Status: Pending Version 1

Part B: Course Detail

Teaching Period

Viet2 2014

RMIT Course Code

ACCT2163

RMIT Course Id

001187

RMIT Course Title

Financial Accounting Theory

School

615H Accounting

Career

Undergraduate

Campus

RMIT Intl University Vietnam

Learning Mode

Face-to-Face

Primary Learning Mode

Interteaching

Credit Points

12

Teacher Guided Hours

36 per semester

Learner Directed Hours

104 per semester

Course Coordinator

Peter Keet

Course Coordinator Phone

+61 3 9925 1306

Course Coordinator Email

peter.keet@rmit.edu.au

Course Coordinator Location

Melbourne City Campus 80.11.87

Offering Coordinator

Felix Ng Chee Yew

Offering Coordinator Phone

+84 (0) 4 3726 1460 ext.6081

Offering Coordinator Email

felix.ngcheeyew@rmit.edu.vn

Offering Coordinator Location Hanoi, Vietnam

Additional Staff Contact Details
2. Ha Nguyen Thanh
Saigon Campus
ha.nguyenthanh@rmit.edu.vn

Pre-requisite Courses and Assumed Knowledge and Capabilities

Prerequisites
Financial Accounting and Analysis
Required Prior Study
Students should have successfully completed the RMIT course, Financial Accounting and Analysis, or its equivalent prior to
enrolling into Financial Accounting Theory.
Note it is a condition of enrolment at RMIT that you accept responsibility for ensuring that you have completed the prerequisite/s
and agree to concurrently enroll in co-requisite courses before enroling in a course.
For your information the RMIT Course Requisites policy can be found at http://www.rmit.edu.au/browse;ID=twx09y07zi1c
Assumed Knowledge and Capabilities
This course assumes that you have:

an understanding of regulation of financial reporting, the conceptual framework, the structure of financial reports, and
key requirements of key accounting standards studied in Financial Accountability and Reporting. This prerequisite
knowledge and capabilities is developed in Financial Accountability and Reporting;

the ability to comprehend and communicate information in accurate, clear, concise and coherent English; and

a basic understanding of the process for addressing problems using case studies.

Course Description
The aim of Financial Accounting Theory is to examine various theories that have been put forward to understand the role of
financial accounting in decision making, and to explain why and how entities make decisions concerning accounting methods,
and disclosure of financial information in the absence of complete regulation. The emphasis in this course will be on the current
theories, which explain contemporary financial accounting practice, and current financial reporting regulation. This includes both
normative and positive theories. Financial Accounting Theory also examines a number of contemporary accounting issues in the
context of the theories studied in the course. As future accounting professionals, an appreciation of accounting theories will allow
you to think more critically about the construction and use of financial reports and their associated disclosures.
This course includes a work integrated learning experience in which your knowledge and skills will be applied and assessed in a
real simulated workplace context and where feedback from industry and/or community is integral to your experience. This course
is designed to enable you to apply accounting theories to a contemporary workplace situation. The integration of work-based
learning and academic learning, commonly referred to as Work Integrated Learning (WIL), will allow you to solve authentic
business problems or address real issues faced in organisations.
Financial Accounting Theory is a compulsory core unit in the Bachelor of Business (Accountancy) degree, and Bachelor of
Business (Professional Accountancy) degrees and is open to all students who have satisfied the pre-requisite courses and
assumed knowledge capabilities detailed above.
If you are undertaking this course in Melbourne from semester 2, 2012 onwards your teacher will advise you if you require
access to a computer for the course. It is recommended that you have access to a mobile computing device to allow greater
flexibility in terms of where you can work on campus outside class times.

Objectives/Learning Outcomes/Capability Development

Capability Development
The course provides an opportunity for you to develop the following generic capabilities:

Undertake effective research;

Describe, explain, and critically evaluate cultural issues;

Describe, explain, and critically evaluate accounting theories;

Apply accounting theories to contemporary business contexts to form judgements about likely outcomes and
appropriate responses;

Clearly communicate explanations and analysis;

Collaborate and work effectively in teams

Learning Outcomes
Upon successful completion of Financial Accounting Theory you will be able to:

Demonstrate enhanced understanding of the environment within which financial accounting operates, including
regulated and unregulated financial reporting;
Research, describe, explain, and critically analyse the global financial reporting environment, the regulation of financial
reporting, and the unregulated financial reporting environment;

Describe, explain, and critically evaluate normative and positive financial accounting theories;

Apply normative and positive accounting theories to contemporary business contexts to form judgements about likely
outcomes and appropriate responses;

Identify, interpret, explain, apply, and critically analyse accounting standards that apply to financial instruments;

Clearly communicate your explanations and analysis concerning the global financial reporting environment, the
regulation of financial reporting, positive and normative accounting theories, and financial instrument accounting

standards;

Collaborate and work effectively in a team to respond to a client brief

Overview of Learning Activities

Seminars will incorporate the following learning activities: lectures (with relevant contemporary examples), case studies, team
work and discussion of prescribed questions.
Seminar Preparation
You are expected to:

Read, and obtain an understanding of, the relevant chapters of the textbook, and other required readings prior to each
seminar; and
Complete the relevant prescribed Discussion Questions prior to each seminar

You should attempt the prescribed discussion questions, starting with a blank sheet of paper, without looking at the solution until
a genuine attempt has been made at the question. After attempting a discussion question, you should compare your answer with
the solution provided, and ensure that you resolve any differences between your answer and the solution provided.
You should come to seminars prepared to actively participate in seminar discussion and activities. Any difficulties with the
prescribed reading and/or prescribed discussion questions should be raised in seminars.
Seminar Attendance
You are expected to attend the seminar that you are enrolled in, to assist in meeting the standard necessary to pass this course.
Seminars will also provide you with the opportunity:

to critically evaluate problems and develop confidence in your ability to apply theoretical issues to practical situations;
and
to receive feedback on your learning activities and Work Integrated Learning (WIL) assessment tasks.

To be Successful in this Course:

You are expected to apply yourself consistently throughout the semester by:

attending the seminar you are enrolled in, coming to the seminar prepared, that is you have completed the prescribed
reading, and completed the prescribed discussion questions;
actively participating in the seminar discussion and activities, take notes, ask questions of the seminar leader;

refer to, and read other textbooks, recently published articles, company reports and websites, documents issued by and
websites of financial accounting regulatory authorities, relevant to the assessment tasks, and the course; and

carefully follow all instructions relating to assessment tasks, complete and submit the assessment tasks on time

The above learning activities have been designed to assist you in the development of the important capabilities, as described in
Part A of this course guide.
Administrative Expectations
You are expected to:

Check your enrolment details to ensure that you are enrolled in Financial Accounting Theory this semester;
Have access to the prescribed text;

Find out which day of the week, what time of day and where your seminar is held, and attend it.

Regularly access Blackboard (Blackboard is an important source of information and communication from the
coordinator of Financial Accounting Theory)

Teaching Schedule

WEEK BY WEEK SCHEDULE, SEMINAR DISCUSSION QUESTIONS

After your seminar each week it is expected that you will attempt the prescribed seminar discussion questions. Some or all of the
seminar discussion questions will be discussed in the next seminar.
1 Introduction to Financial Accounting Theory

Course guide
Textbook and additional reading

Weekly homework

Assessment

Academic integrity, plagiarism, and referencing presentation

How our seminars will work

Introductory seminar

Understand the role of accounting theory

Describe the different types of accounting theories and explain the different functions performed by different accounting
theories

Explain why it is important to critically evaluate theories before accepting them

Explain why it is important that accounting professionals have an understanding of accounting theory

Reading:

Deegan, (4th edition, 2014), Chapter 1

Seminar 1 Discussion Questions:

Seminar 1 Discussion Questions provided

2 The Financial Reporting Environment and the Regulation of Financial Reporting

Understand and be able to describe the history of the accounting profession and accounting regulation
Explain the arguments for and against the continued regulation of financial reporting

Describe and critically evaluate the theories which seek to explain accounting regulation: public interest theory, capture
theory and private interest theory

Explain the social and economic impacts of regulation

Explain why accounting standard setting is a political process

Reading:

Deegan, (4th edition, 2014), Chapters 2 and 3

Seminar 2 Discussion Questions:

Seminar 2 Discussion Questions provided

3 International Accounting

Appreciate that the accounting environment is determined by global differences and similarities.

Distinguish between harmonisation and standardisation

Critically evaluate the arguments both in favour and against the standardisation of accounting standards

Explain (using theories where appropriate), the differences in accounting practices in different countries

Describe and critically evaluate current standardization projects, including the obstacles faced during the
standardisation process

Reading:

Deegan, (4th edition, 2014), Chapter 4

Seminar 3 Discussion Questions:

Seminar 3 Discussion Questions provided

4 Unregulated Financial Reporting Decisions - Systems Oriented Theories

Describe, explain, and evaluate political economy theory, which underpins systems oriented theories
Describe, explain and critically evaluate systems-oriented theories: Legitimacy Theory; Stakeholder Theory; and
Institutional Theory

Drawing upon systems-oriented theories and other relevant accounting theories, explain why entities may elect to make
voluntary disclosures

Be able to apply systems oriented theories to relevant accounting issues

Reading:

Deegan, (4th edition, 2014), Chapter 8

Seminar 4 Discussion Questions:

Seminar 4 Discussion Questions provided

5 Extended System of Accounting - Social and Environmental Accountability

Evaluate social and environmental accountability in terms of theories underpinning its disclosure
Explain the concept of sustainability and sustainable development

Use accounting theories to explain the decision by entities to provide sustainability reports

Identify and discuss the limitations of financial accounting with respect to reporting environmental and social
performance

Describe the purpose and process of performing a social audit

Critically evaluate sustainability reporting practices

Reading:

Deegan, (4th edition, 2014), Chapter 9

Seminar 5 Discussion Questions:

Seminar 5 Discussion Questions provided

6 Positive Theories of Accounting: Watts and Zimmermans Positive Accounting Theory

Evaluate the descriptive accounting theories that underpin Positive Accounting Theory.
Describe, explain and critically evaluate Watts and Zimmermans Positive Accounting Theory (PAT)

Be able to apply PAT to relevant accounting issues

Reading:

Deegan, (4th edition, 2014), Chapter 7

Seminar 6 Discussion Questions:

Seminar 6 Discussion Questions provided

7 Reaction of Capital Markets to Financial Reporting

Understand the impact of financial reporting decisions on capital market participants

Describe, explain and critically evaluate the role of Capital Markets Research (CMR) in assessing accounting
disclosures

Explain the importance of the efficient markets hypothesis as an underlying assumption of CMR

Describe the major results of CMR

Describe the different methods of undertaking CMR: Information content research and Value relevance research)

Reading:

Deegan, (4th edition, 2014), Chapter 10

Seminar 7 Discussion Questions:

Seminar 7 Discussion Questions provided

8 Reaction of Individuals to Financial Reporting: an examination of Behavioural Research

Understand the impact of financial reporting on decisions of individual users

Differentiate between behavioural research and capital markets research

Describe the role of behavioural research in financial accounting

Describe and critically evaluate the different methods of undertaking behavioural research in accounting

Explain how behavioural research may benefit financial accounting and financial reporting decisions

Reading:

Deegan, (4th edition, 2014), Chapter 11

Seminar 8 Discussion Questions:

Seminar 8 Discussion Questions provided

9 Normative Theories of Accounting - Changing Prices

Explain the strengths and limitations of historical cost accounting

Describe and critically evaluate the alternative normative accounting theories that have been developed to address the
problems associated with changing prices: CPPA; CCA; COCOA

Explain Fair Value and the Fair Value hierarchy in IFRS13

Reading:

Deegan, (4th edition, 2014), Chapter 5

Seminar 9 Discussion Questions:

Seminar 9 Discussion Questions provided

10 Normative Theories The Conceptual Framework

Evaluate the nature and rationale for conceptual framework projects around the world
Describe, explain and critically evaluate conceptual frameworks of accounting

Describe the current conceptual framework projects

Reading:

Deegan, (4th edition, 2014), Chapter 6

Seminar 10 Discussion Questions:

Seminar 10 Discussion Questions provided

11 Accounting Theories in Context Accounting for Financial Instruments

Explain the problems associated with accounting for financial instruments

Describe the current accounting requirements for financial instruments

Evaluate from a theoretical perspective the current accounting requirements for financial instruments

Explain the strengths and limitations of the alternative methods that have been developed to address the problems
associated with accounting for financial instruments

Readings:

Deegan, Australian Financial Reporting, (7th Edition, 2012), Chapter 14

Stevenson, Kevin, 2012, Financial Reporting: Hearing the GFC message? What message?, Accounting & Finance,
52, pp9-20

Seminar 11 Discussion Questions:

Seminar 11 Discussion Questions provided

12 Presentations

Individual presentations

Overview of Learning Resources

RMIT will provide you with resources for learning in this course through the RMIT student portal.
You will be advised of the prescribed text for this course and other reading materials upon enrolment.
You will also be expected to utilise library resources and other electronic resources to engage in research in order to complete
your assessment tasks.
Important announcements relating to the course will be made either on line via the RMIT student portal and/or in seminars.

Learning Resources
Prescribed Texts

Deegan, Craig, 2014, Financial Accounting Theory, Edition 4, McGraw-Hill Australia, Sydney,
Australia

9780071013147 Library

References
Rankin, Michaela, Stanton, Patricia, McGowan, Susan, Ferlauto, Kimberly, & Tilling, Matthew, 2012,
9780730300298 Library
"Contemporary Issues in Accounting", John Wiley & Sons, Brisbane, Australia
Gaffikin, Michael, 2008, "Accounting Theory: Research, Regulation and Accounting Practice",
Pearson Education Australia, Sydney, Australia

9781741030709 Library

Jones, Stewart, and Riahi-Belkaoui, Ahmed, 2010, "Financial Accounting Theory", 3rd edition,
Cengage Learning, Melbourne, Victoria.

9780170182010 Library

Godfrey, Jayne, Hodgson, Allan, Tarca, Ann, Hamilton, Jane, and Holmes, Scott, 2010, "Accounting
Theory", 7th edition, John Wiley & Sons, Brisbane, Australia

9780470818152 Library

Gleeson-White, Jane, 2011, "Double Entry: How the Merchants of Venice Shaped the Modern World
9781741757552 Library
- and How Their Invention Could Make or Break the Planet", Allen and Unwin, Sydney, Australia
Deegan, Craig, 2012, "Australian Financial Accounting", 7th edition, McGraw-Hill Irwin, Sydney,
Australia.

9780071012409 Library

Other Resources
The following learning resources should also be used in your study of ACCT 2163: Accounting Theory
ACCT 2163 Course Materials on Blackboard

Seminar Slides
Seminar Discussion Questions and Solutions

Readings for Seminar 11:Financial Instruments

WIL Assignment and Marking Rubrics

Individual Research Project and Marking Rubric

Continuous In-Class Inter-teaching assessment

ACCT 2163 Course Materials will be placed progressively on Blackboard during the semester.

Overview of Assessment
Assessment in Financial Accounting Theory may include assessed tutorial work, class participation, in-semester test(s), research
essay, Work Integrated Leaning report(s), team report, class presentation, role play, and an end of semester exam. Some of
these assessments may be conducted in an on-line environment.
The assessment is designed to test your ability to interpret, describe, explain, and critically analyse a variety of Financial
Accounting Theory issues, research, describe, explian, and analyse contemporary business issues using appropriate financial
accounting theories to make judgements about likely outcomes and appropriate responses, work effectively in teams, and in
addition, your ability to effectively communicate your learning in written and/or oral form.
To pass this course, you must obtain an overall mark of at least 50 per cent.
If you have a long term medical condition and/or disability you can apply to vary aspects of the learning or assessment methods.
You can contact the program coordinator or the Disability Liaison Unit if you would like to find out more.
Feedback:
Feedback will be provided throughout the semester in seminars, via email, individual consultation, and/or online through individual
and team feedback on assessment tasks, and on tutorial work.
An assessment charter (http://mams.rmit.edu.au/kh6a3ly2wi2h1.pdf ) summarises your responsibilities as an RMIT student as
well as those of your teachers.
Your course assessment conforms to RMIT assessment principles, regulations, policies and procedures which are described and
referenced in a single document: http://www.rmit.edu.au/browse;ID=ln1kd66y87rc

Assessment Tasks
Overview of Assessment

The major activities you face in this course are:

Work Integrated Learning (WIL) - 55% of the final assessment - Comprising of three components:
o Individual Report - 30 % of the final assessment

Team Electronic Presentation - 20% of the final assessment

Team Presentation - 5% of the final assessment

Progressive In-Class Inter-teaching assessment - 25% of the final assessment

Individual Research Project - 20% of the final assessment

To pass this course you must:

obtain an overall mark of 50 per cent.

Assessment Details
Work Integrated Learning (WIL) 55%:
This component of your assessment involves assessed Work Integrated Learning (WIL) activities. The focus of RMITs WIL policy
is for you to learn by doing in context and with feedback in realistic contexts. In Financial Accounting Theory, this assessed WIL
experience makes a significant contribution to development of your work-readiness capabilities by deepening your knowledge of,
and skills at, core accountancy practices concerning the practical application of contemporary financial accounting practices in the
workplace.
The WIL assessment for this course is comprised of three components:

Individual Report - 30 % of the final assessment

o The Individual Report involves responding to a client brief, regarding the financial reporting environment of a
specific country; and

Team Electronic Presentation - 20% of the final assessment

Team Presentation, Presentation in class, - 5% of final assessment

The Team Electronic Presentation involves responding to a client brief, regarding financial reporting in an
international context.

Upon completion of these assessments you should be able to:

Research financial accounting issues, including the global financial reporting environment in particular
Describe, analyse and critically evaluate the global financial reporting environment, the regulation of financial reporting,
and the unregulated financial reporting environment using financial accounting theories

Analyse case study scenarios by selecting and applying appropriate financial accounting theories to form judgements
about likely outcomes and appropriate responses

Present coherent and logical arguments concerning the global financial reporting environment, based upon financial
accounting theories

Present a coherent and engaging report

Work effectively in a team to respond to a client brief

The WIL assessments will be marked based upon the following criteria:

The depth and quality of the research undertaken

The application of research to the task

The ability to apply appropriate accounting theories to the context of the task

The ability to synthesise information into a coherent and engaging report

The ability to synthesise information into a coherent and engaging presentation

The ability to correctly acknowledge sources using the Harvard Referencing system

The ability to work effectively as a team, as evidenced by minutes of team meetings

Detailed information about the WIL assignments and requirements will be placed on the RMIT student portal for your information
in week one of the semester.
Referencing Guidelines
All sources of information must be acknowledged using the Harvard (author-date) referencing systems in written assessments. A
separate page containing your reference list must also be included.
WIL Assessments Due Dates

Individual Report, due 5pm, Friday, 25 July 2014

Team Electronic Presentation, due 5pm, Friday, 22 August 2014

Team Presentation, Presentation in class in week 12, Monday 1 September 2014 to Friday 5 September 2014

Individual Research Project 20% (due date 5 pm, Friday, 5 September 2014)
This project is intended to introduce you to the research process and become more knowledgeable about finding and using a
variety of research sources. You will need to draw on skills learnt and your analysis of the knowledge acquired from the seminars,
and the textbook.
This assignment aims to help you to become more adept in synthesizing information and develop informed views, follow a
scholarly research format to document in-text sources and reference appropriately, using the Harvard (author-date) referencing
system. The final outcome is for you to be able to compose a well organised, clear, and concise research paper to expand your
knowledge on an issue in Financial Accounting Theory.
Upon completion of these assessments you should be able to:

Structure a research paper in an appropriate academic format

Identify and develop a research question

Undertake research into a specific research question

Identify and apply appropriate accounting theories to examine the research question

Identify and critically analyse issues, and develop arguments relating to a research question

The Individual Research Project will be marked based upon the following criteria:

The ability to use an appropriate structure for an academic research paper

The ability to identify and develop an appropriate research question

The depth and quality of the research undertaken

The ability to identify and apply appropriate accounting theories to analyse the research question

The depth and quality of the analysis of the identified research question, and quality of conclusions developed

The ability to correctly acknowledge sources using the Harvard Referencing system

The topics will be provided by the lecturer.

Detailed information about the assessment and requirements will be placed on the RMIT student portal.
Procedures for Submission of Assignments

All assignments must be accompanied by a RMIT Assignment cover sheet specifying your name, student number, the course
name and code and your seminar leaders name.
All assignments must be submitted by the due date:

electronically through Turnitin and

as a hard copy, submitted either at your seminar, or submitted to the Administrative office, RMIT International University,
Vietnam.

You must retain a copy of your assignments.

Extensions and Late Submissions of Assignments
If you wish to apply for an extension of time for submission of an assignment you must apply in writing to the course coordinator
before the stated submission date. Extensions to submission deadlines beyond 7 days are allowed only as a result of a
successful application for Special Consideration.
All assignments will be marked as if submitted on time then the mark awarded will be reduced by 10% for each day (or part of a
day) it is late. For example if an assignment is worth 20 marks and you are one day late then you will be penalised 10% of 20
marks, which is 2 marks. These two marks will be subtracted from the assessed mark.
Assignments that are late by 7 days or more will not be marked and will be awarded zero marks.
Return of Assignments
Assignments will normally be returned two to three weeks after submission with appropriate feedback. The return of assignments
may occur in your seminar.
Continuous In-Class Inter-teaching Assessment 25% (Week 2 - Week 11)
Assessment details will be advised. A marking rubric will be uploaded to Blackboard in the first week of the semester.
Procedure for Making Variations to Assessment Tasks Described

Assessment tasks may be varied with the documented consent of 70% of students enrolled in the course.
Course Gradings
The gradings available in this course are as follows:

HDH High Distinction, 80 to 100%

DID Distinction, 70 to 79%

CRC Credit, 60 to 69%

PAP Pass, 50 to 59%

NNN Fail, 0 to 49%

RWT Result Withheld

DEF Result deferred

Assessment Guidelines
A High Distinction involves exceptionally clear understanding of course matter and appreciation of issues; well organised,
formulated and sustained arguments; well thought out and structured diagrams; relevant literature referenced, and; evidence of
creative insight and originality in terms of comprehension, application and analysis with at least some synthesis and evaluation.
A Distinction involves strong grasp of course matter and appreciation of key issues, perhaps lacking a little on the finer points;
clearly developed arguments; relevant and well-structured diagrams; appreciation of relevant literature, and; evidence of creative
and solid work in terms of comprehension, application, analysis and perhaps some synthesis.

A Credit involves competent understanding of course matter and appreciation of some of the main issues though possibly with
some gaps; clearly developed arguments; relevant diagrams and literature use, perhaps with some gaps; well prepared and
presented, and; solid evidence of comprehension and application with perhaps some analysis.
A Pass involves some appreciation of course matter and issues; work generally lacking in depth or breadth and with gaps. Often
work of this grade comprises a simple factual description (i.e. basic comprehension) but little application or analysis. Work of this
grade may be poorly prepared and presented. Investment of greater care and thought in organising and structuring work would be
required to improve.
A Fail involves evidence of lack of understanding of course (minimal or inadequate comprehension and little or no application)
and inability to identify issues, and often inadequate in depth and breadth and sometimes incomplete or irrelevant.
Borderline Fails
Borderline fails in this course are determined when the final overall mark is in the range 45-49 (%) inclusive. For all borderline
fails, the WIL assessment, (which is the major piece of assessment), is remarked.
Clarification of Course Results
If you fail, you may seek clarification of your result by making an appointment with the course coordinator.

Other Relevant Information

Academic Policies and Procedures
Information relating to policies and procedures can be found from the RMIT website.
Where matters beyond your control interfere with the completion of assessment components, you may seek special
consideration. Information is available from the RMIT website http://www.rmit.edu.au/students/specialconsideration
Academic Misconduct & Plagiarism
Plagiarism is the presentation of the work, idea or creation of another person as though it is your own. It is a form of cheating and
is a very serious academic offence that may lead to expulsion from the University. RMITs policy on Plagiarism can be read at:
http://www.rmit.edu.au/browse;ID=oy9op2oyancb;STATUS=A?QRY=Plagiarism%20&STYPE=ENTIRE