Peer Review

Beating the Street

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Overall Rating:

Content Quality:

Effectiveness:

Ease of Use:

Overview:: This module is a transcript from the News Hour with Jim Lehrer in which Paul Solman
discusses the "accounting tricks" that businesses use to beat Wall Street's
expectations. He uses an imaginary tortilla company to show how businesses
embellish earnings reports. The segment is also available in streaming
video and RealAudio formats.
Type of Material:: Case (transcripts, audio, or video)
Recommended Uses:: Beating The Street could be used in a varietiy of wasys: viewed in class and followed by discusion, or as a supplemental reading/viewing as homework both individually or team work.
Technical Requirements:: Windows Media Player or Real Player and/or RealAudio.
Identify Major Learning Goals:: The author provides no learning goal. However, the module would be an appropriate tool to sensitize students and faculty to the ethical issues and the games played to inflate accounting income.
Target Student Population:: College level financial accounting, auditing, fraud, or business ethics courses
Prerequisite Knowledge or Skills:: Knowledge of accounting principles concerning revenue recognition and the matching
principle would be beneficial.

Rating:
Strengths:: The narrative is presented on a professional grade web site and the material is well written. Readability is at a basic level making it easy to read and understand. Beating the Street provides real world examples to demonstrate ethical issues and accounting techniques used to manage earnings. It is both clear and concise and provides content that is current and relevant.
Concerns:: The depth of the content is somewhat limited and overly simplistic for an upper level accounting class. Having more information about the various companies mentioned in the story and the accounting principles and procedures violated would be helpful. The module is probably not self-contained in that the instructor will need to provide background information and context.

Rating:
Strengths:: The content (topic and issues) are easily understood and provide important insights. Beating the Street should be a very useful supplemental tool, especially if followed up with classroom discussion. The streaming video requires less than 15 minutes to view. One also has the option to listen with RealAudio or read the transcript on the site. The intent of the piece is to raise awareness and to that extent it does so efficiently.
Concerns:: While specific learning objectives have not been included, the piece was not initially designed as a complete educational package. As a result prerequisite knowledge is not identified, nor are concepts necessarily reinforced progressively. To be effective as a teaching tool, the instructor will need to provide background information and a thorough explanation of the accounting techniques employed and the resulting costs to the various stakeholders.

Rating:
Strengths:: Beating The Street provides video as well as audio to demonstrate a hypothetical company, relating its activities to other real-world companies. The material is provided via a web page that is readily accessible and easily navigated. The video is visually appealing, engaging, and of high design quality.
Concerns:: Using the video alternative could be more involved since it requires the appropriate media players (Windows Media Player or Real Player) and a reliable and fast Internet connection. The first requirement may involve downloading the players and not all computer users may have the ability or the right to do that on some networks.

Other Issues and Comments:: Beating the Street should be viewed as supplemental tool that helps bring current events and real world examples into the accounting classroom. It is up to the instructor, however, to put it into the appropriate context within an appropriate course.
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