Unit Information

ACT505 – Accounting Theory

Credit points: 10 Mode: External and Internal

Assumed knowledge: Nil Location: Darwin, Sydney and External

Pre-requisite(s) {ACT501 or Learning method: Online reliant

PRBA001}

Year: 2020 Unit coordinator: Dr Sunil Dahanayake

Phone: 08 8946 8806
Email: sunil.dahanayake@cdu.edu.au

Semester: 1

School: Business

Unit Description
This is a postgraduate unit and only available to students enrolled in postgraduate courses . This
unit provides students with skills to appreciate and evaluate alternative theories and perspectives
of accounting and contemporary accounting practice. This appreciation of accounting theories will
enable students to engage, construct and implement present relevant information. The phrase
'theory defines practice' reflects a truth behind successful accounting practice across the world.
Reflecting upon this idea, students studying this unit will develop important skills and a critical
appreciation of both theories in accounting and contemporary accounting practice across a variety
of contexts and applications. The unit provides students with a critical understanding of key
theoretical concepts and perspectives, the application of accounting standards and emerging
issues in accounting. On successful completion of the unit, students will have gained critical
perspective of accounting theories and skills enabling them to better perform as accounting
professionals in the competitive global environment.

Learning Outcomes
On completion of this unit a student should be able to:
1. Demonstrate a critical understanding of accounting theory and perspectives.
2. Critically analyse accounting methods and theory.
3. Apply alternative theoretical frameworks in examining accounting issues and practices
4. Evaluate the need for regulation of financial accounting and the approach to regulation in
Australia.
5. Analyse emerging issues in accounting and evaluate their implications for the accounting
profession.

Teaching and Learning Strategies

This unit is available in both internal and external mode. Weekly lectures and tutorials will be
available on Learnline as well as on campus for internal students. Both face-to-face lectures and a

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 range of multi-media including video, audio and Presenter presentations will support the students
learning experience. The sessions will require regular attendance of either the online or on
campus. Learning activities will include reading, written assignments, online activities, application
of accounting practice and a semester exam.

Participation
This unit is conducted over a 12 week period. To successfully complete this unit, internal students
should attend the scheduled face-to-face lectures and tutorials or workshops each week. External
students should participate in the scheduled on-line tutorial each week. Lecture and tutorial and
workshop attendance or on-line tutorial participation is strongly advised. This unit requires in total
12 hours of student commitment per week. This includes participation in lectures, tutorials,
workshops or online sessions as well as 7-9 hours of private study commitment. Students will need
to have reliable broadband to complete unit requirements.

Tutorial Presentations:

In this unit tutorial times will be used for research paper presentations and discussions. There will be
marks for your presentations and written critique as well as your participation in the discussions.

All students will be divided into groups of two to three and assigned a reading which you will present in
class using different presentation aides such as power point. On conclusion of the presentation there
will be a discussion. After the presentation, you are required to submit a written critique of the assigned
article through Learn Line. Refer the details given in the assessment number 3 given below.

External students will make their presentation on Learnline via Collaborate.

There will of course be the normal opportunity to ask questions at the lecture, tutorials and the
discussion boards.

Specific details of individual class times can be obtained by accessing the class timetable at:
http://www.cdu.edu.au/timetable

Overview of Assessment

Relates to
Item Description/Focus Due Date Value learning
outcomes

Engagement – Successfully
1. complete individual and group Weekly 10% 1,2,4,5
activities (both in-class and online).

Research article critique –You are

Weekly
3. required to make a group presentation 20% 1–5
from
and write a critique on a selected
week 3.
research article published in the page 5
of the unit outline.(1500-2000 words).

Case Study – Critical analysis of a Friday,

2. 20% 1–5
given case or accounting problem Week 6
(1500-2000 words).

Exam
4. Final Exam (closed book, 3 hours) 50% 1-5
period

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 Detailed information of assessment available in Learnline.

In order to pass the unit: students must achieve an overall minimum aggregate grade of 50%.

Lecturers may, at their discretion, ask students to verbally present their assignment submissions or
rewrite some selected part/s of their answer in a controlled setting.

Resources 1.
Required textbook(s)
th
Deegan C,(2014). Financial Accounting Theory, 4 Edition. McGraw-Hill: Australia. ISBN
9780071013147

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Important note: Be careful not to confuse this text with another text currently on the market by the
same author and publisher entitled “Financial Accounting in Australia”.
Required textbooks can be ordered from the CDU Bookshop through their website at
http://www.cdu.edu.au/bookshop

Learnline (Online Learning System)

Learnline is Charles Darwin University’s on-line learning system http://online.cdu.edu.au. You will
need access to a computer and a head set with earphones and microphone. You will also need to
be prepared to learn new skills with software applications in Learnline.
In this unit, Learnline may be used to:
 Provide students with their learning material and activities.
 Provide students with summative and formative assessment feedback.
 Provide students with their assessment tasks.
 Provided an assessment submission point.
 Communicate with the students on a regular basis.
 Provide a communication points where students contribute to discussions as part of their
assessment.
 Enable students to interact with other students in the unit.
 Post announcements about the unit.
Please also note the following:
 You will need to connect to the internet to access Learnline.
 Access to Learnline may not be available until Day 1 of Semester.
 If this is your first time using Learnline, click on ‘Student Support’ in the left-hand navigation
panel BEFORE logging in.
 It is recommended that all students have access to regular and reliable broadband access
to complete unit requirements.

eReserve Course Readings

eReserve Course Readings allows electronic copies of journal articles, book chapters and lecturer
notes that have been recommended by a lecturer as part of their course reading requirements.
You can access eReserve Course Readings at http://ereadings.cdu.edu.au .
This site is password protected. Your CDU student login will provide you access. You can then
search for items by Lecturer, Unit Code, Title, Author, keyword, Year or Date if you have that
information.

The readings for the presentations can be accessed from the e-journals, CDU Library. Links to
the readings are provided on Learnline in the relevant session/week. They will be as follows:

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ACT505- Accounting Theory- Research Article List-Semester 1, 2019
Author, Tile and Journal Week
1 Hopwood, A.G., (2007), “Whither Accounting Research?”, Accounting Review, 2
. Vol.82, No.5, pp-1365-1374.
http://web.a.ebscohost.com.ezproxy.cdu.edu.au/ehost/pdfviewer/pdfviewer?vid=
3&sid=6330daf3-3395-4e97-9dda-b0c27928d8bc%40sessionmgr4010
2 Birnberg, J.G., Bromwich, M., and Roberts, J., (2013), “Anthony G. Hopwood: 2
. Academic Iconoclast and Entrepreneur 1944-2010”, Accounting Horizons,
Vol.27, No.4, pp.895-907.
http://web.b.ebscohost.com.ezproxy.cdu.edu.au/ehost/pdfviewer/pdfviewer?vid=
3&sid=eac9dc7f-7286-48c7-b05b-e2e061c5c681%40pdc-v-sessmgr01
3 Hopwood, A.G., (1983),”On trying to study accounting in the contexts in which 3
. it operates”, Accounting, Organizations and Society, Vol.8, No. 2/3, pp.287-305.
This article is posted on the LearnLine.
4 Hopwood, A.G., (1992), “Accounting calculation and the shifting sphere of the 4
. economic”, The European Accounting Review, Vol.1, No.1, pp-125-143.
http://ezproxy.cdu.edu.au/login?url=http://search.ebscohost.com/login.aspx?dire
ct=true&AuthType=ip,uid&db=buh&AN=5386623&site=ehost-live
5 BRENDAN O’DWYER, (2011) “The Case of Sustainability Assurance: Constructing a New 5
. Assurance Service” Contemporary Accounting Research Vol. 28 No. 4 (Winter 2011) pp. 1230–
1266.
doi:10.1111/j.1911-3846.2011.01108.x
6 Watts, R.L. and Zimmerman, J.L., (1979), “ The Demand for and Supply of 6
. Accounting Theories: The Market for Excuses ”, Accounting Review, Vol.LIV,
No. 2, pp. 273-305.
7 Power, M., (1996), “Making Things Auditable”, Accounting, Organizations and 7
. Society, Vol.21, No.2/3, pp.289-315.
http://ezproxy.cdu.edu.au/login?url=https://www-sciencedirect-
com/science/article/pii/0361368295000046?via%3Dihub
8 Watts, R.L. and Zimmerman, J.L., (1990), Positive Accounting Theory: A Ten 8
. Year Perspective”, Accounting Review, Vol.65, No.1, pp-131-156.
http://ezproxy.cdu.edu.au/login?url=http://search.ebscohost.com/login.aspx?dire
ct=true&AuthType=ip,uid&db=buh&AN=9603274032&site=ehost-live
9 Ball, R., and Brown, P., (1968), An Empirical Evaluation of Accounting Income 9
. Numbers”, Journal of Accounting Research, Vol.6, No.2, pp.159-178.
http://ezproxy.cdu.edu.au/login?url=http://www.jstor.org/stable/2490232
1 Knetchel, W. R., (2007),” The Business Risk Audit: Origins, obstacles and 10
0 opportunities”, Accounting, Organizations and Society, Vol.32, No.4/5,pp.383-
- 408.
. http://ezproxy.cdu.edu.au/login?url=https://www-sciencedirect-
com/science/article/pii/S0361368206000821?via%3Dihub
1 Chua, W.F., (1986), “Radical Developments in Accounting Thought”, 11
1 Accounting Review, Vol.LXI, No.4, pp.601-632.
. http://ezproxy.cdu.edu.au/login?url=http://search.ebscohost.com/login.aspx?dire
ct=true&AuthType=ip,uid&db=buh&AN=27872495&site=ehost-live

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Learning Schedule
Required
Week Topics
Text
readings

1 Introduction to Financial Accounting Theory Chapter 1

2 The Financial Reporting Environment Chapter 2

3 The Regulation of Financial Accounting Chapter 3

4 International Accounting Chapter 4

5 Normative Theories of Accounting Chapter 6

6 Positive Accounting Theory Chapter 7

7 System Oriented Theories Chapter 8

8 Social and Environmental Reporting Chapter 9

9 Capital Market Research Chapter 10

10 Behavioural Research Chapter 11

11 Critical Perspectives of Accounting Chapter 12

12 Review session

13 Study week

14-15 Exam Period

Weekly topic activities to be advised on Learnline at commencement of semester

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 CDU Graduate attributes
CDU graduate attributes refer to those skills, qualities and understandings that should be acquired
by students during their time at the University regardless of their discipline of study. ( See
http://www.cdu.edu.au/graduateattributes/index.html ).

In this unit, the following Course Learning Outcomes are developed:

Course Description Unit

Learning
Learning
Outcomes
Outcome

1 Global Demonstrate broad and informed judgement to 2,3,4,5

perspectives solve accounting problems in diverse contexts
using social, ethical, economic regulatory and
global perspectives.

2 Theoretical Demonstrate and integrate theoretical and 1,2,3,4,5

knowledge technical accounting knowledge in the areas of
accounting, auditing and assurance, finance,
economics, quantitative methods, information
systems, commercial law, and corporate law and
taxation law.

3 Decision making Think critically, synthesise and apply a 2,3,4,5

theoretical and technical accounting knowledge
in decision making to identify solutions within
complex professional settings.

4 Communication Communicate accounting advice in an effective

manner that is straightforward and
understandable to both accounting and non-
accounting stakeholders.

5 Team work Work collaboratively with others to solve

6 Action learning
opportunities
complex accounting problems in diverse
contexts.
Identify and reflect upon work practices
and performance feedback to identify and
action learning opportunities and
professional development.