SYLLABUS - Accounting Theory
SYLLABUSACCOUNTING THEORY
(3 SKS)
Semester I
SYLLABUSACCOUNTING THEORY
I. NAME OF FACULTIES1. Dr. Regina J. Arsjah, SE, Msi. Ak.(Email:
[email protected])2. Antonius N. Herusetya, SE, Ak, MM.3.
Dr. Endah Sri Wahyuni, SE, Msi.II. COURSE DESCRIPTIONAccounting
Theory Course helps students to better appreciate the context of
financial reporting. It will describe how the accounting theories
are formulized, who involved in the process and what arguments
accompanied the process. In real life, management must choose among
alternative accounting methods, for his/her decision he/she needs
more information about the chosen method, the background ideas of
the method and the context of the method. III. COURSE PREREQUISITE
: Principle of Accounting, Intermediate Accounting 1 & 2IV.
TEXTBOOKFinancial Accounting Theory and Analysis : Text and Cases.
Schroeder, Clark and Cathey. 9/10 ed. Willey, 2009V.
OBJECTIVESAfter this course, the students will have:1.
Understanding the factors which influence accounting choices by
managers.2. Understanding financial reporting rule-makers. 3.
Understanding how to identify appropriate accounting treatment in
complex situations. 4. Abilities to think critically and to defend
arguments by understanding the process of accounting theory
formulation.
VI. METHODS OF INSTRUCTIONGuided discussion, group presentation.
VII. ATTENDANCE PROCEDUREThe instructor will utilize the
University's policy for attendance.
VIII. METHODS OF EVALUATIONTopic Summary. These include at least
two pages summary for every group on every topic. Groups which do
not give presentation/case, are obliged to make case
summary/article summary (page 1-2).Presentation. In group, students
give 60 minutes-length presentation. This presentation is according
to the weekly topic. Both students and instructor grade the
presentation.Summary of the grading :Mid-test35%Final
test35%Presentation/Topic Summary/Attendance30%
COURSE OUTLINE
WeekTopic
1ACCOUNTING THEORY AND CONCEPTUAL FRAMEWORK
Chapter 1 The Early History of Accounting: The Mission of the
FASB, Types of Pronouncements, Emerging Issues, Economic
Consequences The Evolution of the Phrase GAAP The Role of Ethics In
Accounting Accounting in Crisis
Chapter 2 The Early TheoristsStatement on Accounting Theory and
Theory Acceptance, Criticism of the Approaches to Theory,
Evaluation of SATTA The FASBs Conceptual Framework Project: SFAC
No.1, SFAC No. 2, SFAC No. 5, Principles-Based vs Rules-Based
Accounting Standards The FASB-IASB Financial Statement Presentation
Project
Ch. 1 Page 1 5 Page 12 23
Ch. 2 Page 29 32 Page 41 54 Page 58 62 Page 66 70
2INTERNATIONAL ACCOUNTING AND RESEARCH METHODOLOGY
Chapter 3 International Business Accounting Issues Development
of Accounting Systems: Level of Education, Political System, Legal
System, Economic Development The Use of IAS Current Issue Framework
for the Preparation and Presentation of Financial Statements: The
Objective of FS, Qualitative Characteristics, The Elements of FS,
Concepts of Capital and Capital Maintenance IASNo.1 and IFRS
No.1
Chapter 4 Research Methodology: Deductive Approach, Inductive
Approach, Pragmatic Approach, Scientific Method of Inquiry, Other
Approaches The Outcomes of Providing Accounting Information:
Fundamental Analysis, The EMH, Weak Form, Semistrong Form, Strong
Form, The Implication of EMH, The CAPM, Type of Risk Normative vs
Positive Accounting Theory, Agency Theory, Human Information
Processing, Critical Perspective Research, The Relationship among
Research, Education, and Practice
Ch. 3 Page 75 78 Page 92 96 Page 98 102 Page 106 107
Ch. 4 Page 111 131
3INCOME CONCEPT
Nature of income: Capital Maintenance Concepts, Exit Value or
Selling Price, Discounted Present Value, Current Value and the
Historical Accounting Model. Income Recognition: Meaurement,
Accounting for Inflation, Revenue Recognition and Realization,
Revenue Recognized, Matching, Conservatism, Materiality, Earnings
Quality, Earnings Management, and Fraudulent Financial
Reporting
Ch. 5 Page 135 148 Page 151 161
4THE INCOME STATEMENT
Economic Consequences if Financial Reporting Income Statement
Elements Statement Format: APB Opinion No. 9, Income from
Continuing Operations, Discontinued Operations, extraordinary
Items, Accounting Changes, EPS, Comprehensive Income Prior Period
Adjustments Proposed Format The Value of Corporate Earnings:
Sources of Revenue, Persistence of Revenues, MDA, Gross Profit
Analysis, Net Profit Analysis, IAS.
Ch. 6 Page 169 206
5THE BALANCE SHEET AND THE STATEMENT OF CASH FLOWS
The Balance Sheet: Assets, Asset Valuation, Liabilities,
Liability Valuation, Equity, Fair Value Measurements Statement fo
cash flows IASCh.7 Page 215 251
6WORKING CAPITAL
Working capital concept Current Usage Components of Working
Capital IAS Ch. 8 Page 258 262 Page 274 - 283
7PROPERTY, PLANT AND EQUIPMENT
PPE cost allocation depreciation capital and revenue
expenditures recognition and measurement impairment value IAS Ch. 9
Page 290 315
MID SEMESTER TEST
8INVESTMENT AND INTANGIBLES
Investment in equity securities Debt securities; permanent
decline in fair value Transfers of financial assets Intangibles,
financial analysis of investment and intangibles IAS
Ch. 10 Page 322 355
9LONG-TERM LIABILITIES
Recognition and measurement Debt vs equity Other issues Debt
restructuring Financial analysis IAS Ch. 11 Page 362 398
10ACCOUNTING FOR INCOME TAXES
Historical perspective Income tax allocation Permanent and
temporary differences Alternative interperiod tax allocation
methods Financial analysis IAS Ch. 12 Page 406 414 Page 419 426
Page 434 438
11LEASES, PENSIONS AND OTHER POSTRETIREMENT BENEFITS
Classifying leases Financial analysis IAS
Historical perspective Accounting for pension fund Financial
Analysis IAS Ch. 13 Page 444 463
Ch. 14 Page 470 485 Page 490 492
12EQUITY
Theories Definition Reporting of equity Financial analysis of
SHE IAS
Ch. 15 Page 497 510 Page 518 525
13ACCOUNTING FOR MULTIPLE ENTITIES
Business combination Accounting for business combinations
Consolidations Theories of consolidations Noncontrolling interest
Drawbacks of consolidations Special-purpose entities Foreign
currency translation IAS Ch. 16 Page 532 538 Page 539 540 Page 542
548 Page 553 556 Page 561 565
14FINANCIAL REPORTING, DISCLOSURE AND ETHICS
Recognition and measurement criteria Areas directly affected
Other means of financial reporting Other information Points of SEC
Ethical responsibilities IAS. Ch. 17 Page 570 583 Page 590 592 Page
596 599
FINAL SEMESTER TEST
2
