Accounting scholarship
Encyclopedia
Accounting scholarship is an academic discipline
oriented towards the profession of accounting
, usually taught at a business school
.
Since accounting is a highly technical, standards oriented profession, both practitioners and academics may claim to be experts. Accounting directly impacts many other specialties in business and is closely linked with finance
. The theoretical underpinnings of both accounting and finance are derived from economics
.
vary considerably worldwide. Once appointed as a professor, the next step is being awarded tenure
. At most institutions, this step is very competitive. Many institutions value academic credentials, professional certifications, and real world experience.
Accounting has generally been oriented towards practical knowledge as opposed to theoretical abstractions. Most students are entering the field for immediate practical knowledge. Adult learner
/executive students often expect professors to have practical experience as an accountant or in commercial organizations. These students expect practical examples and an MBA case study approach to their education. By contrast, PhD
students prefer research professors who themselves earned a PhD in accounting.
Accounting research can be tailored to a specific industry or knowledge-based, such as accounting for law firms or hotels as well as accounting for quality.
, which is another specialization of business schools, is related to accounting. However, accounting scholarship focuses more strongly on distinctive bodies of knowledge such as financial reporting
, financial management
, auditing, information management
and taxation. Finance, on the other hand, is oriented more towards management of investments and other liquid assets.
, cost
, revenue
and capital
is derived from economics
. In turn, accounting concepts play an important role in economics, most notably in relation to national accounts
.
, many Professors of Accounting are members of one of four registered auditors and Consultative Committee of Accountancy Bodies
members including ACCA
, ICAEW, ICAS and ICAI recognized under the Companies Act
. Refer to the articles on Chartered accountant
and Chartered Certified Accountant
(ACCA
) for more information about UK government policy for top MBAs in 2004. It is, however, by no means compulsory. The key criterion for being offered a professorship, or chair, is the contribution to research evaluated on the basis of published articles in scholarly journals.
Being licensed as a Certified Public Accountant
is also strongly recommended.
The outlook for accounting programs in the United States is looking up. While the number of accounting students had dropped from its peak in 1993 and 1994 when there were 60,000 students enrolled in accounting programs, there were 37,000 undergraduate degrees awarded in 2002-2003. This represents a 6% increase from the previous year. There were also 12,655 graduate degrees awarded, a 30% increase. The causes of this increase have been ascribed to the loss of jobs in Information Technology due to the recent dot com crash, as well as the full-employment aspects of the Sarbanes-Oxley Act
and the effects of all of the recent accounting scandals
.
Academic discipline
An academic discipline, or field of study, is a branch of knowledge that is taught and researched at the college or university level. Disciplines are defined , and recognized by the academic journals in which research is published, and the learned societies and academic departments or faculties to...
oriented towards the profession of accounting
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...
, usually taught at a business school
Business school
A business school is a university-level institution that confers degrees in Business Administration. It teaches topics such as accounting, administration, economics, entrepreneurship, finance, information systems, marketing, organizational behavior, public relations, strategy, human resource...
.
Since accounting is a highly technical, standards oriented profession, both practitioners and academics may claim to be experts. Accounting directly impacts many other specialties in business and is closely linked with finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
. The theoretical underpinnings of both accounting and finance are derived from economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
.
Accounting academia
Requirements for an appointment as a professorProfessor
A professor is a scholarly teacher; the precise meaning of the term varies by country. Literally, professor derives from Latin as a "person who professes" being usually an expert in arts or sciences; a teacher of high rank...
vary considerably worldwide. Once appointed as a professor, the next step is being awarded tenure
Tenure
Tenure commonly refers to life tenure in a job and specifically to a senior academic's contractual right not to have his or her position terminated without just cause.-19th century:...
. At most institutions, this step is very competitive. Many institutions value academic credentials, professional certifications, and real world experience.
Accounting has generally been oriented towards practical knowledge as opposed to theoretical abstractions. Most students are entering the field for immediate practical knowledge. Adult learner
Adult learner
Adult learner or mature learner is a term used to describe any person socially accepted as an adult who is in a learning process, whether it is formal education, informal learning, or corporate-sponsored learning.Adult learners are considered distinct from child learners due...
/executive students often expect professors to have practical experience as an accountant or in commercial organizations. These students expect practical examples and an MBA case study approach to their education. By contrast, PhD
PHD
PHD may refer to:*Ph.D., a doctorate of philosophy*Ph.D. , a 1980s British group*PHD finger, a protein sequence*PHD Mountain Software, an outdoor clothing and equipment company*PhD Docbook renderer, an XML renderer...
students prefer research professors who themselves earned a PhD in accounting.
Types of research
There are two broad types of accounting research:- Positive accountingPositive accountingPositive accounting is the branch of academic research in accounting that seeks to explain and predict actual accounting practices. This contrasts with normative accounting, that seeks to derive and prescribe "optimal" accounting standards.- Background :...
- normative accounting
Areas of research
Accounting scholarship deals with the following areas:- accounting
- auditing
- taxation
- financial managementFinancial managementFinancial management may refer to:* Managerial finance, a branch of finance that concerns itself with the managerial significance of finance techniques....
- professional ethicsProfessional ethicsProfessional ethics encompass the personal and corporate standards of behaviour expected of professionals.- Professional ethics :Professional people and those working in acknowledged professions exercise specialist knowledge and skill...
- corporate governanceCorporate governanceCorporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled...
- controllershipComptrollerA comptroller is a management level position responsible for supervising the quality of accounting and financial reporting of an organization.In British government, the Comptroller General or Comptroller and Auditor General is in most countries the external auditor of the budget execution of the...
- entrepreneurshipEntrepreneurshipEntrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response...
- experimental economicsExperimental economicsExperimental economics is the application of experimental methods to study economic questions. Data collected in experiments are used to estimate effect size, test the validity of economic theories, and illuminate market mechanisms. Economic experiments usually use cash to motivate subjects, in...
- agency theory
Accounting research can be tailored to a specific industry or knowledge-based, such as accounting for law firms or hotels as well as accounting for quality.
Difference from scholarship in finance
FinanceFinance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
, which is another specialization of business schools, is related to accounting. However, accounting scholarship focuses more strongly on distinctive bodies of knowledge such as financial reporting
Financial statements
A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...
, financial management
Corporate finance
Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize shareholder value while managing the firm's financial risks...
, auditing, information management
Information management
Information management is the collection and management of information from one or more sources and the distribution of that information to one or more audiences. This sometimes involves those who have a stake in, or a right to that information...
and taxation. Finance, on the other hand, is oriented more towards management of investments and other liquid assets.
Accounting and economics
The theoretical basis of the central concepts with which accounting is concerned, including profitProfit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
, cost
Cost
In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this...
, revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
and capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
is derived from economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
. In turn, accounting concepts play an important role in economics, most notably in relation to national accounts
National accounts
National accounts or national account systems are the implementation of complete and consistent accounting techniques for measuring the economic activity of a nation. These include detailed underlying measures that rely on double-entry accounting...
.
United Kingdom
In the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, many Professors of Accounting are members of one of four registered auditors and Consultative Committee of Accountancy Bodies
Consultative Committee of Accountancy Bodies
The Consultative Committee of Accountancy Bodies is an umbrella group for the chartered professional bodies of British qualified accountants.The CCAB was formed in 1974 and has six members:* Association of Chartered Certified Accountants...
members including ACCA
Association of Chartered Certified Accountants
Founded in 1904, the Association of Chartered Certified Accountants is the global body for professional accountants offering the Chartered Certified Accountant qualification . it is one of the largest and fastest-growing global accountancy bodies with 147,000 members and 424,000 students in 170...
, ICAEW, ICAS and ICAI recognized under the Companies Act
Companies Act
Companies Act is a stock short title used for legislation in the United Kingdom and South Africa relating to company law....
. Refer to the articles on Chartered accountant
Chartered Accountant
Chartered Accountants were the first accountants to form a professional body, initially established in Britain in 1854. The Edinburgh Society of Accountants , the Glasgow Institute of Accountants and Actuaries and the Aberdeen Society of Accountants were each granted a royal charter almost from...
and Chartered Certified Accountant
Chartered Certified Accountant
Chartered Certified Accountant was historically seen as a British qualified accountant designation awarded by the Association of Chartered Certified Accountants . However, although ACCA is UK based, it is a global body for professional accountants with 147,000 qualified members and 424,000...
(ACCA
Association of Chartered Certified Accountants
Founded in 1904, the Association of Chartered Certified Accountants is the global body for professional accountants offering the Chartered Certified Accountant qualification . it is one of the largest and fastest-growing global accountancy bodies with 147,000 members and 424,000 students in 170...
) for more information about UK government policy for top MBAs in 2004. It is, however, by no means compulsory. The key criterion for being offered a professorship, or chair, is the contribution to research evaluated on the basis of published articles in scholarly journals.
United States of America
In the United States, the minimum requirement for appointment as an instructor at an accredited university is a Bachelors degree in accounting and an additional eighteen credits of accounting post-graduate study. A post graduate degree, such as an MBA or Masters of Accountancy, is highly recommended. A Ph.D. in accounting or a related field is required for an appointment at a top tier business school, especially one in which research is undertaken.Being licensed as a Certified Public Accountant
Certified Public Accountant
Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
is also strongly recommended.
The outlook for accounting programs in the United States is looking up. While the number of accounting students had dropped from its peak in 1993 and 1994 when there were 60,000 students enrolled in accounting programs, there were 37,000 undergraduate degrees awarded in 2002-2003. This represents a 6% increase from the previous year. There were also 12,655 graduate degrees awarded, a 30% increase. The causes of this increase have been ascribed to the loss of jobs in Information Technology due to the recent dot com crash, as well as the full-employment aspects of the Sarbanes-Oxley Act
Sarbanes-Oxley Act
The Sarbanes–Oxley Act of 2002 , also known as the 'Public Company Accounting Reform and Investor Protection Act' and 'Corporate and Auditing Accountability and Responsibility Act' and commonly called Sarbanes–Oxley, Sarbox or SOX, is a United States federal law enacted on July 30, 2002, which...
and the effects of all of the recent accounting scandals
Accounting scandals
Accounting scandals, or corporate accounting scandals, are political and business scandals which arise with the disclosure of misdeeds by trusted executives of large public corporations...
.