Changing Accounting Principles For The New Economy

Course Overview

Course Introduction

Not much has changed in general accounting principles and reporting requirements for companies in decades. Baruch Lev, Professor at New York University, Stern School of Business, strongly believes that things need to change to reflect transformations that have occurred in how business is now conducted. Baruch Lev shares his thoughts on benefits that could occur if accounting practices were updated to reflect how companies are valued.
This course includes discussions on the tectonic change in how companies are doing business today and how these changes are a result of a shift from an industrial age to knowledge and information focused businesses. Professor Lev shares his definition of a knowledge-based economy. He explains why today’s financial accounting principles are out of date and elaborates on three major reasons why current financial accounting rules and required reports have become less useful in determining the health of a company or an industry. He talks about the “conservative principle” and the part it plays in current accounting financial rules. He discusses what it would mean for businesses and the stock market if accounting practices took into consideration a company’s intangible assets such as brand strength.

Who Should Attend

  • Accountants
  • Financial Services Executives
  • Financial Analysts
  • Business Students
  • Executives
  • Entrepreneurs


Course Methodology

This self-paced e-learning course is based on an exclusive interview with Baruch Lev, Professor at New York University, Stern School of Business.

Learning Objectives

  • How new business models and knowledge economy is affecting accounting
  • Three factors responsible for deterioration of financial accounting
  • Key reasons why standard accounting principles are no longer adequate
  • The concept of “conservative principle”
  • Accounting for intangibles and the role of estimates in accounting
  • The biggest hurdle in reforming accounting principles

Course Modules

  • Accounting And New Business Models
    • Accounting Should Evolve With Time
    • The Emergence Of A Knowledge Based Economy
  • Declining Utility Of Traditional Financial Principles
    • Reasons For Deterioration
    • Newer Business Requirements
    • Concept Of “The Conservative Principle”
  • Reforming Accounting Practices
    • Accounting For Intangibles
    • Role Of Estimates
    • Transformational Hurdles
  • Category
  • Skills Level
  • Duration
    27 min
  • Competencies
    Accounting Principles
    Accounting Standards

Course Experts

Baruch Lev's picture
Baruch Lev Professor - NYU