COLLEGE OF POSTGRADUATE STUDIES (COPOS)

DEPARTMENT OF ACCOUNTING, FINANCE & TAXATION

Course Outline

Course: ACC 821 Financial Accounting Theory

Lecturer: Dr. Olalekan Akinrinola
Contact: Tel.: 08025019935
E-mail: olalekan.akinrinola@calebuniversity.edu.ng; oakinrinola@yahoo.com

Course Description

This course aims at reviewing the basic accounting procedures and it has three phases. The first
phase includes the rationale of financial accounting and the economic foundations of accounting
generally. Elements of the history of accounting; interpretations of financial statements, and
statements of the sources and application of funds and the valuation of stock and work-in-
progress.
The second phrase includes the development of Accounting Theory: Fundamental Accounting
postulate: the accounting concepts in the light of today’s market conditions. Accounting
conventions: the objectives of accounting, generally accepted accounting principles (GAAP),
controversial accounting concepts; etc. Topics also include approaches to the formulation of
theory in accounting, nature of the objectives of financial accounting, history and development
of accounting.

The third phase of the course introduces students to contemporary proposals for expounding
the scope of corporate reports (human resource accounting, segment reporting, corporate social
reporting and price-level changes).

Course Objectives

This course is aim at introducing students to elements of the history of accounting and accounting
theory. It will provide explanation to what a theory is, the types and classes of accounting theory,
the methodologies in development of accounting theory and the influence of accounting theory on
the financial statement. At the end of the course, students should understand the conceptual
framework of financial reporting.

At the end of this course, students should be able to:

❖ Have knowledge of history and evolution of accounting practice
❖ Understand the regulatory and conceptual framework of financial reporting and the GAAP
❖ Understand what a theory is, the types and classes of accounting theory, the methodologies in
development of accounting theory and the influence of accounting theory on the financial
statement.
❖ Appreciate the process of development of accounting standards and GAAP
❖ Carry out the analysis and interpretation of financial statements including fund flow statement
❖ Carry out analysis of working capital and valuation of inventories
❖ Understand the theory of income determination and approaches to income measurement
❖ Speak on the contemporary issues in accounting: Human resources accounting, segment
reporting, corporate social reporting, price-level changes, etc.

Course performance Criteria

Continuous Assessments and Class Tests 30%

Semester Examination 70%
Total 100%

Course Content/Outline

Week Date Unit Content/Topic Assignment Reference

1– - Elements of history of Accounting Jawahar, L.
- Regulatory and conceptual framework of Accounting Theory
financial reporting and financial statement and Practice
including GAAP

2– Accounting theory – Roles, Importance and Deegan, C.M.,

Development; and classification of accounting Financial
theory Accounting Theory

3– Accounting theory – Roles, Importance and Deegan, C.M.,

Development; and classification of accounting Financial
theory (Contd) Accounting Theory

4– Historical background of accounting standards Jawahar, L.

Accounting Theory
and Practice
5– Analysis and interpretation of financial Paramasivan, C &
statements Subramanian, T.
 Financial
Management
6– Analysis and interpretation of financial Assignment 1 Subramanian, T.
statements (Contd) Financial
Management
7– Valuation and presentation of stocks and WIP
8– Mid Semester Test
9– Theory of income determination different
measurement of income and impact on financial
reporting
10 – Human resources accounting
11 – Segment reporting and corporate social Assignment 2
accounting
12 – Political environment and effect on published FS
13 –
14 – End of semester revision Jawahar, L.
Accounting Theory
and Practice

Recommended Texts/Further Reading

Jawahar, L. (2017). Accounting Theory and Practice (4rh ed.), Himalaya Publishing House.
Mumbai, India.
Deegan, C.M., (2014). Financial Accounting Theory (4th ed.), McGraw-Hill Education (Australia)
Pty Ltd
Paramasivan, C., & Subramanian, T. (2009). Financial Management (2009 ed.) New Age
International Limited, Publishers.
Relevant IFRS and IAS
IAS 7 - Statement of Cashflow
IAS 2 - Valuation and presentation of inventories

Course Details