Financial Accounting Theory

Subject ACCT30001 (2014)

Note: This is an archived Handbook entry from 2014.

Credit Points: 12.50
Level: 3 (Undergraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2014:

Semester 1, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable

Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: Two 1-hour lectures and one 1-hour workshop per week
Total Time Commitment: Not available

Both of:

Study Period Commencement:
Credit Points:
Summer Term, Semester 1, Semester 2
January, Semester 1, Semester 2


Recommended Background Knowledge:

Please refer to Prerequisites and Corequisites.

Non Allowed Subjects:


Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website:


Assoc Prof Matthew Pinnuck


Subject Overview:

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.

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

A 3-hour end-of-semester examination (70%) and a 1.5 hour mid-semester test (30%).

Prescribed Texts:

You will be advised of prescribed texts by your lecturer.

Breadth Options:

This subject potentially can be taken as a breadth subject component for the following courses:

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
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.

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