ACM002-Financial Reporting and Regulation

Module Provider: Business Informatics, Systems and Accounting
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites: Financial reporting UG accounting curriculum or equivalent
Co-requisites:
Modules excluded:
Current from: 2019/0

Email: g.rimmel@henley.ac.uk

Type of module:

Summary module description:

The module considers accounting as a social and institutional practice and focuses on wider social implication of financial reporting. Financial statements are a key source of information about the economic as well as overall activities of a firm. This course is intended to enhance the student's ability to relate economic events to financial statements and disclosures. It also seeks to aid in developing a coordinated set of concepts and principles to serve as a framework for analysing a wide variety of financial reporting issues. The course also explores the regulatory environment and political climate, and howÌýthese linkÌýwith the development of existing and introduction of new standards and their underlying theories. The module covers a number of theoretical perspectives such as deductive approaches, based on the notion of financial accounting as the measurement of economic income and value (including applications to current accounting controversies); economic approaches, regarding corporate financial reporting as an information system, including signalling and disclosure, and studying the demand for and supply of accounting information in a market setting and its stock market impact; and regulatory/institutional approaches, examining the nature of and case for and against the regulation of corporate financial reporting. Illustrations are provided on how these theories are used in standard setting and in valuation.

Aims:

The main aim of the module is to enable students to understand and critically evaluate the mapping between underlying economic events and the information in financial statements, and how this mapping affects inferences about the economic activities and position of the firm. TheÌýcurriculum put s strong emphasis on the wider social and political implications of financial reporting practice. Students are encouraged to relate economic events to diverse practices in financial statements, and to think critically of ongoing controversies and debates.

Assessable learning outcomes:

By the end of the module it is expected that the students will be able to:

1. Understand and appreciate financial reporting as a complex social practice.

2. Understand the role of political, cultural and institutional factors in production and application of accounting regulation.

3. Critically appraise various academic and professional arguments relating to the content of accounting standards and the standard setting process.

4. Apply and critically appraise the content of key financial reporting standards.

5. Analyse, summarise and synthesise selected relevant academic and professional literature.

Additional outcomes:

The module also aims to encourage the development of oral communication skills, and the students’ effectiveness in group situations. Structured activities are designed to develop independent learning skills. Students are encouraged to develop additional IT skills by use of relevant web resources and communication techniques, including Blackboard.

Outline content:

TheÌýmodule will cover a range of theoretical and practical perspectives considering financial accounting:Ìý

• as the measurement of economic income and value (including applications to current accounting controversies).


• as an information system, including signalling and disclosure, and studying the demand for and supply of accounting information in a market setting and its stock market impact;Ìý


• as social and institutional practice examining the nature of and case for and against the regulation of corporate financial reporting.


• Illustrations are provided on how these theories are used in production of accounting policies and regulation.Ìý

Brief description of teaching and learning methods:

Lectures will be used for the exposition of the major concepts, principles and techniques under consideration. Workshops will be used for case studies, practical applications and student-led presentations or discussions. A reading list will beÌýprovided thatÌýcovers key academic and professional papers and other writings in the financial accounting literature.

Summative assessment- Examinations:

Written exam 60%Ìý

2.5 hours

Summative assessment- Coursework and in-class tests:

EssayÌý40%Ìý(word limit is 3,000 +/- 10%)Ìý

Submission: Autumn term, week 11.

Formative assessment methods:

Formative assessments are available in the text book for all topics. InÌýadditionÌýfurther revision questions are available on Blackboard and students will practise these questions in the workshops or will be required to complete them during their self-study time. Marking guides and feedback are provided where appropriate so that students can assess their own performance.

Penalties for late submission:

Penalties for late submission on this module are in accordance with the University policy.Ìý

Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspxÌý

Assessment requirements for a pass:

A weighted average mark of coursework and examination of 50%.

Reassessment arrangements:

By examination only (one 2.5-hours unseen written paper) in August.

Additional Costs (specified where applicable):

Ìý

Last updated: 10 October 2019