| Course Name | Accounting Theory |
| Code | Semester | Theory (hour/week) | Application/Lab (hour/week) | Local Credits | ECTS |
|---|---|---|---|---|---|
| BA 660 | Fall/Spring | 3 | 0 | 3 | 7.5 |
| Prerequisites | None | |||||
| Course Language | English | |||||
| Course Type | Elective | |||||
| Course Level | Second Cycle | |||||
| Mode of Delivery | - | |||||
| Teaching Methods and Techniques of the Course | ||||||
| Course Coordinator | ||||||
| Course Lecturer(s) | ||||||
| Assistant(s) | - | |||||
| Course Objectives | The aim of the course is to examine various theories to understand the role of accounting in decision making. The main emphasis is the current theories including both normative and positive theories. The course also examines a number of contemporary accounting issues in the context of the theories studied in the course. |
| Learning Outcomes | The students who succeeded in this course;
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| Course Description | The course will cover mainly financial accounting theory and its historical development. Current issues will be given special emphasis. Critical evaluation of concepts, assumptions, principles, and analytical methodologies of accounting and their application to factual situations; asset valuation and income determination: implications for internal and external uses of accounting information in business decision making; application of the current authoritative accounting pronouncements to a variety of accounting situations; and conceptual development of accounting theories will be discussed. |
| Related Sustainable Development Goals | |
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| Core Courses | |
| Major Area Courses | X | |
| Supportive Courses | ||
| Media and Managment Skills Courses | ||
| Transferable Skill Courses |
| Week | Subjects | Required Materials |
| 1 | Introduction – Scientific thought | Kuhn, Thomas S. "The Structure of Scientific Revolutions," The University of Chicago Press, Chicago IL, 1970 The alternative paradigms, or "world views," such as “positive, normative and critical” accounting theories which motivate the major streams of research and schools of thought that populate the accounting research literature will be discussed within Kuhn’s scientific paradigm. With the help of the attached reading list these theories are examined. 1. Accounting education change: a Kuhnian perspective, Jean B Price,The Journal of Theoretical Accounting Research; Spring 2006; Vol.1,Issue 2; pp.39-57(19p)) |
| 2 | Accounting Education | 2. Is Accounting an Academic Discipline?, Joel Demski, Accounting Horizons, v.21,No.2,June 2007, pp.153-157(5p) 3. Is Accounting an Academic Discipline?, John C.Fellingham, Accounting Horizons, v.21,No.2,June 2007, pp.159-163(4p) 4. The a priori wars: The Modernisation of accounting thought, M.J.Gaffikin, Accounting Forum,Vol.27, No.3, 2003,291-311(21p) You may want to read the following articles as well: Creating a Science of Accounting: accounting theory to 1970, MJ Gaffikin, University of Wollongong School of Accounting & Finance, Working Papers Series,05/08,20p. Accounting Research and Theory: the age of neoempiricism, MJ Gaffikin, University of Wollongong School of Accounting & Finance, Working Papers Series,05/07,21p |
| 3 | What is accounting? Art or Science? Accounting Paradigm | 4. The a priori wars: The Modernisation of accounting thought, M.J.Gaffikin, Accounting Forum,Vol.27, No.3, 2003,291-311(21p) You may want to read the following articles as well: Creating a Science of Accounting: accounting theory to 1970, MJ Gaffikin, University of Wollongong School of Accounting & Finance, Working Papers Series,05/08,20p. Accounting Research and Theory: the age of neoempiricism, MJ Gaffikin, University of Wollongong School of Accounting & Finance, Working Papers Series,05/07,21p. 5. Some thoughts on the intellectual foundations of accounting , JC Fellingham, Y Ijiri, S Sunder, JC Glover, PJ Accounting Horizons, 16, no. 2 (June 2002), 157-168 (10p) 6. Accounting as a Critical Social Science ,JF Dillard , |
| 4 | Elements of Accounting Theory | 7. A Statement of Basic Accounting Theory: A Review Article, R.R.Sterling, Journal of Accounting Research, Vol.5, No.1, Spring 1967,95-112(18p) 8. An “events” approach to basic accounting theory, GH Sorter - The Accounting Review, 1969,12-19(8p) 9. Elements of Pure Accounting Theory , Robert R. Sterling, The Accounting Review, 42:1(1967:Jan.), p.62-74(13p) 10. An inductive approach to accounting theory, Schrader WJ, The Accounting Review Volume: 37,Issue: 4, 1962, Pages: 645-649(5p |
| 5 | Normative Accounting Theories | 11. On the History of NormativeAccounting Theory: Paradigm Lost, Paradigm Regained? R Mattessich - Accounting, Business and Financial History, vol.2.number 2 1992,181-198(18p) 12. The Possibility of a Normative Accounting Standard, R.J.Chambers, The Accounting Review, Vol.51,no.3 (july 1976),646-652(7p) 13. Normative Accounting Theories Md Humayun Kabir Sept 2005 Available at SSRN: http://ssrn.com/abstract=765984, 30p 14. The General Impossibility of Normative Accounting Standards J.S Demski, Accounting Review, 48:4 (1973:Oct.) p.718-723(6p) |
| 6 | Positive Accounting Theories | 11. On the History of NormativeAccounting Theory: Paradigm Lost, Paradigm Regained? R Mattessich - Accounting, Business and Financial History, vol.2.number 2 1992,181-198(18p) 12. The Possibility of a Normative Accounting Standard, R.J.Chambers, The Accounting Review, Vol.51,no.3 (july 1976),646-652(7p) 13. Normative Accounting Theories Md Humayun Kabir Sept 2005 Available at SSRN: http://ssrn.com/abstract=765984, 30p 14. The General Impossibility of Normative Accounting Standards J.S Demski, Accounting Review, 48:4 (1973:Oct.) p.718-723(6p) |
| 7 | First Paper Submission | 1st: In your your opinion “What is accounting”? Art, science,social science, something else? Back up your opinion with articles; quotes,etc.when appropriate and necessary |
| 8 | Conceptual Framework | Conceptual Framework. Discussions regarding the disclosure and accounting standards. 1. Financial Reporting,W.H.Beaver, 1998, Chapters 1 ,2 and 7 ( 53p) |
| 9 | Standard Setting and Regulation | 2. Regulation as Accounting Theory , MJ Gaffikin, University of Wollongong School of Accounting & Finance, Working Papers Series,05/09,(19p) 3. Regulation: Standardising Accounting Practice, MJ Gaffikin, University of Wollongong School of Accounting & Finance, Working Papers Series,06/22,(18p) 4. Regulatory Competition among Accounting Standards within and across International Boundaries, S.Sunder, Journal of Accounting and Public Policy 21, no. 3 (2002): 219-234 (16p) |
| 10 | Standard Setting: International Issues | IFRS Framework and 5. The Selective Misrepresentation Hypothesis, L.Revsine,Accounting Horizons,December 1991,15-27(13p) 6. IFRS and the Accounting Consensus, S.Sunder, Accounting Horizons, Mar 2009, Vol.23,No.1, 101-111(11p) 7. Towards a Theory of Cultural Influence on the Development of Accounting Systems Internationally, S.J.Gray, ABACUS, Vol.24,No.1, 1-15(15p) |
| 11 | Standards and Measurement | 8. Standard Setting Measurement Issues and Relevance of Research, M.Barth, Accounting and Business Research, Special Issue: International Accounting Policy Forum, 2007,7-15(9p) 9. Reconsidering Revenue Recognition, K.A.Schipper,C.M.Schrand,T.Schevlin, and T.J.Wilks, Accounting Horizons, 2009,Vol.23,No.1,55-68(14p) 10. Financial Reporting Quality: is fair value a plus or a minus?, S.Penman, Accounting and Business Research Special Issue: International Accounting Policy Forum, 2007, 33-44(12p) 11. Problems and Paradoxes in the Financial Reporting of Future Events, W.H.Beaver, Accounting Horizons, December 1991, 122-134(13p) |
| 12 | Second Paper Submission | 2nd: Do you think the International Financial Reporting Standards address/satisfy the role you have described in your first paper? How? Critically evaluate the reporting standards and financial statements. What kind of improvements would you suggest? In your opinion should we use the principle based or rule based standards? |
| 13 | Measurement Issues | Measurement, Income determination and quality of earnings will be discussed with specific reference to standards, financial statements and accounts. 1. Axioms and Structures of Conventional Accounting Measurement, Y.Ijiri, The Accounting Review, Vol.40, No.1, 1965,36-53(19p) 2. Reliability and Objectivity of Accounting Measurement, J.Ijiri and R.K.Jaedicke, The Accounting Review, Vol.41. No.3,1966, 474-483(10p) 3. The Nature of Income Measurement, W.H.Beaver and J.S.Demski, The Accounting Review, Vol.54, No.1, 1979,38-46(9p) 4. Metrical and Empirical Laws in Accounting, R.J.Chambers, Accounting Horizons, 1991,1-15(15p) 5. An Induced Theory of Accounting Measurement, G.Staubus, The Accounting Review, Vol.60. No.1,1985, 53-75(23p |
| 14 | Income Determination | 6. Recognition: An Information Content Perspective, P.J.Liang,2000, Working paper,(23p) 7. Fair Value Accounting and the Management of the Firm, B.Barlev and J.R. Haddad, Critical Perspectives on Accounting, vol.14, 2003, 383-415(33p) 8. Sunder, Shyam. “Econometrics of Fair Values.” Accounting Horizons, 22 no.1, (March 2008): 111-125 (15p) |
| 15 | Current Cost Discussions | 9. Continuously Contemporary Accounting :Misunderstandings and Misrepresentations, R.J.Chambers, ABACUS,1976,137-151(15p) 10. Replacement Cost Accounting by Lawrence Revsine, Book Review by R.J.Chambers, The Accounting Review, 1974,175-178(4p) 11. Value to the Owner: A Review and Critique, R.K.Ashton, ABACUS, Vol.23, No.1, 1987, 1-9 (9p |
| 16 | Third Paper Submission | 3rd: Categorize, and critically discuss the prevalent theories in accounting stating the proponents and opponents of that theory. |
| Course Notes/Textbooks | Kuhn, Thomas S. The Structure of Scientific Revolutions,; The University of Chicago Press, Chicago IL, 1970 Financial Reporting: An Accounting Revolution, (3rd edition) by William H. Beaver, Prentice-Hall, 1998 |
| Suggested Readings/Materials | Contemporary Issues in Accounting, M.Derver, P.Stanton and S.McGowan, Wiley, 2007 Financial Accounting Theory and Analysis, 8th Ed. R.G.Shroeder, M.W.Clark and J.M.Cathey, Wiley, 2005 |
| Semester Activities | Number | Weigthing |
| Participation | 1 | 25 |
| Laboratory / Application | ||
| Field Work | ||
| Quizzes / Studio Critiques | ||
| Portfolio | ||
| Homework / Assignments | 3 | 75 |
| Presentation / Jury | ||
| Project | ||
| Seminar / Workshop | ||
| Oral Exam | ||
| Midterm | ||
| Final Exam | ||
| Total |
| Weighting of Semester Activities on the Final Grade | 2 | 100 |
| Weighting of End-of-Semester Activities on the Final Grade | ||
| Total |
| Semester Activities | Number | Duration (Hours) | Workload |
|---|---|---|---|
| Course Hours (Including exam week: 16 x total hours) | 16 | 3 | 48 |
| Laboratory / Application Hours (Including exam week: 16 x total hours) | 16 | ||
| Study Hours Out of Class | 16 | 4 | 64 |
| Field Work | |||
| Quizzes / Studio Critiques | |||
| Portfolio | |||
| Homework / Assignments | 3 | 30 | |
| Presentation / Jury | |||
| Project | |||
| Seminar / Workshop | |||
| Oral Exam | |||
| Midterms | |||
| Final Exams | |||
| Total | 202 |
| # | Program Competencies/Outcomes | * Contribution Level | ||||
1 | 2 | 3 | 4 | 5 | ||
| 1 | To be able to master existing theoretical knowledge in their specialized area of business administration. | X | ||||
| 2 | To be able to gain in-depth knowledge of research methodologies and design. | X | ||||
| 3 | To be able to acquire advanced knowledge of data collection and analysis techniques. | X | ||||
| 4 | To be able to design and conduct original research with a scholarly theoretical emphasis. | |||||
| 5 | To be able to disseminate scholarly knowledge in well-known academic networks. | X | ||||
| 6 | To be able to demonstrate the ability to communicate the results of their research in a clear and effective manner with various audiences. | X | ||||
| 7 | To be able to have concerns for the high ethical standards in research, and teaching. | X | ||||
| 8 | To be able to adopt critical attitude toward the extant literature and practice in the specialized area of business administration. | X | ||||
*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest
