Fusion of expertise among accounting faculty: towards an expertise model for academia in accounting

Changes in accounting requirements made in response to the financial crisis of 2007–2008 have made achieving off-balance-sheet treatment for trade receivables securitizations more challenging, particularly under IFRS. Fortunately, a cost-efficient solution has emerged and is proving practical and efficient. Despite the need to transfer a significant portion of variability of cash flows to a third party, this solution makes it possible to satisfy this requirement in a cost-efficient manner by adding a small, carefully sized and positioned subordinated note. The authors present techniques to maximize transfer of variability of cash flow while keeping costs associated with this additional tranche down. Ongoing monitoring and occasional resizing ensure that off-balance-sheet treatment is maintained over the entire life of the securitization. In contrast, derecognition under U.S. GAAP is more readily achieved without the need for a subordinated tranche because the requirement to transfer control can be satisfied more directly by transferring ownership of the receivables all the way through to the investor.

Achieving IFRS Off-Balance-Sheet Treatment in Trade Receivables Securitizations

Expect the Unexpected: Risk Assessment Using Monte Carlo Simulations: With Software Such as Microsoft Excel, CPAs Can Perform Statistical Simulations to Assess the Potential Upside and Risk of Business Decisions

Establishing working relationships with academic faculty members at nearby universities and colleges can be a profitable step for a local practitioner because it provides access to specialized knowledge, training, skills and experience at a relatively low cost. Academics are particularly effective at improving staff training and strengthening quality controls because of their external perspectives. They also can contribute to recruiting and marketing programs and enhance the firm's stature in the community. CONTINUING PROFESSIONAL EDUCATION While large CPA firms can develop in-house training materials and programs, smaller firms must look to outside sources for CPE. Not only will there be out-of-pocket costs, but also the smaller firm may have difficulty finding courses that satisfy its needs in terms of content, location or quantity. Accounting academicians can devise and teach in-house CPE programs offering convenient times and location at reduced costs. This is particularly true of "building block" courses that correspond to the experience level of diverse staff members. Another approach is "coteaching," in which practitioners and academics share responsibility for CPE courses. This reduces the practitioner's preparation time and brings to the course a blend of theoretical perspective and practical experience. STANDARDS REVIEW AND QUALITY CONTROL The academic also can serve as a technical adviser and consultant in these ways: * Perform reviews of financial statements, auditor's reports and working papers for selected engagements. * Implement new auditing and accounting standards or procedures. * Develop in-house monitoring procedures that improve quality controls. When academics are used for standards review and quality control, their independence, knowledge and experience are a real asset. Additionally, they apply contemporary accounting and auditing theories to engagements, which helps keep practitioners current. EXAMINATIONS AND INSPECTIONS Some firms have academics perform internal examinations and served as team captains during inspections. The academic generally can complete the review in less time than the firm's managers and partners because he or she has no client responsibilities. The academics also can help firm members adapt to the profession's changing circumstances, methods and pronouncements. This arrangement is not only cost-efficient, but also is helpful when the firm undergoes a formal external peer review. Outside peer review teams often look favorably on the use of an independent academician in the firm's monitoring programs. SPECIALIZED SERVICES AND CONSULTING While many practitioners, especially those in smaller firms, are generalists, academics tend to specialize in one area, such as financial, cost, tax or auditing. As a result, they can advise practitioners on highly technical questions or on unfamiliar areas. They are neither competitors nor closely associated with the client, which gives them objectivity and a different perspective. …

Accounting Professors: A Valuable Resource

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Expect the Unexpected: Risk Assessment Using Monte Carlo Simulations: With Software Such as Microsoft Excel, CPAs Can Perform Statistical Simulations to Assess the Potential Upside and Risk of Business Decisions

Accounting Professors: A Valuable Resource