Critics have blamed FAS 157 for exacerbating the global economic crisis of 2008. This paper investigates the links between Enron, the reintroduction of fair value accounting, the implementation of FAS 157, and the subprime mortgage crisis of 2008. The account describes the possible connections...

The leadership style that worked in the industrial economy will not work in the knowledge economy where integrity and creativity are crucial if an organization is to survive and thrive. This paper demonstrates why organizations, including accounting firms, need leaders that possess the...

We are no longer an industrial economy characterized by assembly lines; we are now in a knowledge economy where creativity is what matters and the old ways of running a firm simply do not work. Using the value of the stock as a way of measuring CEO performance makes no sense and can actually...

This article demonstrates how various concepts derived from marketing and behavioral economics can be useful to accountants and others whose advice is sought on the setting of prices. In particular, it shows that a one-price policy may not always be ideal. Using price as a strategic tool can...

America is in distress. We have been going from one crisis to another. Here are just a few: the savings and loan debacle which began in the 1980s; accounting fraud and financial irregularities scandals that involved such firms as Enron, Adelphia, Tyco International, Global Crossings, and led to...

A good reputation can be lost in a minute. If something is not done, accountants and auditors may find themselves perceived by the public the way lobbyists and used car sales persons are. The accounting profession is not examining itself and taking responsibility for many of the problems that...

This paper examines four terms that are used a great deal by economists and demonstrates that they are often misunderstood. Not fully comprehending the meaning of these terms can result in serious problems for society. Thus, Greenspan admitted that not knowing how self-interest works resulted in...

Research has shown problem-based learning (PBL) to be an effective learning method in a variety of ways. This paper discusses the merits of implementing PBL in college accounting classrooms to teach ethics effectively. This paper reviews literature on the use of PBL in business and non-business...

The “Chicago School” of economic thought, led by the intellectual descendants of Milton Friedman, has become the dominant paradigm not only of economics but of all social sciences, including business and accounting. According to the Chicago School, the manager’s sole concern should be the...