ACC401 Accounting Theory

Level: 4
Credit Units: 5 Credit Units
Presentation Pattern: EVERY JULY

Synopsis:
ACC401 aims to provide a broad overview of the historical development of accounting theory and
examine why particular accounting procedures or practices are being adopted. Topics covered include
theory construction; theory validation; income concepts and its measurement; accounting and inflation;
and regulations of accounting.

Topics:
Introduction to Financial Accounting Theory
Financial Reporting Environment and Regulation of Financial Accounting
Normative Theories of Accounting and Positive Accounting Theory
Accounting for Changing Prices
Social and Environmental Reporting
Capital Markets, Behavioural Research and Financial Reporting

Textbooks:
Craig Deegan and Jeffrey Unerman: Financial Accounting Theory (Bundled ISBN:9781259073434)
McGraw Hill
ISBN-13: 9780077126735

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Learning Outcome:
Discuss the importance of theory to financial accounting
Prepare an overview of the development and regulation of accounting practice
Debate on the rationale for regulating accounting practice
Appraise historical differences in international accounting practices and the rationale for and
obstacles to harmonisation
Assess conceptual framework projects
Discuss the origin and development of positive accounting theory
Discuss unregulated corporate reporting decisions
Prepare an overview of developments in social and environmental reporting
Appraise the reactions of capital markets to financial reporting
Prepare an overview of behavioural research in accounting
Compare various methods of accounting for changing prices including current purchasing power,
current cost accounting, and exit price accounting

Assessment Strategies:
Continuous Assessment Component Weightage (%)
QUIZ 10
QUIZ 10
GROUP BASED ASSIGNMENT 30
Sub-Total 50

Examinable Component Weightage (%)

Written Exam 50
Sub-Total 50

Weightage Total 100

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