Unit information: Accounting Theory, Scandals and Standards in 2017/18

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

Description including Unit Aims

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.

Intended Learning Outcomes

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.

Teaching Information

Lectures (14 hours) supplemented by tutorials (4 hours).

Assessment Information

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.

Reading and References

Essential Text:

• Jones M (2010): Creative Accounting, Fraud and International Accounting, John Wileys: Chichester

Supplementary Reading:

Students will be given an extensive list of publications. These below are merely indicative.

• Clarke F and Dean G (2007): Indecent Disclosure Gilding the Corporate Lily, Cambridge University Press
• Hamilton S and Micklethwaite A (2006): Greed and corporate failure: the lessons from recent disasters, Palgrave MacMillan
• Jones, M Accounting, chapter 10 Regulatory and Conceptual framework
• Smith T (1996): Accounting for Growth: stripping the camouflage from company accounts, Random House Business Books