This course develops knowledge of contemporary accounting theory and associated research and how they contribute to the development of the accounting environment and accounting practice. The course focuses on accounting regulation, reporting practice and the usefulness of accounting information. Topics may include theory development in accounting, normative accounting theories, positive accounting theories, ethics in accounting, social and environmental accounting issues, and professional judgement in accounting.

After completing this course, the student will be able to:

1. Identify the objective of the accounting theory, and the accounting theory establishment and function.
2. Discuss the different schools of accounting theory and methods used to build accounting theory.
3. Identify the accounting theory framework.
4. Apply a structured decision model to exercise judgement in the application of accounting standards.
5. utilize oral communication skills to communicate to peers.
6. Demonstrate improvement in written communication skills.
7. Demonstrate knowledge of approaches to do research proposal in accounting.

1. Introduction to accounting theory.
2. The structure of accounting theory.
3. Framework of accounting to establish accounting standards.
4. Discussing the measurement, disclosure, accounting presentation and their issues.
5. The relationship of accounting theory with the economic theory and financial theory.
6. The positive approaches, income smoothing and earning management.
7. Alternative assets valuation and income determination model.

Ahmed Riahi-Belkaoui (2004) Accounting Theory, 5^th edition

Financial Accounting Theory and Analysis: Text and Cases by Richard G. Schroeder