Accounting of Exams !
Well, you have seen them all. Cost accounting, management accounting, HR accounting, this accounting, that accounting. But Accounting of Exams??? Well, I guess there is no such concept in existence till now.
Hmm, so something original, you must be thinking. But even if you are remotely aware of the blog title you will remember that this whole rant on accounting is being produced by an engineer. All ye doubting thomuses and teresas, please trust me in my endeavor to explain this brand new accounting concept. 🙂
There are 11 accounting concepts in the FASB framework of accounting according to Anthony & Reece. But for the sake of simplicity and presentability, we will take only 6 (SIX) of these concepts in explaining the accounting framework of Accounting of Exams.
Each of the following chapters tries to explain what the concept means in financial accounting sense and then in the Accounting of Exams sense.
Entity Concept (EC)
In financial sense, EC means accounts are kept for entities and not their owners. In recording the events in accounting, the important question always is: “How does these events affect the entity?”. How they affect the person who own, operate is irrelevant.
In Accounting of Exams sense, EC means, the exam and the exam taker are 2 separate entities. Any outcome of the exam is totally irrelevant to the taker of the exam. In this way the question asked always is: “When will the exams be over?”.
Going Concern Concept (GCC)
In financial sense, GCC means the entity continues to exist forever. Compare this with the possible alternative of entity(firm) getting liquidated due to cash crunch or something else and you will be able to get hold of the concept.
In Accounting of Exams sense, GCC stands for Gone Concern Concept. This means, you as an exam taker has no concern for the exams. You give up before the exam begins. The underlying concept is, you will continue to live forever no matter what happens to the exams.
Dual-aspect Concept (DC)
In financial sense, an entity’s economic resources are called assets and claims on these resources are called liabilities. Now DC says that Assets=Liabilities.
In Accounting of Exams sense, DC stands for “the amount of resources spent on everything outside exams = the claims on highscores in exams”
Accounting Period Concept (APC)
In financial sense, accounting measures the activities of an entity for a specified interval of time. Typically this interval is one year.
In Accounting of Exams sense, APC means, your activities (academic or otherwise) in an year can never be captured by an exam(s) in that year.
Matching Concept (MC)
In financial sense, MC means, “when a given event affects both revenues and expenses, the effect on each should be recognized in the same accounting period.”
In Accounting of Exams sense, MC means, if you expend sometime preparing for an exam, the revenues (read scores) are never going to come immediately. Hence donot expend too much just because exams are round the corner.
Consistency Concept (CC)
In financial sense, this means you have to follow the same method once you have decided to follow it. (for example a firm may decide to dump 10% of its employees every year, then it should follow it forever. Seriously the CC is more complex than this)
In Accounting of Exams sense, CC means, you have to follow the same pattern of preparation for all events (read exams) for the returns are never reflected by the pattern.
All in all, Accounting of Exams, is a brand new concept. Not many entities (read students) follow it vigorously. Also there is no standardization like FASB. But a core group of individuals (read 2 pointers on a 4.33 scale) in my institute have kick started the process and soon you can expect something like ASS for AFFECTS (stands for Accounting Standard Specification for Accounting Framework For Exams in Colleges and Technical Schools). Till the “ASS for AFFECTS” arrives sit tight and watch this place.
PS: The above article, an origianl production of PHD is protected under copy right laws. Please dont use Microsoft CP Technology in replicating this content elsewhere.
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