Examining the Potential Impact of Change in Lease Accounting in an Intermediate Accounting Course

Abstract

The typical accounting curriculum focuses on technical knowledge, which makes it challenging to devote time toward developing other important skills, such as examining how accounting rules may impact a company’s financial statements. Recently, the accounting rules for lease transactions changed significantly, and this chapter provides an overview of an assignment used in an intermediate accounting course to engage students in a real-world application. Students had the opportunity to apply accounting rules to a publicly traded company, measure the significance of changes to generally accepted accounting principles, read financial disclosures, reinforce concepts of present value and ratio analysis, and engage in critical thinking. This type of assignment does not have to be limited to leases, and instructors could discuss any accounting rule by following a similar model, whether the rule itself is current or proposed. This would offer students context beyond textbook learning.

Citation

Andre, S.M. and Embree, J.L. (2022), "Examining the Potential Impact of Change in Lease Accounting in an Intermediate Accounting Course", Calderon, T.G. (Ed.) Advances in Accounting Education: Teaching and Curriculum Innovations (Advances in Accounting Education, Vol. 26), Emerald Publishing Limited, Leeds, pp. 79-103. https://doi.org/10.1108/S1085-462220220000026005