University of Technology SydneyHandbook 2008

22751 Current Issues in Financial Accounting

Faculty of Business: Accounting
Credit points: 6 cp

Subject level: Postgraduate

Result Type: Grade and marks

Handbook description

This subject examines the issues surrounding the provision of corporate reports to external users. Topics covered include the role of a conceptual framework of financial reporting, the role of financial reporting in promoting the efficient allocation of scarce resources, corporate social responsibility in accounting, and the 'public interest' role of accountants.

Subject objectives/outcomes

On successful completion of this subject, students should be able to:

  1. Understand the different income measurement models and their contribution to accounting knowledge.
  2. Understand contemporary issues affecting financial reporting and corporate accountability.
  3. Be able to consider contemporary financial accounting issues from a variety of perspectives.
  4. Be able to apply the above perspectives to a range of corporate reporting issues.
  5. Work effectively in a team on a project requiring research and analysis on actual companies in real time.
  6. Present formally the findings of the group to the class.

Contribution to graduate profile

The subject examines a range of topics relevant to the provision of corporate financial reports to external users. These topics encompass the role of a conceptual framework for financial reporting, the role of financial reporting in communicating the performance of business entities, corporate social responsibility, and the public interest role of accountants.

Teaching and learning strategies

The subject will be taught in a seminar format with the aim of stimulating student participation and allowing discussions of current issues in corporate financial reporting. The teaching materials incorporate contemporary examples from the business press of the day, both in print and electronic formats. Students will learn to search and access web-based financial information sources to complete a major project.

Content

  • Introduction to the subject including its aims and rationale.
  • Accounting in Theory and Practice.
  • Accounting Theory Construction.
  • Historical Cost and Accounting Practice.
  • Current Cost and Exit Price Accounting Systems.
  • Social and Environmental Reporting.
  • Positive Accounting Theory.
  • Role of the Individual in Accounting Functions and Corporate Reports.
  • The Political Environment of Accounting Standard Setting.
  • The Conceptual Framework in Accounting.

Assessment

In-class test (Individual)25%
This will assess students' understanding of income measurement issues affecting financial reporting and corporate accountability. The test will allow students to demonstrate that they have met objectives 1 and 2.
Case study and presentation (Group)25%
Students are allocated an exchange-listed company and are required to use the latest on-line financial information and complete an analysis of the creative accounting and corporate accountability issues facing the company. The case study will assess students' understanding in evaluating the extent to which a company has attempted to stretch its accounting and financial reporting practices well beyond the reality of its underlying business activities. Students will work in syndicate groups of up to 4, submit a report to the subject co-ordinator, and present their findings to the class. The case study analysis and presentation will allow students to demonstrate that they have met objectives 3-6.
Final Examination (Individual)50%
The final exam will be a 3-hour closed book exam consisting of discussion and case problems. It will assess students' comprehension of contemporary financial accounting issues from a variety of perspectives. The final exam will allow students to demonstrate that they have met objectives 1-4.

Recommended text(s)

Godfrey, J., Hodgson, A. and Holmes, S. (2003), Accounting Theory, 5th edition, Wiley, Milton.

Indicative references

Beaver, W.H. (1998), Financial Reporting: An Accounting Revolution, Prentice-Hall, Englewood Cliffs.

Belkaoui, A. and Jones, S. (2002), Accounting Theory, 2nd edition, Nelson, Melbourne.

Christensen, J.A. and Demski, J.S. (2003), Accounting Theory: An Information Content Perspective, McGraw-Hill Irwin, New York.

Deegan, C. (2002), Financial Accounting Theory, McGraw-Hill, Sydney.

Scott, W. (2003), Financial Accounting Theory, 3rd edition, Prentice Hall, Upper Saddle River.