Advanced Accounting TheoryModule Details

Rationale

In the dynamic realm of contemporary business, where accounting standards constantly evolve and complexities are prevalent, a thorough comprehension of advanced accounting theories is imperative. This ensures the maintenance of consistent, accurate, and comparable accounting practices and outcomes. The Advanced Accounting Theory course educates students on the historical development of theories and standards, and their application to contentious areas in accounting, including income determination, cash flows, assets, liabilities, fair market values, pensions, postretirement benefits, and stock options. Through a blend of theoretical exploration and practical application, students refine their analytical abilities and prepare to make meaningful contributions to the accounting field.

The course aims to develop students’ ability to provide financial accounting solutions to complex contemporary accounting Issues based on the accounting conceptual framework.

Learning Outcomes

At the end of the course students will be expected to:

(i)    Identify the link between standard setting and theory formulation. 
(ii)   Evaluate the content of ASOBAT and analyse the new tripartite structure of standard setting.  
(iii)  Analyse FASB’s current situation and due process.
(iv)  Apply the asset-liability approaches to calculate income. 
(v)  Contrast the different values at which assets can be measured. 
(vi)  Prepare complex cash flow statements and interpret cash flow ratios. 
(vii)  Analyse the importance of liabilities and the difficulty in properly defining them. 
(viii) Distinguish between the cash and allocation approaches to income tax. 
(ix)  Analyse how pensions work and their accounting treatment.
(x)   Analyse the pros and cons of using the mark to market method to value an asset. 
(xi)  Elaborate on accounting disclosure and its role in accounting.