GRA 6211 Financial Accounting Theory
GRA 6211 Financial Accounting Theory
This course explores the role of accounting information. In particulary, it focuses on (i) the relation between accounting information and capital markets and (ii) on the role of accounting information in corporate contracts.
The course is particularly relevant to any student planing to work as an accounting standard setter, a regulator (Finanstilsynet, SEC, ...), an auditor, an economist, an equity research analyst, an analyst at a credit rating agency or an investor.
Students shall learn about the role of accounting information. This includes knowledge about how the accounts reflect the reporting firm’s financial conditions and how the accounting information is used and understood by the financial statement users.
What is the role of accounting information in the communication with capital markets?
What is the role of accounting information in contracting decisions with the firm's management (e.g. compensation plans) or with the firm's creditors (e.g. debt covenants)?
Can accounting information both optimally inform investors and maximize contracting efficiency?
To what extent is financial reporting biased to meet specific objectives (earnings management)?
Students shall learn to apply and analyse accounting information in a wider corporate and societal context.
Students shall learn to consider critically the content of financial reporting.
- Brief history of the accounting and recent crises
- Accounting models
- The financial statement as a source of information for the capital market
- The financial statement as a tool to maxize contracting efficiency
- Earnings management and other economic consequences
- Standard setting
A combination of lectures, discussions, exercises and paper readings. Additional articles may be added to the reading list before the course.
Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class.
All parts of the assessment must be passed in order to get a grade in the course.
All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have spesific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.
Covid-19
Due to the Covid-19 pandemic, there may be deviations in teaching and learning activities as well as exams, compared with what is described in this course description.
Teaching
Information about what is taught on campus and other digital forms will be presented with the lecture plan before the start of the course each semester.
| Assessments |
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Exam category: Submission Form of assessment: Written submission Weight: 30 Grouping: Group (1 - 3) Duration: 1 Semester(s) Comment: Term paper Exam code: GRA62112 Grading scale: ECTS Resit: Examination when next scheduled course |
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 70 Grouping: Individual Support materials:
Duration: 3 Hour(s) Comment: Written examination under supervision. Exam code: GRA62113 Grading scale: ECTS Resit: Examination when next scheduled course |
All exams must be passed to get a grade in this course.
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.