3 credits. Lecture.
Required if plan of study has not included 5533 or 5571, otherwise an elective
Study of major financial accounting issues, including the conceptual framework of accounting, the standard-setting process, asset valuation, income determination, and the agency theoretic perspective on managerial behavior and the use of accounting information in contracts. Other topics covered are fair value and derivatives accounting, and corporate governance issues related to the Sarbanes-Oxley Act of 2002 and IFRS. Concentrates on developing theories of the usefulness of accounting information in financial markets. This theoretical perspective is used to evaluate the conceptual framework, specific accounting standards, and issues related to international harmonization of accounting standards.