KSU Accounting Students Respond to FASB Proposal

Two students in Kennesaw State University's graduate−level "Theory of Business…

Georgia (Feb 20, 2003) — KSU Accounting Students Respond to FASB Proposal

Staff

Abstract

Two students in Kennesaw State University's graduate−level "Theory of Business Reporting" course did more than study financial reporting − they made a contribution to its on−going development.



The Financial Accounting Standards Board (FASB) recently requested feedback on a proposal‚ springing from the Sarbanes−Oxley Act of 2002‚ to deter the "financial engineering" that allowed scandals such as Enron.



Dr. John P. McAllister‚ the Chair of KSU's Accounting Department‚ included the FASB's proposal in his "Theory of Business Reporting" course‚ and challenged students to submit their responses. Graduate students Frank Huffman and Geraldine Ratnam accepted the challenge.



In their 1‚000 word response to the FASB‚ Huffman and Ratnam supported a "principles and guidance" approach rather than a pure principle−based approach. They also suggested establishing an Internet−based "court"' to assist preparers and auditors when they face dilemmas.



"It's outstanding that they were willing to share their knowledge and analysis to improve the accounting profession‚" McAllister said. "What's more‚ this is the first case I've seen where students‚ rather than accounting firms‚ have responded to the FASB's request for review."



"Theory of Business Reporting" examined the role financial reporting played in recent corporate scandals including Enron‚ Global Crossing and WorldCom.



Frank Huffman‚ a Master of Accounting student‚ earned a BBA in Accounting at State University of West Georgia. He is Division Controller for the Candlewick Yarns division of Dixie Group‚ Inc. He lives in White‚ GA with wife Stephanie and daughter Sarah.



Geraldine Ratnam‚ an MBA student‚ earned a BA in Music and Psychology at Trinity University in San Antonio‚ Texas. She is currently working on an assurance internship with KPMG in Houston.



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Kennesaw State University is a comprehensive‚ residential institution with a growing student population of 15‚600 from 118 countries. The fifth largest out of 34 institutions in the University System of Georgia‚ KSU offers 55 undergraduate and graduate degree programs.



 

A leader in innovative teaching and learning, Kennesaw State University offers more than 150 undergraduate, graduate and doctoral degrees to its approximately 41,000 students. With 11 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia and the third-largest university in the state. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the region and from 92 countries across the globe. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status, and one of the 50 largest public institutions in the country. For more information, visit kennesaw.edu

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