Accounting Streams: reimagining accounting education for the future

Accounting education stands at a crossroads in a world of rapid technological advancement and evolving societal needs. A recent Accounting Streams workshop at UCL’s Canary Wharf campus brought together educators, researchers, practitioners and thought leaders to address a pressing question: How can we reimagine accounting education to meet future demands.

^{Photographs: Accounting Streams}

The need for change

Accounting education has long been criticised for its stagnation and failure to adapt to the changing needs of the profession and society. As one delegate noted, persuading some colleagues to change their teaching methods is just about impossible. This resistance to change has led to a disconnect between what is taught in universities and what is required in the real world.

The Accounting Streams project seeks to reimagine accounting education for contemporary society. At its core, this project embraces a broader definition of accounting:

A technical, social and moral practice concerned with the sustainable utilisation of resources and proper accountability to stakeholders to enable the flourishing of organisations, people and nature.

Carnegie, Parker & Tsahuridu, 2021

This definition sets the stage for a more holistic approach to accounting education, one that goes beyond mere number-crunching to encompass the economic, social, and moral underpinnings of the profession.

The past: a history of false starts and stagnation

Professor Joan Ballantine of Ulster University gave a challenging keynote address, emphasising the long history of calls for accounting education reform. Since the 1980s, numerous reports and commissions have highlighted the need for change. Notable examples include:

• The Bedford Committee (American Accounting Association, 1986)
• The Big 8 White Paper: Perspectives on education: capabilities for success in the accounting profession (Arther Anderson and others, 1989)
• The Accounting Education Change Commission (American Accounting Association, 1989)
• The Albrecht & Sack report: Perilous Future (American Accounting Association, 2000)
• The Pathways Commission (American Accounting Association, 2012)

These initiatives consistently identified several key issues:

1. An overemphasis on technical skills at the expense of broader business knowledge and soft skills.
2. A lack of integration between accounting and other business disciplines.
3. Outdated teaching methods that fail to engage students effectively.
4. A disconnect between academic research and practical application.

Despite these repeated calls for reform, progress has been painfully slow. 

The present: persistent dissatisfaction

While beneficial in some respects, Joan said the close ties between universities and professional bodies have led to a narrow focus on accreditation requirements and technical competencies. This approach has resulted in what she describes as a flurry of activity that ultimately fails to address the fundamental issues, an example of “complexly doing nothing” (after Boyce, 2008). She summarised the current characteristics of accounting education as:

• A continued emphasis on rote learning and technical skills.
• Limited integration of critical thinking and ethical considerations.
• Insufficient attention to the broader societal role of accounting.
• A struggle to balance the needs of various stakeholders (students, employers, professional bodies).

Moreover, the rise of artificial intelligence and other technological advancements has put the traditional model of accounting education under even greater strain. Joan noted, “We can’t afford to keep our heads in the sand. We must persuade our colleagues they can’t carry on as before.”

The future: opportunities for meaningful reform

Joan, however, also believes that the challenges facing accounting education also present opportunities for meaningful change. A new QAA Subject Benchmark Statement (SBS) for accounting, set to be published shortly, provides a framework for reimagining the curriculum. 

The SBS is a key reference point for academic staff and higher education providers in designing and reviewing degree programs. It ensures consistent academic standards across institutions, guides external examiners and informs professional bodies and employers about expected student competencies.

The new SBS emphasises several cross-cutting themes that potentially offer a path forward:

• Embedding equity, diversity, and inclusion.
• Accessibility and the needs of disabled students.
• Education for sustainable development.
• Enterprise and entrepreneurship.
• Addressing the impact of generative artificial intelligence.

These themes reflect a broader understanding of accounting’s role in society and the skills needed by future professionals. Joan notes, “Accounting needs to move beyond focusing on profit and measurement and capital accumulation. We need a broader focus on the socio-economic context.”

Accounting Streams: a path forward

Susan Smith of UCL suggested the Accounting Streams project represents a concrete step towards realising a vision of reformed accounting education. Key features of this approach include:

1. Open access and free-to-use resources.
2. A problem-based learning approach that links theory to the real world.
3. Integration of datasets and simulations to enhance practical skills.
4. A focus on developing critical thinking and ethical decision-making abilities.
5. Addressing the skills gaps identified by the World Economic Forum.

The project has already developed several modules currently available, including:

• The evolving role of accounting
• The concept of capitals
• Measuring environmental and social costs
• The need for assurance
• Tailoring financial information for users
• Factors impacting financial reports
• Using reported data

These modules are designed to be flexible, allowing educators to use them as a comprehensive introduction or supplement existing curricula. Some leading contributors provided outlines and guidance for using the materials with students. 

Jenni Rose, University of Manchester, outlined the chapter concerning the need for assurance. She explained the importance and effectiveness of using a dialogic approach supported by reading, self-assessment and interactive learning.

Anwari Halari and Ruth Dimes from the Open University set out the chapter on the concept of capitals. Anwar gave the following example he uses with students to help them start thinking about human, social and natural capital.

 Imagine a machine in your back garden. It costs nothing but takes 10 years to start working. It cleans the air, attracts wildlife and makes the garden beautiful. It self-regulates and never depreciates. How much would you charge someone who destroyed this machine?

Shonagh Douglas provided a coherent structure for supporting students in their use of reported data. The approach is rooted in a three-step process:

1. Develop an understanding of the business.
2. Review the financial statements.
3. Perform financial analysis 

The contributors welcome feedback from educators and students. You can do this through the Accounting Streams website or the dedicated open-access Padlet.

Challenges and considerations

While the Accounting Streams project offers innovative solutions and resources, implementing such reforms across the accounting education landscape is challenging. The path to meaningful change is complex and fraught with obstacles that must be addressed. These include:

1. Institutional resistance to change.
2. A need to balance student expectations with educational needs.
3. The commodification of higher education.
4. The shrinking space for critical inquiry in academia.

Moreover, there is a growing recognition of the need to decolonize the accounting curriculum. As Professor Atul Shah, City St George’s, pointed out, “95% of the world population is non-white. How does this curriculum relate to these students?” He called for the project to be more inclusive by incorporating diverse, personal perspectives and experiences.

Atul believes another key consideration is the role of faith and spirituality in accounting education. The approach must recognise the diverse backgrounds of students and the ethical foundations that inform their understanding of business and accountability. “Faith is ingrained in many cultures, so we must talk about faith.”

Conclusion: a call to action

The workshop made it clear that accounting education stands at a critical juncture. The rise of AI and other technologies and growing societal demands for accountability and sustainability necessitates fundamentally reimagining how we prepare future accounting professionals.

The Accounting Streams project offers a promising start to address these challenges. By providing open-access resources, embracing problem-based learning, and focusing on critical thinking and ethical decision-making, it directly tackles the issues of outdated curricula and teaching methods. The project’s emphasis on sustainability, diverse perspectives, and real-world applications helps bridge the gap between academic theory and professional practice.

However, true reform will require a concerted effort from educators, institutions, professional bodies, and students themselves. As Joan Ballantine noted, “We need a sustained call for action with a greater number of academics. How do we affect change? How do we persuade our colleagues?”

The answers to these questions will shape the future of accounting education and, by extension, the profession itself. By embracing a more holistic, critical, and inclusive approach to accounting education, we can ensure that future professionals are equipped not just with technical skills but with the ethical grounding and critical thinking abilities needed to navigate the complex challenges of the future.

Richard Murphy called on participants to remember that accounting is not boring but very exciting. “It’s more than just a technical practice — it’s a practical mechanism shaped by our economic and social systems.” There is an opportunity to contextualise accounting in a very different way and help students see it as a way to fulfil their objectives in life.

By reimagining accounting education through Accounting Streams, we have the opportunity to foster a new generation of professionals who can drive positive change and contribute to the flourishing of organisations, people, and nature. This approach addresses the long-standing issues of stagnation in accounting education while preparing students for the challenges of a rapidly changing world.

The time for reform is now. The question is, are we ready to answer the call?

References, links and resources

Join the Accounting Streams mailing list to learn about new modules and workshops.

^ Boyce, G., 2008. The social relevance of ethics education in a global(ising) era: From individual dilemmas to systemic crises. Critical Perspectives on Accounting, 19(2), pp.255-290. Available at: https://doi.org/10.1016/j.cpa.2006.09.008 (accessed 7 September 2024)

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