Accounting Education in Films

Because of major financial crises that have occurred in the past, many film producers choose to re-enact these events through movie productions. These producers were forced to incorporate technical accounting and financial principles to correctly portray the events leading to a financial crisis. “Other People’s Money,” a film released in 1991, by Norman Jewison, starred Danny Devito as Lawrence Garfield. Garfield’s success has come as a result of purchasing companies and liquidating their assets, which required accounting and financial theories. The accounting that is discussed during the movie directly relates to course material commonly studied in an intermediate level accounting class.

Garfield identifies an appealing company called New England Wire and Cable. He is aware that the company has a higher liquation value per share than market price per share. In addition, he is particularlyimpressed by this company because it has no debts, no legal liabilities, no environmental or contingent liabilities, and a fully funded pension. Garfield makes every effort to influence the owner to sell the company and illustrates to him how his assets are worth more after liquidation.

This movie incorporates many theories and topics presented at an intermediate accounting level. Topics such as Generally Accepted Accounting Principles (GAAP), liquidation, market value, historical costing, financial statements, and fair market value are frequently mentioned throughout the plot. A particular scene in the movie displays Lawrence Garfield explaining a very basic valuation analysis to the owner of New England Wire and Cable that simplifies the concept of “market value or price per share.” This calculation includes the addition of equipment at salvage value, land at fair market value, value of other operations, and working capital, totaled and divided by the number of shares issued and outstanding.

The equation is begun by explaining that equipment, purchased at 120 million dollars, has a salvage value of 30 million dollars. The concept of depreciation, which includes salvage value, or value of an asset at the end of its useful life, is an intermediate level accounting topic that is frequently referenced. Garfield continues by adding the fair market value of the land, as grazing land. When learning fair market value (FMV) in accounting education, it is commonly associated with impairments, a topic learned in intermediate accounting. New England Wire and Cable also conducts operations of plumbing electrical and adhesive, with added other revenues to Garfield’s calculation. Finally, working capital is added to this part of the equation. Working capital, particularly as a ratio, is constantly used in accounting and finance to show liquidity of a business by comparing current assets to current liabilities. In intermediate accounting courses, current liabilities are further discussed relating to gain and loss contingences.

To begin the second part of the calculation, Garfield decided to reduce the total by 25 million dollars because the wire and cable division of the company is not producing a profit and is being supported by the other divisions. He does this to be conservative. Conservatism has remained a large part of intermediate level accounting, specifically in acquisition and valuation of plant, property, and equipment. Following this new conservative total, Garfield calculates the value per share of 25 dollars by dividing by the number of shares issued and outstanding. The current owner of New England Wire and Cable mentioned that the initial market price was 10 dollars per share and Garfield refers to this as a “sale” since its liquidation value per share is 25 dollars.

The market price per share of stock is a current measure, not based on historical values. All of the variables needed to calculate the market price per share is given within a company’s financial statements. The difference been these two values is that the initial market value is what the stock is actually selling for per share while the liquidation value is what each share would be sold for if the company should go out of business and sell all assets. Typically, the market price per share should be higher than liquidation value. In addition to the actual calculation of a valuation analysis, students of intermediate accounting are continually educated on the preparation of financial statements, in compliance with the Generally Accepted Accounting Principles, otherwise known as GAAP.

In this short equation, each component included a number of accounting concepts that are discussed in intermediate level accounting. Each line item of the equation could be broken down into accounting ideas that directly relate to many other theories. As students are educated in the field of accounting, it is easily determined that each theory and concept is a building block for a more complicated and complex accounting problem.

Student Group Travel To Boston: Performance Trips That Are Educational!

If you are looking for a great performance destination with a historical twist, then Boston is an ideal choice for your student group trip. Bands, choruses, orchestras and dance ensembles have fantastic performance options from which to choose, where audiences are in abundance. Plus, your students will gain a real and vivid life education of the history of America and where it began. Known to many as the birthplace of the United States, Boston is one of America’s oldest cities steeped in history beginning with the Puritans who, in 1630, founded the Massachusetts Bay Colony to the Boston Tea Party and the American Revolution. Known as the “Walking City,” student groups will have fun learning about American history in Boston. This vibrant, thriving city is renowned for its world-class museums, historical sites, monuments, educational institutions, delicious food, signature shopping, fantastic entertainment and professional sports. Boston not only retells the powerful stories of our nation’s past, but is willing to accommodate and entertain student groups as few other cities can. Student group travel to Boston is educational, both musically and historically!

Performance Opportunities in Boston

Three of the most popular performance sites in Boston include the Boston Conservatory, Faneuil Hall/Quincy Market and Six Flags® New England.

The Boston Conservatory, the oldest performing arts conservatory in the nation, offers student performance groups an award-winning theater that is newly renovated. The Conservatory just recently completed a $32 million, 16-month-long renovation and expansion project that effectively adds 16,000 new square feet of rehearsal and performance space to the building, as well as a completely renovated, state-of-the-art 300-seat theater with new orchestra pit, air conditioning and a host of technical upgrades and accoutrements. Conductors are constantly raving about the incredible acoustics within this theater.

At Faneuil Hall/Quincy Market, there are numerous locations for your school band, orchestra, choir or dance ensemble to perform in the most historic location in Boston. Your ensemble can perform outdoors where thousands of people shop and dine each day, giving you a large audience. Faneuil Hall/Quincy Market is one of the most visited historical attractions in Boston.

Just an hour and a half outside of Boston is Six Flags® New England. Like all Six Flags®, this theme park is exciting and has some of the fastest, tallest, wildest, gut-wrenching rides in the country including rollercoasters like Batman – The Dark Night, Bizarro, voted the #2 steel rollercoaster in the country, and the Cyclone, one of the largest wooden rollercoasters in the U.S. New to Six Flags® New England this year is Goliath, a heart-pounding roller coaster. With over 40 exciting amusement rides, an exhilarating water park and fantastic entertainment, Six Flags® New England will surely provide thrills and exciting times your student group will always remember. Six Flags® New England provides marching bands, concert bands, jazz bands, choirs, orchestras and dance ensembles an opportunity to perform in front of thousands of spectators at various sites throughout the park as well.

Historical Sites in Boston

The historical aspects of Boston are fascinating. Boston is both an indoor and outdoor museum of history and architecture. As part of your itinerary, you and your student group should include the Freedom Trail. The Freedom Trail is 2.5 mile walking tour through Boston that takes groups around 16 significant historical sites including:

U.S.S. Constitution
Bunker Hill Monument
Copp’s Hill Burial Ground
Old North Church
Paul Revere House
Faneuil Hall
Boston Massacre Site
Old State House
Old South Meeting House
Former Site of the Old Corner Bookstore
First Public School Site and Ben Franklin Statue
King’s Chapel and Burying Ground
Granary Burying Ground
Park Street Church
Massachusetts State House
Boston Commons

Guided tours are available for student groups. However, the Freedom Trail is well-marked and can be self-guided. To obtain guides for your group, The Freedom Trail Foundation offers maps and other resources for educators at http://www.thefreedomtrail.org.

Opening Soon: Scheduled to open June 25 in Boston is the Boston Tea Party Ships & Museum. Most of the museum will be located on a barge anchored next to the museum pier on the Fort Point Channel. In addition to state-of-the-art technology, the museum will have actors dressed in period clothing and the original Robinson Tea Chest that was thrown into the Boston Harbor on Dec. 16, 1773. Students will have the opportunity to throw a tea chest over the sides of the Beaver, Eleanor and Dartmouth, replicas of the original ships involved in the Boston Tea Party.

Other Historical Sites in the Boston Area

Don’t forget to include historical sites around Boston including Lexington and Concord, where the great patriot Paul Revere is best remembered for his ride through the countryside warning the Minute Men that “The British are Coming!” Lexington and Concord are also known as the first sites of battle in the American Revolution as well as the site of the Old North Bridge where the American militia defeated the British soon after the “shot heard ’round the world” was fired.

Just north of Boston is Salem, a town known for the Salem Witch Trials, one of the darkest episodes in American History. Salem is a fascinating town that features The Salem Witch Museum which takes students back to Salem in 1692. The museum offers a dramatic history of the Witch Trials and witchcraft, bringing the past into a present day perspective. In addition to the museum, a tour of the House of the Seven Gables, complete with a hidden staircase and history of Nathaniel Hawthorn, will inspire students’ imaginations.

Lastly, a trip to Boston wouldn’t be complete without a short jaunt south along the coast to Plymouth. Here students can view Plymouth Rock where the Pilgrims first landed in 1620, experience the Mayflower II, and visit the living outdoor history museum, Plimoth Plantation. Known as the site of the first colony, Plimoth plantation recreates life in a Wampanoag Indian village and a 1627 English settlement and how they co-habitated. Students will gain a fantastic education of Native American and Colonial history.

Overall, Boston provides performance groups with fantastic performance options and a historical education about the American Revolution. In addition and not even mentioned in this article are other fantastic attractions like the New England Aquarium, the Museum of Science and whale watching excursions. Unlike any other city, Boston provides student groups with unlimited attractions, museums, historical sites, monuments and performance sites. As one can see, Boston has it all!

The Systems of Education in the UK – English and Welsh Year Groups

In the first part of a series of articles looking at the education systems across the UK, the overarching structure of the school year for state funded schools in England and Wales will be considered. The structures and terms for schools under the Scottish, Northern Irish and Independent School systems differ again and will be looked at in future articles.

The type and range of schools through which children pass during their education may vary depending on which part of the UK they grow up in, the nature of the schools in their locale and their parents ability to fund their education. However, for any schools receiving state funding in England and Wales, the defined schools years, and the requirements for education in each of those years, is set by the UK government and the Welsh Assembly respectively.

The Year Groups

The school year in the England and Wales begins on 1 September and runs up until 31 August and is split into three terms: Autumn (up to Christmas), Spring (Christmas to Easter) and Summer (Easter onwards).

Although children will usually progress through the school years depending on their age(s) in between those dates every year, it is possible to both skip years or repeat years if there is a need; if a child’s performance is above or below the level expected at their current age.

Whilst it is not compulsory attendance for a child, the (state funded) school year system begins with the Nursery year for children who are three years old. The system ends with Year 13 (the 15th year in total) for children who turn 18 in the relevant timeframe. School attendance is only mandatory from the ages of 5-16 and so children are required to enter school at some stage during Reception (the 2nd year), if they haven’t already, whilst, at the other end of the system, they can then choose whether or not to pursue their education in Years 12-13 (Further Education) once they’ve turned 16.

The third year of education is termed Year 1 as it is the first full school year in which children are required to attend school having been introduced to it in Reception (if not Nursery).

The Key Stages

To provide a framework for teaching and examinations the National Curriculum (for state funded schools) in particular uses the following key stages to group these years together:

  • Foundation Stages:
    • Foundation 1 – Nursery
    • Foundation 2 – Reception
  • Key Stage 1 – Years 1 & 2
  • Key Stage 2 – Years 3 – 6
  • Key Stage 3 – Years 7 – 9
  • Key Stage 4 – Years 10 & 11 (ending in GCSEs)
  • Sixth Form/College – Years 12 & 13 (ending in A Levels or International Baccalaureate)

The Standard School Structure

The first Nursery year nearly always involves the child attending a designated Nursery school but after that the structure can vary. The most common structure for the schools that a child will progress through in the subsequent years is that of:

  • Infant School – Reception to Year 2 [Foundation Stage 2 & Key Stage 1]
  • Junior School – Years 3 – 6 [Key Stage 2]
  • Senior School – Years 7 – 11 [Key Stages 3 & 4]
  • Sixth Form/College – Years 12 & 13

Many schools, however, combine the functions above so that the structure is simplified into two levels to fit neatly with the idea of primary and secondary education:

  • Primary School – Infant School & Junior School
  • Secondary School – Senior School & Sixth Form

Some more traditional schools in the secondary education system still refer to the Years 7 through to 11 in the older notation as Years 1 to 5 (or First Form to Fifth Form) with the following Sixth Form (Years 12 and 13) split into the Lower and Upper Sixth.

The Alternative School Structure

A less common alternative structure sees a three tier system straddling primary and secondary education and the curriculum’s Key Stages with:

  • First School – Reception to Year 4
  • Middle School – Years 5 – 8
  • Upper School – Years 9 – 13

Children can and do switch between schools following these structures according to the opportunities in their locality and it is particularly common, for example, for children to switch to a Secondary School for the rest of their secondary education once they have finished Middle School.

Ultimately, the year groups only provide a framework to determine how and when the National Curriculum and examinations should be implemented. There are therefore many varying types of schools even within the above definitions, from Faith Schools to Academies to Grammar Schools, depending on other factors such as selection criteria and funding.