Financial: Balance Sheet and Fair Value
[pic]
The Chinese University of Hong Kong
School of Accountancy
ACY 6110 Financial Accounting Theory
Fall 2011
Professor Kevin C. K. Lam
Room 1016 Chung Yu Tung (CYT) Building
The Chinese University of Hong Kong
Phone: 2609-7894
E-mail: kevinlam@cuhk.edu.hk
Webct: http://webct.cuhk.edu.hk
Course Scope and Objectives
Financial Accounting Theory is concerned with the models, hypotheses, and concepts that together form the foundation for financial accounting practice. This course introduces modern financial accounting theories and integrates accounting practices with theory. The course will provide insights to those who make accounting decisions and those who need to understand the accounting decisions of others (auditor or financial analyst). The tools and techniques introduced in this course will also help to lay foundations for students to undertake advanced accounting studies.
The first part of this course establishes benchmark for financial accounting theory by illustrating accounting under ideal conditions and defining decision usefulness. Later, we will discuss efficient market hypothesis and its implications on the information perspective of accounting. As information perspective was later replaced by the measurement perspective, we will discuss recent accounting measurement issues, including fair value accounting and off-balance sheet liabilities. Positive accounting theory, earnings management, executive compensation and economic consequences of standard setting will be covered in the last part.
Financial Accounting Theory is a rigorous subject requiring not only accounting but also financial and statistical knowledge. We are balancing between academic rigor and practical applicability in this course. To maintain rigor, we study research methods and introduce complicated quantitative models. To ensure theory applicability, we examine accounting practices as portrayed in case studies. Most of these cases we use this term will
The Chinese University of Hong Kong
School of Accountancy
ACY 6110 Financial Accounting Theory
Fall 2011
Professor Kevin C. K. Lam
Room 1016 Chung Yu Tung (CYT) Building
The Chinese University of Hong Kong
Phone: 2609-7894
E-mail: kevinlam@cuhk.edu.hk
Webct: http://webct.cuhk.edu.hk
Course Scope and Objectives
Financial Accounting Theory is concerned with the models, hypotheses, and concepts that together form the foundation for financial accounting practice. This course introduces modern financial accounting theories and integrates accounting practices with theory. The course will provide insights to those who make accounting decisions and those who need to understand the accounting decisions of others (auditor or financial analyst). The tools and techniques introduced in this course will also help to lay foundations for students to undertake advanced accounting studies.
The first part of this course establishes benchmark for financial accounting theory by illustrating accounting under ideal conditions and defining decision usefulness. Later, we will discuss efficient market hypothesis and its implications on the information perspective of accounting. As information perspective was later replaced by the measurement perspective, we will discuss recent accounting measurement issues, including fair value accounting and off-balance sheet liabilities. Positive accounting theory, earnings management, executive compensation and economic consequences of standard setting will be covered in the last part.
Financial Accounting Theory is a rigorous subject requiring not only accounting but also financial and statistical knowledge. We are balancing between academic rigor and practical applicability in this course. To maintain rigor, we study research methods and introduce complicated quantitative models. To ensure theory applicability, we examine accounting practices as portrayed in case studies. Most of these cases we use this term will