Blog 9/28/14: About Why “Fair Value” Is the Rule

“Why “Fair Value” Is the Rule” is an article written by Karthik Ramanna. Ramanna states that fair value accounting is on the ascent.

http://hbr.org/2013/03/why-fair-value-is-the-rule/ar/1

The article’s main audience appears to be the general public. The article is not written with extremely difficult terms, nor is it intended for small children. I would argue that this article is at a medium level of difficulty.

The article is a public accounting academic article. It is not specifically for accountants, and it is informational. The article provides well thought out points that could be useful to a variety of persons. Students, accountants, highly curious people, and others who are researching the idea of fair value accounting could find this article to be of use.

In a different genre I would expect this article to be vastly different. If this article were intended for fiction, or comic, or children, I would expect a more entertaining aspect to it. However, for the genre that this article is classified in, I believe the aspects are accurately stated.

Ramanna addresses the counterargument , “the accounting basis-whether fair value or historical cost-affects investment choices and management decisions” in the third paragraph of the article. He then adds that fair value accounting is the supposable blame for “dubious practices” in the leading up to the famous Wall street crash. Ramanna then states that some have connected failures with bankers and managers versus fair value accounting. Finally, he concludes the argument by stating that fair value accounting was not the root of the problem, but instead a catalyst.

I, personally, found the article to be very informational as well as well thought out. The setup for the organization was well thought out, and it flowed smoothly. I would highly recommend that anyone read Ramanna’s article.

Blog #2: Crushman

In Ellen Cushman’s article, Opinion: The Public Intellectual, a public intellectual is claimed to be an educated member of society that tends to rank higher in the “social ladder”. However, Cushman argues that not all public intellectuals are of the middle and upper class.

One merit of public intellectualism is service learning. Service learning is community service that reemphasizes a learning goal from the classroom, or any other form of volunteer work that teaches one something.

Complications of the phrase “public intellectualism” include a degrading of the lower social classes. The lower social classes are deemed to be unintelligent and not part of the community intellectuals. This is not true. I believe that all members of a society each contribute to the overall intelligence within the community. The problem with the term “public intellectuals” is that it implies that some people are unintellectual. Every single person has areas that they are and are not intelligent in. Classifying some individuals as intellectuals leaves out the remainder of society in a negative way. To correct this, the term “public intellectuals” should be replaced by a term that states an area of intellectualism.

When I searched for articles regarding service learning in my intended field of accounting, I found a rather interesting one. The author of this paper was assigned a project in which they had to act as a public intellectual and do service learning. The assignment ended up being greatly useful to the student. He was able to learn a great deal about accounting and experience his field in the real world, an experience he otherwise would have missed out on by simply reading a textbook. As stated in this article, http://www.newaccountantusa.com/newsFeat/wealthManagement/melanie_na_response_to_service-learning.pdf , service learning had made the student better educated, therefore making him more intellectual in his field. I would consider this student more of a public intellectual in the field of accounting.

I believe that anybody and everybody is a public intellectual in different ways. My intended field does offer opportunities to practice service learning and public intellectualism. Accounting has many potential research, teaching, and service opportunities, as well as all other fields in society.