Optional Courses

Accounting Theory
Author: Date:14-11-2007 Hits:
Objectives and Requirements:
Financial Accounting Theory [FAT] is a foundation course in accounting with an emphasis on the role of financial accounting and reporting in our society from securities markets and information economic consequence of financial accounting.
The purpose of this course is to create an awareness of the financial reporting environment in a market economy, taking into account the diverse interest of both external users and management.
Financial Accounting Theory is designed to assist students in developing professional competence and skills to:
  • understand the accounting under ideal condition
  • develop the knowledge of accounting to control adverse selection
  • comprehend the accounting to mitigate the problem of moral hazard
  • understand the process of accounting standards setting
Teaching Contents:
Introduction, Accounting under Ideal Conditions, The Decision Usefulness Approach to Financial Reporting, Efficient Securities Markets, The Information Perspective on Decision Usefulness, The Measurement Perspective on Decision Usefulness, Measurement Perspective Applications, Economic Consequences and Positive Accounting Theory, the Analysis of Conflict, Executive Compensation, Earnings Management, Standard Setting: Economic Issues and Standard Setting: Political Issues.
Credits: 3

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