THE USE OF PROGRAM NAMEX IN TEACHING THE ACCOUNTING FOR NONMONETARY ASSET EXCHANGES Insights into Experiential Pedagogy, Volume 6, 1979 263 THE USE OF PROGRAM NAMEX IN TEACHING THE ACCOUNTING FOR NONMONETARY ASSET EXCHANGES Charles W. Caldwell, Kansas State University Mary H. Bonczkowski, Kansas State University William A. Goodman, Kansas State University Accounting for the exchange of nonmonetary assets, as prescribed by APB Opinion No. 29, can be quite confusing to accounting students. The number of possible combinations of situations and their treatments can be seemingly endless for the student. These situations include exchanges where the fair market value of the assets may or may not be known, gains or losses may exist, cash boot may be given or received, and the assets may be similar or dissimilar. Without a systematic procedure of analyzing a nonmonetary asset exchange, students frequently resort to memorization of example problems, and they become so entangled with details that they cannot handle a situation that is slightly different from their memorized example prob1em. Capettini and King (1976) and Nikolai (1977) presented just such sets of procedural rules along with examples, which have been used in our classes with considerable success. However, we have found that many students still view these examples as isolated or unrelated situations to be memorized. Consequently they have difficulty applying the basic concepts and the procedural rules to new situations. We have taken two steps to solve this problem, First, we developed a comprehensive flowchart, Figure 1, incorporating the presentations of both Mikolai and Capettini and King. Second, we have written Program NAMEX, a program based upon the flowchart in Figure 1. Program NAMEX is for student use on interactive terminals. Accounting students are familiar with the use of flowcharts from their computer programming and accounting systems courses. Because of this familiarity, they readily relate to the flowchart as a systematic means of presenting this type of material. The flowchart approach not only provides a detailed analysis of each individual outcome in the accounting for nonmonetary asset exchanges, it also permits the student to see all combinations of situations at one time. The impact of this macro-view of nonmonetary asset exchanges on our students has been very favorable. Suddenly they see the problem as limited instead of limitless in terms of the combination of situations, outcomes, and accounting treatments. Program NAMEX builds upon the student’s familiarity with flowcharts in the teaching of accounting for non- monetary asset exchanges. Program NAMEX was written in such a way that it must be used in conjunction with the flowchart in Figure 1. The program does not automatically prepare a journal entry, such as those shown in the illustrative examples, when the student inputs data for a particular situation. Instead the student must make the correct branching decisions and provide inputs at each decision point in the flowchart. Program NAMEX is designed to ask the student for branching decisions and will not provide a solution unless the student provides the correct input at the decision nodes. If an incorrect decision is made at a branching point, the student is told that the decision is incorrect and then he is asked to try again. Program NAMEX also allows students to answer the ‘what if questions which frequently arise in the classroom. By changing one or more of the inputs from the original problem, a student, with Program NAMEX, can answer his own questions concerning the possible different situations which might arise in the exchange of nonmonetary assets. Program NAMEX requires the student to function on a level of learning that involves more than memorization. The student must perform so that both application and analysis levels of learning are utilized. The program requires steps that involve such mental operations as classification, deduction, and comparison. As the program is executed, understanding is facilitated by activating those mental operations. We have found the best approach in using Program NAMEX involved two steps. First, the flowchart and illustrative examples are distributed to the students as the reading assignment is made on nonmonetary asset exchanges. Second, once the students are familiar with the flowchart, homework problems are assigned which are completed using Program NAMEX. The following abbreviations are used in Figure 1: FMVs Fair market value of asset surrendered. FMVa Fair market value of asset acquired. a BVs Book value of asset surrendered. BVa Book value of asset acquired. Insights into Experiential Pedagogy, Volume 6, 1979 264 Table of Contents Volume 6, 1979 The Use of Cases with Role Plays in a Research Methods Course Debugging and Implementing the Live-Case Approach to Marketing Research in the Australian Environment Using a Case as the Basis for a Modified Debate Using Cases in Business Communication Classes A Structured Approach to Case Analysis and Reporting Intercollegiate Case Analysis Competition as an Experiential Learning Experience Attributes Germane to Student/Live Case Situations Understanding Dispute Resolution Through Experiential learning Personality Development and Conflict Dynamics: An Experimental Design to Study the Effects of Teaching Methodologies on Conflict Resolution Interpersonal Competence and the Digital PDP-11:40 The process of Writing a Collective Bargaining Simulation: A Case Study in Practical Pedagogy Simulating Negotiations in an Educational Context Simulations as a Technique for Teaching Collective Bargaining Experiential Processing of Differing Managerial Perspectives: The Use of a Game Show Format Individual Self Report vs. Group consensus in Small Decision-Making Groups Effects of Sex-Role Stereotypes on Promotion Decisions: An Exercise Computer Aids to Planning: The Budget and Forecasting Module Use of a Microcomputer in a Decision Analysis for Investment Portfolio Selection A Game of Investment Strategy: Description, Use, Criticism and Modification Coping with Future Uncertainties Through Probabilistic Budgeting Administration and Design of Simulation Materials for a Specialized Management Training Program Managing Stress in Organizational Life Banksim: The Bank Management Simulation Issues in the Organizational Application of Simulation and Experiential material Games Within Games: The Role of the Glitch Experiential Learning from Classroom to Business An Evaluation of the Small Business Institute Program as an Experiential learning Exercise Conversations with Top Management (Simulated) Experience in the Use and Assessment of Simulation in Management Education A Statistical Analysis of Simulation Users: Relationships between Stress and Human Subject guidelines Group Decision Making in a Computer Game Analysis of Demographic and Psychosocial Variables Comparing Performance During Three Managerial Accounting Simulation Schedules Business Policy Simulation and the Intense Course Structure The Use of Intensive Simulation in Executive Development and Academic Settings The Use of Experiential Exercises in the Undergraduate Consumer Behavior Course A Personal Marketing Strategy Approach: Framework and Application Teaching PERT Experientially in Marketing Research Discovering the Majority Fallacy An Experiential Approach to Studying International Business A Demonstration of the Business Simulation Game as a Curriculum Assessment Device Relating Teaching Methods with Educational Objectives in the Business Curriculum The Junior Achievement Applied Management Program as a Compromise Situation Between the Simulation and the Internship Who is Using Computerized Business Games?: A View from Publishers' Adoption Lists Trials and Tribulations in Testing Educational Innovations An Examination of the Perceived Effectiveness of Computer Simulation in a Classroom Setting as Affected by Game, Environmental and Respondent Characteristics Game Administration: A Life Cycle Analysis Research on the Effectiveness of Using a Computerized Simulation in the Basic Management Course Gaming and Attitudinal Change The Teacher-Student Relationship in Experiential Classes and the Student's Perception of Course Effectiveness An Exploratory Study of Student Characteristics and Educational Processes in Programmatic Experiential learning General Incongruity Adaption Level (GIAL) as a Predictor of Risk Preferences in a Simulated Management Game The Cap-Stone Opportunity: Combining Business Simulation and Experiential Learning Incorporating MIS/DSS into Policy Courses Via Simulation Who Benefits Most from Participation in Business Policy Simulations: An Empirical Study of Skill Development by Functional Areas The Use of Program NAMEX in Teaching the Accounting for Nonmonetary Assets The Use of Program CVP in Teaching Cost-Volume-Profit Analysis Experiential vs. Traditional Classroom Approach in the Basic Management Course: A Puerto Rican Experience A Guide to the Successful Use of Business Simulation Games The Dynamic Aspects of Interactive Gaming Puts the Realism into Gaming System Representation of SIMORG The Design of a Database System to Support Business Simulation and Experiential Learning A Data Entry and Retrieval System for a Computer Simulation (DERS) Simulation - An Advantage for Accounting Research Computer-Aided Project Performance Control Simulation: An Interactive Experiential Gaming Technique for Managerial Decision Making Utilization of Manual Simulation Games to Develop Scenarios of Future Events - An Exploratory Study Foundry: A Foundry Simulation Customized Debriefing: The Achilles Heel of Experiential learning? Computerized Business Simulations and Experiential Learning Exercises: An Instructional Interface The Baseball Game: A Group Role Observation, Problem Solving Experience A Practical Design for Experiential Learning Exercises: Roles, Technical Equipment and Alternative Debriefing Formats