Next year Malta will be commemorating the 60th anniversary from gaining independence but it also happens to be the first centenary from when the Compulsory Attendance Act of 1924 was enacted – thanks to the sterling work carried out by then Albert V. Laferla. His foresight is still relevant till the present day as I too go on emphasising that the better educated our citizens are the better the economic wellbeing of the country.
Since gaining independence, successive governments have taken various initiatives to promote economic growth which generates enough wealth which in turn can be re-distributed amongst Maltese citizens in accordance with the justifiable needs of each.
A very important element throughout has been the continuing investment in education in achieving a desirable level of economic growth. Since the early 1980s successive governments have incentivised young people (through a system of stipends) to pursue further their education at post-secondary as well as tertiary education.
Notwithstanding such a system, Malta needs more young people to pursue further their education, especially at a tertiary level. I do appreciate that not all youth will be inclined to join a University course given that they might be more hands-on; this is where a remarkable institution such as MCAST can fill the gap.
Yet the question remains why should an 18-year old in possession of a MATSEC ‘A’ level certificate embark on an academic journey at our ALMA MATER? Whilst acknowledging that possibly under graduates aim to secure an employment opportunity at the end of their studies, yet this should not be the primary objective. The primary objective should be to become an effective critical thinker. Indeed, any student enrolling on any under-graduate course must engage with the subject matter acknowledging the conceptual underpinnings of the chosen area.
So, how does this relate to my chosen profession? Accountancy is a relatively new subject to be elevated to be studied at a tertiary level. Indeed, it was only forty years ago in 1983, that the first group of students then enrolled on the B.A.(Hons) Accountancy graduated. So compared to the traditional professions like law and medicine, accountancy is relatively recent.
However, accountancy is not solely a calculative practice. The end result of preparing a set of financial statements can have consequential effects on both the social as well as organisational institutions to which it reports. In this context it becomes essential not only to be well versed in the HOW? but more importantly in understanding the WHY?
Any of the extant international financial reporting standards come along in two distinct documents. Using a principles based approach the first document prescribes what any preparer ought to do in dealing with distinct business transactions whilst another document establishes the basis for conclusions which the board members adhered to in prescribing what needs to be recognised, measured and disclosed as per the first document.
Strictly speaking, any student can read the standard and grasp what needs to be done by reading it at his own leisure at home or in the library. What the student needs to understand and assistance from any of the academic staff is to grasp even better why the board has directed such a treatment within the standard in the first place. Although not all of the standards are consistent with the 2018 conceptual framework yet it is still more appropriate for a University course to engage its students with the conceptual underpinnings rather than being solely masters of the craft.
Any university course taking such an approach, not only accountancy, will ensure that its graduates will be better equipped at their place of employment to engage in critical thinking rather than simply following the rule book. In doing so our graduates will be putting forward a better question which necessitates a better answer. The multiplier effect being improved remuneration.
Dr.Ivan Grixti is a senior lecturer in Financial Accounting at the University of Malta