Lecture 2 - Financial Accounting Regulation.pdf - Accounting Theory Lecture 2 Financial Accounting Regulation Lecture programme 1 Introduction to

Lecture 2 - Financial Accounting Regulation.pdf -...

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Accounting Theory Lecture 2 Financial Accounting Regulation
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Lecture programme 1 Introduction to accounting theory 2 Financial accounting policy 3 Conceptual frameworks of accounting 4 Positive accounting theory 5 The accounting profession 6 No lecture session this week 7 Critical perspectives on accounting 8 Stakeholder and legitimacy theories 9 Institutional theory 10 Future directions in accounting theory 11 Module round-up and assessment briefing
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Essential Reading Chapter 3: The Regulation of Financial Reporting Useful additional reading: Chapter 2 of Deegan and Unerman Power, M., (1994). The Audit Explosion, London: Demos. (available on Canvas)
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What is a theory? Framework Sense Stability Cohesion Structure Logic System Reasoning Understanding
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Overview of theories of accounting The role of accounting theory is … Normative theories Positive theories … to explain … to prescribe
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Evaluating theories of accounting Paradigm: people’s philosophies and assumptions about the world and the nature of knowledge Theories are “value laden”: choice of theory depends on a person’s own value judgments
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What is regulation? Regulation is defined as: A rule or principle governing behaviour or practice (OED) A regulator is defined as: An official or agency responsible for the control and supervision of a particular industry, business activity area, area of public interest, etc. (OED)
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Regulation of financial accounting 1. Should we regulate financial accounting? 2. Why do financial accounting regulators produce particular regulations?
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Anti-regulation (private-contracting) argument: The ‘free market’ perspective Managers Outside parties Private contracts Outside parties Outside parties Organisation
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1. The free-market perspective of accounting
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  • Fall '16
  • Ian Thomson

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