THE UNIVERSITY OF THE WEST INDIES

CAVE HILL CAMPUS

UNDERGRADUATE COURSE OUTLINE

ITEM

DESCRIPTION

Course Title

ADVANCE ACCOUNTING THEORY

Course Code
Academic Units to offer
Course

ACCT 3040

Level
Semester
Course Credit Load

Academic Staff Member

Course
Course
Course
Course

Prerequisite
Co-requisite
Post-requisite
Anti-requisite

Course Description

DEPARTMENT OF MANAGEMENT STUDIES

2
3
Name: Terry Harris, M.Phil., ACCA.
Email: terry.harris@cavehill.uwi.edu
Room # MS1
Tel: 417-4302
Office Hours: Mondays (4:00 pm 6:00 pm)
Lectures: Thursdays (10 am - 12 noon)
ACCT 2014-FINANCIAL ACCOUNTING I
This course introduces the student to the nature of the changing landscape of
accounting thought and research. It also provides a bird's eye view of research methods
in accounting as a necessary part of understanding how these alternative views
developed; questioning the criteria for determining what is acceptable knowledge in
accounting. The course aims to develop critical thinking skills in students, thereby
enabling them to assess the current accounting thought particularly as it relates to the
Caribbean environment. Debating skills, critical awareness and essay writing for

Course Rationale

academic purposes are some of the transferable skills that will be imparted to students
due to the nature of this course.
The rationale behind this course is to develop critical analysis, communication skills
and thinking about accounting issues and challenges facing the accounting profession.
To achieve this, students will be exposed to a range of theories about accounting and
accountants, thereby providing them with a deeper understanding of accounting beyond
the technical procedures. As an advance course, the main purpose is to critically
examine and discuss the role of accounting and finance theories and frameworks in
understanding the nature and form of regulated and voluntary accounting information
choices. This course integrates knowledge gleaned in earlier courses and provides a
framework for examining current accounting theories and practices.

The goals of this course are to:

General Goals/Aims

introduce learners to a range of theories about accounting and accountants;

discuss the role of accounting and finance theories and frameworks and
develop the student's understanding of the nature and form of regulated and
voluntary accounting information disclosures; and
enhance the student's understanding of the issues and controversies facing the
accountant and the accounting profession.

By the end of the course, students will be able to:

Specific Learning
Outcomes/Objectives

discuss the accounting regulatory environment;

explain and critically discuss alternative models of financial accounting and
theories of accounting;
analyse regulatory and accounting choices in practice and apply the relevant
theories to those choices;
critically explore and discuss issues which affect the accounting profession;
and
explain the role of accounting and finance professionals.

Course Content

Teaching Methodologies

Course Assessment
Methods

See page 4
This course consists of a two-hour lecture and a compulsory one-hour tutorial per
week. The teaching method will comprise of lecture/discussion and problem solving.
Students are expected to fully participate in tutorials in an effort to develop critical
thinking, problem solving and communication skills. To facilitate participation and to
receive credit for participation, each student must prepare assigned questions prior to
their respective tutorial.
Assimilating the concepts in this course depends very heavily on the level of
commitment of the student. Regular attendance at the tutorial sessions and active
participation will enhance the chance of a student achieving a good grade in this course.
A reasonable rule of thumb is to spend 23 hours outside of class time reviewing
material and attempting assigned questions. Communication for the course will be
facilitated through elearning (Moodle).
Coursework
30%
Paper review.
10%
Research paper
15%
Tutorial participation
5%
Final Examination
70%
Short answer and essay type questions. Further details will be given during the
semester.

Teaching /Learning
Resources including
internet sources

Text
Craig Deegan & Jeffrey Unerman, Financial Accounting Theory, (second
European Edition) McGrae Hill (Paper-back)

Recommended Readings

Akerlof, G. A. (1970). The market for" lemons": Quality uncertainty and the market
mechanism. The quarterly journal of economics, 488-500.
Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers.
Journal of accounting research, 159-178.
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings.
Journal of accounting and economics, 24(1), 3-37.
Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work.
The journal of Finance, 25(2), 383-417.
Jensen, M. C., & Meckling, W. H. (1979). Theory of the firm: Managerial behavior,
agency costs, and ownership structure (pp. 163-231). Springer Netherlands.
Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory. Prentice-Hall

COURSE CONTENT & LECTURE SCHEDULE

WEEK

TOPIC

CHAPTER

QUESTIONS

Introduction
1

Introduction to the course

Introduction to financial accounting theory

1, 2, 4, 6, 9, 12
and 15

The financial reporting environment

The regulation of financial accounting

International accounting

1, 2, 3, 4, 5 and 6
2, 3, 4, 5, 10, 11,
and 13
1, 2, 3, 4, 7, 11
and 12

Theoretical Approaches
5

Normative theories of accounting 1: The case of accounting for changing prices and
asset values

1, 2, 5, 6, 7, 8 and
9

Normative theories of accounting 2: The case of conceptual framework projects

1, 2, 4, 5 and 9

Positive Accounting Theory

Unregulated corporate reporting decisions: Consideration of system-oriented theories

1, 2, 3, 4, 6, 13
and 14
1, 2, 3, 4, 8, 11
and 12

Contemporary Issues
9

Extended system of accounting: The incorporation of social and environmental factors

within external reporting

1, 2, 3, 4, 6, 8 and
13

10

Reaction of capital markets to financial reporting

10

1, 2, 4, 12 and 13

11

Reactions of individuals to financial reporting: An examination of behavioural

research

11

1, 2, 4, 5, 9 and
10

12

Critical perspectives of accounting

12

1, 2, 3, 4, 6 and 7

13

Revision