Checking date: 24/06/2020

Course: 2020/2021

Positive accounting theory
Study: Bachelor in Finance and Accounting (201)

Coordinating teacher: GARCIA LARA, JUAN MANUEL

Department assigned to the subject: Department of Business Administration

Type: Electives
ECTS Credits: 6.0 ECTS


Students are expected to have completed
Introduction to Accounting Financial Accounting I Financial Accounting II Financial Statements Analysis Auditing Most of the reading materials that we will use in the course are in English, so students should be able to understand technical (accounting) texts in English. The course requires a wide working knowledge of financial accounting . This does not mean that it is absolute necessary to have completed all of the previously mentioned courses, as this is not a course on accounting technicalities.
Competences and skills that will be acquired and learning results. Further information on this link
Knowledge - Understand the role of accounting information in financial markets. - Understand the role of accounting information in the corporate governance structure of the firm. - Analyze the use of accounting information in contracts. - Understand the implications of accounting choice. Abilities - Be able to apply quantitative models to detect the manipulation of accounting numbers. - Develop students ability to identify potential managerial incentives for accounting manipulation. - Improve the ability to work with other people. Attitudes: - Be a critical observer of managerial behavior, and of public policies, in this case, of the decisions taken by accounting regulatory bodies.
Description of contents: programme
1. Introduction to the theory of financial accounting. Financial accounting as a means to resolve information asymmetries and adverse selection problems, and as a corporate governance instrument. 2. How should accounting regulation be? 3. Assessment of accounting regulations. 4. Accounting in a context of efficient markets. 5. Positive accounting theory: Incentives for accounting choice 6. Accounting choice: Examples and cases. 7. Methods to identify accounting manipulation.
Learning activities and methodology
-Lectures. -Exercises to be resolved in class. -Debating cases with students. -Student presentations. -Standard consultation times, where the professor is available for students on the days and time stipulated in Aula Global.
Assessment System
  • % end-of-term-examination 0
  • % of continuous assessment (assigments, laboratory, practicals...) 100
Basic Bibliography
  • Scott. Financial Accounting Theory. Prentice Hall.
  • Watts, R.L. and Zimmerman, J.L.. Positive Accounting Theory. McGraw-Hill. 1986

The course syllabus and the academic weekly planning may change due academic events or other reasons.