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Framing Accounting Learnings

The Big Accounting Picture

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Framing Accounting LearningsSucceeding in a Knowledge Economy

KNOWLEDGE ECONOMY

Agenda

Present a unified framework for all accounting

Drill deeper into financial accounting

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Unified FrameworkPathways Commission

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Unified FrameworkPubic Perception of Accounting

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Unified FrameworkReality of Accounting

Pathways Vision Model

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Often it is said that …

Accounting is the language of business.

This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Unified FrameworkPerception Versus Reality

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However, the public’s perception is narrow.

The public’s view of accounting following “black and white” rules, while essential, is only the grammar.

This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Unified FrameworkPerception Versus Reality

The public’s view of accounting following “black and white” rules, while essential, is only the grammar.

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Rather…

A subtle aspect of accounting, like nuances in other languages, is that it both affects and is affected by the business reality and culture.

This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Unified FrameworkPerception Versus Reality

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Unified FrameworkReality of Accounting

Critical Thinking

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

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Unified FrameworkReality of Accounting

Consequences of Users’ Decisions

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

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Unified FrameworkReality of Accounting

Prosperous Society

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

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Unified FrameworkReality of Accounting

Accounting Judgments

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Education

This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Outside companies

Media

Voting public

Special

interests

PCAOBFASB

GAAP

Congress

SEC

GAAS

Inside companies Board

CFO

Controllers

Record keepers

Reports Users

Auditors

© 1991-2014 NavAcc LLC, G. Peter & Carolyn R. Wilson

Other

Unified FrameworkDecision Making Hierarchy

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Analyze economic activity Events

Analysis

Accounting judgments

Entries

Financial-statement effects

Ratio effects

Computations

Risks & incentives

Digging Deeper into Financial Accounting

Connecting User Decisions to Economic Activity

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Owners’ Equity Change Map

Digging Deeper into Financial Accounting

Connecting User Decisions to Economic Activity

Conceptual primacy of assets and liabilities

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Digging Deeper into Financial Accounting

Connecting User Decisions to Economic Activity

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Record Keeping and Reporting Map

Digging Deeper into Financial Accounting

Connecting User Decisions to Economic Activity

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Accounting Decisions Map

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Dig

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Econ

om

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Activity

This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Analysis Consideration

Map

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This work is by The Pathways Commission and is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.

Toulmin Model of Argumentation

Dig

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Activity

The Big Accounting

Picture

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Framing Accounting LearningsSucceeding in a Knowledge Economy

KNOWLEDGE ECONOMY