• Semester 2 (Day)
• 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
howfinancial  accounting information and auditing are  utilised  witin
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.