• Semester 2 (External)

Synopsis

Knowledge  about  accounting practice and the impact  and  effects  of
regulation  on practice accelerated in the late 1960s with the  growth
of   capital   markets  research  into  the  relevance  of  accounting
information  in  markets.  This unit will study capital  markets-based
accounting  research including empirical studies  of  the  association
between  earnings  announcements (and other financial  variables)  and
share  market rates of return.  This area is important for an advanced
understanding  of  the  relevance of accounting  reports  for  capital
market  participants,  the  prediction of future  earnings  (and  cash
flows),  and  the  implication of earnings - price  relationships  for
accounting standards setters.  This unit will also study how firms are
organised  and operate within markets (e.g. capital markets)  and  how
financial  accounting  information and  auditing are  utilised  within
firms  and  by  markets.  This unit will examine the  development   of
contract   based   research  and  draw  out  its    implications   for
professional  practice  in  the areas  of  financial  accounting,  and
auditing  practice,  as  well  as  for  the regulation   of  practices
by  professional  accounting  bodies   and corporate regulators.