By Janet B. Butler, Ph.D.; Sandra Cherie Henderson, Ph.D., CPA; and Cecily Raiborn, Ph.D., CMA, CPA
The balanced scorecard can help companies get a clear picture of the relationship among sustainable practices, corporate strategies, and profitability. The authors explore three ways to incorporate sustainability into the BSC and discuss issues that companies should consider when they are selecting sustainability-related measures, targets, and goals.
Initial Public Offerings and the Role of the Management Accountant
By Dorothy A. McMullen, Ph.D., CPA, CFE, FCPA, CICA; Maria H. Sanchez, Ph.D., CPA; and David E. Stout, Ph.D.
Management accountants play a critical role in the process of taking a company public. They help management prepare GAAP-based financial statements, select an outside accounting firm, select the underwriter for the IPO, meet SEC reporting requirements, determine the initial offering price, assist the company’s CFO, and more.
VOFI: A More Realistic Method for Investment Appraisal
By Peter Schuster, Ph.D.
The Visualization of Financial Implications (VOFI) investment appraisal method, which considers an imperfect capital market, has been known mostly in German-speaking countries but has begun to receive wider attention. The author describes the concept and examines the method’s strengths and weaknesses.
Assessing Internal Controls: Do Management and Staff Agree?
By Donna Dietz, Ph.D., CMA, CPA, and Herbert Snyder, Ph.D., CFE
Control Self-Assessment (CSA) has emerged as a key diagnostic tool for evaluating internal controls. In this study of five firms in different industries, the authors try to determine if managers’ perceptions of internal controls could be used as a proxy for all employees.
Relevance Lost: The Practice/Classroom Gap
By Joseph F. Castellano, Ph.D., and Ron Burrows, Ph.D.
Companies seem to be using lean accounting practices more and more, yet leading university accounting textbooks contain little or no information about lean accounting, and there is no clear evidence that it is a required topic in classes. In their survey, the authors found a gap between business use of the topic and classroom teaching.
Failure to Benchmark: An Out-of-Balance Scorecard at an Academic Institution
By Richard J. Barndt, Ed .D. (ABD), CPA; Charles H. McGee, Ph.D.; and A.J. Cataldo II, Ph.D., CMA, CPA
Colleges and universities need to make sure that they benchmark their balanced scorecards against those of similar institutions so they can incorporate best practices. If they don’t do so, they could hurt their chances to attract the right faculty candidates, create an objectionable culture, contribute to a lack of process accountability, and more.