Introductory description

This is an elective module available for WBS and non-WBS students. To find detailed availability and to apply for this module, log in to my.wbs.ac.uk using your normal IT login details and apply via the my.wbs module application system. Once you’ve secured a place on my.wbs you should apply via your home department’s usual process, which usually takes place via eVision. Note that you do not require the module leader’s permission to study a WBS module, so please do not contact them to request it.

Accounting makes organisations possible and underpins the smooth running of markets. It shapes how we act and what we value. Living in a world influenced by the products of accounting, and using accounting information well, requires critical reflection. In this module we draw on theories, concepts and empirical material to develop your critical understanding of the power of accounting. We explore, through weekly readings and an assessed essay, how accounting (including standard-setting) works and changes. We investigate its impacts on us, what it enables in economies and societies and what can and does go wrong (how scandals are possible) as well as what needs changing to deal with current challenges.
By the end of the module students will have developed their understanding of:

i) the contingent nature of accounting information and regulation, through engaging with the importance of understanding the historical, social, economic and political nature of accounting.
ii) the impact of financial reporting and management accounting numbers (including issues in Audit and Sustainability Reporting).
iii) the basic elements of normative, positive and critical theory (in accounting).
iv) the need to contextualize technical accounting information in order to interpret it.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

Introduction: why power and context matters

Accountability

Normative accounting theory and conceptual frameworks: truth and judgement

Normative accounting theory: the legitimacy of the IASB

Normative accounting theory: changes and tensions

Professionalisation: audit - commerciality and the public interest

Positive accounting theory: vested interests and financial reporting

Disciplinary power of accounting

Sustainability reporting (extended accountability)

Conclusion and counter-accounts

Learning outcomes

By the end of the module, students should be able to:

• Understand some of the theoretical assumptions that underlie accounting regulation, practices and research.
• Understand the contingent nature of accounting.
• Understand some of the controversies and difficulties embodied in accounting practices and theories.
• Critically examine the nature of accounting through discussing accounting theory and practice.
• Understand the role played by accounting in the globalisation of certain management ideas and practices.
• Demonstrate a knowledge of important developments in accounting ideas and research.
• Understand the need for contextualisation of accounting data.
• Understand the role of accounting in portraying and creating notions of success.
• Assess the nature of accounting information in narrative and numerical forms and understand the relationships between financial statements and narrative statements.
• Understand the wide range of theoretical approaches drawn upon by accounting.
• Appreciate the historical emergence of accounting and its concepts and the ways in which these shape accounting practice.
• Understand the effect of the standardisation and professionalisation of accounting on the relationship between concepts and practices.
• Develop personal ideas, arguments and opinions in relation to important issues in accounting.

Indicative reading list

Reading lists can be found in Talis

Interdisciplinary

Draws on some materials influenced by sociological and philosophical considerations.

International

Briefly encourages, at a general level, students to consider the applicability of IFRS uniform accounting and its values across different national contexts.

Subject specific skills

Understand the practical and ethical importance of contextualising accounting information when preparing and using accounting.
Articulate in a general way the importance of understanding measurement assumptions and their impact on accounting numbers.
Explain the theoretical and organisational complexity and pragmatism underlying the standard-setting process and subsequent judgements in financial reporting.
Explain the importance of accountability as an important aspect of accounting.

Transferable skills

Demonstrate written communication skills.
Critically evaluate ideas about issues in accounting.
Demonstrate team work and oral communication.
Appreciate the range of academic accounting literature and its relationship to accounting practice.