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
    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.

    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.





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.

    Availability

  • 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 WebOodi. Please see WebOodi 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. Master's students in other majors 4. Bachelor's students in Accounting who have completed more than 150 cr 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