Unit name | Accounting Theory, Scandals and Standards |
---|---|
Unit code | ECONM1016 |
Credit points | 15 |
Level of study | M/7 |
Teaching block(s) |
Teaching Block 2 (weeks 13 - 24) |
Unit director | Professor. Jones |
Open unit status | Not open |
Pre-requisites |
None |
Co-requisites |
None |
School/department | School of Economics, Finance and Management |
Faculty | Faculty of Social Sciences and Law |
This unit investigates current issues in financial reporting and the move to accounting convergence. The emphasis is on forces that have shaped financial reporting practice, especially the search for a conceptual framework, regulatory frameworks, and accounting crises. The unit develops an awareness of earnings management, income smoothing and creative accounting and impression management leading to examination of accounting scandals and contemporary issues that face accounting standard setters.
1. To examine the conceptual theory and regulatory frameworks of accounting;
2. To demonstrate the subjectivity and choice within accounting frameworks in the terms of content, valuation and measurement;
3. To look at the theory and practice of creative accounting, fraud and impression management;
4. To consider recent accounting scandals and their consequences;
5. To look at corporate governance in the context of accounting manipulation.
Lectures (14 hours) supplemented by tutorials (4 hours).
There will be a two hour examination (70% with an assignment contributing 30%). The assignment will be a 2000 word essay or equivalent. Students will also be expected to prepare work for tutorials.
The examination will focus on ILOs 1, 3 and 5. Students will also draw on their knowledge of ILO 4 to answer questions in the exam. ILO 5 is usually covered in part of a question where students are asked to explain corporate governance failures. ILO 2 is the underlying conceptual framework of the course which explains that accounting is not a mere technical topic and it would be covered when a general question is answered. The assignment will address ILO 4, and draw in elements of all other ILOs.
Essential Text:
Supplementary Reading:
Students will be given an extensive list of publications. These below are merely indicative.