Module Identifier AC31010  
Academic Year 2004/2005  
Co-ordinator Professor Kevin M P Holland  
Semester Semester 1  
Pre-Requisite AC30820  
Course delivery Lecture   12 Hours  
  Seminars / Tutorials   3 Hours  
Assessment TypeAssessment Length/DetailsProportion
Semester Exam2 Hours  100%
Supplementary Exam2 Hours Students may, subject to Faculty approval, have the opportunity to resit this module, normally during the supplementary examination period100%

Learning outcomes

After completing this module students should be able to:


This module focuses on the role of corporate financial information in assisting external decision makers i.e. economic agents external to the firm concerned. An important element of the available information concerns performance. However, measuring a company'r performance is a subjective process. In exercising judgment prepares of financial reports can also be subject to a number of economic incentives which can introduce bias into the reporting process. The resulting outcome of the reporting process can therefore represent a trade off between the incentives of the information producers and the needs of external decision makers. This can be problematical because, by definition, external decision makers may be unable to observe directly the processes and judgements involved nor always observe the incentives facing prepares.

Brief description

This module examines:


The module content is delivered in five sections covering:
1. Factors influencing the demand and supply of financial information.
2. Cross sectional and time series analysis of accounting data including earnings prediction and event prediction
3. The theoretical and empirical relationship between accounting earnings and returns
4. Factors influencing accounting policy choice and earnings management
5. The valuation relevance of financial statement information including methods and implications.

Transferable skills

Students taking this module will have the opportunity to develop and practice a wide range of transferable skills. In lectures students will develop listening and note taking skills. In preparation for tutorials students will develop their reading, note taking, analytical, independent research, writing and IT skills. Tutorial discussions will help students to develop their listening, explaining and debating skills, as well as team work and problem solving. The examination will test students' analytical and writing skills under time constaints.

Reading Lists

** Should Be Purchased
Bill Rees (1995) Financial Analysis 2nd edition. Prentice Hall (a third edition - ISBN 027367872 - is in preparation but is unlikely to be available until 2005)
W R Scott (2003) Financial Accounting Theory 3rd edition. Prentice Hall, Toronto
In addition to the above texts students are required to read a number of articles. A full reading list and module outline is available via Blackboard ( and will be distributed in the first lecture


This module is at CQFW Level 6