• Semester 1 (External)

Synopsis

This unit examines contemporary theories of accounting and focuses  on
their  implications  for  accounting practice.   The  unit  introduces
capital  markets-based theories and associated research which  examine
the  association between earnings announcements 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 the implication of earnings  -
price  relationships for accounting standard setters.  The  unit  also
examines the development of contract-based research and draws out  its
implications  for  professional  accounting  practices,  and  for  the
regulation   of  practices  by  professional  accounting  bodies   and
corporate   regulators.    Finally,  the  social   and   environmental
implications  of  accounting  are  addressed.   A  review  of  current
requirements  to  report  on  social  and  environmental   issues   is
undertaken,   together  with  a  discussion  of  various   theoretical
perspectives which explain the accountability of business  to  members
of society beyond just shareholders.