<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: black; font-size: 10pt; mso-themecolor: text1;"><span style="font-family: Times New Roman;">Lean accounting has become increasingly important as more and more companies adopt the lean enterprise model or some variation of it.<span style="mso-spacerun: yes;"> </span>Cost and managerial accounting textbooks continue to use, almost exclusively, models based on standard overhead absorption, which if used in a lean environment will not accurately reflect the benefits from the movement to a lean enterprise and may distort the impact of the changes.<span style="mso-spacerun: yes;"> </span>Because of these developments, accounting students should be exposed to lean accounting models beyond a brief introduction in their basic cost and management accounting courses.<span style="mso-spacerun: yes;"> </span>This paper presents a model for teaching decision making in a lean company which uses value stream costing for such decisions as special orders and make-or-buy decisions. The use of these models in cost and managerial accounting classes will be of benefit to the future cost/managerial accountants.</span></span></p>
Changes in the views that society holds of capital allocation suggest that sustainability reporting needs to be incorporated into the financial accounting curriculum. This paper reviews the background and history of corporate social responsibility and sustainability reporting and discusses formation of the Sustainability Accounting Standards Board (SASB). The development of the SASB provides us with a framework to enhance the credibility and provide assurance for corporate social responsibility and sustainability reporting. A suggested outline for including sustainability reporting in a financial accounting course is presented.
With increased movement toward convergence of major accounting principles between U.S. GAAP and IFRS, the issue of which authoritative source should be referenced becomes increasingly important. An important question is: what is the hierarchy of authority for pronouncements and documents under U.S. GAAP and IFRS? FASB Accounting Standards Codification is the single official source ofauthoritative U.S. GAAP. The hierarchy under international standards is less clear. The IASB promulgated a hierarchy in IAS 8, but interpretation concerning many issues is required. There are several issues not addressed at all by IFRS and one of these is bankruptcy accounting. ASC 852 is the guidance for bankruptcy accounting under U.S. GAAP. This study will investigate whether companies in countries which use IFRS are influenced by the guidance of ASC 852 when confronted with bankruptcy. A review of the financial statements of bankrupt companies in countries using or converting to IFRS was conducted into the reporting of reorganization-type bankruptcies.
<p>Evaluation of the effectiveness and efficiency of service departments in a lean accounting environment is a subject that has received little attention. The cost of service departments is usually a substantial portion of the total costs of operating a business or other entity.</p> This paper proposes a unique method of evaluating service departments in a lean accounting environment by recasting them as value streams. The Internal Auditing department is used as an example, although these techniques are applicable to all service departments of entities that use the lean accounting model.
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