Accounting pedagogy based on extant authoritative rules versus decision-oriented analysis: The case of other postemployment benefits

Abstract

Contemporary financial accounting pedagogy has been criticized for its excessive concentration on extant authoritative rules and preparer-oriented mechanics. An alternative decision-oriented pedagogy would emphasize the economic consequences of financial account- ing choices, analyze the role of accounting information within a broader economic, legal and political context, and consider emerging issues that remain authoritatively unresolved. This article illustrates a decision-oriented accounting pedagogy for the treatment of the other pos- temployment benefits (OPEB) issues. This article has two primary objectives. First, it provides a source for relevant economic, legal, and accounting background information and a set of decision-oriented, conceptually-motivated cases and topics for class discussion. Second, it uses the OPEB topic to illustrate the general pedagogic principle of addressing accounting issues from a decision-oriented rather than a preparer-oriented perspective. This approach could be equally useful for the treatment of a variety of accounting related topics, including asset reversions from defined benefit pension plan terminations and curtailments, corporate restruc- turings and downsizings, or employee stock options and deferred compensation agreements. Recently, accounting educators have been criticized in both academic and professional quarters for their excessive concentration on extant accounting practices and authoritative rules to the exclusion of a more decision-oriented analysis. In lieu of a rule-dominated pedagogy, a number of broader objec- tives have been proposed, including developing: