The Business Activity Model:
An Experiment in Self-Learning
Anthony H. Catanach Jr.
acatanach@msn.com
610-519-4825
Seminar Objectives
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Briefly review the Business Activity Model’s (BAM)
pedagogy.
Describe the formal assessment project funded by the
Carnegie and Pew Foundations and the AAA.
Discuss the study’s preliminary results.
Comment on future directions of the instructional
approach and study.
Please ask any questions as
they may arise.
The Business Activity Model Hopes to
Treat Three Educational Maladies
Lee S. Shulman in Taking Learning Seriously, 1999.
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Amnesia - forgetting what learned in class.
Fantasia – illusory understanding or persistent
misconceptions.
Inertia – ideas are not used or applied.
So how does the BAM work?
The Business Activity Model
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Seeks to motivate students for the accounting profession,
promote technical competency, develop life-long research skills,
advance critical thinking, and foster communications skills.
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Over two semesters, students mimic the accounting and
financial reporting processes found in the “real world” by
conducting analytical reviews, soliciting information from
clients, preparing correcting entries, and drafting financial
statements.
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Allows technology (CD ROM, Internet, Electronic Libraries,
Email) to be incorporated in the classroom (instruction,
administration, etc.), but technology is purposefully kept in the
background so as to focus on the model’s objectives.
General Approach
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Confront students with “real life” business
contexts.
– Introduce ambiguity (e.g. relatively obscure
hydraulic maintenance services industry).
– Require students to provide a full range of
accounting, tax, and consulting services as members
of a professional services team (i.e. group work).
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Place greater reliance on “Socratic Method.”
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Focus on financial statements and disclosure.
Specific Approach
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Students are introduced to accounting issues as
they are encountered by a fictitious company
during the first seven years of its life cycle.
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Groups progress from compilations and reviews
(years 1 and 2) to audit services (last 5 years).
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For each year, students recommend “correcting
entries,” and prepare complete sets of financial
statements including all note disclosures.
Primary Classroom Activities
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Prior to Day One - Students are provided with clientprepared financial statements and records.
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Day One - Students ask the client questions that allow
them to determine whether the financial statements are
in accordance with GAAP. Groups also must solicit
information that is needed for “correcting entries” and
financial statement disclosures.
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Day Two - Students present correcting journal entries.
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Day Three - Groups present complete sets of financial
statements and note disclosures.
Unique Course Characteristics
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Class time devoted to critical thinking and
communication skills: issue identification, resolution of
ambiguity, etc. (not information delivery).
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Delivery of technical information shifted outside the
classroom: replace lectures with client analytical review
exercises and detailed take-home research projects.
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No CPA exam focus.
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Course revisions are continuous (thanks to the FASB).
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Integrates course with other classes (audit, tax, etc.).
But Does the BAM Work???
The History of the
Business Activity Model’s Use
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Until the past year, the model has been used only at the
University of Virginia.
– Skeptics have argued that great professors and great students
account for any “apparent” success.
– Formal assessment was not possible until materials were
complete.
Historically, few resources existed to facilitate adoption by other
institutions (training, user manuals, etc.)
Yet, this past year, five new institutions adopted the BAM, with
another coming on line this fall.
Now Assessment Can Begin!!!
Formal Assessment Project
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Begun in the Fall of 1999 with financial support
provided by the Pew Foundation and the American
Accounting Association.
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Research also supported by the Carnegie Academy for
the Scholarship of Teaching and Learning.
This scholarship is a way of
recording, displaying, examining,
investigating, and building
powerful methodologies to address
the pathologies of learning:
amnesia, fantasia, and inertia.
Project Description:
Does the Business Activity Model Work?
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Does the model accomplish its goals?
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How well does it work relative to more
traditional courses (both in the shortterm and long-term)?
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Does it affect subsequent courses in the
curriculum?
Research Design and Method
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Multi-phase, longitudinal investigation: during the
course (Phase I), subsequent to the course, but before
graduation (Phase II), and post-graduation (Phase III).
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Variety of tools and metrics: student, faculty, alumni, and
employer attitudinal surveys; focus groups; and
standardized tests (certification and professional exams).
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Except for questions designed to capture demographic
information or written comment feedback, most
questions require responses on an ordinal scale from one
(strongly disagree) to five (strongly agree).
Progress To Date
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Three attitudinal surveys were created, pilot
tested, and delivered to over 300 intermediate
financial accounting students at five U.S.
universities.
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The following results were compiled from two
surveys of the first semester intermediate
course at each school.
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Second semester responses are being coded.
Student Profile
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Average age: 21.5 years (70%  20 years)
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Other characteristics: 54% female, 85% juniors, 19% minority
status, 4.7% foreign, and 23.6% transfers
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Major: 62.4% accounting with another 31% double majoring in
accounting with another discipline
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Academics: mean GPA of 3.3 (53% in top 10% of high school class)
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Experience: > 60% reported no previous experience with accounting
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Work: 20% (5-10 hours per week) and 30% (10-20 hours per week)
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Study Hours: 44.1% (10-20 hours per week) and 16% (more than 20
hours per week)
Critical Thinking
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Students enjoy identifying and solving problems, but
admit to difficulties in formulating decisions.
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After the BAM, students agree that ambiguity and
uncertainty hinder their ability to solve problems.
– 17.8% rate uncertainty as their greatest dislike for the course
– 22.4% suggest that the course can be improved by reducing
uncertainty
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Students acknowledge that the BAM encouraged
critical thinking
– Median response of 4 on a 5 point scale (strongly agree)
– 10.3% rated critical thinking and analysis as what they most
liked about the BAM
Group Work
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Student attitudes toward working in groups was
generally positive and consistent throughout the
semester. They acknowledge that working with others is
important and that group exercises are an effective
learning tool.
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However, there are several inconsistencies:
– 26.3% rate group work as what they like most about the course
– 16.8% rate group work as what they like most about the BAM
– 16.3% cite working in groups as one of the least attractive
aspects of the BAM
Communication Skills
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Student ratings of the importance of oral communication
skills to business declined during the semester, as did their
beliefs that oral presentations reflected their knowledge.
Yet, more students rated their communication skills higher
at the end of the semester than at the start. Neutral on
whether the course improved them.
Students rated the “importance of writing to learning”
lower at the end of the semester, while valuing “essays as
useful in evaluating knowledge” more at the end of the
semester than at the beginning. Neutral on whether the
course improved them.
Research Ability
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Students prefer courses that rely on detailed texts
over those that encourage library research and
readings, even though they are comfortable with
computerized research tools.
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After one BAM semester, students report a higher
expectation that the course text should have “most
of the answers.”
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These responses are consistent with student
concerns over the uncertainty they face in the
BAM.
Motivation Toward the Profession
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Most students recognize the value of the accounting
major in providing access to business opportunities.
However, student ratings of “interest in accounting as a
major” declined slightly after the first semester and
students were neutral as to whether the course
“increased interest in accounting.”
Nevertheless, students agreed that the BAM enhanced
their understanding of the profession and addressed
important business issues.
– 43.9% indicated that the BAM’s realism was what they liked
most about the course.
Wait A Minute Here!!!!
Isn’t it ironic that most students
appreciate the BAM’s realism, but
dislike its uncertainty?
Students don’t equate the business
world with risk and uncertainty!
Course Rigor
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Students were almost unanimous in their assessment of
the course as being time consuming, challenging, and
interesting.
– 12.1% cited information overload for the course.
– 11.0% disliked time-consuming nature.
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Generally agreed that the BAM was a valuable learning
tool.
– 17.3% reported the BAM to be what they liked most about the
course.
– 10.1% recommended that nothing be changed in the course.
But How Do the Instructors Feel?
Instructor Feedback
I really enjoy doing the BAM and the students seem more interested in
class, although I don’t think they like having to depend to meet outside of
class…Also, I think they’re struggling on how to learn on their own.
There is a lot less frustration among the students that I thought there
would be. As for me, I am having a ball. This is by far, the most fun I have
ever had “teaching” (moderating) an intermediate accounting class.
I love teaching the course this way and hope to do a much better job in the
future. I had some difficulty in knowing what to really emphasize and
reinforce in class discussion so that students had a better idea what to
study…our students really seem to enjoy the interaction and analytics.
Interim Result Summary
Students appreciate the
model’s realism and
faculty enjoy using it.
Students dislike the
uncertainty and miss
having lectures.
Too Early to Tell on Model Effectiveness!
Intriguing and Unexpected Findings
Effect of Changing Student Demographics on Curriculum
Design and Implementation
Double Majors
Student Hours Worked
Extra Curricular Activities
Theoretical Model and Approach May Be Sound,
But Demographics May Prevent Desired Outcomes.
Intriguing and Unexpected Findings
The Influence of Student Expectations on
Curriculum Implementation
Family
Classmates
Other Students
Metrics May Not Properly
Capture Model Outcomes.
Immediate Implications of the Current Work
Reinforced the need for
multiple metrics and
research methods, as well
as careful program
implementation.
Opened the door to a
new investigation that
can be initiated, while awaiting
completion of the longer,
longitudinal project.
The New Study:
Research Contributing to Professional Practice
I will match student demographic and attitudinal data
from the current project to newly collected student
internship feedback data. This will allow me to:
• Report on firm internship program performance.
• Match student profiles to internship program ratings.
This Means That My Carnegie Project May Impact Both University
Curriculum AND Professional Firm Training Programs
Conclusion
Good measures will allow us to capture the gut-wrenching
drama and conflict found in Accounting:
Preparing
to do Battle
The Thrill of Victory
The Agony of Defeat
Thank You:
Questions and Comments
Catanach Jr., A. H., D. B. Croll, and R. L. Grinaker. “Teaching Intermediate
Financial Accounting Using a Business Activity Model.” Forthcoming in
Issues in Accounting Education (November 2000).
My web page:
http://www19.homepage.villanova.edu/anthony.catanach/BAMHome.htm
Melody Marcus at McGraw Hill – Irwin (212-904-2029 or
melody_marcus@mcgraw-hill.comm).
McGraw Hill presentations on Tuesday at 10:15 AM and 3:15 PM in the
Mariott (rooms 309 and 310). Stop by their booth to sign up.
Contact Mary Harsten (St. Mary’s University), Bob Hilbelink (Dordt
College), Dave Kircher (Ohio University), Brock Murdoch (Cal State –
Chico), and Gerry Dougherty (Villanova University).