Hybrid Class Week

Reminder: Click here for the course materials.

Please note that we are NOT meeting in the classroom on Tuesday this week. Instead, we are engaging in an online activity.

Hello again, International Accounting students! I hope you’re enjoying the weekend.

First and foremost, I apologize for the (relatively) late posting of this weekly announcement. As you know, we are about to initiate our first online session. I delayed the posting of this announcement until I was certain about our plans, and now I can communicate them to you.

Last week, we reviewed the financial statements of Anadarko Petroleum Corporation. We discussed how their financial statement presentation format significantly impacts the analytical perception of shareholder value. Then we discussed the IFRS approach to valuing fixed assets, i.e. the largest asset class of most industrial manufacturing organizations.

We also touched upon the existence of FASB Statement 157. It establishes a hierarchy of three “Levels” of assets and liabilities for fair value accounting purposes. However, we did not delve into the details of Statement 157, and we did not compare the American definition fair value to the International definition. Furthermore, we did not discuss how the differences between the two standards would impact a firm like Anadarko.

These are the questions that will enrich our online activity. Here are our plans regarding this activity:

1. On Tuesday, we will NOT meet in the classroom. Instead, we will re-allocate those 150 minutes of classroom activity to online learning activities over the remainder of the semester.

2. So what must you do this week? First, please open a free Gmail account. If you already have one and do not wish to use it for our upcoming online discussion, you are welcome to open a second account.

3. Then use your free IFRS account to download and review the IFRS Standard regarding fair value. We identified the online location of this standard in the classroom last week.

4. Then obtain a copy of FASB Statement 157. Our HBU library has a data base that permits you to download a free copy of this standard. If you need instructions about accessing the data base, please access our course materials and review the document entitled HBU Library Instructions.

5. Skim the IFRS and FASB Statements to obtain a very “high level” understanding of their similarities and differences. Then jot down your thoughts to these two questions:

(a) Is it possible that the Chief Financial Officer of Anadarko might prefer one Statement over the other Statement?

(b) To what extent do the Statements require fair value estimates to be modified in order to address risks like catastrophic oil spills?

Because this is very dense material, I do not expect you to hand in your “jotted thoughts”this week. In fact, you might find the content to be slow reading, and you might experience a little difficulty getting through it.

If this occurs, please don’t worry! Simply dedicate an hour to obtaining the information, skimming the Standards, and then jotting down your thoughts. And please prepare to bring your jottings to the classroom on Tuesday, September 18th, when we will continue our conversation.

Good luck! If you have any difficulty with this assignment, please let me know.

Accounting Diversity and Convergence

Happy Labor Day, International Accounting Students! I hope you’re enjoying the unofficial conclusion of the summer vacation season.

It was a pleasure to meet all of you last week. Here are some notes to guide our way, as we venture into the semester together.

Last week, we engaged in an introductory discussion about international accounting (i.e. Chapter 1), and segued into the emerging field of international corporate social reporting (i.e. Chapter 15). For the next two weeks, we’ll extend this conversation by addressing issues of worldwide accounting diversity (i.e. Chapter 2) and the international convergence of financial reporting standards (i.e. Chapter 3).

So how, exactly, will we do that? Let’s proceed a step at a time:

1. The Teaching Strategies section of our syllabus states that “Some days are hybrid days. On these days, students will complete online assignments outside of our assigned classroom.” Although our September 4th session will be a normal classroom meeting, our September 11th session will be an online meeting. Please do NOT travel to our classroom on September 11th!

2. For our online meeting, we will discuss the impact of international reporting standards on corporate strategy, operations, and financial valuation by addressing fixed asset accounting in the energy industry. To prepare for this online discussion, please open a free basic account with the IFRS Foundation.

In addition, please ensure that you can access the annual financial reports of Anadarko Petroleum Corporation. This American organization utilizes U.S. Generally Accepted Accounting Principles (GAAP) for its financial reporting standards; we will discuss how a hypothetical shift to international reporting standards would affect it.

3. Given our “classroom without walls” teaching strategy, I will begin to post selected course notes and materials on (both) the University’s internal Blackboard system and an external social media resource. This will enable colleagues from the academic and practitioner communities to contribute their perspectives to our discussion.

4. Finally, I have an administrative requirement to share with you. Although I’ve decided that it is premature to begin giving quizzes this early in the semester (we’ll wait a couple of weeks to do so), I do need to obtain electronic “signatures” from you regarding our syllabus. Please bring an internet equipped electronic device to class this week.

As you can see, our lives are about to become more interesting! But please don’t worry; we’re embarking on this journey together.

Click here for the course materials.

International Accounting Course

Hello, friends and colleagues of AQPQ! As you know, we are now exploring new ways to utilize this blog to serve as a communication resource that illustrates the principles and practices of integrating academic and practitioner perspectives.

For the Fall 2018 semester, we are delighted to dedicate this resource to the Masters of Science in Accounting program at Houston Baptist University. The course is ACCT 6313, International Accounting Issues.

We welcome your thoughts, insights, and feedback about our endeavors.

Click here for the course materials.