1. Eve Lamberg,
lecturer of Financial Accounting and PhD student at Estonian Business School ( EBS )
Presentation of the doctoral research
9th of December 2013
eLearn Center (eLC), Universitat Oberta de Catalunya ( UOC )
2. Design-based research
Introduction
Phase 1: an educational problem and equivalency
theory
Phase 2: Development of an accounting model
Phase 3: Iterative cycles of testing and redesign of an
accounting model prototype
Phase 4: Reflection
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3. Inroduction (1)
In 1991, Elliott and Jacobson (1991, p. 54) drew attention to the
fact that accounting must move into the information
technology (IT) era.
Elliott identified five stages of the ‘value chain of information’
to illustrate the value that accounting should provide
(Albrecht, 2002, p. 44):
1. stage
Business
events
2. stage
Data
3. stage
Information
4. stage
Knowledge
5. stage
Decision
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Eve Lamberg
4. Inroduction (2)
Data, information and
knowledge are different in
nature:
DATA comprise facts,
observations or perceptions.
Data can be easily stored and
communicated using
electronic media.
INFORMATION involves the
manipulation of data.
KNOWLEDGE refers to
information that enables
decisions and actions.
DATA
low value
INFORMATION
medium value
KNOWLEDGE
high value
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Eve Lamberg outline
5. Phase 1: educational problem (2)
According to Lamberg (2012) there is an obstacle to adapting
to the changes in the IT era in which entrepreneurship
students operate. The research results highlight that the
terms data and information are used interchangeably in an
accounting definition. For example:
Accounting is the information system that measures
business activity, processes the information into reports,
and communicates the results to decision makers
(Horngren et al., 2005, p. 4).
Accounting is the information system that measures
business activity, processes the data into reports, and
communicates the results to decision makers (Horngren et
al., 2007, p. 4).
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6. Phase 1: educational problem (1)
I argue that although
computerized accounting
information system (AIS) has
replaced manual accounting
in organizations,
entrepreneurship
students experience
difficulty with the
traditional accounting
cycle in the IT era
resulting in a negative
perception.
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1. stage
business
events
2. stage
prepare
documentation
3. stage
record
in journals
4. stage
post
to ledgers
5. stage
unadjusted
trial balance
6. stage
adjusting
entries
7. stage
adjusted
trial balance
8. stage
financial
statements
9. stage
closing
entries
The accounting cycle is
a series of stages
in recording business events
from the time
a transaction occurs
to its reflection
in the financial statements
Boulianne (2012).
Eve Lamberg outline
7. Equivalency theory (1)
„Equivalency theory“ recognize that the method of
knowledge acquisition may be different. Students
should have learning experiences that are tailored to
the environment and situation in which they find
themselves (Simonson, Schlosser, & Hanson, 1999).
According to Chinese philosopher Confucius (551 BC-
479 BC) "I hear and I forget. I see and I remember. I do
and I understand" is an approach to learning that
describes a relation between the learner and the
activity s/he is doing.
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8. Equivalency theory (2)
Bloom’s higher level learning facilitates the „learning
by doing” pedagogy that is fundamental in education
for entrepreneurship.
The main challenge for educators is to create the
appropriate learning environment which reflects the
life world of the entrepreneurs (Pfeifer & Borozan,
2011, p. 218).
The introductory-level instructional design should
incorporate as many useful empirical tools as possible
that consider the needs of a variety of user (Mostyn,
2012, p. 227).
8 December 2013 8
Eve Lamberg outline
9. Phase 2: Development of an
accounting model (1)
The need of entrepreneurship students is to understand
how the financial statements are produced from the
business events.
Knowledge of IT impact on both accounting and
learning. According to constructivist paradigm people
perceive the world differently and accounting models
will change over time.
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10. Phase 2: Development of an
accounting model (2)
Different types of knowledge should be managed
differently:
declarative knowledge may be characterized as „know
what knowledge” (facts such as definitions)
procedural knowledge may be characterized as „know
how knowledge” (practical understanding such as
hands-on experience).
The following figures help entrepreneurship students
understand the „know-what knowledge“ and „know-how
knowledge“ that is a necessary prerequisite in the
acquisition of skill.
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11. Phase 2: Development of an
accounting model (3)
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BUSINESS ACTIVITIES
(input of AIS)
DATA
about business activities
items
sub-elements
INFORMATION
interrelated elements
A=L+O
ACCOUNTING
KNOWLEDGE
( output of AIS)
Financial statements
Asset
(A)
...
cash
inflow outflow
Liability
(L)
Equity
(E)
...
retained
profit
income expense
(Figure 5 Declarative knowledge of conceptual AIS, Lamberg 2012)
12. Phase 2: Development of an
accounting model (4)
(Figure 6 Procedural knowledge of conceptual AIS, Lamberg 2012)
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1. Stage
RECORDING
business
activities
to
DATA
2. stage
SUMMARIZING
DATA
to
INFORMATION
3. stage
CONVERTING
INFORMATION
to
KNOWLEDGE
Financial Statements
KNOWLEDGE
business
activities
Conceptual AIS
Eve Lamberg outline
13. Phase 3: testing and redesign of an
accounting prototype (1)
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conceptual
models
• Source of
knowledge: Tallinn
University of
Technology; Dipl.
System Engineer
(1984)
accounting
theory
• Source of
knowledge: Estonian
Business School;
EMBA 2002
systematic
observation
• Source of
knowledge:
2002-2012 at the
EBS teaching and
development of an
accounting
prototype solution
Comprehensive
model
validation
• Source of
knowledge: 2013 - ...
At the UOC testing
and redesign of an
accounting
prototype with the
UOC students
Figure Direction in the educational design research process
14. Phase 3: testing and redesign of an
accounting prototype (2)
Spreadsheet software is used to develop a prototype
solution of my accounting model as a
communication tool to visualize and explain
accounting process to affect students' learning
experience
Procedural knowledge (data -> information->
knowledge) is not regulated by the FASB “Framework
for the Preparation and Presentation of Financial
Statements” and should conform to the changing
environment and resources learners have available
(Lamberg, 2012).
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15. Description of the proposed
intervention (1)
Estudis d’Economia i Empresa
Introducció a la Comptabilitat
(Introduction to the Accountancy)
Semestre 1314-2/March 2014
Participants
The UOC is a representative virtual university where the learning is
related to constructivist learning.
Participants of the Introduction to the Accountancy course are
influenced by learning experiences that are central to the
investigation. UOC tutors and students look for engaging learning
experience and researcher-designer looks for feedback to improve
the AIS prototype with spreadsheet IT.
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16. Description of the proposed
intervention (2)
The course „Introduction to the Accountancy“ is organized in 5
Continuous assessment activities (Prova d’avaluació continuada -
PAC) as follows:
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PAC1
10 points
PAC2
10 points
PAC3
10 points
PAC4
10 points
PAC5
10 points
17. Description of the proposed
intervention (3)
PAC2
I part 5 points
II part 5 points
The PAC2 is broken down
in 2 parts:
I part (5 points) includes
3 dependent exercises
II part (5 points)includes
a case activity during all
the PAC1-PAC5
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18. Description of the proposed
intervention (4)
4 virtual classrooms:
2 virtual classrooms in
the control group: 2 x 75
≈ 150 students.
2 virtual classrooms in
the pilot test group: 2 x
75 ≈ 150 students.
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PAC2 I part
control group
PAC2 I part
pilot test group
with the prototype of
my accounting model
Eve Lamberg outline
19. Phase 4: Reflection
Analyse the pilot test's results: points of the
assessment, students’ estimated time to complete
PAC2 I part, number and type of errors.
Analyse tutors’ and students' opinion (how easy the
prototype is to learn and use, how satisfying the
accounting activity with this model is) through an on-
line survey
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20. Thank You for your kind attention!
Questions?
8 December 2013 20
Eve Lamberg outline
21. References
Albrecht, W. S. (2002). Accounting Education on the Edge. BizEd, 40-45.
Boulianne, E. (2012). Impact of Software Utilization on Students’ Knowledge Acquisition: A Significant
Change in Accounting Education Paper presented at the CAAA Annual Conference 2012.
http://ssrn.com/abstract=1981357
Elliott, R. K., & Jacobson, P. D. (1991). U.S. Accounting: A National Emergency. Journal of
Accountancy, 172(5), 54.
Horngren, C.T., Harrison, W.T., Bamber, L.S. (2005). Accounting. 6th ed. New Jersey: Pearson
Education, Inc.
Horngren, C.T., Harrison, W.T., Bamber, L.S. (2007). Accounting 7th ed. New Jersey: Pearson
Education, Inc.
Lamberg, E. (2012). Obstacles to the Perception of the Traditional Accounting Cycle in the Learning
Process. Journal of Business Management (6), 161-169.
Mostyn, G. R. (2012). Cognitive Load Theory: What It Is, Why It's Important for Accounting
Instruction and Research. Issues in Accounting Education, 27(1), 227-245. doi: 10.2308/iace-50099
Pfeifer, S., & Borozan, D. (2011). Fitting Kolb's Learning Style Theory to Entrepreneurship Learning
Aims and Contents. International Journal of Business Research, 11(2), 216-223.
Simonson, M., Schlosser, C., & Hanson, D. (1999). Theory and distance education: A new discussion.
American Journal of Distance Education, 13(1), 60-75.
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22. The accounting cycle
Luca Pacioli (the father of Accounting) published the
accounting cycle in 1494 (Summa de arithmetica, geometrica,
proportioni et proportionalita) that Venetian merchants used
during the Italian Renaissance. He demonstrated year-end
closing entries and proposed that a trial balance be used to
prove a balanced ledger: the total of the debit values must
balance the total of the credit values. This is a balanced scale
model for understanding the balance between debits and
credits. Debit-credit rule was introduced before „equals“
sign.
Robert Recorde introduced the "equals" (=) sign in 1557.
"Equals" means “equivalent” not “identical”.
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23. Concepts of Equivalency theory
Equivalency - the learning experiences of the learner should
have equivalent value even though these experiences might be
very different.
Learning Experience - Some may need a greater amount of
observing while others require a larger dosage of doing.
Appropriate Application - learning experiences should allow
delivery of instructional ideas that fit the expectations and
facilities available to learners
Students - Students are the ones involved in the formal,
institutionally based learning activity - the course or unit of
instruction.
Outcomes - the outcomes of a learning experience are those
obvious, measurable, and significant changes that occur
cognitively and effectively in learners because of their
participation in the course or unit.
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