Wayne Rogers’s research while affiliated with Eastern Connecticut State University and other places

Purpose – This paper examines, primarily from an investment perspective, the private returns an individual may gain from extended study towards a chartered accounting (CA) qualification in New Zealand. The present study is based on 2009 New Zealand Institute of Chartered Accountants Remuneration Survey. Approach – Data from the NZICA 2009 Remuneration Survey is analysed in five income levels and four age bands to determine a spread of income cash flows that a CA may expect to receive during a 35 to 40 year working life time. Net present value (NPV) and internal rate of return (IRR) are calculated using study fees and forgone income as initial investment, at three discount rates. An attempt has been made to factor in risk of investment and real options available in determining discount factor.Findings – Investment in study toward CA qualification (both at the age of 25 and 30 years) is financially viable and it will create “wealth” for the investor, that is, the prospective CA student. This type of investment has risk associated with it as well as some real options, both of which should be considered before investing. Some real options in accounting education are identified and discussed. Practical implication - From the five-income-band model that we have developed, a prospective student of accounting is able to get a reasonable indication of the additional financial benefit of investing in the CA qualification in relation to a BBS graduate. However it is important to consider factors such as risk, real options and other non-financial issues, before making this vital decision.