|Faculty or Section :||Faculty of Business, Education, Law and Arts|
|School or Department :||School of Business|
|Grading basis :||Graded|
|Course fee schedule :||https://www.unisq.edu.au/current-students/administration/fees/fee-schedules|
|Version produced :||4 February 2023|
Many students ask 'why do we have to study theory?' This course answers this question for accounting to show how theories underpin not just about everything we do in our lives but also the practice of accounting. Theories are just that, someone’s view of phenomena. Therefore, theories must be looked at with a critical eye, not taken on blindly. They can help us make decisions providing benefits including explaining current practice, providing some principles for taking decision actions and identifying problems so that we can improve our professional practice. Students may then be able to move from what we do now (positive theory) to what we would like to do (normative theory) making a contribution to the accounting profession in the form of ideas and recommendations for a better world.
This course introduces students to the theory that underpins accounting practice. Using established accounting theories, the factors or incentives that exist for preparers of financial reports are investigated. These factors require consideration when making financial reporting decisions or evaluating the decisions of others. The primary objective of this course is to overlay theory concepts and a framework to accounting practice from a critical perspective so students see the relevance of theory to practice. This includes an investigation of the popular theories and evidence with regard to financial reporting. The financial reporting issues addressed include the choice of accounting methods, voluntary disclosures, environmental performance reporting and the regulation of financial reporting. As a capstone course for the accounting major, students are expected to bring together all their learned knowledge of accounting from prior courses and take a critical look at theory and practice of accounting.