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ACC3615 Accounting Theory: Instructor: Jie Zhou Email: Office: BIZ1 #07-14
ACC3615 Accounting Theory: Instructor: Jie Zhou Email: Office: BIZ1 #07-14
Accounting Theory
Lecture 1
Instructor: Jie Zhou
Email: bizzj@nus.edu.sg
Office: BIZ1 #07-14
1
Suggested Reading
Financial Accounting Theory
Skim Chapter 1
Chapter 2
Read 2.1 ~ 2.3 carefully
Skim 2.4 ~ 2.7
Agenda
ACC3615 General Information
Introduction
Link to Lecture 2
An Example
A Twist
An exercise
Tutorials 1 ~ 9
Project Presentation (Asian Content)
Problem Solving
accounting
pricing theory
finance
Statistics
Provided as Aside
Development of a Theory
Assumptions
Assuming that parties act so as to maximize their own
welfare (expected utility)
Hypotheses
Determining the relation between accounting reporting
decisions and variables affecting welfare
Accounting numbers and stock/bond prices
Accounting numbers and budget/resources
Historical Perspective
Old times
Describe accounting practice
Unregulated
12
Required
Prepare balance sheet and income statement for this
firm
Measurement base: present value
13
$26.03
Shareholders Equity
$286.36
14
Required
Prepare balance sheet and income statement for this
firm
Measurement base: present value
15
$26.03
$50.00
$23.97
Shareholders Equity
$236.36
$236.36
16
Required
Prepare balance sheet and income statement for this
firm
Measurement base: Historical Cost accounting with
straight line depreciation
17
Link to Lecture 2
Take away from the examples
Accounting is useless under ideal conditions
18
19
20
Homework
Form study groups (6 groups in total)
5 students per group
Can be 4 or 6 depending on situation
Deadline to receive group member information (via
email) is 6:00PM Feb 4th, 2014
Email should be sent by one group representative to
bizzj@nus.edu.sg
Email should contain the following information:
how many students in the group; name of every
group member
Chapter 2
Q7, Q18, Q19, Q24
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