Accounting Theory ACCT 511

Course description:
This course introduces accounting theory to students in a broad sense. After familiarizing students with fundamental topics such as defining accounting and accounting theory, the importance of accounting theory, and the current state of accounting theory, the research methodologies and approaches that have been utilized to formulate accounting theories are discussed, and then the structure of accounting theory is presented. The change of the objectives of financial accounting,  the need for constructing a framework for financial reporting which contributed to build the FASB’s conceptual framework are all addressed next. Measuring the income and the elements of the financial statements are discussed. The debate of rules-based accounting system versus principles-based accounting system, a contemporary topic in accounting literature, will be covered as well. Last, a selected topic which is concerned with positive accounting theorizing concludes the course. The bases of the theatrical foundations of such theorizing, e.g. efficient market hypothesis (EMH), capital asset pricing model (CAPM) and agency theory (contracting theory), will be mentioned.
 
The course emphasizes the following skills:
Students are encouraged to express their views. They will have the opportunity to do so and will be guided when necessary. They will also be giving the chance to disagree among themselves. Students will, to the best of the instructor’s knowledge and ability, be advised of how to construct an argument and how to present their views. For many people in the real world, it is not enough to say a point, but what matters, I think, is how to say it.         
 
My Task with you:
It is my intention neither to influence you with my own thinking nor to impose upon any of you my position toward theatrical issues. It is my job to prepare you, the best I can, as independent thinkers who can evaluate other people’s efforts, take a position, and support his viewpoint. The accounting discipline is in need of independent scholars who can draw conclusions themselves. It is my judgment that if you adopt somebody’s line of thinking, you have less chance to survive in the accounting academe; such a world is full with smart people from all over the world. There is no reward from enslaving your mind and thinking to somebody’s. Similarly, the accountancy profession is in need of practitioners who can creatively think and deduce answers and solutions when confronted with complex transactions to account for. “The best practice” is not the type of answer that reflects a distinguished accountant.