________________________________________________________________________ ______ COURSE CODE : BKAF3083 GROUP : A, B, C, D, E, F, G, H, and I, COURSE : ACCOUNTING THEORY AND PRACTICE PRE-REQUISITE : BKAF3073 FINANCIAL

ACCOUNTING AND REPORTING IV

Lecturer PUAN HAJJAH ROHANA @ NORLIZA HAJI YUSOF DR. MOHD. ATEF MD. YUSOF PROF. MADYA DR. OMAR OTHMAN ENCIK FATHILATUL ZAKIMI ABDUL HAMID* Grou A, B &C D&I E&H F&G Roo m 0.41 3.32 0.07 1.36 Ext. 3790 3992 3908 3780 e-mail yrohana@uum.ed u.my atef@uum.edu.m y omar@uum.edu. my zakimi@uum.edu. my

UNIVERSITI UTARA MALAYSIA FIRST SEMESTER 2011/2012 SCHOOL OF ACCOUNTANCY

1.0

SYNOPSIS This course is an advanced level course focusing on financial accounting theory; and as such, it differs from other accounting courses learnt previously. It is designed to further enhance students understanding of the concepts and issues in accounting theory and practices. This course involves the study of the theoretical and practical issues involved in the development, implementation and changes in accounting theories and regulatory framework. As this course will be seminal-like, this course will provide students with some generic skills required in the accounting profession such as communication, critical thinking and decision making, teamwork, life-long learning and information management, professional ethics, and leadership skills. OBJECTIVES Upon completion of the course, students are expected to: 1. understand the development of accounting theory and theory construction and verification; 2. understand the development of conceptual framework project and accounting standard setting; 3. expose students to specific accounting practices in financial accounting and reporting; and 4. make aware current financial reporting issues. REFERENCES

2.0

3.0

The importance of regular and extensive reading is very much emphasized in this course. Although two (3) textbooks have been chosen as the main text for this course, students are expected to read widely from other additional recommended textbooks. Students are also encouraged to read accounting journals, business newspapers and pronouncements by the Malaysian Accounting Standard Board (MASB), the Malaysian Institute of Accountants (MIA) and the Malaysian Institute of Certified Public Accountants (MICPA).

Main text: Godfrey, J., Hodgson, A., Tarca, A., Hamilton, J., & Holme, S. (2010). Accounting Theory (7th ed.). John Wiley & Sons Australia. Scott, W. R. (2009). Financial Accounting Theory (5th ed.). Toronto: Pearson Prentice Hall International Inc Belkaoui A. R. (2004). Accounting Theory (5th ed.). SouthWestern, Cengage Learning Others: Deegan, C. & Unerman, J. (2006). Financial Accounting Theory (2nd ed.). Australia: McGraw Hill. Susela, S. D., Hooper, K., & Davey, H. (2006). Accounting Theory and Practice: A Malaysia Perspective. Kuala Lumpur: Pearson Prentice Hall. 4.0 ASSESSMENTS Course work Final Examination Total

: :

40% 60% 100%

4.1 Course Work is inclusive of: Topical Discussion and Participation 10% Case Study and Presentation (Group of 4) 20% Class Assignment 10% 40% 4.1.1 Topical Discussion and Participation Students must work and prepare on topic assigned related to the course content to discuss and participate during the discussion in class. Students are required to participate actively during the discussion of related topics. Marks will be awarded accordingly. Points will NOT be given to students who do not participate throughout the semester. 4.1.2 Case Study Students must work on a case study in a group on cases related to the course content particularly the modern accounting cases. Presentation of case study is tentative. 4.1.3 Class Assignment Students are required to: summarize class discussion on selected topic, or

critically provide opinion on selected accountingrelated issues, or answer selected past-semester exam questions, or structured pop quizzes after each topic, and others, etc

Reminder: The above lists are only suggestions. Lecturers may give other class assignment based on relevance.

5.0

COURSE CONTENT HOU RS 6 REF. GHTHH (1&2) SWR (1&2) ARB (1,2,3,4,5,7,1 1&12)

NO TOPICS . 1.0 INTRODUCTION 1.1 Historical development of accounting 1.2 Introduction to Accounting Theory 1.3 Accounting Theory Approaches 1.4 Need & Importance of Accounting Theory 1.5 Accounting Theory and Policy Making 1.6 The Structure of Accounting Theory 2.0 THE CONCEPTUAL FRAMEWORK AND STANDARD SETTING PROCESS: CONVENTIONAL VERSUS ISLAMIC 2.1 What is Conceptual Framework? 2.2 Why Conceptual Framework is needed? 2.3 Components of Conceptual Framework 2.4 Objectives of Conceptual Framework 2.5 Alternative Views of Conceptual Framework 2.5.1 Conventional versus Islamic views 2.6 Accounting Standards and the Needs for Accounting Standards 2.7 Standard Setting Process 2.8 Standard Setting 2.8.1 Economic Issues 2.8.2 Political Issues 2.8.3 Global Conceptual Framework 2.9 Due Malaysia Process of Standard Setting in

GHTHH (4) ARB (5&6) SWR (8,12&13)

2.10 Financial Reporting Standards (FRS), International Financial Reporting Standards (IFRS), the Adoption of FRS, and IFRS in Malaysian Generally Accepted Accounting Principles. 3.0 RECOGNITION AND MEASUREMENT 8 GHTHH (5)

ISSUES 3.1 Introduction to Measurement Theory 3.1.1 What is measurement? 3.1.2 Types of measurement 3.1.3 What do we measure? 3.1.4 Reliability and accuracy 3.1.5 Measurement in accounting 3.2 Relevance and Reliability Issues 3.2.1 Adopting an Accounting Perspective 3.2.2 Historical Cost 3.2.3 Current Cost Accounting 3.2.4 Exit Price Accounting 3.2.5 Fair Value Accounting NO TOPICS HOUR . S 4.0 SPECIFIC ACCOUNTING ISSUES 6 4.1 Economic Consequences (EC) & Positive Accounting Theory (PAT 4.2 An Analysis of Conflict 4.2.1 Game Theory 4.2.2 Agency Theory 4.3 Earnings Management (EM) & Creative Accounting 5.0 COMPRESIVE CASES 5.1 Earning Management 5.2 Integrity & Ethics in Preparing & Reporting Financial Information 5.2 An Analysis of Conflict 5.2.1 Game Theory 5.2.2 Agency Theory 6.0 CURRENT ISSUES 6.1 Corporate Social Responsibility 6.2 Corporate Governance 6.3 Management Discussion & Analysis 6.4 Intellectual Capital Reporting 8

ARB (5,14,15&16) SWR (6&7)

REF.

GHTHH (11 & 12) SWR (8,9,10 &11)

GHTHH (11 & 12) ARB (13) SWR (8,9,10& 11)

GHTHH (14) SWR (4) Journal Articles

6.0

TEACHING METHOD The main and fundamental ideas of each topic will be explained during lectures through discussions, students presentation and participation. Each topic will be discussed in further details
5

during lectures where students are required to present and actively participate in the discussion. 7.0 ATTENDANCE Students must attend at least 80 % of the lectures. Those who failed to do so will be barred from taking the final examination paper.