Accounting Theory

Course Code
ACC 420
Course Title
Accounting Theory
Course Description

Accounting theory refers to the study of assumptions, methodologies and frameworks used in the study and application of accounting principles. It requires a review of both the historical foundations of accounting practices, as well as the way in which accounting practices are verified and added to the regulatory framework that governs financial reporting. Accounting theory is a continuously-evolving subject, coping to new ways of doing business, new technological standards and gaps that are discovered in reporting mechanisms. Organizations such as the International Accounting Standards Board (IASB) helps create practical applications of accounting theory, and professionals such as the ‘Big Four’ facilitates companies navigate the accounting standards. The course traces historical developments of accounting, research approaches in the development of accounting theory, international accounting practices and conceptual frameworks. The standards setting process, the convergence initiatives, implication of accounting information on capital markets and arguments towards accounting regulations reflect the main coverage of this course. Meanwhile, the theoretical support on income concepts and preparation of income statement and statement of financial position supplement the course structure. The course is concluded by a special emphasis on Islamic Accounting as alternative approach of accounting.

Prerequisites
ACC 410
Credits
3
Course Type
Theory
Offered
Spring