This is a final year specialist accounting unit in the Bachelor of Business (Accounting). It aligns with the core knowledge area of accounting theory for accounting professional accreditation bodies CPA Australia and Institute of Charted Accounting Australia (ICAA). This subject is concerned with developing students appreciation of the roles that theory and practice have played in the development of financial reporting. Accounting students are faced with the challenge of developing technical skills as well as developing their independent learning skills as required by the business community and by the professional bodies. As future accounting professionals, an appreciation of accounting theories allows students to think more critically about the building blocks of financial reporting and how they are used in practice.
The subject examines various theories that investigate and critique the roles of financial accounting in decision-making and theoretically appraise financial accounting practice and regulation. Contemporary issues, including measurement, the conceptual framework, convergence with the International Financial Reporting Standards and corporate sustainability reporting are examined in the context of various accounting theories including normative accounting theories and positive accounting theories. Students will engage with the content through a range of activities associated with contemporary cases and issues. Activities will include peer learning, discussions and online activities. Student learning will be guided and assessed through a semester test, an individual assignment and an exam.

Unit details

Study level:
Undergraduate
Credit points:
12
Unit code:
BAO3309

Prerequisites

BAO2203 - Corporate Accounting

Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Articulate an enhanced understanding of the role of theory in the development of accounting and the financial reporting environment;  
  2. Critically reflect on and evaluate theories that explain financial and non-financial reporting;  
  3. Critique various measurement models and their impact on financial reporting in order to improve skills in exercising professional judgement in accounting practice;  
  4. Elucidate factors that influence financial and non-financial accounting practice with reference to a broad and coherent body of theoretical knowledge;  
  5. Critically analyse and justify accounting standards that apply to financial reporting;  
  6. Evaluate issues relevant to the recognition of accounting elements and reporting contained in financial statements;  
  7. Critically reflect on theories of, and approaches to, corporate social and environmental accountability and reporting as means to contribute to a more equitable and sustainable world; and  
  8. Debate issues concerning the roles of accounting standards in local and global communities.  

Assessment

Assessment type Description Grade
Test Multiple Choice Questions; short answer questions and case study 20%
Research Paper Individual research 20%
Examination Short answer questions, practical questions and case study 60%

Required reading

Financial Accounting Theory, 4rd edition,
Deegan, C., (2014),
McGraw-Hill, Australia

Australian Financial Accounting, 7th edition,
Deegan, C., (2012),
McGraw-Hill, Australia

Accounting Handbook 2013,
CPA Australia,
Prentice Hall, Sydney

Where to next?

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