MODULE SPECIFICATION WORD UNDERGRADUATE PROGRAMMES

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1 MODULE SPECIFICATION WORD UNDERGRADUATE PROGRAMMES KEY FACTS Module name Financial Accounting Theory Module code BS3206 School Cass Business School Department or equivalent UG Programme UK credits 15 ECTS 7.5 Level 6 Delivery location (partnership programmes only) MODULE SUMMARY Module outline and aims The aim of the module is to build on Part 2 Financial Accounting by examining some of the major issues facing the accounting profession and, in particular, how current practice is informed by academic thinking and research. The objectives of this module are to provide you with an understanding of: - Modern thinking about the purpose and content of published financial statements - The process of the international harmonisation of accounting - Issues in earnings management - The nature of auditor independence and its regulation Content outline - Conceptual framework for financial reporting. Accounting regulators' views on the purpose and content of financial reports, including issues of definition, valuation and presentation. Can a conceptual framework ever resolve all difficult accounting issues? - Reporting financial performance. Alternative approaches to presenting profit and loss information. Why we are moving towards a concept of comprehensive income and what this means for users of accounts. - Substance over form - the case of accounting for capital instruments - International accounting. Impact of harmonisation on accounting standards. Accounting earnings quality in an international context - impact of corporate governance and international share listings. - Earnings management - what it is; motivations; detection

2 - Auditor independence. The factors that affect auditor independence. Ethical theories and auditor behaviour. The role of professional ethical guidelines. Alternative mechanisms for bolstering independence. Pre-requisite Modules BS2104 Financial Accounting OR AF2101 Financial Accounting WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding: - Understand current moves towards international accounting harmonisation and the problems involved - Understand how stock market behaviour impacts on financial reporting decisions, accounting standard setters and financial analysts - Gain an understanding of some of the ethical conflicts that arise in the course of an audit, with especial reference to the problem of auditor independence Skills: - Understand why and how accounting standards change. - Develop a critical attitude to different accounting methods. - Develop report-writing skills. - Appreciate interactions between accounting and key players in the financial markets. - Understand the implications of different accounting methods for the financial statements. - Appreciate the international dimension of the financial reporting process. - Appreciate the relation between regulation and financial reporting. - Evaluate the ethical challenges facing auditors. - Evaluate the approach the Accounting Standards Board takes when developing a new accounting standard. Values and attitudes: - Be self-motivated to work independently - Produce and deliver original work

3 HOW WILL I LEARN? Lectures. Class discussions. Teaching pattern: Teaching component Teaching type Contact Selfdirected study Placement Lectures Lecture Totals WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments Coursework and exam. Assessment pattern: Total student learning Assessment component Coursework Examination 2.25 Assessment criteria Assessment type Written assignment, including essay Written Exam Weighting Minimum qualifying mark Pass/Fail? 30 0 N/A 70 0 N/A Assessment Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate in order to complete an assessment successfully and Grade-Related Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate to achieve a certain grade or mark in an assessment. Assessment Criteria and Grade-Related Criteria for module assessments will be made available to students prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following an assessment, students will be given their marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader.

4 Assessment Regulations The Pass mark for the module is 40%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Elliott B and Elliott J Financial Accounting & Reporting (Financial Times/Prentice Hall, latest edition). If you already have a recent edition of this book from year 2, there is no need to purchase a more recent edition. Accounting firms' websites often contain good updates on recent developments in financial reporting, as does the Accounting Standards Board's website ( Lewis R and Pendrill D, Advanced Financial Accounting (Financial Times/Prentice Hall, latest edition) Ernst & Young's International GAAP (latest edition) Rees B, Financial Analysis (Prentice Hall, 2nd ed, 1995) Bloom R and Elgers P, Accounting Theory and Policy - a Reader (Harcourt Brace Jovanovich, 2nd ed, 1987) Belkaoui A, Accounting Theory (Business Press/Thomson Learning, latest edition) Note: in addition to the above, references to academic journals and professional magazines will be provided during the course. Version: 2.0 Version date: July 2013 For use from:

5 Appendix: see for the full list of JACS codes and descriptions CODES HESA Code Description Price Group 27 Business and Management D Studies JACS Code Description Percentage (%) N400 The study of the rules, standards and methods of financial accounting within organisations. 100