ACCT 500- Financial Accounting Theory
The Graduate School
College of Charleston
Professor Roger B. Daniels
Fall 2011
Professor: Roger B. Daniels
Location: Beatty 402
Telephone: 843.953.8041 (office); 843.568.1589 (mobile)
Office Hours: Monday: 1:00 to 1:50
Tuesday: 11:00 to 12:00
Wednesday: 1:00 to 1:50
Thursday: 11:00 to 12:00
Other Times by Appointment
I will generally see students anytime that I am in my office. Also, you may
reach me via my cell phone, office phone, and/or email.
Course Description: This course provides a foundation in accounting theory pertaining
to financial reporting. The focus is on the historical development of accounting thought,
standard setting and regulation, and fundamental accounting principles and concepts
including measurement, and reporting for income, assets, liabilities, and equity.
Grading:
Your grade will be a function of the relative quality of your work:
Midterm Exam: 100 points
Research Paper: 100 points
Second Exam 100 points
Class Participation and Citizenship: 100 points
Based upon the quality of your work, grades will be assigned accordingly (earned points
divided by total points possible):
A
B+
B
C+
C
F
=90% (Quality of student’s work is distinguishably higher than peers)
=87%
=80% (Quality of student’s work is good with no deficiencies)
=77%
=70% (Quality of student’s work is deficient)
=below 70% (Quality of student’s work is unacceptable)
Exams- Examinations will either be in class or take home. The contents of the exams
will reflect the Schedule of Readings attached to this syllabus as well as seminar
discussions. You are expressly forbidden to collaborate in any manner with others in
crafting your answers to test questions.
Research Paper: A research paper is an integral part of the requirements of this course.
A research proposal is due to me no later than Thursday, September 16. Your proposal
must include a thesis (or purpose) statement, a bibliography with no less than 15
sources, and a two page introduction to the paper. I will evaluate your proposals and
provide feedback.
The final paper should contain no less than 20 bibliographical citations with a minimum
length of 15 double-spaced (12 font Arial) pages. Margins should be approximately 1.5
inches on the left and 1.0 inches on the top, bottom and right.
Class Participation and Citizenship:
You are expected to be prepared for each class session. This is a seminar class which
means that each student is to be an active participant in facilitating class discussion. It is
important that each of you adequately prepare for each class period by reading and
understanding that week’s assigned readings. I will randomly select an opening
discussant and systematically go to other students to spur discussion on the readings
and assignments. Since many of our readings are historical in nature, it will be important
that you bring into class current events including accounting standard setting, auditing,
SEC, economy, finance industry, etc that pertains to the assigned readings. These can
be added to your portfolio. Share the things that you find with the class. It makes for
interesting discussions and adds context to what we are studying.
You are to prepare a summary of each reading that is assigned. In some cases, you
may want to organize the summaries as answers to the questions posed within the
readings or provided by the professor. These summaries will be kept in a folder
maintained by you. You are required to bring this notebook to class each time and I may
evaluate your portfolio of work at any time. Randomly, I will ask you to read your
answers to the questions or your summary of a particular work to the class. Your
summary should include the bibliographical citation of the article at the top of the page
with your name in the upper right corner. Each summary should be one single-spaced
page and address all important issues of the article assigned. This portfolio of
summaries will become a component of your class participation and citizenship grade.
Attendance:
Attendance in this course is mandatory. For each absence, you will be penalized half a
letter grade for the course. On the third absence, you may receive a failing grade for the
course.
Other Policies:
Cheating or plagiarism in any form may result in a failing grade for the course. Each
student must do his or her work independently. Please refer to the College of
Charleston Student Code of Conduct and other authoritative statements regarding
academic integrity.
The use of all PDA devices including computers, cell phones, blackberries, and other
communication devices is expressly forbidden during class. Texting during class is rude
and disruptive. Violations of this policy will result in severe grade penalties (up to one
letter grade per infraction for the course). Sleeping, chatting with your neighbor, or other
disruptive behavior during class will be dealt with by the same harsh grade penalty.
ACCT 500- Financial Accounting Theory
Schedule of Readings and Tentative Calendar
Fall 2011
Professor Daniels
Tuesday, August 23
Introduction
Discussion of Research Papers
Daniels, Roger B., Braswell, M. and Beeler, J. (2010) , “Accounting and Financial
Reporting in a Late 18th Century American Charity, The Accounting
Historians Journal, Vol. 37 No. 2, (December) pp. 39-65.
Thursday, August 25
Moehrle, Stephen and J. Reynolds-Moehrle (2011), “United States,” in A Global History
of Accounting, Financial Reporting, and Public Policy: Americas, edited by
Previts Walton and Wolnizer, Emerald Press (pp.105-144).
Littleton, A.C. (1927), “The Antecedents of Double Entry, Accounting Review,
Vol. 2, No. 2 (June): 140-149.
Tuesday, August 30
Belkaoui, Ahmed (1985), “Traditional Approaches to the Formulation of an Accounting
Theory,” in Accounting Theory, Harcourt Brace Jovanovich.
Daniels, Roger B. and Jesse Beeler (2001), “An Archival Investigation of a Late 19th
Century Accounting Information System: The Use of Decision Aids in the
American Printing Industry,” The Accounting Historians Journal, (June), pp. 3-19.
Thursday, September 1
Belkaoui, Ahmed (1985), “The Regulatory Approach to the Formulation of an
Accounting Theory,” in Accounting Theory, Harcourt Brace Jovanovich.
Belkaoui, Ahmed (1985), “The Predictive and Positive Approaches to the
Formulation of an Accounting Theory, in Accounting Theory, Harcourt
Brace Jovanovich.
Tuesday, September 6
Chatfield, M. (1977), “Accounting Problems of the Industrial Corporation,” in A
History of Accounting Thought, Krieger Publishing.
Rosenfield, P. (2006), “The incentives of the parties to financial reporting,” in
Contemporary Issues in Financial Reporting: A user-oriented approach,
Routledge (London).
Thursday, September 8
Film:
Bigger than Enron, The collapse of Enron caused many to question the watchdog
system designed to protect investors. But Enron and Arthur Andersen are the tip of the
iceburg. In the late 1990’s, Enron was just one of the more than 400 corporations forced
to dramatically restate their value because of accounting lapses, failures or fraud. (60
minutes)
Tuesday, September 13
Research proposals due; Each student will give a two minute executive summary on
their project and the sources that they have identified.
Thursday, September 15
Dillard, Jesse and Linda Ruchala (2005), “The rules are no game: from instrumental
rationality to administrative evil,” Accounting, Auditing & Accountability Journal,
Volume 18 Number 5, pp. 608-631.
Tuesday, September 20
Film:
The Corporation, a film by Zeitgeist, 2005. A look at the inner workings, curious history,
controversial impacts and possible futures of the modern global conglomerate (145
minutes).
Thursday, September 22
The Corporation (continued)
Tuesday, September 27
Rosenfield, P. (2006), “Designing financial statements by starting with desired results or
by applying analysis for the benefit of users,” in Contemporary Issues in
Financial Reporting: A user-oriented approach, Routledge (London).
Rosenfield, P. (2006), “The indoctrination of financial reporters,” in
Contemporary Issues in Financial Reporting: A user-oriented approach,
Routledge (London).
Thursday, September 29
Hatfield, Henry Rand (1927), “What is the Matter with Accounting?,” The Journal of
Accountancy, Volume XLIV, Number 4 (October), pp. 267-279.
Littleton, A.C. (1973), “Orientation,” in Structure of Accounting Theory, American
Accounting Association, first published in 1953.
Tuesday, October 4
Midterm Exam
Thursday, October 6
Merino, B.D., and Marilyn Neimark (1982), “Disclosure Regulation and Public Policy: A
Sociohistorical Reappraisal, Journal of Accounting and Public Policy, Volume
1(1), pp. 33-57
Flesher, Dale and Tonya K. Flesher (1986), “Ivar Kruegar’s Contribution to U.S.
Financial Reporting,” The Accounting Review, Vol. LXI, No. 3 (July), pp.421-434.
Tuesday, October 11
Greg Isley (Elliott Davis) discusses Good to Great
Thursday, October 13
Independent Research Day
Tuesday, October 18
Fall Break
Thursday, October 20
Roberts, M.L.,et al (1990) “The Stockholders’ Equity Section: Form Without
Substance?,” Accounting Horizons, (December), pp. 35-46.
Tuesday, October 25
Film:
Enron: The Smartest Guys in the Room, Magnolia Pictures, 2005. A film based
on the best-selling book by Fortune Reporters Bethany McLean and Peter Elkin. The film
is an insightful depiction of one of the world’s most significant accounting and reporting
scandals. (110 minutes)
Thursday, October 27
Enron (continued)
Tuesday, November 1
Mills, Patti A. (1990), “Agency, Auditing and the Unregulated Environment: Some
Further Historical Evidence,” Accounting, Auditing & Accountability
Journal, Volume 3 Issue 1, pp. 54-67.
Merino, Barbara D., and Alan G. Mayper (2001), “Securities Legislation and the
Accounting Profession in the 1930’s: The Rhetoric and Reality of the American
Dream,” Critical Perspectives on Accounting, Vol. 12, pp. 501-525.
Thursday, November 3
Current Issues in Accounting Theory- Student Discussion/Presentations
Fair Value Accounting- Historically and Contemporaneously
Tuesday, November 8
Current Issues in Accounting Theory- Student Discussion/Presentations
Derivative Instruments- Valuation, Measurement, Disclosure, and Historical Perspectives
Thursday, November 10
Current Issues in Accounting Theory- Student Discussion/Presentations
Quality of Accounting Information, the Independent Auditor’s Report and Capital Markets
Tuesday, November 15
Current Issues in Accounting Theory- Student Discussion/Presentations
IFRS versus GAAP
Thursday, November 17
Current Issues in Accounting Theory- Student Discussion/Presentations
The Future of Financial Accounting
Tuesday, November 22
Thanksgiving Break
Thursday, November 24
Thanksgiving Break
Tuesday, November 29
Research papers due
Thursday, December 1
Final Exam