Financial Information Systems: Teaching REA semantics within an Information Engineering framework

Abstract

The purpose of this paper is to describe how the accounting REA model can be incorporated into the Information Engineering set of methodologies in the Accounting or Financial Information Systems classroom. We contrast the traditional Information Engineering approach with one that includes REA modeling. We argue that the REA model is an interaction model, and that its use enables accounting students to develop business information systems that more adequately depict business phenomena. We also advocate a hands-on approach to systems development by supplementing conceptual model building with actual systems building through the use of a systems development toolset that automatically generates both application and database programming code from the logical models developed by the students. Consequently, students can see how their abstractions have real-world consequences.

A prior version of this paper was awarded first prize in the 1999 Sterling Software University Program IT Research Contest, and was the topic of the keynote address at the 5th Annual Sterling Software University Program Conference (1999) in Dallas, Texas. Revised versions of the paper were presented at the 2000 AIS Educator Conference in Denver, Colorado and the 2002 American Accounting Association Information Systems Mid-Year Conference in Orlando, Florida.

Key Words:

• REA model
• Information Engineering
• Systems Development Life Cycle