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: 
2024 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 planning 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)?

What is the motivation behind the introduction of sustainability reporting standards?

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 and introduction of sustainability reporting standards
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.

The course consists of 24 hours of synchronous activities (i.e. in-class teaching) and 12 hours of asynchronous activities. Asynchronous activites involve assignments which are shared with the students in class. After students have worked on the assignments, the course responsible uploads a solution document and a short video explaining the solution. 

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 specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

Disclaimer

Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.

Assessments
Assessments
Exam category: 
Submission
Form of assessment: 
Submission PDF
Exam/hand-in semester: 
First Semester
Weight: 
30
Grouping: 
Group (1 - 3)
Duration: 
1 Semester(s)
Comment: 
Term paper
Exam code: 
GRA 62112
Grading scale: 
ECTS
Resit: 
Examination when next scheduled course
Exam category: 
School Exam
Form of assessment: 
Written School Exam - pen and paper
Exam/hand-in semester: 
First Semester
Weight: 
70
Grouping: 
Individual
Support materials: 
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Duration: 
3 Hour(s)
Comment: 
Written examination under supervision.
Exam code: 
GRA 62113
Grading scale: 
ECTS
Resit: 
Examination when next scheduled course
Type of Assessment: 
Ordinary examination
All exams must be passed to get a grade in this course.
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.