Module Information

Module Identifier
Module Title
Advanced Financial Accounting
Academic Year
Semester 2
Registered on the MSc Accounting and Finance
Other Staff

Course Delivery

Delivery Type Delivery length / details
Lecture 10 x 2 hours
Seminars / Tutorials 10 x 1 hour


Assessment Type Assessment length / details Proportion
Semester Assessment Assessed Essay 3000 word  25%
Semester Exam 3 Hours   75%
Supplementary Assessment Repeat failed elements or equivalent  25%
Supplementary Exam 3 Hours   Repeat failed elements or equivalent  75%

Learning Outcomes

On successful completion of this module students should be able to:

Describe, explain, illustrate, compare and contrast: alternative drivers of and perspectives in financial accounting; alternative paradigms in financial accounting research; alternative financial reporting conceptual frameworks, standards and practices; and alternative drivers and mechanisms for earnings management.

Explain, assess, criticize and appropriately apply theory/models to answer questions and numerical problems in economic approaches to income theory, signalling and market clearing information, and financial accounting-based corporate valuation.

Explain key extant financial accounting academic literature; and assess that research in terms of importance and novelty, research questions, methodological approach and data, results, conclusions, achievement of objectives, and gaps for future research.

Integrate and synthesize between module topics to discuss and explain financial accounting theory, research and practice; explain, comment on and engage with associated current debates; and suggest potentially fruitful directions for subject area development.


The module is an advanced level study of financial accounting in an information economics setting. The module is a combination of two existing MSc level financial accounting modules and will be core on the revised MSc Accounting and Finance scheme. The module will not be available to students registered on other degree schemes.

Brief description

The module is concerned with the role of financial information in an uncertain world, the pricing of information systems and the signaling role of information with the context of disclosure choice. In addition, the module will examine the use of validation modules in financial reporting and their application in an accounting standard setting.


The content consists of the following six topics:

1. Introduction and discussion of key concepts
2. An information perspective to financial reporting
3. An economic Income approach to financial reporting
4. Valuation relevance of financial reporting including analysis of good will recognition
5. Economic consequences, positive accounting theory and earnings management including accounting for employee share options
6. Accounting regulation

Reading List

General Text
(DU) Deegan, C. & Unerman, J. (2011) Financial Accounting Theory European Edition 2nd ed McGraw Hill Primo search Alexander, David (c2009.) International financial reporting and analysisDavid Alexander, Anne Britton, Ann Jorissen. 4th ed. Cengage Learning Baxter, W. (1984) Inflation Accounting Philip Alan Primo search Beaver, W. (1998) Financial Reporting: an Accounting Revolution 3rd edition Prentice Hall Primo search Bromwich, Michael (1992.) Financial reporting, information and capital markets. Pitman Primo search Christensen, J. and Demski, D. (2002) Accounting Theory: an Information content Perspective McGraw-Hill Primo search Glautier, M., Underdown, B. & Morris, D. (2011) Accounting Theory and Practice Financial Times Press Primo search Hopwood, A. and Mililer, P. (1994) Accounting as Social and Institutional Practice Cambridge University Press Primo search Kothari, Jagdish. (2011.) Advanced financial accounting :an international approach /by Jagdish Kothari, Elisabetta Barone. Financial Times Prentice Hall Primo search Lee, T. (1985) Income and Value Measurement: Theory and Practice 3rd edition Van Rostrand Reinhold Primo search Parker, R. H. (1986.) Readings in the Concept and Measurement of Income. New ed. P.Allan Primo search Scott, W. (2008) Financial Accounting Theory 5th edition Prentice Hall Primo search Sunder, S. (1997) Theory of Accounting and Control South-Western College Publishing Primo search Watts, R. and Zimmerman, J. (1986) Positive Accounting Theory New York: Prentice Hall Primo search


This module is at CQFW Level 7