The article discusses the need for a senior level theory seminar in accounting education. The author believes that a senior level theory seminar is a must for the accounting major. Discussion and correspondence with former students and with their employers in public accounting tend to support this opinion. The accounting practitioner is the one who decides upon implementation of change in accounting. Intense exposure to accounting theory increases the probability that the practitioner will initiate needed change. In establishing the classroom atmosphere, two approaches are available: provide direction for the class by having the professor serve as a discussion leader or leave the direction to the students by having the professor--serve as a moderator. Two requisites for the course are class size and room arrangement. A small class size is conducive to achievement of the course purposes. However, some minimum parameter probably is beneficial also. The room arrangement should be one in which the students face one another, enabling the class to quickly overcome the tendency for the student to address the professor rather than his peers.

The article focuses on readability as a measure of the performance of the communication function of financial reporting. Financial reports are prepared for a specific purpose. The premise adopted in this article is that the function of financial reporting is to communicate selected financial information. If this communication function is not performed, then financial reporting is nonutilitarian. Communication has been long recognized as a function of financial reporting. Communication occurs in financial reporting only if the meanings intended by the information source are assigned to the financial statement messages by the destination. Proper meaning assignment necessitates that the information source encode and transmit the selected messages such that the destination is capable of assigning the intended meanings. Ideally, the information source should be able to objectively measure the degree to which the intended meanings will be assigned to the selected financial statement messages. No such objective measure exists that can be applied to the entire financial statements. However, an objective measure does exist that can be applied to the footnotes to the financial statements. This measure is termed readability.

A 1978 survey of undergraduate tax courses offered at U.S. universities and colleges provides information about course content, instructional materials, and teaching methods for accounting professors involved with the design and implementation of the tax curriculum.