ULMS Electronic Module Catalogue
The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title ACCOUNTING THEORY
Code ACFI202
Coordinator Dr S Ahmad
Finance and Accounting
Sardar.Ahmad@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2019-20 Level 5 FHEQ Second Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):
 

Modules for which this module is a pre-requisite:
 

Programme(s) (including Year of Study) to which this module is available on a required basis:
 

Programme(s) (including Year of Study) to which this module is available on an optional basis:
 

Teaching Schedule
  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 24

   5

       29
Timetable (if known) 120 mins X 1 totaling 24
  		           
Private Study 121
TOTAL HOURS 150

Assessment
EXAM Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Assessment 2: Mid-Term Test Assessment Type: Written Exam Duration: 1 hour Weighting: 30% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL Penalty Applies Anonymous   1 hour    30       
Assessment 1: Written Unseen Examination Assessment Type: Written Exam Duration: Two hours Weighting: 70 % Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL penalty a  2 hours    70       
CONTINUOUS Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
             

Aims

This module aims to increase students' knowledge of the theory of accounting and its relevance to the study of accounting practice.
The module develops knowledge of year one accounting modules and complements the material covered in the second year module Financial Reporting. In addition some of the theoretical material covered in Accounting Theory will provide links to modules in Management Accounting.  
More specifically, the aim of Accounting Theory is to examine the market for accounting information; processes and effects of regulating financial reporting; the incentives which drive managers’ choices of alternative accounting policies; capital markets’ response to accounting information, and to explore the critical perspectives of accounting and consider selected issues in financial reporting.

Learning Outcomes

(LO1) Should possess knowledge about the role and importance of theory and its link to accounting practice.

(LO2) Should possess knowledge of a range of theoretical models which are useful in understanding and explaining current accounting practices and regulation.

(LO3) Should be aware of the literature relating to theoretical models in accounting and be able to use theory to understand and evaluate the regulatory institutions of financial reporting in the UK and other countries.

(LO4) Should be able to understand the regulations applied to financial reporting in the UK and other countries.

(LO5) Should be to able understand the incentives driving managers in their choice of accounting policies within accounting regulations.

(LO6) Should be able to make links between financial reporting and other aspects of accounting.

(LO7) Should be able to understand capital markets' reaction to accounting information.

(LO8) Should be able to understand and explore the critical perspectives of accounting.

(S1) Adaptability

(S2) Problem solving skills

(S3) Commercial awareness

(S4) Teamwork

(S5) Organisational skills

(S6) Communication skills

(S7) International awareness

(S8) Lifelong learning skills

(S9) Ethical awareness

Teaching and Learning Strategies

Teaching Method: Lecture
Scheduled Directed Student Hours: 24
Attendance Recorded: Yes

Teaching Method: Tutorial
Scheduled Directed Student Hours: 5
Attendance Recorded: Yes

Self-Directed Learning Hours: 121

Costs Information:
No additional costs

This module is a pre-requisite for the following modules:
ACFI308

Syllabus
 

An overview of accounting theories;

The financial reporting environment;

The regulation of financial accounting normative theories of accounting: the case of accounting for changing prices and assets values;

Normative theories of accounting: the case of conceptual framework;

Motivations for accounting choice by managers: positive accounting theory;

Positive accounting theory: example of a debt contract;

Positive accounting theory: discussions on empirical research findings;

Evolution of the International Accounting Standards;

The incorporation of social and environmental factors within financial reporting;

Capital markets' reaction to accounting information.

Critical Perspectives of accounting

Recommended Texts
Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.