This module develops students’ understanding of financial accounting theory and its role in shaping accounting practice and corporate reporting. It explores how accounting information is produced, regulated, and used within capital markets, and how economic, institutional, and behavioural factors influence financial reporting outcomes. Key topics include how accounting information is used in markets, how financial reporting is regulated and why it matters, and the study of positive and normative accounting theories. The module also examines unregulated and emerging areas of reporting, with a particular focus on Environmental, Social and Governance (ESG) disclosures, alongside capital markets’ responses to accounting information. Critical perspectives on accounting are also covered to introduce students to the social, economic and ethical aspects of financial reporting.