And, like medical images, they can be very useful for assessing a company’s financial health when studied by experts. As we shall see next, in addition to discussing the higher-level issues like judgment, we also spend a good deal of time on the nitty-gritty details. If you wish to try this exercise, download these slides at NavigatingAccounting.com under “Presentations”. There is a link to the exercise and a related teaching note video in the notes to this slide. Related Resources: Your Balance Sheet Exercise PowerPoint and OneNote slides with teaching note video Grasp that judgments can create ‘fuzziness’

Developing Concept Maps and Related Skills Record Keeping and Reporting (R&R) Map – Phase 1
2nd Session CRW: Entries and their financial-statement effects are embedded in the Vision Model. On the second day, we start record keeping by developing a related concept map, the Record Keeping and Reporting Map, or R&R Map for short. This map is developed in three phases over 15 sessions and applied for the rest of the term. The top part of the R&R Map is the Balance-Sheet-Equation Matrix. The columns are accounts arranged according to the balance sheet equation. The rows are the entries. The bottom part of the R&R Map includes a balance sheet, and when completed, the other statements. The color coding in the matrix and arrows to the financial statements indicate how information flows from entries and accounts to financial statements. From an insiders-preparer perspective, the R&R Map has three purposes: Students learn to record entries into the balance-sheet-equation and use a simple to algorithm to derive related journal entries. They learn how to create financial statements from the BSE matrix in much the same way they would learn how to create them from T-accounts. They learn how entries flow into financial-statement line items and thus related ratios. From an outsider-user perspective, students apply what they understand behind fictitious companies’ reported numbers as stepping stone to identifying related effects for real companies’ statements and ratios. Ultimately, the R&R Map helps students understand as insiders how entries are recorded and flow into financials and understand as outsiders the entries behind reported numbers. Next, we look at Session 4, where students begin to analyze financial statements and other information as outsiders.

Developing Concept Maps & Related Skills Analysis Consideration (AC) Map – Phase 1)
4th Session GPW: Financial statement analysis is embedded in the Users’ Decisions element of the Vision Model. On the fourth day, we start developing a related concept map, the Analysis Considerations Map or AC Map for short. Ultimately, the AC Map helps students gain a qualitative big-picture understanding of the factors that drive firm value and lays the groundwork for follow-up courses in financial statement analysis and valuation. Similar to the R&R Map, we develop the AC Map in three phases by session 15, starting here with Phase 1, which depends on information related to balance sheets. We use this map in conjunction with the Toulmin Method of Argumentation, shown at the bottom of this slide. We will defer discussing the AC Map and Toulmin Method until later when we look at an application of the completed map. For now, we simply want to underscore that we progressively develop two maps in parallel during the first 15 sessions. Next, we introduce another map that’s integral to the course.

Developing Concept Maps and Related Skills Owners’ Equity Change (OEC) Map
5th Session Helps students understand: Elements of statements of comprehensive income Elements of statements of change in owners’ equity How balance sheets, income statements, and statements of owners’ equity are connected CRW: Viewed from an outsider’s perspective, the Owners’ Equity Change Map connects balance sheet changes to income statements and statements of changes in owners’ equity, and underscores the conceptual primacy of assets and liabilities found the FASB’s and IASB’s conceptual frameworks. Just like the R&R Map, the Owners’ Equity Change Map, or OEC map for short, is useful from both insider and outsider perspectives. Viewed from an outsider’s perspective, the OEC Map helps students understand: The elements of statements of comprehensive income The elements of statements of changes in owners’ equity How balance sheets, income statements, and statements of owners’ equity are connected Related Resources: Exercise Owners’ Equity Change (OEC) Map PowerPoint and OneNote slides with teaching note video

5th Session Developing Concept Maps & Related Skills Owners’ Equity Change (OEC) Map Helps students record any entry CRW: Viewed from an insider’s perspective, the OEC Map provides a way to record any entry by answering four questions and applying the Map. From an insider perspective, the OEC Map helps students record any entry by answering four questions and applying the map: Should an asset be recognized (and if so, for how much)? Should an asset be de-recognized? Should a liability be recognized? Should a liability be de-recognized? If net assets and thus owners’ equity changed, students use the map to identify the affected owners’ equity accounts. By answering the four questions and applying the OEC Map, students have a more structured way of analyzing events and transactions and more confidence in recording entries – even for events they have never studied. Moreover, the four questions underscore the conceptual primacy of assets and liabilities found in the FASB’s and IASB’s conceptual frameworks. Next, we take the learnings from the OEC Map to another conceptual map: Record Keeping and Reporting Map (R&R Map)…

Developing Concept Maps and Related Skills Record Keeping and Reporting (R&R) Map – Phase 2
5th Session GPW: Phase 2 of the R&R Map illustrates how entries flow into balance sheets, income statements, and statements of changes in owners’ equity. To this end, the BSE matrix is expanded: Entries are now classified into transactions that occur during the period; adjusting entries; and closing entries. And there are now permanent and temporary owners’ equity accounts, including net income and OCI accounts. Similar to Phase I, the color coding and arrows illustrate how the statements are created from numbers in the matrix and how the statements are connected to one another. But, how does the R&R Map look when it’s completed developed?

Developing Concept Maps and Related Skills Record Keeping and Reporting (R&R) Map – Completed
15th Session GPW: The completed R&R Map also includes a direct cash flow statement and the operating section of an indirect statement. Another feature is the entries are now classified into operating, investing, and financing activities. We’ve also included an “other” category as a placeholder for significant non-cash activities; for example, a lessee recognizing a new capital lease is both an investing and financing activity. Among other things, the R&R Map corrects a common misconception about the working capital adjustments on the cash-flow statement. The misconception is the absolute values of the working capital adjustments equal the absolute values of the changes in the related balance sheet accounts. The R&R Map indicates that the working capital adjustments are NOT affected by investing or financing activities associated with the working capital accounts, such as acquiring another company. Next, we take a detailed look at Session 16 to illustrate how we apply these concept maps and class structure we use to flip most class sessions.

Applying Completed Concept Maps Allowance for Bad Debts
16th Session Begin to learn terms and concepts from on-line texts/videos Pre-class work Apply concepts to fictitious companies CRW: The Course Map provides detailed guidance to help students prepare for a flipped class. Like most intro courses, once the foundation is built, we dig deeper into specific topics. Here we will illustrate what happens before and during our flipped class: Session 16 on the allowance for bad debts. A key success factor for the flipped classroom is student preparation; they need to dig deeply into the topic before it is discussed in class. Our goal in the directions shown here in the Course Map is to organize the assignment so most students can get through it as efficiently and effectively as possible. This will allow more value-added activities during class. The pre work begins with an on-line reading assignment with suggested reading intensities for various passages. For other sessions, students often link to videos rather than texts. So, you may use text or videos for flipping! Next, as insider-preparers, students record related entries for a fictitious company and identify their financial statement consequences. They then return to the on-line text to learn how to locate and interpret related real company disclosures. The final step in the pre-work is to apply concepts in a relatively challenging exercise that centers on a real company. In this case, recording entries that summarize HP’s bad-debts entries and determining how these entries affected HP’s financial statements. So, what happens during class?.... The notes for this slide have links to related resources: Revenue & Customer-related Balance Sheet Concepts Assigned text Wbn/5_txt/Documents/Acrobat/rv_wbn_revenue_and_customer_related_balance_sheet_concepts.pdf Assigned problem Related materials Learn how to locate and interpret real-company disclosures Apply concepts to real companies

Class OneNote Slides 16th Session Typical Class Structure Sample: Basic assessment “Know what you don’t know” Respond: Mini-lectures Concepts Homework problems Apply and Extend: Problem solving New context More complex context Discuss: Related risks & judgments GPW: To ensure students know what to expect each day, we divide most classes into four phases. We sample “what they don’t know” individually and collectively: Starting with basic clicker questions and then soliciting areas where they need more help with homework. As needed, we respond to this sampling With concept mini-lectures and discussions of challenging parts of the homework. To ensure we are prepared to be responsive, we come to class with a wide range of resources. We spend most of the remaining time applying and extending concepts Using clickers focused on complex real-company contexts students have yet to study And following a “double click” approach: 1st click is a self assessment and commitment to an answer 2nd click is after peer instruction When appropriate, we use these clickers as spring board to discuss related risks and judgments Next, we will illustrate each step starting with the upfront “sample” assessments….

16th Session Sample: Basic clicker question CRW: Here is a basic clicker example, regarding entries related to a fictitious company’s schedule II. For this session last fall, over 80% of the class got the correct solution, which is alternative (a). The results were similar for the two other basic clickers, indicating students were well prepared for class. If the results were low, below 70%, we would add this to a list of mini-lectures needed to help students close the gap. After the basic clickers, we ask students to identify parts of the homework problems where they couldn’t fully comprehend the solutions. They indicated they didn’t understand the circumstances behind the adjusting entry to replenish HP’s allowance and didn’t understand how the related entry affected HP’s financial statements. Why do students respond openly and honestly about what they don’t know? We spend a good deal of time early in the course emphasizing how important it is that we work together to build a learning culture where they individually value knowing what they don’t know and feel comfortable sharing this information in class so we can devise real-time plans to make the most of the class discussion. Moreover, in the knowledge economy, we are all self-learners and need to know what we don’t know to focus on filling the gap. Students know we certainly don’t want to waste valuable class time going over things the majority of the class already knows. Next, we move from “sampling” to “responding” …

16th Session Respond: Review key concepts GPW: In response to the student’s requests, we give “just-in-time” mini-lectures. Here is a concept slide we used to lead a discussion about the economic activities associated with the adjusting entry to replenish this fictitious company’s allowance at the end of 2012. The discussion centered on questions such as the following: What is the message the company is trying to communicate to investors and why is this important? Why must the replenishing entry decrease assets and owners’ equity to properly communicate the message to investors? How does the allowance ending balance differ from the ending balances of accounts we had previously encountered in the course? Because the ending balance is estimated to determine the amount that must be added to (or deducted from) the account via the replenishing entry. Why use a contra account rather than simply decrease gross receivables? Haven reviewed the important concepts, we now respond by reviewing the specific homework problems where students needed more help…

16th Session Applying Completed Concept Maps Allowance for Bad Debts Respond: Review select homework problems CRW: We frequently ask students the financial-statement effects of entries using this form. For this class, students requested help with this portion of the homework. But, how does the student go about completing this form for HP?

16th Session Applying Completed Concept Maps Allowance for Bad Debts Respond: Review select homework problems CRW: Knowing the underlying entry is key – even as an outsider. We quickly went over the related HP entry. Students didn’t ask to see it but we wanted to be sure everyone understood the entry before considering how it affected financial statements. Searching and interpreting real-company disclosures are critical skills for this task.

16th Session Respond: Review select homework problems CRW: This slide demonstrates how students connect a journal entry to the R&R Map to identify the financial statement effects. First, referenceing the entry, they identify the approximate locations of the BSE matrix affected by the entry, in this case, to replenish the allowance. Students need not locate the precise cells. In fact, the replenishing entry is not one of the 18 entries in the Map. Rather, their goal is to determine the regions where the entry’s cells would be located if the entry was in the matrix. By session 16 or shortly thereafter, most students know how the financial statements are affected once they can visualize the affected cells in the BSE matrix. That is, they see the matrix in their mind’s eye. Still, to be sure we were all on the same page, we quickly reviewed this slide: The red “deltas” indicate the regions where the replenishing entry affects the BSE matrix. This entry is classified as an operating entry so it’s above the orange row, which reports the net effects of operating entries. This means at least one of the line items in the reconciliation of net income to net cash from operations on the indirect cash flow statement is affected by the entry. And so on, tracing the entry to the other statements: The entry doesn’t affect cash so it is not in the first purple column, which means it doesn’t affect the direct cash flow statement. It does affect an income account, so it affects one of cells in the operating section above the blue line. This means it affects the income statement, retained earnings through the closing entry, and the top line item of the indirect cash flow statement. Of course, all entries affect the balance sheet, so tracing down from the red “deltas” there are two allowance accounts affected for this entry and retained earnings, through the closing entry. Now that students know the entry and the general flow to the statements, they strategically look for the specific line-item effects on the real company’s statements.

16th Session Applying Completed Concept Maps Allowance for Bad Debts Respond: Review select homework problems CRW: Students can know what statements are affected and still have difficulty locating the exact line items that are affected for a real company because the company uses captions they haven’t encountered. For this exercise, “Provision for doubtful accounts and financing receivables” would be a new caption. However, by the end of the course they have seen enough variations to infer the correct line item even if it is new to them. So, we have ‘sampled’ what students don’t know and ‘responded’ with mini-lectures and reviewing select parts of the homework, now we have time to apply and extend the concepts…

16th Session Apply and Extend: Clicker question GPW: Here is an example of an application and extension clicker related Coach’s Schedule II. These clickers are considerably more challenging than the basic clickers we use at the start of class. By this point in the course, most questions refer students to documents that contain financial statements or footnotes. This question is very similar to the basic clicker students answered at the start of class for the fictitious company. But there is a new twist here that trapped most of the class. They answered (d), meaning they thought entries (a) and (b) are correct. However, (a) is not correct. To see why, let’s look at Coach’s 2013 Schedule II, which was included with the reference information.

16th Session Applications and Extensions Clicker: Reference Information GPW: Coach’s Schedule II indicates the company reversed previously recognized allowance in 2013. Specifically, the company credited, rather than debited, the expense for $529, which increased net income. Notice the same item was positive in 2011, which is the usual situation, where the expense is debited.

16th Session Applications and Extensions Clicker: Solution GPW: Here is the correct solution: is not correct as Coach credited its provision in 2013 and is correct as there were $1,651 write-offs in 2013. This was an example of taking a basic concept and applying and extending it to different real-company context. This sets up a discussion as to why the provision was reduced…

16th Session Discuss: Connect to WSJ Article Wall Street Journal, October 25, 2013 ? CRW: We asked students to explain how Coach’s allowances for relate to this WSJ article. The discussion centered on the following questions: Identify alternative hypotheses for why the provisions were too large in earlier years, leading to 2013 reversals? What information would you seek to test these hypotheses? Do you expect the dispersion of honest experts’ estimates of future bad debts to be more or less dispersed in than in 2013? (This ties back to the 1st day’s class session)

16th Session Wall Street Journal, October 25, 2013 How did readers perceive the article? ? What is the accounting reality? How do we prepare students? CRW: This slide illustrates how students’ perceptions of this article changed because of lessons learned during the class. We certainly saw some lights go on as students better understood the technical issues and broader reality at the big picture level. Could they go deeper? Certainly. But we leave them curious for the next course. Next we jump to Session 19, a group project analysis day.

Applying Completed Concept Maps Comparing Companies’ Future Prospects
19th Session Analysis Considerations Map (Completed) GPW: This slide shows the completed Analysis Consideration Map and how it relates to the Vision Model. The map has two inputs: (1) qualitative information about past and expected future business activities and (2) quantitative information from financial disclosures and related ratios. There are three outputs: qualitative forecasts of ROEs, risks, and growth. By qualitative forecasts, we mean students’ analyses end with qualitative assessments such as Company A’s ROES are expected to improve and to be superior to Company B’s ROEs. The goal here is to loosely tie ratios studied in the course to the Residual Income valuation model studied in more courses. Next, we turn to a Session 19 application of the AC Map

Analysis Considerations Map Application: Question GPW: Students were asked to compare Home Depot’s and Lowes’ future ROEs, growth rates and risks. Based solely concepts covered thus far in the course and the provided background information and tabular data, which company, Home Depot or Lowe’s, appears to have the better future prospects at the most recent balance sheet dates, taking into consideration expected future ROEs, growth rates and risks? Related Resources: Exercise Toulmin Method of Argumentation Handout Analysis Considerations Map

19th Session Analysis Considerations Map Application: Qualitative Excerpt GPW: This slide shows an excerpt from the qualitative background information, which was 6 pages of quotes from the two companies’ most recent quarterly conference calls. These quotes included managements’ assessments of recent performance for various product lines and markets and related expected future performance.

19th Session Analysis Considerations Map Application: Quantitative Excerpt GPW: This slide shows an excerpt from the quantitative background information, which had 4 pages of financial statements, common size statements and ratios, including the DuPont model. Next, haven analyzed the quantitative and qualitative information, how do our students write up their analyzes and defend them in concise, pervasive arguments?

19th Session Analysis Considerations Map Application: Toulmin Model of Argumentation Claim Qualifiers CRW: We use the AC Map in conjunction with the Toulmin Model of Argumentation to help students structure concise, comprehensive analyses. Toulmin Model of Argumentation has four key elements: Claim: Once they have completed their analysis of the qualitative and quantitative information, students make a claim by clearly choosing among competing alternatives. Here they are to determine which company, Home Depot or Lowes, appeared to have the better future prospects at the most recent balance sheet, taking into consideration expected future ROEs, growth rates, and risks. Arguments: Student’s claim is supported by 3 or fewer arguments in a specified space, arranged according to their assessment of the strength of the argument. Counterarguments: Similarly, they provide their three strongest counterarguments, possibly with rebuttals. Qualifiers: Students qualify their claim by specifying the level of confidence that they have in their claim. This qualifier should be consistent with the relative merits of the arguments, counterarguments and rebuttals that follow. Groups submit their reports using this template several hours before class so we can refine our in class discussion strategies… Next, how do we cover similar exercises as group projects in class … Arguments Counterarguments

19th Session Class Structure Survey groups’ initial claims Discuss supporting arguments, counterarguments and rebuttals Survey groups’ ending claims What did you learn? CRW: Here is the class structure for group project discussion days. We start the class by using clickers to determine the dispersion of group’s claims. Then we discuss supporting arguments, counterarguments and rebuttals. Having seen the initial claims (and the reports in advance), we can explore differences and evidence that support related arguments/counterarguments. At the end of the class, we re-survey the groups to see if they converged or perhaps became more dispersed. And Ask “what did you learn?” Next, we turn to the final session

Wrap Up Applying Pathways Vision Model to Financial Accounting
Final Session Accounting Decisions Map GPW: The final session introduces the Accounting Decisions Map, or AD Map for short, which embeds the R&R Map in a larger robust conceptual framework suitable for any course in financial reporting, auditing, or financial statement analysis. From the perspective of an insider, preparing reports begins at the bottom by analyzing the underlying events, circumstances and risks. For example, when planning a depreciation schedule for recently acquired PP&E, a preparer needs to understand the related capital budgeting decision and, in particular, the estimated holding period, pattern of cash flows and residual value. This informs the “shades of gray” within accounting measurement judgments, which center on the useful life, pattern of usage, and residual value. These judgments and others are also affected by many other factors we will consider later, that are discussed briefly in the intro course. Once the measurement judgments are made, depreciation schedules can be computed: the accounting judgment becomes “black and white” at this point. Similarly, once the inputs to other measurement methods such as the Black-Scholes Option pricing model or discounted cash flow model are made, measures can be computed. This is an important distinction for students to understand. Experts can reasonably disagree on the input judgments, but the output computations conditional on these judgments are precise: there is a correct answer. As a consequence, the entries and their financial-statement effects are also precise, conditional on the earlier judgments. The yellow spine of the Accounting Decisions Map ignores several other factors shown here in gray that affect accounting judgments. We mention a few of these briefly during the first course and cover them extensively in more advanced courses. Next, we remind the class how far they have come by connecting their learnings to the AD Map…

Wrap Up Applying Pathways Vision Model to Financial Accounting
Final Session Course Review CRW: During the final session we briefly summarize how we have applied the concepts in the AD Map throughout the course. … First, the class shares their reflections of what they learned during the term – ranging from technical topics to big concepts and relationship skills are part of group projects. Then ,as indicated on the slide, we highlight the content covered during term…. In closing, we want to re-emphasize something we said up front: we are NOT here to say the concepts and applications we discussed here is “the right way to teach the Vision Model.” In fact, as we indicated earlier, we plan to reduce the intensity and workload when we teach the general student population this coming fall. Next, we present a menu of options we will be considering as we design the fall course and that you can choose from as you create courses that best fit your school’s mission and students. Related Resources: Refection Exercise

Applying Pathways Vision Model to Financial Accounting
Wrap Up Applying Pathways Vision Model to Financial Accounting Analysis Ratio effects Financial-statement effects Entries Computations Accounting Judgments GPW: This slide indicates how course design choices apply to the Vision Model. Starting at the bottom of the model, we all know students need to understand the underlying economic activity before they can learn the related accounting. But, this is where we must make our first choice regarding the level at which we want our students to understand the accounting reality and underlying risks and incentives, and, in particular, how economic activity affects and is affected by the other Vision Model elements. We can also choose how deep we take students into the accounting judgments, but we should at least exposing them to the notion that these judgments are in context of the business and the range of judgment leeway is determined by many factors including GAAP. Once the “shades of gray“ judgments are made, the related computations and entries are “black and white”. To understand entries financial-statement and ratio effects, students only need to understand the related events. We can also choose how deep we take students into the user perspective. For analysis of value drivers, students could dig deeper into the business context, ideally integrating quantitative and qualitative assessments, considering the interdependent consequences as depicted in the Vision Model. Users’ analyses are more informed to the extent they understand preparers’ decisions and visa versa. Remember, all of the elements in the model are interconnected. Consistent with the Vision Model, we also can choose the depth of critical thinking and team work to help students develop these critical skills. Our judgment as educators is to determine how deeply we can penetrate these issues in the introductory course and other courses, given our constraints. Analyze economic activity Events Risks & incentives

Wrap Up The Overarching Goal GPW: As educators…

Pathways Vision Model Concepts and Applications Resources
NavigatingAccounting.com Instructors’ Forum: Course Maps (Syllabuses) and Teaching Videos Critical Thinking Exercises Using Toulmin Model Analyzing Financial Statements Across Time and Industries Students’ Materials: Videos and Exercises Peer Instruction Network AAA Commons Pathways Commission Thank You!

How to Teach the Pathways Vision Model Elements

Similar presentations

Presentation on theme: "How to Teach the Pathways Vision Model Elements"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

How to Teach the Pathways Vision Model Elements

Similar presentations

Presentation on theme: "How to Teach the Pathways Vision Model Elements"— Presentation transcript:

Similar presentations

About project

Feedback