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BUSN7005

Contemporary Issues in Accounting

Course Description

This course engages students in critical analysis of the major approaches to the formulation of an accounting theory. The features, similarities, differences and merits or otherwise of alternative theoretical approaches to analysing and dealing with contemporary problems facing accounting and accountants are examined.

Semester and Year S1 2016 Course URL http://programsandcourses.anu.edu.au/2016/course/BUSN7005 Mode of Delivery On campus Prerequisites BUSN7008 Incompatible Courses BUSN3001 Course Convener Dr Colleen Hayes Office Location PAP Moran Room 2049 Phone 61-2-6125 5597 Email colleen.hayes@anu.edu.au Consultation hours To be advised (on Wattle)

Bio and research interests

Colleen Hayes has over twenty years of teaching experience at the tertiary level. She has taught financial accounting, accounting theory, corporate financial reporting and corporate social responsibility, accountability and reporting at both undergraduate and postgraduate levels. Her research interests include corporate governance, auditing, accounting history and reporting for sustainability.

Tutors Paul Grandoni, Syeda Haider & Colleen Hayes. The contact details for Paul, Syeda and Colleen will be provided on Wattle at the beginning of the Semester.

ANU College of Business and Economics

Research School of Accounting

Mail Building 26C Australian National University Canberra ACT 2601

Building 21 Australian National University Canberra ACT 2601

Student Office Room 2.01 (Level 2) ANU CBE Building 26C

Room 2037 (Level 2) Hanna Neumann Building 21

Phone: Within Australia International

1300 732 120 (local call cost only) +61 2 6125 3807

02 6125 0025 +61 2 6125 0025

Fax: Within Australia International

02 6125 0744 +61 2 6125 0744

02 6125 4310 +61 2 6125 4310

Email: info.cbe@anu.edu.au enquiries.rsa@anu.edu.au

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COURSE OVERVIEW

Course Learning Outcomes

Upon successful completion of the requirements for this course, students should be able to: 1. Critically evaluate the major approaches to the formulation of an accounting theory in

relation to financial reporting

2. Critically evaluate the major accounting approaches to the measurement of income and capital

3. Explain the role of positive accounting theory in explaining and predicting accounting policy choice and the behaviour of the capital markets.

4. Evaluate ethical issues that arise in companies’ choice of accounting treatments

5. Critically evaluate the role of regulation in financial reporting

6. Research and analyse complex contemporary financial accounting issues, and formulate well-reasoned and coherent arguments and reach well-considered conclusions in relation to those issues

7. Critically analyse a selected contemporary issue in financial accounting and to communicate effectively in writing;

8. Apply the Harvard referencing system appropriately to written submissions

The specific learning objectives identified at the commencement of the lecture material for each of the topics are an integral part of the course/broad learning outcomes above.

Research-Led Teaching

This course builds on current research to examine contemporary issues in accounting, which includes research in other disciplines such as finance and economics. The course adopts an interactive approach to learning and teaching and draws from active learning pedagogies. Students are strongly encouraged to be an active participant in the learning process.

Continuous Improvement

We use feedback from students, professional bodies and staff to make regular improvements to the course. In response to this feedback, design improvements from the previous version of the course include:

emphasis on critical thinking and critical analysis skills;

emphasis on written communication, particularly on clear articulation of ideas and arguments;

focusing on process and logic that lead to more robust conclusions; and

expanding on the tutorial participation assessment criteria.

Requisites

It is a prerequisite of this course that students have satisfactorily completed BUSN7008, and you are not able to enrol in this course if you have previously completed BUSN3001

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Staff Feedback

Students will be given feedback in various ways in this course, including verbal or written feedback on the return of assessment tasks, during class discussion, or during consultation with lecturers and tutors.

Student Feedback

All CBE courses are evaluated using Student Experience of Learning and Teaching (SELT) surveys, administered by Planning and Statistical Services at the ANU. These surveys are offered online, and students will be notified via email to their ANU address when surveys are available in each course. Feedback is used for course development so please take the time to respond thoughtfully. Course feedback is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching and to improve courses across the university. For more information on student surveys at ANU and reports on feedback provided on ANU courses, visit http://unistats.anu.edu.au/surveys/selt/students/ and http://unistats.anu.edu.au/surveys/selt/results/learning/

Examination material or equipment

Details regarding materials and equipment that is permitted in an examination room can be found on the ANU website: http://www.anu.edu.au/students/program-administration/assessments-exams/examination-conduct Information regarding permitted examination materials for the course will be available on the examination timetable website when the examination timetable is released: http://timetable.anu.edu.au/

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COURSE SCHEDULE

Week Week beginning

Summary of Activities/Topic

References Assessment

1 February 15 Introduction to course, contemporary issues & accounting theory

Godfrey et al. (2010) Chs 1 & 2 Ezzamel et al. (2007) Hines (1988)

2 February 22 Corporate social responsibility accounting

KPMG 2015 Omran & Ramdhony 2015 Other to be advised

Tutorial Questions Topic 1

3 February 29 Conceptual framework for financial reporting

Godfrey et al. (2010) Chs 4 & 8 AASB (2009) FASB (2010a) IASB (2008) Dichev (2008) Nobes (2005) Ohlson et al. (2010) Schipper (2003)

Tutorial Questions Topic 2

4 March 7 A positive theory of accounting discretion

Godfrey et al. (2010) Ch 11 Fama & Jensen (1983) Watts & Zimmerman (1990) Jensen & Meckling (1976) Healy (1985)

Tutorial Questions Topic 3

5 March 14 Historical cost accounting Godfrey et al. (2010) Chs 5, 6, 9 & 10 IASB (2005) Thomas (1975) Watts (2003)

Tutorial Questions Topic 4

6 March 21 CCA accounting Godfrey et al. (2010) Ch 6 IASB (2005) Konchitchki (2011) Revsine (1981)

Tutorial Questions Topic 5

Week Week beginning

Summary of Activities/Topic

References Assessment

7 March 28 No Lecture No Tutorial

Mid-semester examination

8 April 18 Exit price (CoCoA) accounting Fair value accounting

Godfrey et al. (2010) Chs 6 & 14 Hirst et al. (2004) IASB (2005) IASB (2011)

Tutorial Questions Topic 6 Assignment due

9 April 25 CSR & the 2007-2009 global financial crisis

Guthrie et al. (2011) Shergold (2009) Ryan (2008) Laux (2009) Linsmeier (2011)

Tutorial Questions Topic 7

10 May 2 Theory and accounting regulation

Godfrey et al. (2010) Ch 3 Beatty (2007) Watts & Zimmerman (1986) CH 7 Watts & Zimmerman (1978) Watts & Zimmerman (1979)

Tutorial Questions Topic 8

11 May 9 Positive theory and capital markets research

Godfrey et al. (2010) Ch 12 Badertscher et al. (2011) Ball & Brown (1968) Dechow & Schrand (2010) Jones (2011)

Tutorial Questions Topic 9

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Week Week beginning

Summary of Activities/Topic

References Assessment

12 May 16 Issues in international accounting

Godfrey et al. (2010) Ch 14 Deegan (2014) CH 4 Doupnik & Riccio (2006) Hong et al (2014) Kanagaretnam et al. (2014) Khurana & Machas (2011) Tsukamanis (2007) Yu & Wahid (2014)

Tutorial Questions Topic 10

13 May 23 Review Tutorial Questions Topic 11

COURSE ASSESSMENT

Assessment Summary

Item Title Value Due Date Linked Learning Outcomes

1 Tutorial Participation

12% Each tutorial Refer to Learning Outcomes (1) to (7)

2 Assignment 15% Week beginning April 18

Refer to Learning Outcomes (1) to (8)

3 Mid-semester Exam

15% Week beginning March 28

Refer to Learning Outcomes (1) to (4)

4 Final Examination 58% University Examination Period

Refer to Learning Outcomes (1) to (5)

TOTAL 100%

In order to pass this course you must satisfactorily complete all of the foregoing items of assessment, including a mark of not less than 50% in the final examination; and an overall result of not less than 50% for the semester.

The details of the assignment will be distributed in a separate handout.

Assessment Task 1: Tutorial Participation

Details of task: Active contribution to tutorial discussions.

Assessment of your contributions in tutorials is designed to encourage you to participate in class discussion, motivate you to keep up to date with the weekly course lecture and reading materials and to prepare answers to the tutorial questions before coming to class. Active participation in tutorials helps you to learn the body of theoretical knowledge involved in the course and to develop practical and generic skills. The generic skills include oral, aural and language communication skills, social interaction, the sharing of ideas and concepts, respect for others’ points of view and the capacity to critique your peers’ responses.

Assessment Criteria:

Your participation in tutorials is graded on a scale of 0 (lowest) through 4 (highest), using the criteria listed in the marking template on the following page. The assessment will commence in the first week of tutorials. Your tutor will select who will be assessed each week and will record their performance, and the date, on the template. You will not know in which week you

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will be assessed. All students will be assessed an equal number of times. You will be advised of your progressive mark during the mid-semester break and the final mark at the end of the semester. You will be provided with a copy of your assessment templates at those times.

Marking template for tutorial participation and contribution

Grade Criteria

0 Absent

1 Tries to respond when called on but does not offer much

Demonstrates very infrequent involvement in discussion

2 Demonstrates adequate preparation: knows basic reading materials, but does not show evidence of trying to interpret or analyse them.

Offers straightforward information (e.g., straight from the reading materials), without elaboration, or does so very infrequently (perhaps once a class).

Does not offer to contribute to discussion, but contributes to a moderate degree when called on.

Demonstrates sporadic involvement.

3 Demonstrates good preparation: knows reading materials well, has thought through implications of them.

Offers interpretation and analysis of reading materials (more than just facts) to class.

Contributes well to discussion in an ongoing way: responds to other students’ points, thinks through own points, questions others in a constructive way, offers and supports suggestions that may be counter to the majority opinion.

Demonstrates consistent ongoing involvement.

4 Demonstrates excellent preparation: has analysed the reading materials well.

Offers analysis, synthesis, and evaluation of materials.

Contributes in a very significant way to ongoing discussion: keeps analysis focused, responds very thoughtfully to other students’ comments, contributes to the cooperative argument-building.

Demonstrates ongoing very active involvement.

Assessment Task 2: Assignment

Details of task:

The Assignment consists of an essay and referencing exercise. The referencing aspect of the Assignment highlights the standard of referencing required in a scholarly paper and at the same time, the related issue of plagiarism. Full details of the task, including the learning outcomes, will be provided early in the semester.

Assessment Criteria:

The assignment will be marked on the basis of your performance with respect to the learning outcomes that underpin the assessment item. Your overall performance will be assessed against the Grade Related Descriptors shown below.

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Grade Related Descriptors

Grades Depth and breadth of

coverage

Critical elements Structure,

language and

conventions

High Distinction

80 - 100%

All aspects of the topic were

addressed and researched in

great depth.

The essay contains

great depth of analysis,

evaluation and

interpretation. It

demonstrates a deep

and broad

understanding of the

issues raised in the

topic.

All aspects of the

writing conform to

a high academic or

professional

standard.

Distinction

70% - 79%

Most aspects of the topic

were addressed and

researched in great depth.

The essay shows

evidence of analysis,

evaluation and

interpretation. It

demonstrates a good

understanding of the

subject matter and

context.

Most aspects of

the writing conform

to a high academic

or professional

standard.

Credit Pass

60% - 69%

Most aspects of the topic

were addressed and

researched adequately.

The essay shows

acceptable levels of

analytical capacity and

logical rigour.

Most aspects of

the writing conform

to an acceptable

academic or

professional

standard.

Pass

50% - 59%

Key aspects of the topic were

addressed and researched

adequately.

The essay shows a

basic understanding of

the situation.

The writing is

presented with a

basic structure.

Fail

<50%

The essay was superficial

and / or inadequately

addressed and researched

the topic.

The essay

demonstrates limited

understanding of the

context.

The writing is not

of an academic or

professional

standard.

Assignment Submission

The assignments is to be submitted via Turnitin using the course Wattle site. Please keep a copy of the assignment for your records.

The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit ANU Online.

Extensions and Penalties

Late Assessment Task Submission

No extensions will be granted on the due date for submission of the assignment.

The ANU policy dealing with extensions is available at the following web site: https://policies.anu.edu.au/ppl/document/ANUP_004604

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Returning Assignments

The Assignment will be returned via Wattle (Turnitin).

Examinations

Mid-semester Examination

The mid-semester test will be held in Week 7. Information on the general form and content of the test will be provided closer to the date.

Final Examination

The Final Exam will be held during the University’s Examination Period. Information on the form and content of the final examination will be provided closer to the date.

Scaling

Your final mark for the course will be based on the raw marks allocated for each assignment or examination. However, your final mark may not be the same number as produced by that formula, as marks may be scaled. Any scaling applied will preserve the rank order of raw marks (i.e. if your raw mark exceeds that of another student, then your scaled mark will exceed or equal the scaled mark of that student), and may be either up or down.

Referencing Requirements

This course adopts the Harvard referencing system.

READING LISTS

Prescribed Text

Godfrey, J., Hodgson, A., Tarca, A., Hamilton, J. & Holmes, S. 2010. Accounting Theory (7th ed.). Milton: John Wiley & Sons.

Recommended Reading

Cotesta, P., Crosling, G., Murphy, H. & Sands, J. 2005. Writing & Presenting in Accounting (2nd ed.). Australia: LexisNexis Butterworths.

Deegan, C. 2014. Financial Accounting Theory (4th ed.). Sydney: McGraw-Hill.

Drever, M., Stanton, P. & McGowan, S. 2007. (5th ed.) Contemporary Issues in Accounting. Milton: Wiley.

Jones, S. & Riahi-Belkaoui, A. 2010. Financial Accounting Theory (3rd ed.). Australia: Cengage-Learning.

References for Weekly Reading List

Australian Accounting Standards Board. 2009. Framework for the preparation and presentation of financial statements. Compiled edition. http://www.aasb.gov.au/Pronouncements/Conceptual-framework.aspx Including amendments 2013: http://www.aasb.gov.au/admin/file/content105/c9/AASB_CF_2013-1_12-13.pdf

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Badertscher, B., S., Hribar P. and Jenkins, N. T. 2011. Informed trading and the market reaction to accounting restatements. The Accounting Review, 86(5): 1519-1547.

Ball. R. and Brown, P. 1968. An empirical evaluation of accounting income numbers. Journal of Accounting Research, 6(2): 159-178.

Beatty, A. 2007. How does changing measurement change management behaviour? A review of the evidence. Accounting and Business Research. Special Issue: International Accounting Policy Forum, 63-71.

Dechow, P., W. Ge and Schrand, C. 2010. Understanding earnings quality: A review of the proxies, their determinants and their consequences Journal of Accounting and Economics, 50 (2-3): 344-401.

Deegan, C. 2014. Financial Accounting Theory (4th ed.). North Ryde: McGraw-Hill. Dichev, I. 2008. On the balance sheet–based model of financial reporting. Accounting

Horizons 22(4): 453–470. Doupnik, T. S. & Riccio, E. L. 2006. The influence of conservatism and secrecy on the

interpretation of verbal probability expressions in the Anglo and Latin cultural areas. The International Journal of Accounting, 41, 237-261.

Ezzamel, M., Xiao, J. Z. and Pan, A. 2007. Political ideology and accounting regulation in China. Accounting, Organizations & Society, 32, 669-700.

Fama, E. and Jensen, M. C. 1983. Separation of ownership and control. Journal of Law and Economics, 26, June, 301-325.

Financial Accounting Standards Board. 2010. Statement of Financial Accounting Concepts No. 8. http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176156317989

Financial Accounting Standards Board. 2010. Original Pronouncements (as amended). Statement of Financial Accounting Standards No. 157 Fair value measurements. http://www.fasb.org/jsp/FASB/Page/PreCodSectionPage&cid=1218220137031 (Scroll down to Statement No. 157.)

Godfrey, J., Hodgson, A., Tarca, A., Hamilton, J. and Holmes, S. 2010. Accounting Theory (7th ed.). Milton: Wiley.

Guthrie, K., Irving, J. H. and J. Sokolowsky. 2011. Accounting choice and the fair value option. Accounting Horizons. 25(3): 487–510

Healy, P. 1985. The effect of bonus schemes on accounting decisions. Journal of Accounting & Economics, 7, 85-107.

Hines, R. 1988. Financial accounting: In communicating reality we construct reality. Accounting, Organizations & Society, 13(3): 251-261.

Hirst, D. E. 2004. Fair values, income measurement, and bank analysts’ risk and valuation judgments. The Accounting Review, 79(2), 453-472.

Hong, H. A., Hung, M and Lobo, G. J. 2014. The impact of mandatory IFRS adoption on IPOs in global capital markets. The Accounting Review, 89(4), 1365

International Accounting Standards Board. 2005. Measurement bases for financial accounting – measurement on initial recognition.

International Accounting Standards Board. 2008. Discussion Paper. Financial Instruments with Characteristics of Equity. http://www.ifrs.org/NR/rdonlyres/AE2FC463-BB40-4835-8805-13E44BBFE96F/0/dp_financial_instrumentsfeb2008_186.pdf

International Accounting Standards Board. 2011. IFRS13 Fair Value Measurement. Effective Jan 2013

Jensen, M. and Meckling, W. 1976. Theory of the firm: managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3, October, 305-325.

Jones, S. 2011. Does the capitalization of intangible assets increase the predictability of corporate failure? Accounting Horizons. 25(1): 41–70.

Kanagaretnam, K, Lim, C. Y. and Lobo, G. J. 2014. Influence of national culture on accounting conservatism and risk-taking in the banking industry. The Accounting Review, 89(3), 1115.

Khurana. I.K. and Machas, P. N. 2011. Mandatory IFRS adoption and the U.S. home bias. Accounting Horizons. 25(4): 729–753.

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Konchitchki, Y. 2011. Inflation and nominal financial reporting: Implications for performance and stock prices. The Accounting Review 86(3): 1045–1085.

KMPG. 2015. Currents of Change. The KPMG Survey of Corporate Responsibility Reporting.

Laux, C. and Leuz, C. 2009. The crisis of fair value accounting: Making sense of the recent debate. Accounting, Organizations & Society, 34(6-7): 826-834.

Linsmeier, T.J. 2011. Financial reporting and financial crises: The case for measuring financial instruments at fair value in the financial statements. Accounting Horizons. 25(2): 409–417.

Nobes, C.W. 2005. Rules-Based Standards and the Lack of Principles in Accounting. Accounting Horizons. 19(1): 25-34.

Ohlson, J.A., Penman, S., Bloomfield, R., Christensen, T. E., Colson, R., Jamal, K., Moehrle, S., Previts, G., Stober, T., Sunder, S. and Watts, R. L. 2010. A framework for financial reporting standards: Issues and a suggested model. Accounting Horizons. 24(3): 471–485.

Omran, M. A. and Ramdhony, D. 2015. International Journal of Accounting and Financial Reporting, 5(2): 38-55.

Revsine, L. A.1981. Capital maintenance approach to income measurement. The Accounting Review. Vol. LVI(2): 383-389.

Ryan, S. G. 2008. Accounting in and for the subprime crisis. The Accounting Review, 83(6): 1605-1638.

Shergold, P. 2009. Global financial crisis and economic downturn: Implications for corporate responsibility. Issues Paper No. 1.

Schipper, K. 2003. Principles-Based Accounting Standards. Accounting Horizons. 17(1): 61-72.

Thomas, A. L. 1975. The FASB and the allocation fallacy. Bloom, R. and P. T. Elgers. Accounting Theory & Policy A Reader (2nd ed.). Florida, Harcourt Brace Jovanovich.

Tsakumis, G. T. 2007. The influence of culture on accountants’ application of financial reporting rules. Abacus, 43(1), 27-48.

Watts, R. L. 2003. Conservatism in accounting part 1: Explanations and Implications. Accounting Horizons, 17(3), 207-221.

Watts, R. and Zimmerman, J. 1978. Towards a positive theory of the determinants of accounting standards. The Accounting Review. 53 (1), 112-134.

Watts, R. and Zimmerman, J. 1979. The demand and supply of accounting theories: The market for excuses. The Accounting Review, 44 (2), 273-305.

Watts R. and Zimmerman, J. 1986. Positive Accounting Theory. Englewood Cliffs, N. J. Prentice-Hall.

Watts, R. and Zimmerman, J. 1990. Positive accounting theory: a ten year perspective. The Accounting Review, 65 (1), 131-156.

Yu, G. and Wahid, A. S. 2014. Accounting standards and international portfolio holdings. The Accounting Review, 89(5), 1895.

TUTORIAL AND/OR SEMINAR REGISTRATION

Tutorial and /or Seminar signup for this course will be done via the Wattle website. Detailed information about signup times will be provided on Wattle or during your first lecture. When tutorials are available for enrolment, follow these steps:

1. Log on to Wattle, and go to the course site. 2. Click on the link “Tutorial signup here” 3. On the right of the screen, click on the tab “Become Member of ……” for the tutorial

class you wish to enter. 4. Confirm your choice

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If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group…” and then re-enrol in another group. You will not be able to enrol in groups that have reached their maximum number. Please note that enrolment in ISIS must be finalised for you to have access to Wattle.

COMMUNICATION

Email

If necessary, the lecturers and tutors for this course will contact students on their official ANU student email address. Information about your enrolment and fees from the Registrar and Student Services' office will also be sent to this email address.

Announcements

Suggested wording: Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations. Notifications of emergency cancellations of lectures or tutorials will be posted on the door of the relevant room.

Course URLs

More information about this course may be found on:

• Programs and Courses (http://programsandcourses.anu.edu.au/2016/course/BUSN7005)

• the College of Business and Economics website (https://www.cbe.anu.edu.au/students/student-information/college-courses/) and

• Wattle (https://wattle.anu.edu.au), the University's online learning environment. Log on to Wattle using your student number and your ISIS password.

POLICIES

The University offers a number of support services for students. Information on these is available online from http://students.anu.edu.au/studentlife/

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. You can find the University’s education policies and an explanatory glossary at: http://policies.anu.edu.au/

Students are expected to have read the Academic Misconduct Rules 2014 before the commencement of their course. Other key policies include:

Student Assessment (Coursework) Policy

(https://policies.anu.edu.au/ppl/document/ANUP_004603)

Student Assessment (Coursework) Procedure

(https://policies.anu.edu.au/ppl/document/ANUP_004604)

Student Surveys and Evaluations

(https://policies.anu.edu.au/ppl/document/ANUP_004601)

Copyright (http://copyright.anu.edu.au/)