ACCOUNTING THEORY (FAR 600) Teaching and Learning Arrangements ( E!

E TER" E#T $0%& ' (AN $0%)) COUR E CO*E #ROGRA! CRE*IT HOUR CONTACT HOUR TATU RE OURCE #ER ON OFFICE , #HONE NOE.!AIL YNO# I This course is designed to further enhance the students understanding of the concepts and issues in accounting theory and practices. The course involves the study of the practical and theoretical issues involved in the development, implementation and changes in conceptual framework and regulatory framework. COUR E OUTCO!E At the end of the course, students should be able to: 1. . ". $. %. Discuss the various theories and paradigms in accounting. Demonstrate an understanding on the concept of !slamic Accounting, the need for it and its differences to conventional accounting. #valuate the evolution of the conceptual framework and standard setting process, nationally and internationally. #valuate the relationship between accounting theories and framework to the practice in the real world. Analy&e the recognition, measurement and other current issues in financial reporting. " " " " " " " " 0%$.&%%&/01 has2in&&34ah55-c5m FAR 600 +ACHELOR OF ACCOUNTING (HON ) & & CORE

COURSE OUTLINE
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Hist5rica2 de:e258ment 5; acc59nting Describe early history of accounting, the age of record keeping and the birth of double entry accounting Discuss the development of accounting principles in the '(A Discuss the development of accounting theory

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Acc59nting In Is2am Describe the history of accounting in !slam Describe !slamic accounting: o Definition o -b.ective and characteristics of !slamic accounting o /undamental !slamic values to business activities Discuss the need for !slamic accounting )ompare the characteristics of !slamic accounting versus conventional accounting )orporate reporting from an !slamic 0erspective

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Re2e:ant (59rna2 Artic2es (Re;er Re;erences at the end 5; c59rse 59t2ine)

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Acc59nting The5r4 C5nstr9cti5n 0ragmatic Theories o Descriptive pragmatic approach o 0sychological pragmatic approach (yntactic and (emantic Theories 1ormative Theories 0ositive Theories

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#5siti:e The5r4 5; Acc59nting #52ic4 and *isc25s9re )ontracting Theory Agency Theory 0olitical 0rocesses

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Ca8ita2 !ar7et Research 6./ 0hilosophy of 0ositive Accounting Theory (trengths of 0ositive Theory o Dissatisfaction with prescriptive standards (cope of 0ositive Accounting Theory

)hapter 1 0g $3" 5 $37

A8824ing The5r4 t5 Acc59nting Reg92ati5n The The5ries 5; Reg92ati5n Re2e:ant t5 Acc59nting and A9diting Theory of #fficient 8arkets Agency Theory Theories of 9egulation o 0ublic interest theory o 9egulatory capture theory o 0rivate 5 interest theory H5< The5ries 5; Reg92ati5n A8824 t5 Acc59nting and A9diting #ractice Application of 0ublic !nterest Theory Application of )apture Theory Application of 0rivate !nterest Theory (tandard (etting as a 0olitical 0rocess The Reg92at5r4 Frame<5r7 ;5r Financia2 Re85rting tat9t5r4 Re=9irements )orporate :overnance Auditors and -versight !ndependent #nforcement ;odies 6 1, ,",$,%, G5d;re4 et a26 )hapter "

The Instit9ti5na2 tr9ct9re ;5r etting Acc59nting and A9diting tandards ;ackground The !A(; and /A(; )onvergence 0rogram Accounting (tandards for the 0ublic (ector !nternational Auditing (tandards " tandard etting in !a2a4sia <istorical development of financial reporting practice in 8alaysia 1, R5sha4ani Arshad Draft )hapter, Accounting Theory:

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#+plain current financial reporting regime in 8alaysia Describe the move towards convergence with !nternational Accounting (tandards !dentify the challenges for standard setting " 1, ,",$

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N5rmati:e The5ries 5; Acc59nting ' The Case 5; C5nce8t9a2 Frame<5r7 #r5?ects 6hat is a C5nce8t9a2 Frame<5r7 (CF) 5; Acc59nting@ A +rie; O:er:ie< 5; the Hist5r4 5; the *e:e258ment 5; CFs The Trueblood 9eport The /A(; )onceptual /ramework 0ro.ect The *'=, )orporate 9eport Development of )/s in Australia and #lsewhere )urrent #fforts of the !A(; and the /A(; +9i2ding +25c7s 5; a C5nce8t9a2 Frame<5r7 Definition of the 9eporting #ntity 'sers of /inancial 9eports -b.ectives of :eneral 0urpose /inancial 9eporting >ualitative )haracteristics of /inancial 9eports ;alancing 9elevance and 9eliability )an /inancial (tatements 0rovide 1eutral and 'nbiased Accounts of an #ntitys 0erformance and 0osition? Definition of the #lements of /inancial 9eporting Definition of Assets Definition of @iabilities Definition of #Auity Definition of !ncome Definition of #+penses 9ecognition of the #lements of /inancial 9eporting 8easurement 0rinciples +ene;its Ass5ciated <ith Ha:ing a CF CFs as a !eans 5; Legitimising tandard. etting +5dies

*eeganA C)hapter 6

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Acc59nting !eas9rement 4stems Three !ain Inc5me and Ca8ita2 !eas9rement 4stems Hist5rica2 C5st Acc59nting -b.ective of Accounting )apital and profit 8atching of )osts Theory )onservatism Arguments for <istorical )ost Accounting )riticisms of <istorical )ost Accounting

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C9rrent C5st Acc59nting -b.ective of )urrent )ost Accounting )oncept of ;usiness 0rofit and /inancial )apital <olding :ains and @osses Bhy <olding :ains are a )omponent of 0rofit

Financia2 Ca8ita2 :ers9s #h4sica2 Ca8ita2 !n support of 0hysical )apital Arguments /or and Against )urrent )ost 8ore (pecific )riticisms

EBit #rice Acc59nting !ncome and )apital -b.ective of Accounting Arguments /or #+it 0rice Accounting Arguments Against #+it 0rice Accounting

Ca29e in Use Cers9s Ca29e in EBchange %$.%& Creati:e Acc59nting Discuss the issues related to creative accounting Discuss the techniAues of creative accounting Discuss the concept of ethics from the perspectives of creative accounting 6 1, ,",$,%, !92;5rd and 6 C5mis7e4 )hapter 1 0g 1 5 17

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Earnings !anagement E:idence 5; Earnings !anagement ;5r +5n9s #9r85ses Other !5ti:ati5ns ;5r Earnings !anagement -ther )ontractual 8otivations 0olitical 8otivations Ta+ation 8otivations )hanges of )#!nitial 0ublic -fferings To )ommunicate !nformation to !nvestors c5ttA 6-R)hapter 11

#atterns 5; Earnings !anagement 6h4 *5es Earnings !anagement #ersist@ The DG55dE ide 5; Earnings !anagement The D+adE ide 5; Earnings !anagement
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Emerging Iss9es in Acc59nting and A9diting C9rrent Fact5rs In;29encing Acc59nting and A9diting ResearchA Reg92ati5n and #ractice C;9@ The #ffects of )orporate )ollapses and the (arbanes4-+ley Act * 33 ,

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9stainaFi2it4 Acc59ntingA Re85rting and Ass9rance Bhat is (ustainability Accounting and 9eporting? 9ecent Developments in (ustainability 9eporting Trends in (ustainability 9eporting Assurance Bhy (eek Assurance for (ustainability 9eports? (ustainability Assurance (tandards

Other N5n.Financia2 Acc59nting and Re85rting Iss9es Bater Accounting Bater Accounting vs :reen <ouse :as #mission

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Accounting

COUR E A E !ENTG ECALUATION

)ontinuous Assessment: Test :roup pro.ect :roup )ase (tudy /inal comprehensive e+amination Total

1%D 1%D 13D 63D 133D

GROU# #RO(ECT (Re85rt %0HI #resentati5n 0H) A comparative study on annual reports of two organi&ations from two distinct speciali&ed industry sectors of the 8ain 8arket, ;ursa 8alaysia. The two sectors identified for this semester are C5nstr9cti5nI and #2antati5n sectors. *N5te: /our, with a ma+imum of five students, per group, The pro.ect should include: ;usiness and economic literature review on the industries (tudy on the background of the companies Analysis of the differences and similarities of the two different industries with regards to: 4 (tatutory reAuirements 4 )orporate governance 4 Eoluntary disclosure including: )orporate social responsibility #nvironmental issues Any other observations peculiar to the annual reports Re85rt" 8a+imum of 13 pages e+cluding appendices /ont: Arial, (i&e 11 (pacing: 1 F #resentati5n (Using #5<er #5int)" The presentation should be of high standard and it will be assessed according to the following criteria *among others,: Depth of )ontent >uality of verbal presentation )larity of e+pression of ideas 0ersonal appearance

GROU# CA E TU*Y (%0 H) *N5te: Two, with a ma+imum of three students, per group,

,333 5 ",333 words /ont: Arial, (i&e 11 (pacing: 1 F

(tudents will be informed of the chosen case and Auestions for discussion, during the semester.

REFERENCE

:odfrey, G., <odgson, A., Tarca, A., <amilton, G. and <olmes, (. * 313,. Accounting Theory, G Biley. *7th #dition, (cott, B.9. * 332,. /inancial Accounting Theory. 0rentice <all *% th #dition,. Deegan, ). * 332,. /inancial Accounting Theory. 8c:raw4<ill !rwin *"rd #dition,. ;elkaoui, Ahmed * 333,, Accounting Theory, ;usiness 0ress *$ th #dition, 9oshayani Arshad, Draft )hapter, Accounting Theory: (ubmitted to 8c:raw <ill. 8ulford, ). B. and )omiskey #. #. * 33 ,. The /inancial 1umbers :ame: Detecting )reative Accounting 0ractices. G Biley (ons * nd #dition, -ther relevant readings and articles. (59rna2 artic2es ;5r T58ic $ ' Is2amic Acc59nting"
1, -mar A. Haid. * 33$,. Accounting (ystem I recording procedures in the early !slamic (tates. Accounting <istorian Gournal. , -mar A. H. * 333,. Bere !slamic 9ecords 0recursors to Accounting ;ooks ;ased on the !talian 8ethod? Accounting <istorian Gournal ", (hahul <. * 333, !slamic Accounting 5 A 0rimer $, 9i&al J. and (hahul <. -b.ectives I )haracteristics of !slamic Accounting: 0erceptions of 8uslim Accounting Academicians in Jogyakarta !ndonesia

#LAGIARI !: The /aculty regards plagiarism as a very serious matter and takes action under the appropriate disciplinary regulations against students who are involved in cases of plagiarism. (tudents

are e+pected to discuss their work with peers and tutors. <owever, they are e+pected to present their own original work and make material contribution to the group work.