OUTCOME-BASED EDUCATION IN ACCOUNTANCY

“Success in school is of limited benefit unless students are equipped to transfer

that success in life in a complex, challenging, high-tech future.”
-Spady and Marshall

Learning Objectives:
1. Define outcome-based education.
2. List and briefly explain the core principles of outcome-based education.
3. Recognize the difference between outcome-based education and
traditional teaching mode.
4. Describe the outcome-based education strategies adopted to ensure full
implementation of its outcome-based education programs.
5. Describe how outcome-based education affected board exam performance,
employability, on-the-job training assessments, and employers’ satisfaction
of Accountancy students.

The borderless society demands the need for Filipinos to have the right
competencies and attitudes through excellent quality education at all levels. In order to
address the demands and challenges of globalization, the Philippine government has been
implementing educational reforms for the past few years. In basic education, we have
the universalization of kindergarten, mother-tongue-based education in the early years,
and senior high school.
Reflecting on Spady’s and other authors concepts of OBE, Killen R (2000) in his
paper, Outcomes-Based Education: principles and possibilities states that there are two
basic types of outcomes from any educational system. The first type includes performance
indicators such as test results, completion rates, post-course employment rates, etc. The
second type of outcome is less tangible and is usually expressed in terms of what students
know, are able to do, or are like as a result of their education. It is this second type of
outcome that is normally implied when outcome-based education (OBE) is being
discussed.
While in higher education, it had move from an input-based to an outcome-based
education (OBE) through the Commission on Higher Education (CHED) memorandum
order (CMO No. 46, s. 2012) entitled, "Policy-Standard to Enhance Quality Assurance
(QA) in Philippine Higher Education through an Outcomes-Based and Typology-Based
QA."
WHAT IS AN OUTCOME-BASED EDUCATION?
The concept of Outcome-Based Education (OBE) was first proposed by an
American scholar, Spady, in the 1970s and 1980s and has now become the mainstream
of teaching reform in English-speaking countries such as the United Kingdom, the United
States, and Canada. OBE was implemented in higher education in the Philippines in 2012,
as mandated by CMO No. 46, s. 2012.
The Commission on Higher Education (CHED) defines outcomes-based education
(OBE) as an approach that focuses and organizes the educational system around what is
essential for all learners to know, value, and be able to do in order to graduate with a
desired level of competence. As a result, this type of teaching-learning system will have
its own system for assessing student performance. According to the Philippine OBE, the
outcomes-based framework presupposes quality and goals based on higher education
institutions’ (HEIs') Vision-Mission-Goals and Objectives (VMGO). Accordingly, HEIs
develop their VMGO in response to local contexts as well as their assessment of
institutional strengths and weaknesses. Therefore, the quality goals and outcomes of
HEIs differ from one another, so a typology or classification of HEIs was developed to
guide HEIs to have an alignment among their vision, mission, and goals (VMGs); their
desired graduate attributes and impact on society; and their educational programs.
OBE is a curriculum design which moves away from traditional content driven
curriculum with the intention to produce job ready graduates and meet the demand of
economic changes. As a result all HEIs has to comply with the requirement of OBE which
includes the curriculum delivery such as methods of T&L, assessment strategy, teaching
staff competency and other related matters such as resources and students support
system. Various studies has been carried out to analyse the effectiveness of OBE
implementation, the achievement of programme outcomes, improvement in students core
skills (Chan 2009), and the implementation at institutional level (Harden 2007). These
studies produce mixed results.

WHY IS THERE A NEED FOR OUTCOME-BASED EDUCATION?

The demand for competitive graduates which is economically driven is a major
force on HE to relook at the focus of the curriculum. The traditional content driven
curriculum seems to be insufficient and unable to meet the market demand of graduates.
In the Philippines, on the other hand, the Commission on Higher Education (CHED) aims
to provide quality teaching and learning for Filipinos. In the CHED’s Handbook on
Typology, Outcomes-Based Education, and Institutional Sustainability Assessment
(2014), it stated that the quality of teaching and learning means that good teaching and
learning systems will be reflected in student achievement and the performance of their
graduates and will have an impact on the reputation and competitive advantage of the
higher education institution (HEI). Hence, the application of outcomes-based education
in higher education is required to increase the credibility of the HEI, the level of student
achievements, and the performance of graduates of the program in licensure
examinations, their employability, or contribution to society.
The shift toward OBE Instruction is analogous to the total quality movement in
business and manufacturing. It reflects a belief that the best way for individuals and
organizations to get to where they are going is first to determine where they are and
where they want to be then plan backwards to determine the best way to get from here
to there.
However in practice, OBE generally promotes curricula and assessment based on
constructivist methods and discourages traditional education approaches based on direct
instruction of facts and standard methods (Spady, 1993).
Outcome-based methods have been adopted for large numbers of students in
several countries. In the United States, the Texas Assessment of Academic Skills started
in 1991. OBE was also used on a large scale in Hong Kong. On a smaller scale, some
OBE practices, such as not passing a student who does not know the required material,
have been used by individual teachers around the world for centuries.
Spady (1993) stated that in an OBE system, academic and factual subject matter
is replaced by vague and subjective learning outcomes. The traditional subject-based
curriculum disappears from OBE. New OBE report cards substitute check marks for
grades, focusing on general skills, attitudes, and behaviors instead of individual subjects.
OBE Curriculum at the start of its implementation elicited a number of criticisms.
However, there are still educational institutions which adopted the new curriculum
believing that it is for the student’s benefit. The curriculum should be designed to prepare
the graduates and demonstrate the core competencies expected of them in the workplace
(Valdez, 2010).
Student evaluation and assessment has become an integral process of any
educational institution towards an improved and quality learning experience. Student
views about their experience at any educational system, its programs, the component
units of the program, and the entire learning environment are essential aspects for quality
enhancement (Bay & Subido, 2014).
The industry-partners have very high regards in the competence of the graduates
in terms of the relevance of their knowledge and skills in research and work discipline,
communication skills, computer skills while entrepreneurial skills obtained the least
(Laguador & Ramos, 2014). The Internship Office may consider the students’ evaluation
of the companies in selecting and sustaining memorandum of agreement among industry
partners that could really provide extensive and related training and experience (Chavez,
2014).
The graduates are the ultimate products of higher education institutions. They
move in every part of the world to showcase their skills and competencies and be involved
in the development of every nation (Dotong, 2014).
It is very important that the management will always make sure that these facilities
and services are always available, adequate and in good running condition to better
facilitate learning between the teachers and the students thereby the goal of attaining
quality education for the graduates is always achieved (Valdez, 2012b).

OUTCOME-BASED EDUCATION DRAWBACKS

1. The Lacks of a prescriptive set of Instructional Design
2. Difficulty in constructing Learning outcomes as well as it is time consuming
3. It requires diverse kinds of assessments that are additional burden to the
instructors

In Lyceum of the Philippines University – Batangas (LPU-B), OBE Instruction is

being run through. But critics sometimes oppose OBE because of the burden it imposes
on instructors and educational institutions – a burden that they regard as unjustified by
any evidence showing that OBE actually improves learning outcomes. The burden is
spread across the entire educational institution, in the form of a new layer of assessment
placed atop the old familiar one, a new bureaucracy responsible for the institution-wide
collection and presentation of data, and the altering and curtailing of classroom
instruction to make room for more intrusive testing. In view of the small number of
evidence showing that OBE actually works, many regard this extra burden as an
unjustified drain on academic resources (Castleberry, 2006). Faculty members with high
level of knowledge and understanding on the implementation of OBE have also higher
possibility to contribute in the realization of the objectives of OBE through practice
(Laguador & Dotong, 2014). Teachers are highly concerned with the time element in the
implementation of the OBE considering the quantity and quality of students to align the
intended learning outcomes and learning activities which require time, effort and
resources (Guico & Dolor, 2013).

CORE PRINCIPLES OF OUTCOME-BASED EDUCATION

To ascertain the outcomes of the implementation of the OBE in higher education, it
must adhere to the following core principles namely:
 1. Clarity to focus
This principle revolves around everything faculty members do that must be focused
on what they want students or learners to be able to do successfully. Hence, faculty
members must focus in helping learners develop knowledge, skills and values that will
enable them to achieve significant outcomes as defined by the institutions of learning.
Spady (1994) refers to clarity of focus, to mean that all activities (teaching, assessment,
etc.) are geared towards what we want students to demonstrate.
In the course of teaching, it is expected that teachers make students or learners aware
of both short-term and long-term intentions every time there is an opportunity. This also
requires faculty members to focus all assessments towards clearly defined significant
outcomes.

2. Design Down
This principle suggests that curriculum design must commence with a clear definition
of the significant learning that learners are to achieve by the end of their formal
education. And therefore, all plans and strategies to achieve outcomes are anchored on
this desired graduate attributes. In Spady’s (2014) words, design down, means designing
the curriculum from the point at which you want students to end up.

3. High Expectations
This principle means that the institution that implements an OBE must establish high,
challenging performance standards vis-à-vis internal and external factors. Spady (1994)
refers to this principle of high expectations, to mean getting rid of the bell-curve and all
students should achieve at the highest level.

4. Expanded Opportunities
This principle means that students do not learn the same thing in the same way and
at the same time, hence students should be given opportunities to learn outside of the
classroom. Again, Spady (1994) refers to expanded opportunity, to mean expanding the
ways and numbers of times kids get a chance to learn and demonstrate a particular
outcome.

OUTCOME-BASED EDUCATION VS. TRADITIONAL TEACHING MODE

 Traditional Teaching Mode Outcome-based Education
● What are our (educators) practices? ● What our students have become and
able to demonstrate?

● Teaching (inputs, content) ● Learning (demonstration of skills and

competencies, outcome)

● Teaching and Learning (TLA) as the end ● Teaching and Learning (TLA) as the
means to an end

● Practice determines the outcomes ● Outcomes inform the practice

Borkar (2021) enumerated the differences between Outcome-based Education and

Traditional Education system:

Outcome-based education
• This is a system wherein all parts and aspects of education are focused on, not on
the inputs but on the outcomes.
• Students take courses with the intention of achieving certain goal of developing
skills or gaining knowledge
• There is no specific style or time limit of learning
• The competent faculty members, moderators, and instructors guide students
based on the target outcomes.
• Does not provide grades to students ranking because it focuses on what the
students have learned and develops a better thought process.

Traditional Education System

• It is highly contingent on or determined by theoretical aspects of learning
• Repeats the monotony way of teaching-learning process that focuses merely on
memorizing skills rather than skill development
• Teachers are more focused on completing the curriculum with the given time frame
rather than innovating
• Content and performance expectations are based primarily on what was taught in
the previous academic year to students of a given age. Its basic aim is to pass on
the knowledge of the previous generation to the next generation of students
• Students are given grades and rankings compared to each other. Does not also
permit institutions to identify which factors played the role of catalyst in helping
them improve; Actual achievement was neither measured nor required.

Contrary to the traditional teaching mode, the concept of outcome-based

education advocates that education should be student-centered and aim at capacity-
building. According to Zhao (2019), the main problem of traditional teaching method is
that it primarily focused on lectures about accounting theories, fundaments of accounting,
and the likes. Therefore, most Chinese accounting graduates lack the skills and
knowledge required for their companies' job tasks because of insufficient training in
practical ability.

Outcome-Based Education Instruction focuses on the measurement of student’s

performance through their outcomes. It contrasts with traditional education, which
primarily focuses on the resources that are available to the student, which are called
inputs. While OBE implementations often incorporate a host of many progressive
pedagogical models and ideas, it does not specify or require any particular style of
teaching or learning. Instead, it requires that students demonstrate that they have
learned the required skills and content.

APPLICATION OF OUTCOME-BASED EDUCATION IN ACCOUNTANCY PROGRAM

IN THE PHILIPPINES

In the accountancy program, the environment in which accounting is practiced has

changed dramatically as well. The newly trained accountants must bring to the practice
of accountancy communication, interpersonal, and intellectual skills as well as general
knowledge, organizational and business knowledge, and accounting and auditing
knowledge (Hall, Ramsay, & Raven, 2004).
To this effect, by virtue of Commission En Banc (CEB) Resolution No. 231-2017
dated March 28, 2017, CHED Memorandum Order (CMO) No. 27, series of 2017 was
issued and promulgated to rationalize the Bachelor of Science in Accountancy in order to
meet the demands of rapid globalization and transformation of the business environment
as it influences the necessities of the workforce later on.

The course of “Fundamentals of Accounting” takes the accounting cycle as

the main thread, explaining the general accepted accounting principles, processing
of various business transactions in the enterprises and preparing financial statements.
The purpose of this course is to enable students to master the rules of accounting
treatment and the methods to deliver financial reports, so as to cultivate students’
accounting practical skill and problem-solving ability. In the present accounting
class, practical training has been added to the teaching process in some universities,
but most of them still focus on lecturing, and has following problems. The students’
participation in the class is not high, and the interaction between teachers and
students is insufficient. It results in incomprehensive mastery and understanding
of knowledge and theory. The arrangement of curriculum content generally relies
on textbooks, and teaching conducts in the order of textbook chapters. The
teaching content is mainly theoretical, and the training of practical ability is not
ample. Therefore, judging from the teaching results, the actual practical skill of
students is not high and cannot meet the requirements of enterprises. Many
universities have added the process assessment to the curriculum assessment, but
the proportion is not very high. Most of the practice is to use the paper
examination results as the main part of final grade, whereas the routine homework
and attendance mark take a complemental role in the final grade of the course.
This kind of assessment method may lack flexibility and cannot reflect students’
knowledge, skills and abilities comprehensively.

The application of OBE in the course design of “Fundamentals of Accounting”

follows the basic idea of “reverse design, forward implementation”. In the stage
of curriculum design, the job post skills and abilities are subdivided through job
post investigation, and then knowledge points are separated in the course content
according to targeted post skills and abilities. After that, appropriate curriculum
implementation methods and corresponding assessment methods are selected taking
the distinctiveness of knowledge points and different teaching objectives into
consideration. After the implementation of the course, we summarize the experience
according to the results of the assessment and the feedback from students and
employers, and make continuous improvement on the teaching design.

Based on the study of Pattaguan on the outcomes-based accountancy education

experience at the University of Saint Louis (USL) in Tuguegarao City (2016), USL adopted
OBE strategies at different levels, which constitute the concrete actions the university
undertakes to ensure full implementation of its OBE programs.

Level Strategies
Course Level Mock Board Exams, Student Portfolios,
Project REDS-Reviews, Exercises, Drill and
Simulations
Program Level Employability Studies, Alumni Feed
backing and Interviews, Competency
Studies, OJT Evaluation, GCAT
Institutional Level Employer Satisfaction Survey

At the course level, USL conducts CPA Mock Board Exams at different levels starting in
the junior year of students. All data about individual students is kept in a portfolio for future
reference, which includes individual remediation, group discussions, or peer review discussions.
Constant REDS programs are also undertaken. It is worthy to note that simulations are done to
prepare students to take actual board examinations.
At the program level, several studies are conducted, which include tracers of graduates,
feedback from alumni, and competency studies to determine the success of the graduates in their
field of work.
And over-all, USL conducts employer satisfaction studies as the university’s way of finding
out if the attributes of the university graduates are imbibed among them, as can be seen in their
job performance.
 The on-the-job-training program (OJT) also prepares accounting graduates for the
workplace. This was evident from the positive feedback of employers/establishments on
the graduates of the University of Saint Louis (USL). Tallud (2014) asserts that in order
to have a competent human resource, quality education and intensive training are
required for students to become skilled and productive workers once they enter the labor
force. The studies of Zhao (2019) and Pattaguan (2016) showed that the skills and
competencies of accountancy are evolving from time to time. Therefore, the most
effective method to develop the competence and skills of students is through on-the-job
training. This process exposes students to various fields and allows them to learn. Unlike
the traditional teaching mode that focuses only on the teaching results, paper
examination results, homework, and attendance mark. The presence of global
competition, the increasing use of technology, and the market requirements for
accounting graduates are all changing at a rapid pace. Hence, in order to cope with the
changing environment, future accountants will require a wide range of skills.

Board Exam Performance based on studies

The Philippine Republic Act 8981, otherwise known as the PRC Modernization Act
of 2001, Section 7 on the Powers, functions and Responsibilities of the Commission item
states one of the functions of the PRC: To monitor the performance of schools in licensure
examinations and publish the results thereof in a newspaper of national circulation.
Moreover, as per Professional Regulation Commission’s Commission Resolution No. 2010-
547 series of 2010, top performing institutions with 50 or more examinees and with at
least 80% passing percentage are declared each time a Board Examination is held. Both
PRC Laws are congruent to existing educational laws of the Philippines in its mandate of
quality outcomes. The University of Saint Louis takes pride in its sustained performance
in the CPA Board Examination as reflected in the Board performance, being declared a
top performing institution in the field of Accountancy.
The study shows that since the time USL changed to the OBE paradigm, the
university has performed well on the CPA Board Examination. Subsequently, many BSA
graduates from USL who passed the CPA Board Examination are employed in major
auditing firms and government agencies. The study also revealed that USL graduates
(including CPAs and non-CPAs) are assessed by their employers/establishments as "very
satisfactory" in terms of their skills and competence. Similarly, government agencies rated
intellectual ability and technical skills, which graduates excelled at, as the skills expected
by their employers. Moreover, integrity, character, and personality were regarded as the
most important personal qualities exhibited by USL graduates, particularly in
establishments involving financial transactions such as banks, retail, and manufacturing
industries.
Employability of Accountancy Graduates

As contained in CHED’s Handbook on Outcomes-Based Education, employability is

one of the measures or indicators of success. An employability study by Tuppil (2014),
from 2007-2011 showed that most of the graduates were able to get employed with a
mean waiting time of ten months. Understandably, the mean waiting time for BSAC
graduates’ employment is 10 months due to the review for the CPA Board Examination
which takes about 6 months after graduation and another month upon which the board
exam results finally released.

In the same study, the graduates revealed that the soft skills learned in college
like problem solving, communication, critical thinking and decision making were found
useful to their present job. Additionally, the hard skills such as financial accounting, basic
accounting, auditing assurance, and bookkeeping were vital to the present occupation of
accountancy graduates since most of them are holding positions related to their field of
specialization like auditor and accountant.

Many of BS in Accountancy graduates from different universities who adopted OBE,

who passed the CPA Board Examination, are employed in major auditing firms and
government agencies. About 110 CPA’s are employed at Sycip, Gorres and Velayo
Auditing Firm (an Earnest and Young affiliated company), the top Philippine Accounting
Firm. In fact, the three First Placers in the Board Examinations are part of the 110 and
the number to increase soon with the able partnership of the company with USL along
On-the-Job training, Scholarships for taking the board examination and job placement.
Two of the first placers are holding sensitive positions in the company. In the Philippine
Commission on Audit and other government agencies, USL graduates are prioritized in
hiring.

Industry Assessment of the Competencies of Accountancy graduates

Based on current trends in the job market, personnel managers or HRM

practitioners hire employees who possess the skills necessary for the job being required
by employers. Tallud (2014) in fact cited that employers today want to hire accountants
and business graduates who work well with others, have good communication skills, and
have strong leadership skills. In order for accounting and business administration
graduates to be successful in their careers, they need hard skills and soft skills that go
beyond accounting and business technical knowledge which include employability skills
framework, communication skills, team work skills, technological skills, analytical skills,
and interpersonal skills (Said, et.al., 2007). Tallud’s study of 2014 showed the important
implications of students’ skills, both hard and soft for the academe, the students and
organizations which involve accounting and business administration graduates.
On-the-Job Training Assessment of Accountancy Students

Tallud (2014) cites that to have a good and competent manpower resource, quality
education and intensive training is necessary for the students to become skilled and
productive workers when they become part of the labor force. Skills and competencies of
accountancy are evolving from time to time, thus, the most effective method to develop
the competence and skills of students is through on-the-job training. This process exposes
the students to the different fields and learned. The presence of global competition, the
increasing use of technology, and the requirements in the market for accounting
graduates are changing rapidly, hence, many skills are needed today by future
accountants in order to cope with the changing environment.
Tallud (2014) focused on the OJT program of the Bachelor of Science in
Accountancy of the University of Saint Louis as manifested during their OJT in the
different agencies in the region and in Metro Manila. The study revealed that OJT students
possessed quality management skills, organizational skills, people development skills,
technical skills, conceptual skills, and analytical skills.

Employers Satisfaction of Accountancy graduates

Periodic studies are conducted by the University to find out if graduates of USL
satisfy employers’ and industry needs. Empedrad (2014), in an Employers’ Satisfaction
Survey about USL graduates that include the CPA’s, she found out that the skills and
competence which the employers/establishments assessed as “very satisfactory” vary in
terms of the nature of the establishment. Likewise, government agencies rated
intellectual ability and technical skills, highly demonstrated by graduates as the skills
expectations of their employers. Moreover

Integrity, character and personality were considered as the premium personal

qualities exemplified by USL graduates particularly in establishments that involved
financial transactions like banks, retail and manufacturing industries. Overall, employers
gave very positive feedback about the degree of satisfaction to which USL prepared
graduates with the range of technical and generic skills required in the graduate
workplace.

Actions towards Continuous Quality Improvement to Strengthen the

Outcome-based Education Program

Universities continuously take effort to sustain or surpass its achievement in its

constant pursuit to be in the niche of the Accountancy Program. Over the years, USL is
one of the universities that has institutionalized programs and projects such as but not
limited to the Project REDS, known as Review, Exercises, Drills and Simulations that aim
to prepare graduates to pass the course and eventually pass the CPA Board Examination.
Interventions are made as a result of studies made about the school’s performance and
some internal processes’ review of outcomes.
One such study conducted towards determining the performance of graduates in
the CPA Board Examination was made. Ragojos (2012) in her study aimed to evaluate
the CPA Licensure Examination Performance of the Graduates from 2010 to 2012. Most
of the graduates who took the board examination immediately after graduation passed
the licensure examination. An analysis of the scores of the graduates in the board
examination reveals that they are strong in subject 5 (Auditing Problems) while they are
weak in subject 4 (Auditing Theory) and subject 1(Theory of Accounts). Actions were
thus created to address this need through the Project REDS enhanced by Seminars that
focused on the identified weaknesses.
Tallud (2014) likewise conducted a study on the competencies of Accountancy and
Business Administration Graduates. Tallud (2014) states that skills and competencies of
accountancy and business professionals are evolving from time to time. The presence of
global competition, the increasing use of technology, and the requirements in the market
for accounting and business administration graduates are changing rapidly. Hence, many
skills are needed today by future accountants and business individuals in order to cope
with the changing environment. Furthermore, Tallud (2014) cites that employers today
want to hire accountants and business graduates who work well with others, have good
communication skills, and have strong leadership skills. In order for accounting and
business administration graduates to be successful in their careers, they need hard skills
and soft skills that go beyond accounting and business technical knowledge which include
employability skills framework, communication skills, team work skills, technological skills,
analytical skills, and interpersonal skills (Said, et.al., 2007).
Findings of several studies concluded that regardless of age and gender, the OBE
Instruction can be accepted and learned for new educational system. It caters to any
Accountancy student who is willing to adapt to the new curriculum. The OBE Instruction
received its full extent of impact in terms of the respondents’ behaviour during the
instruction and their performance after the instruction. This entails that it is probable and
beneficial to continue with the use of OBE. This also indicates that the students tend to
be more productive after instruction. The OBE Instruction received moderate extent with
regards to the implications that the study shows in terms of curriculum planning.
Therefore, the university still needs to monitor students in coping up with the newly
implemented educational system.
It is recommended that the college may continuously prescribe the OBE as a method of
teaching. To further improve the ability to absorb what is being discussed by the
instructor, more activities are suggested. The instructors should also make the students
aware of this educational strategy so that they will be able to know when and where to
make adjustments. Another research may be conducted to evaluate how OBE affects the
instructor’s teaching process.
GROUP MEMBERS:

Leah Sta Ana

Leann Turcido
Reinalou Locsin
Rajani Gaton
Kim Guañizo
Aljohn So
Ruel Gutlay
John Raniell Gabad
Cristine Emeterio
Mark Villabrosa
Carla Guab
Raven Ann Balquin
Hazel Gabales
Rose Ann Leoncito