ACC 3116 Financial Accounting Theory

STAFFING:

REQUISITES:

SYNOPSIS:

This subject involves the theory that is integral to financial accounting practice. Its primary objective is to enhance decision- making skills in relation to financial accounting issues. A framework for decision-making is provided. This includes an investigation of the popular theories and evidence in regard to financial reporting. The financial reporting issues addressed include the choice of accounting methods, voluntary disclosures, and environmental performance reporting.

OBJECTIVES:

On completion of this course students will be able to:

1. demonstrate effective written communication skills to a tertiary academic standard (as specified in Communication skills handbook for accounting);
2. demonstrate the ability to undertake independent research outside the prescribed course materials and communicate those research findings in assessment tasks;
3. identify the factors to consider when making financial reporting decisions or evaluating the financial reporting decisions made by others;
4. define financial reporting and outline the organisational form characteristics that indicate a need for financial reporting;
5. identify and give examples of the types of financial reporting decisions faced by preparers of financial reports;
6. explain the fundamental problem of financial reporting;
7. appraise the process under which accounting standards are developed in Australia and adoption of international accounting standards;
8. assess the theories of regulation presented in the course and apply each of these to the accounting standard setting process in Australia;
9. explain how contracts and accounting information are used to reduce agency costs;
10. outline the contracting determinants of unregulated financial reporting decisions;
11. outline the other economic determinants of unregulated financial reporting decisions;
12. outline the social determinants of financial reporting decisions, particularly unregulated disclosure decisions;
13. critically evaluate each of the accounting theories and research methods covered in this course and make a determination as to their usefulness to accounting practice;
14. explain the nature of the relationship between accounting earnings and share market returns;
15. outline the conclusions that can be drawn from capital market studies into 'information content' and 'value relevance';
16. assess the expected impact of alternative financial reporting choices on share prices and returns;
17. assess the expected impact of alternative financial reporting choices on the judgment of individual financial statement users;
18. critically evaluate different accounting models with respect to the fundamental problem of financial reporting;
19. apply the insights gained from the theories and evidence presented in this course to the particular financial reporting issues of asset valuation and environmental performance reporting; and
20. apply the insights gained from the theories and evidence presented in this course to the issue of whether financial reporting should be regulated.

TOPICS:

TEXT and MATERIALS required to be PURCHASED or accessed:

ALL textbooks and materials are available for purchase from USQ BOOKSHOP (unless otherwise stated). Orders may be placed via secure internet, free fax 1800642453, phone 07 46312742 (within Australia), or mail. Overseas students should fax +61 7 46311743, or phone +61 7 46312742. For costs, further details, and internet ordering, use the 'Textbook Search' facility at http://bookshop.usq.edu.au click 'Semester', then enter your 'Course Code' (no spaces).

ACC3116 study package available from the USQ Bookshop.

REFERENCE MATERIALS:

These materials are an invaluable source of information for use in assignment preparation.

STUDENT WORKLOAD REQUIREMENTS:

ASSESSMENT DETAILS:

NOTES:

1.

The examination is scheduled to be held in the end-of-semester examination period. Students will be advised of the official examination date after the timetable has been finalised.

IMPORTANT ASSESSMENT INFORMATION

1. Attendance requirements:
   It is the students' responsibility to attend and participate appropriately in all activities (such as lectures, tutorials, laboratories and practical work) scheduled for them, and to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration. If you are an international student in Australia you are advised to attend all classes at your campus. Failure to attend may infringe the conditions of your student visa.
2. Requirements for students to complete each assessment item satisfactorily:
   To complete each of the assignments satisfactorily, students must submit a genuine attempt of the assignment/s. For an assignment to be deemed a genuine attempt, the student must have completed at least 80% of each question/s. To complete the examination satisfactorily, students must obtain at least 50% of the marks available for the examination.
3. Penalties for late submission of required work:
   If students submit assignments after the due date without prior approval then a penalty of 20% of the total marks gained by the student for the assignment will apply for each working day late.
4. Requirements for student to be awarded a passing grade in the course:
   To be assured of receiving a passing grade a student must demonstrate, via the summative and formative assessment items that they have achieved the required minimum standards in relation to the objectives of the course. This is achieved by (1) submitting a genuine attempt of all formative and summative assessment items; (2) obtaining at least 50% in the examination and; (3) obtaining at least 50% of the total weighted marks available for all summative assessment items.
5. Method used to combine assessment results to attain final grade:
   The final grades for students will be assigned on the basis of the weighted aggregate of the marks obtained for each of the summative assessment items in the course.
6. Examination information:
   This is a restricted examination. Candidates are allowed access to specific materials during the examination. The only materials that candidates may use in the restricted examination for this course are: writing materials (non-electronic and free from material which could give the student an unfair advantage in the examination); translation dictionary (with the Examiner's approval, candidates may, take an appropriate non- electronic translation dictionary into the examination. This will be subject to perusal and, if it is found to contain annotations or markings that could give the candidate an unfair advantage, it may be removed from the candidate's possession until the appropriate disciplinary action is completed). Students are not permitted to take mobile telephones, pagers or other electronic means of communication into the examination room.
7. Examination period when Deferred/Supplementary examinations will be held:
   Any Deferred or Supplementary examinations for this course will be held during the next examination period.
8. University Regulations:
   Students should read USQ Regulations 5.1 Definitions, 5.6. Assessment, and 5.10 Academic Misconduct for further information and to avoid actions which might contravene University Regulations. These regulations can be found at the URL http://www.usq.edu.au/corporateservices/calendar/part5.htm. Students should also read the Faculty of Business Guide to Policies and Procedures of the Faculty which can be found at the URL http://www.usq.edu.au/handbook/current/buspolproc.html.

ASSESSMENT NOTES