Financial Accounting Theory

Introduction

This course explores the role of accounting information. In particulary, it focuses on (i) the relation between accounting information and capital markets and (ii) on the role of accounting information in corporate contracts.

The course is particularly relevant to any student planning to work as an accounting standard setter, a regulator (Finanstilsynet, SEC, ...), an auditor, an economist, an equity research analyst, an analyst at a credit rating agency or an investor.

Course content

• Brief history of the accounting and recent crises
• Accounting models
• The financial statement as a source of information for the capital market
• The financial statement as a tool to maxize contracting efficiency
• Earnings management and other economic consequences
• Standard setting and introduction of sustainability reporting standards