Module Identifier ACM1020  
Academic Year 2006/2007  
Co-ordinator Professor David R Gwilliam  
Semester Semester 1  
Pre-Requisite Registered on the MSc Accounting and Finance  
Course delivery Lecture   1 Hours. 2 per week during semester 1  
  Seminars / Tutorials   1 Hours. 2 per week during semester 1  
Assessment TypeAssessment Length/DetailsProportion
Semester Exam3 Hours  80%
Semester Assessment assessed essay  20%
Supplementary Exam3 Hours  100%

Learning outcomes

On completion of this module students should be able to: Critically evaluate (1) the contrasting normative and economic commodity approaches to the study of accounting information, (2) the link between economic income and financial reporting. (3) the application of (2) to standard setting, (4) information as a commodity and its value in an uncertain world, (5) disclosure choice and signaling theory and (6) time series analysis of financial reporting and its predictive role.


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 Lists

In addition to the above texts students are required to read a number of journal articles. A full reading list and module outline is available via Blackboard ( and will be distributed in the first lecture.
M Bromwich (1992) Financial Reporting, Information and Capital Markets, Pitman
There is no one single textbook that covers the syllabus. Instead students are recommended to have ready access to the following three texts:
W Beaver (1998) Financial Reporting: An Accounting Revolution, 3rd edition. Prentice Hall
W R Scott (2003) Financial Accounting Theory, 3rd edition. Prentice Hall


This module is at CQFW Level 7