GRA 6211 Financial Accounting Theory
GRA 6211 Financial Accounting Theory
What is the relationship between accounting information and economic realities? This course provides insight into the fundamental functions of financial reporting and its theoretical basis.
Students shall learn about the connections between the accounting information of firms and their surroundings. 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 content of the economic concepts of income and wealth and how do they rate to the accounting concepts of profit and equity? What is the role of financial reporting for participants in the capital market, and to what extent does financial statement information have unintended economic consequences? To what extent is financial reporting biased to meet specific objectives (earnings management)? The course also covers the history of accounting and the reasons for public regulation of financial reporting.
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.
- History of the accounting discipline
- Relationship with economic factors
- Accounting models
- The financial statement as a source of information for the capital market
- Earnings management and other economic consequences
- Standard setting
A combination of lectures, discussions and exercises.
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 that is not included on It's learning or text book.
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 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.
| 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 with 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.