Module Identifier AC31010  
Academic Year 2006/2007  
Co-ordinator Professor Kevin M P Holland  
Semester Semester 1  
Pre-Requisite AC32920  
Course delivery Lecture   15 Hours.  
  Seminars / Tutorials   5 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

** General Text
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

Barker, Richard Determining value : valuation models and financial statements Pearson Education
Mulford, Charles The Financial numbers game : detecting creative accounting practices Wiley
Rees, William Financial Analysis 2nd edition. Prentice-Hall 0132882833
Scott, William R. Financial Accounting Theory 3rd edition. Prentice-Hall 0130655775
Watts, Ross L. Positive Accounting Theory Prentice-Hall 0136861717


This module is at CQFW Level 6