GRA 6211 Financial Accounting Theory

GRA 6211 Financial Accounting Theory

Course code: 
GRA 6211
Department: 
Accounting and Operations Management
Credits: 
6
Course coordinator: 
Michael Kisser
Course name in Norwegian: 
Financial Accounting Theory
Product category: 
Master
Portfolio: 
Master of Accounting and Auditing
Semester: 
2021 Autumn
Active status: 
Active
Level of study: 
Master
Teaching language: 
English
Course type: 
One semester
Introduction

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. 

 

Learning outcomes - Knowledge

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)?

Learning outcomes - Skills

Students shall learn to apply and analyse accounting information in a wider corporate and societal context.

General Competence

Students shall learn to consider critically the content of financial reporting.

Course content
  • 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
Teaching and learning activities

A combination of  lectures, discussions, exercises and paper readings. Additional articles may be added to the reading list before the course.

Software tools
No specified computer-based tools are required.
Additional information

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.

Qualifications

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.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA62112
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination when next scheduled course
30No1 Semester(s)Group (1 - 3)Term paper
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA62113
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination when next scheduled course
70Yes3 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Individual Written examination under supervision.
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:30
Invigilation:No
Grouping (size):Group (1-3)
Support materials:
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
Weight:70
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Duration:3 Hour(s)
Comment:Written examination under supervision.
Exam code:GRA62113
Grading scale:ECTS
Resit:Examination when next scheduled course
Type of Assessment: 
Ordinary examination
Total weight: 
100
Sum workload: 
0

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.