Introductory description

This module is designed to help students understand some of the theoretical assumptions that underlie accounting regulation, practices and research.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

Normative accounting theory and conceptual frameworks
Positive accounting theory
Critical accounting theory
The social and organisational contexts of accounting 1: truth and power
The social and organisational contexts of accounting 2: the profession
The social and organisational contexts of accounting 3: globalisation and environmental change

Learning outcomes

By the end of the module, students should be able to:

• Understand some of the theoretical assumptions that underlie accounting regulation, practices and research.
• Understand the contingent nature of accounting.
• Understand some of the controversies and difficulties embodied in accounting practices and theories.
• Critically examine the nature of accounting through discussing accounting theory and practice.
• Understand the role played by accounting in the globalisation of certain management ideas and practices.
• Demonstrate a knowledge of important developments in accounting ideas and research.
• Contextualise financial statements as part of the process of understanding an organisation's performance.
• Understand the role of accounting in portraying and creating notions of success.
• Assess the nature of accounting information in narrative and numerical forms and understand the relationships between financial statements and narrative statements.
• Understand the wide range of theoretical approaches drawn upon by accounting.
• Appreciate the historical emergence of accounting and its concepts and the ways in which these shape accounting practice.
• Understand the effect of the professionalisation of accounting on the relationship between concepts and practices.
• Develop personal ideas, arguments and opinions in relation to important issues in accounting.

Indicative reading list

Deegan, C. and J. Unerman (2011) “Financial Accounting Theory”, 2nd European edition. London: McGraw Hill
Hines, R.D (1988) “Financial Accounting: In Communicating Reality, We Construct Reality” Accounting, Organizations and Society, 13 (3), pp.251-261
Hines, R. (1991) “The FASB's Conceptual Framework, Financial Accounting and the Maintenance of the Social World”, Accounting, Organizations and Society, 16 (4), pp 313-332
Hopwood , A. and P. Miller (eds) (1994) “Accounting as Social and Institutional Practice”, Cambridge: Cambridge University Press
Sikka, P. (2009) “Financial Crisis and the Silence of the Auditors”, Accounting, Organizations and Society, 34(6-7), pp. 868–873
Watts, R. and J. Zimmerman (1986), “Positive Accounting Theory”, Englewood Cliffs: Prentice Hall
Young, J. J. (2006) “Making Up Users”, Accounting, Organizations and Society, 31(6), pp. 579–600.

Subject specific skills

Understand the practical and ethical importance of being able to explain why elements of technical accounting
decisions/standards are as they are at any moment in time. (This feeds into the ability to articulate the assumptions
underpinning technical judgments).
Articulate in a general way the importance of understanding measurement assumptions and their impact on accounting numbers.
Interpret and critically analyse the (annual) reports and accounts of organisation.

Transferable skills

Demonstrate written communication skills.
Critically evaluate ideas about issues in accounting.
Demonstrate team work and oral communication.
Appreciate the range of academic accounting literature and its relationship to accounting practice.