Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.
LEARNING OUTCOMES
The objective of the course is to deepen student s knowledge of the theories and ways of thought behind financial statement information. Consequently, the course also aims to enhance student s capability of writing a master s thesis on a related topic.
Credits: 6
Schedule: 10.01.2019 - 22.02.2019
Teacher in charge (valid 01.08.2020-31.07.2022): Hannu Ojala
Teacher in charge (applies in this implementation): Hannu Ojala
Contact information for the course (valid 04.01.2019-21.12.2112):
Prof. (acting), PhD(Econ.) MA(Educ.) Hannu Ojala
Department of Accounting, Aalto University School of
Business
Runeberginkatu 22-24, 00100 Helsinki
E-mail: hannu.ojala@aalto.fi
https://people.aalto.fi/index.html#hannu_ojala
I am available for questions before and after classes.
I have no office hours, but should there be a need to meet outside teaching
hours, send me an e-mail.
CEFR level (applies in this implementation):
Language of instruction and studies (valid 01.08.2020-31.07.2022):
Teaching language: English
Languages of study attainment: English
CONTENT, ASSESSMENT AND WORKLOAD
Content
Applies in this implementation:
The objective of the course is to develop student’s
ability to understand financial accounting theories. The course is designed to
foster a critical awareness of the financial accounting environment, which is
needed e.g. in preparing a research question in master thesis and if one is to
become a thoughtful professional.Course reviews financial accounting theories presented
in the course text book (Scott’s Finacial Accounting Theories, 7th
ed). In doing so, it deals with topics of interest to managers, including
economic consequences, conflict resolution, executive compensation and earnings
management. During the course we will use real data examples that illustrate
how financial accounting information is used by investors and how management
behavior is observable from real company data. As management is a major
constituency in standard-setting, the course helps to establish a critical
awareness of the need for standard setting and the standard-setting process.
The course allows insights into the current research in financial accounting
field as well as helps those who plan to do master’s thesis in the area of financial
accounting.Pre-assignment: At the beginning of the course
At the latter part of the
participants prepare a concise (one A4) summary of any research paper that is
listed in the biography of the course book. Separate instructions for this
mandatory pre-assignment are available in Mycourses. Please note that the
deadline is on Friday Jan 11th at 12 AM. Late submissions will not be
accepted.
course, a term paper is to be prepared in teams of three persons and presented
by at least one of the team members. Feedback is given by another team. Separate
instructions for this mandatory term paper assignment are available in
Mycourses. Please note that the term paper deadline is on Tuesday Feb 5th
at 10 AM. Late submissions will not be accepted.
Assessment Methods and Criteria
Valid 01.08.2020-31.07.2022:
1. Term paper (50 %)
2. Exam (50 %)
Applies in this implementation:
Course grading is based on (mandatory)
pre-assignment, (mandatory) term paper preparation & presentation, class
activity (active participation in class discussion and voluntary assignments), and
final exam. Final exam accounts for 60%
of the final grade.Final exam will account for 60 points and you need to
receive a minimum of 25 points to pass.Exams takes place
on Friday 22.2 at 9-13 (Töölö); Friday 05.04.2019 at 14.00-18.00 (Otaniemi) and
on Friday 17.05.19 at 14.00-18.00 (Otaniemi).
Workload
Valid 01.08.2020-31.07.2022:
- Lectures 20 h
- Term paper prep 30 h
- Exam preparation 107 h
- Exam 3 h
Applies in this implementation:
All the classes start 13:15. Some end at 15 and others at 16. We will
have one break around 14.45 for 15 minutes in those classes that end at 16.
DETAILS
Study Material
Valid 01.08.2020-31.07.2022:
Scott, William R. (2015) Financial accounting theory.
Applies in this implementation:
Scott, William R. (2015) Financial accounting
theory, 7th ed.Lecture materials and
discussions
Substitutes for Courses
Valid 01.08.2020-31.07.2022:
This course replaces course 22E00200 Theories of Financial Statements.
Prerequisites
Valid 01.08.2020-31.07.2022:
Introduction to Financial Accounting (22C00100), Financial Accounting (22C00400). Recommended: Financial Statement Analysis (22E00100).
Registration for Courses
Valid 01.08.2020-31.07.2022:
Via Sisu. Please see Sisu for the registration dates.
If more students have enrolled by the enrolment deadline than can be accepted on the course, priority will be given to students based on their study right: 1. Master's degree students in Accounting 2. Exchange students 3. Bachelor's students in Accounting who have completed more than 150 cr 4. Master's students in other majors 5. Bachelor's students in other majors who have completed more than 150 cr
Applies in this implementation:
Mandatory pre-assignment: At the beginning of the course participants prepare a concise (one A4) summary of any research paper that is listed in the biography of the course book. Separate instructions for this mandatory pre-assignment are available in Mycourses. Please note that the deadline is on Friday Jan 11th at 12 AM. Late submissions will not be accepted.
Mandatory term paper: At the latter part of the course, a term paper is to be prepared in teams of three persons and presented by at least one of the team members. Feedback is given by another team. Separate instructions for this mandatory term paper assignment are available in Mycourses. Please note that the term paper deadline is on Tuesday Feb 5th at 10 AM. Late submissions will not be accepted.
FURTHER INFORMATION
Further Information
Valid 01.08.2020-31.07.2022:
There is a pre-assignment on the course. Please check the MyCourses page for more information before the course starts.
Applies in this implementation:
Mandatory pre-assignment: At the beginning of the course participants prepare a concise (one A4) summary of any research paper that is listed in the biography of the course book. Separate instructions for this mandatory pre-assignment are available in Mycourses. Please note that the deadline is on Friday Jan 11th at 12 AM. Late submissions will not be accepted.
Mandatory term paper: At the latter part of the course, a term paper is to be prepared in teams of three persons and presented by at least one of the team members. Feedback is given by another team. Separate instructions for this mandatory term paper assignment are available in Mycourses. Please note that the term paper deadline is on Tuesday Feb 5th at 10 AM. Late submissions will not be accepted.
Details on the schedule
Applies in this implementation:
Course content by dates:
Thu 10.01. at 13.15-15.00 R103/G-111
Summary of course text book (Scott: Financial accounting theories 7th ed.) The intention of this opening lecture is to help in finalizing the pre-assignment (with a deadline on Friday 11.1. at 12AM)
Fri 11.01. at 13.15-15.00 R103/G-111
Chapter 2 Accounting Under Ideal Conditions
Chapter 3 The Decision Usefulness Approach to Financial Reporting
Thu 17.01. at 13.15-15.00 R103/G-111
Chapter 4 Efficient Securities Markets
Chapter 5 The Value Relevance of Accounting Information
Fri 18.01. at 13.15-15.00 R103/G-111
Chapter 6 The Measurement Approach to Decision Usefulness
Chapter 7 Measurement Applications
Thu 24.01.19 at 13.15-16.00 R103/G-111
Chapter 8 The Efficient Contracting Approach to Decision Usefulness
Chapter 9 An Analysis of Conflict
Chapter 10 Executive Compensation
Fri 25.01.19 at 13.15-16.00 R103/G-111
Chapter 11 Earnings Management
Chapter 12 Standard Setting: Economic Issues
Chapter 13 Standard Setting: Political Issues
Time to prepare a term paper (no lectures in last week of January, i,e. in week 5)
Thu 07.02.19 at 13.15-16.00 R103/G-111
Term paper presentations / feedback from other groups
Fri 08.02.19 at 13.15-16.00 R103/G-111
Term paper presentations / feedback from other groups