Financial Accounting Theory (ACCT30001)

Undergraduate level 3Points: 12.5On Campus (Parkville)

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Overview

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Semester 1
Semester 2
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The subject aims to develop a critical understanding of the supporting theories and assumptions underpinning financial accounting and the analysis of contemporary financial accounting issues. This critical understanding is developed by exploring the current research thinking on how financial accounting information integrates with modern financial economies. Particular attention is paid to understanding how financial markets use financial accounting information as well as to the economic incentives that derive from its reporting.

Intended learning outcomes


  • Explain the role of theory development in Accounting
  • Explain the concepts of decision usefulness in a financial market setting
  • Explain the role of the standard setting process in a financial market setting
  • Explain the role of economic incentives in determining accounting policy choice
  • Synthesise the range of emerging issues in financial accounting

Generic skills

  • High level of development: oral communication; written communication; problem solving; application of theory to practice; interpretation and analysis; critical thinking.

  • Moderate level of development: statistical reasoning; receptiveness to alternative ideas.

  • Some level of development: collaborative learning; team work; use of computer software; synthesis of data and other information.

Last updated: 9 April 2025