Authors: Louella Moore
Addresses: School of Business, Washburn University, 1700 SW College Avenue, Topeka, KS 66621, USA
Abstract: The accounting establishment has repeatedly searched for and failed to find logical, equitable mechanisms for dealing with price change effects in financial reporting. While price changes are at the heart of a wide swath of accounting controversies, the dominant US undergraduate accounting textbooks largely ignore this underlying financial reporting conundrum. The body of the paper explores possible reasons why price change issues are being ignored, suggesting that Americans may have a socio-cultural tendency to downplay problems that defy mechanistic solutions. An appendix provides a teaching module designed to encourage syncretic thinking about the underlying causes and effects of inflation or deflation. The teaching module is intended as inspiration for other accounting educators to develop materials for teaching beyond the rules, promoting a deeper understanding of social justice issues imbedded in authoritative standards.
Keywords: price changes; inflation; deflation; monetary assets; non-monetary assets; accounting standards; accounting education; intermediate accounting; interest theory; principles-based accounting; social justice; financial accounting; critical accounting; teaching case study; international accounting; consumer prices; financial reporting.
International Journal of Critical Accounting, 2015 Vol.7 No.2, pp.173 - 190
Published online: 16 Jun 2015 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article