This module aims to increase students' knowledge of financial accounting theory and its relevance to accounting practice.
The module further develops students’ knowledge of year one accounting modules and complements 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; unregulated financial reporting, capital markets’ response to accounting information, and to explore the critical perspectives of accounting.

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

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

(LO3) Students will 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) Students will be able to demonstrate an understanding of the regulations applied to financial reporting in the UK and other countries.

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

(LO6) Students will be able to demonstrate an understanding of the theory and practice of Environmental, Social and Governance (ESG) reporting.

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

(LO8) Students will 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 Method: Lecture
Scheduled Directed Student Hours: 24
Attendance Recorded: Yes

Teaching Method: Seminar
Scheduled Directed Student Hours: 6
Attendance Recorded: Yes

Self-Directed Learning Hours: 120

Costs Information:
No additional costs

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

Skills Mapping

Skill: Adaptability
How is it developed: Lectures, seminars and research papers focus on how the practice of accounting is affected by various theoretical perspectives. This will enable students to be more resilient and will equip them to quickly adapt to changes in a dynamic business environment.
Mode of assessment (if assessed): midterm and coursework

Skill: Problem Solving
How is it developed: Lectures, seminars and research papers for this module will help students to develop problem solving skills by introducing them to how the theoretical accounting concepts are applied, how can they be explained and how to come up with new accounting practices.
Mode of assessment (if assessed): midterm and coursework

Skill: Commercial Awareness
How is it developed: Lectures, seminars and research papers will make students commercially aware by introducing them to real life examples.
Mode of assessment (if assessed): midterm and coursework

Skill: Teamwork
How is it developed: In seminars students will work in teams to develop a conceptual understanding of problems and issues raised in the questions.
Mode of assessment (if assessed)

Skill: Organisational Skills
How is it developed: Activities in lectures, seminar questions and the assessments on this module will help students develop key organisational.
Mode of assessment (if assessed)

Skill: Communication Skills
How is it developed: Students will develop oral communication skills through interactions in lectures and seminars. They will develop written communicat ion skills in their coursework assignments and participation in the discussion board.
Mode of assessment (if assessed): midterm and coursework

Skill: International Awareness
How is it developed: Students will develop international awareness as the majority of the content in this module has an international focus. This will also be achieved through the use of multi-national organisations as examples in lectures and seminars.
Mode of assessment (if assessed): midterm and coursework

Skill: Lifelong Learning Skills
How is it developed: Lectures, seminars and research papers on this module will provide students opportunities to understand the important of lifelong learning and will help them develop this skill.
Mode of assessment (if assessed)

Skill: Ethical Awareness
How is it developed: Students will develop ethical awareness by understanding issues related to accountability, governance and corporate social responsibility. Particularly, students w ill a deep understanding of ethical issues in corporate disclosures.
Mode of assessment (if assessed): midterm and coursework

An overview of financial accounting theory ;

The financial reporting environment;

The regulation of financial accounting

Normative theories of accounting 1: The case of accounting for changing prices;

Normative theories of accounting 2: The case of conceptual framework projects;

Positive Accounting Theory;

International Accounting ;

Unregulated financial reporting decisions: Considerations of systems-oriented theories

Extended Systems of Accounting: Environmental, Social and Governance (ESG)

Capital markets' reaction to accounting information.

Critical Perspectives of accounting