Shyam Sunder

Yale University

Annual Meetings of the American Accounting Association

New York, August 3, 2009

Accounting 101 Introductory course as the basis for street

image of accounting Is this image unfair, or well-deserved? What is the difference between Accounting

101 and XYZ 101? Debits and credits, double-entry bookkeeping,

journals and ledgers as answers But what are the questions? Do our students

know them? What will it take to impart a scientific content to

ACC 101

Imparting Scientific Content What are the the important questions? Why are they worth asking? What could be possible answers? How to find new answers, and evaluate

them? Pizzeria example Once students identify the problem to be

addressed, and learn how to address them, they do not forget

On Expressway, and Headed the Wrong Way Instead of moving in this direction, Accounting

101 is headed in the opposite direction Dominance of written standards of accounting

and auditing with support of regulators, auditors, and yes, academics

Progressively replacing teaching of accounting by teaching of standards

Replacing thinking and analysis by rote learning

What kind of student will come to these classes

What kind of people will be in the profession?

Accounting and University Curriculum In MBA programs, accounting is already reduced to

a service activity as opposed to a major in most schools

The history of universities is replete with disciplines being tossed out of curriculum for insufficient scientific or intellectual challenge

What is the intellectual challenge in memorizing a thick rule book which must be uniformly applied everywhere in the world under threat of punishment?

How long will accounting retain its place in university curriculum if we keep going in the present direction of standard setting and teaching standards?

Challenge for Accounting Educators Is not, how to prepare our students to memorize

IFRS. With proper education in analytical thinking about

accounting, the code can be read, understood and applied in a few weeks

Instead challenges are to help them : Learn to think and analyze Develop their judgment about true and fair, and

social norms of community Develop their sense of professionalism and personal

responsibility for their judgments Develop a commitment to voluntary “Hippocratic” (or

Paccioli, if you wish) oath for accounting graduates