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Framework-Based Teaching of IFRS: The Case of Deutsche Bank

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  • Eva K. Jermakowicz
  • Robert D. Hayes

Abstract

This case applies the teaching approach ‘from objective to concepts to principles and rules’ in analyzing the provisions of IFRS 1: First-time Adoption of International Financial Reporting Standards . The case of Deutsche Bank was chosen because banks were at the centre of the recent global financial crisis. Topics addressed in this paper are accounting issues emerging from the crisis. Some accounting standards in place during the crisis have been amended or replaced; others are currently subject to significant revisions by the standard setters. Students analyze accounting standards and proposed improvements to applicable standards in response to these events. The case reveals how adopting IFRS provides an unambiguous opportunity for companies to provide more transparent and relevant financial reporting. In terms of relative transparency, students examine the reconciling items of greatest consequence in Deutsche Bank's transition from US GAAP to IFRS, including key provisions related to consolidation policy and accounting for financial instruments. The important role of professional judgment is emphasized as students evaluate choices regarding selection and application of accounting principles under IFRS.

Suggested Citation

  • Eva K. Jermakowicz & Robert D. Hayes, 2011. "Framework-Based Teaching of IFRS: The Case of Deutsche Bank," Accounting Education, Taylor & Francis Journals, vol. 20(4), pages 373-385, May.
    • Handle: RePEc:taf:accted:v:20:y:2011:i:4:p:373-385
    DOI: 10.1080/09639284.2011.588778
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    References listed on IDEAS

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    1. Denis Cormier & Samira Demaria & Pascale Lapointe-Antunes & Robert Teller, 2009. "First-Time Adoption of IFRS, Managerial Incentives and Value- Relevance: Some French Evidence," Post-Print halshs-00441336, HAL.
    2. Laux, Christian & Leuz, Christian, 2009. "The crisis of fair-value accounting: Making sense of the recent debate," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 826-834, August.
    3. Christian Laux & Christian Leuz, 2010. "Did Fair-Value Accounting Contribute to the Financial Crisis?," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 93-118, Winter.
    4. Mary Barth & Wayne Landsman, 2010. "How did Financial Reporting Contribute to the Financial Crisis?," European Accounting Review, Taylor & Francis Journals, vol. 19(3), pages 399-423.
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    Cited by:

    1. Goedl, Patricia A., 2013. "IFRS framework-based case study: Barrick Gold Corporation—Goodwill for Gold," Journal of Accounting Education, Elsevier, vol. 31(4), pages 383-399.
    2. Apostolou, Barbara & Dorminey, Jack W. & Hassell, John M. & Watson, Stephanie F., 2013. "Accounting education literature review (2010–2012)," Journal of Accounting Education, Elsevier, vol. 31(2), pages 107-161.

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