Module ECON43615: Accounting Theory

Department: Economics

ECON43615: Accounting Theory

Tied To

• L1K109: Economics and Finance (see Postgraduate Handbook 2012-2013 for details)
• L1K209: Accounting and Finance (see Postgraduate Handbook 2011-2012 for details)
• L1K309: Corporate and International Finance (see Postgraduate Handbook 2012-2013 for details)
• L1K509: International Banking and Finance (see Postgraduate Handbook 2012-2013 for details)
• L1K609: International Money, Finance and Investment (see Postgraduate Handbook 2011-2012 for details)
• L1K709: Finance (see Postgraduate Handbook 2011-2012 for details)
• L1K809: Finance and Investment (see Postgraduate Handbook 2011-2012 for details)
• N3K109: Finance
• N3K209: Finance (Accounting and Finance)
• N3K309: Finance (Corporate and International Finance)
• N3K409: Finance (Finance and Investment)
• N3K509: Finance (International Money, Finance and Investment)
• N3K609: Finance (International Banking and Finance)
• N3K709: Finance (Economics and Finance)

Pre-requisites

Corequisites

Excluded Combinations

Aims

• To enable students to:
• acquire and demonstrate a specialist knowledge and understanding of the different theories of accounting;
• appreciate the arguments for and against the existence of accounting regulation;
• develop a critical understanding of the rationales for regulation;
• understand the relevance to the accounting standard setting process of potential economic and social impacts arising from accounting regulation;
• critically assess accounting practices;
• understand and critically assess theoretical issues and recent developments in accounting.

Content

• The financial reporting environment
• The regulation of financial accounting
• Normative theories of accounting 1: Accounting for changing prices
• Normative theories of accounting 2: Conceptual framework projects
• Positive accounting theories
• Systems oriented theories
• Social and environmental factors in financial reporting
• Critical perspectives on accounting
• Methodological issues in accounting research

Learning Outcomes

• By the end of the module students should have a specialist knowledge and critical understanding of:
• the history of the accounting profession and accounting regulation;
• alternative methods of accounting for changing prices;
• the foundations of positivist approaches to accounting theory;
• how stakeholders’ perceptions can influence the disclosure policies of an organisation (as represented by systems oriented theories such as legitimacy theory, stakeholder theory and institutional theory);
• various theoretical perspectives that can explain why organisations might voluntarily elect to provide publicly available information about their social and environmental performance;
• how disclosure (or non-disclosure) of information can be construed to be an important strategy to promote and legitimise particular social orders, and maintain the power and wealth of elites.

• By the end of the module students should be able to:
• identify, explain and critically evaluate various projects aimed at developing an accounting conceptual framework;
• appreciate differences in methodological approaches to address research questions.

• written communication
• planning, organising and time management
• problem-solving and analytical skills
• computer literacy
• summarizing and critically assessing professional reports, statements and academic articles.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• A combination of lectures, seminars and guided reading will contribute to achieving the aims and learning outcomes of this module.
• The summative written examination will test students' knowledge and understanding of the material covered in the module, their critical evaluation and analytical skills.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment

Students will receive written comments on a formative written assignment. Additional formative assessment, and feedback, may take a number of forms such as oral feedback on work prepared by students for seminars; answers to questions either discussed during a seminar, or posted on DUO.