THIS COURSE INTENDS TO DEVELOP CRITICAL UNDERSTANDING ON THE MAIN ISSUES AND IDEAS IN FINANCIAL ACCOUNTING INCLUDING ACCOUNTING REGULATIONS AND VARIOUS APPROACHES OF ACCOUNTING THEORY. THE OBJECTIVE OF THIS COURSE IS TO INTRODUCE THE FRAMEWORK THAT COULD BE USED TO UNDERSTAND AND EXPLAIN THE ROLE OF ACCOUNTING REPORTS AND ACCOUNTING INSTITUTIONS IN THE ECONOMIC CONTEXT.

THE FRAMEWORK WOULD ENABLE THE STUDENTS TO IDENTIFY FACTORS INFLUENCING THE FINANCIAL STATEMENTS, DECISION UNDERTAKEN BY FIRMS, BEHAVIOUR OF THE ORGANISATIONS CONTROLLING THE FINANCIAL STATEMENTS, BEHAVIOUR OF PUBLIC ACCOUNTING FIRMS, INTERACTION BETWEEN AGENTS OF CAPITAL MARKETS ETC. SPECIFICALLY, THE FOLLOWING ISSUES WILL BE DISCUSSED: WHY DO WE NEED STANDARDS FOR THE PURPOSE OF EXTERNAL FINANCIAL REPORTING? WHY FINANCIAL REPORTS HAVE TO BE EXAMINED BY AUDITORS, THE INDEPENDENT THIRD PARTY? HOW DO WE END UP WITH THE FINANCIAL STATEMENT MODELS THAT WE CURRENTLY USED?