UNIVERSITAS INDONESIA

FACULTY OF ECONOMICS AND BUSINESS

DEPARTMENT OF ACCOUNTING
UNDERGRADUATE PROGRAM
SYLLABUS
TEORI AKUNTANSI KEUANGAN
(FINANCIAL ACCOUNTING THEORY)
ECAU601401
SEMESTER II 2015/2016
No
Lecturers
E-mail
.
1
Hilda Rossieta/ Vitria Indriani
enjum9@yahoo.co.uk/
phia_307@yahoo.com
(Bhs. Inggris) - A
2
Elvia Rosantina Shauki/Eliza
elvia.shauki@unisa.edu.au/
Fatima (Bhs, Inggris) - B
eliza_fatimah@yahoo.com
3
Siti Nuryanah - C
siti.nuryanah@ui.ac.id
4
Lufti Julian - D
lufti.julian@yahoo.co.id
5
Dini Marina - E
dini.marina@ui.ac.id
6
Fitriani - F
fitri_any@yahoo.com
7
Evony Silvano /
vony@yahoo.com/
Sylvia Veronica NPS - G
sylvia_vnps@yahoo.com
8
Edward Tanujaya
edward_tanujaya@yahoo.com
9
Purwatiningsih/Viska Anggraita - ipung31@yahoo.com/
H
viskaviska257@yahoo.co.id
Subject Code
Subject Title
Credit Value
Pre-requisite/
Co-requisite/
Exclusion
Role and
Purposes

ECAU601401
Financial Accounting Theory
3
Advanced Financial Accounting 2
This course is part of the financial accounting core subjects. It
discusses the frame of reference that affects financial
accounting practices. Understand that the different financial
accounting theories are often developed to perform different
functions: (1) to describe accounting practice; and (2) to
prescribe particular accounting practices. Understand that
theories of accounting are developed as a result of applying
various value judgements and that acceptance of one theory in
preference to others will in part be tied to ones own value
judgements. As a consequence, students should critically evaluate
theories (the underlying logic, assumptions made and evidence
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produced) before accepting them.

Accounting students should study accounting theories as part of

their broader accounting education. They should be able to
evaluate, compare, and apply those frames of reference in
justifying their arguments and/or solutions addressing the
accounting cases. Teaching materials include: introduction and
approach to the formulation of accounting theory, accounting
theory development, and determination of accounting policies.

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Subject
Learning
Outcomes

Subject
Synopsis/
Indicative
Syllabus

Upon completion of the subject, student will be able to:

1. Evaluate the appropriateness of accounting policies used in
preparing financial statements. (T3)
a) Understand the theories underlying a conceptual
framework and measurement in accounting; and evaluate
the appropriateness of measurement policies used in
preparing financial statements.
b) Understand the theory underlying elements of financial
statements and evaluate the appropriateness of policies
regarding the elements used in preparing financial
statements.
2. Demonstrate the ability to evaluate, analysis and comparison
alternatives choices (C2)
c) Understand the construction of accounting theories and
evaluate the application of the theories to regulation
d) Understand and compare the theory applied in capital
market research and behavioural research in accounting
Demonstrate
argument
or
solution
to justify
with
an to justify an argument or solution
supporting
references
evidence/
relevant
suppoting
3. Demonstrate
evidence/
the ability
relevant
with supporting evidence/relevant references (C3)
references
e) Understand positive theory of accounting policy;
disclosures, and justify arguments and/or solutions on the
theory
f) Understand and justify arguments on the issues in
accounting standard setting and the emerging issues in
accounting and auditing.
Week
#
1

Topic

LO

Introduction
Accounting Theory
Construction
Overview of Accounting
Theory
Pragmatic Theories
Syntactic and Semantic
Theories
Normative Theories
Positive Theories
Other Perspectives and Issues
Applying Theory to
Accounting Regulation
The Theories of Regulation
Relevant to Accounting and
Auditing
How the Theories of
Regulation Apply to
Accounting and Auditing
Practice
The Regulatory Framework for
Financial Reporting

Required
Reading
Godfrey Ch.1
Godfrey Ch.2

Godfrey Ch.3
Scott Ch.13 (sub
13.2)

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6&7

8&9

The Institutional Structure for

Setting Accounting and
Auditing Standards
A Conceptual Framework
The Role of Conceptual
Framework
Objectives of Conceptual
Frameworks
Developing a Conceptual
Framework
A Critique of Conceptual
Framework Projects
Conceptual Framework for
Auditing Standards
Measurement Theory
Importance of Measurement
Scales
Permissible Operations of
Scales
Types of Measurement
Reliability and Accuracy
Measurement in Accounting
Measurement Issues for
Auditors
Accounting Measurement
System
Income and Capital
Measurement System
Historical Cost Accounting
Current Cost Accounting
Financial Capital versus
Physical Capital
Exit Price Accounting
Value in Use versus Value in
Exchange
A Global Perspective and IFRS
Issues for Auditors
Assets
Asset Defined
Asset Recognition
Asset Measurement
Challenges for Standard
Setters
Issues for Auditors
Liabilities and Owners
Equity
Proprietary and Entity Theory
Liabilities Defined
Liability Measurement
Challenges for Standard
Setters
Revenue
Revenue Defined
Revenue Recognition

Godfrey Ch.4
PSAK-KDP2LK
(Conceptual
Framework)

Godfrey Ch.5

Godfrey Ch.6

Godfrey Ch.7
Godfrey Ch.8
PSAK 16 (2011
revision)
PSAK 19 (2010
revision)
PSAK 50 (2010
revision) and PSAK
55 (2011 revision) ,
except Derivative
Paik (2009)
McCarthy and
Schneider (2001)

Godfrey Ch.9
Godfrey Ch.10
PSAK 23 (2010

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 Revenue Measurement
Challenges for Standard
Setters
Issues for Auditors

10

11

12

13

14

Expenses
Expenses Defined
Expenses Recognition
Expenses Measurement
Challenges for Standard
Setters
Positive Theory of
Accounting Policy and
Disclosure
Contracting Theory
Agency Theory
Agency Problems
Signaling Theory
Political Process
Agency Cost
Empirical Test of Theory and
Evaluating the Theory
Issues for Auditors
Capital Market Research
Philosophy of Positive
Accounting Theory
Strength of Positive Theory
Scope of Positive Accounting
Theory
Capital Market Research and
the Efficient Market
Hypothesis
Impact of Accounting Profits
Announcements on Share
Prices
Trading Strategies
Issues for Auditors
Behavioral Research in
Accounting (BAR)
Definition and Scope
Why is BAR Important?
Representativeness: the
Evidence
Accounting and Behavior
Limitation of BAR
Issues for Auditors
Standard Setting
Standard Setting: Economics
Issues
Standard Setting: Political
Issues
Emerging Issues in
Accounting and Auditing
Factors Influencing Accounting
and Auditing Research,

revision)
PSAK 34 (2010
revision)
Mintz (2009)
Martin (2009)
Caylor (2010)

Godfrey Ch.11

Godfrey Ch.12

Godfrey Ch.13

Scott Ch.12 and 13

(except sub 13.2)

e,f

Godfrey Ch.14

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Teaching/Lear
ning
Methodology

Assessment
Method in
Alignment
with Intended
Learning
Outcomes

Regulation and Practice

Application of Fair Value
Accounting during Global
Financial Crisis
Future International
Accounting Standard Setting
Arrangements
Sustainability Accounting,
Reporting and Assurance
Other Non Financial
Accounting and Reporting
Issues

Students-oriented learning (referred as Student Centered

Learning or SCL) is used as the teaching method in Financial
Accounting Theory (TAK). to. Active participation of the students
is highly needed. Students are expected to build self-knowledge
actively and independently, while the main role of teaching staff
will be a facilitator. Learning methods used in this subjects is
active and collaborative learning..
Selection of the learning method is based on the suitability of
learning methods to the characteristics of the material covered
so that specific instructional objectives can be achieved
optimally.
Specific
Assessment
Methods/Tasks

%
Weight
ing

Continuous
Assessment
GROUP
Group Paper
(10%)
Presentation
(10%)
INDIVIDUAL
Mid Term Exam
(30%)
Final Exam
(30%)
Participation
Collaborative
and Active
Learning (10%)
Quizzes (10

100%

Intended Learning
Outcomes to be Assessed
a

40
%

30
%
30
%

30
%
30
%

15
%

25
%

20%

80%

Page 6 of 7

Details of
learning
methods

Student Study
Effort
Expected

The specific learning methods used in this subject are:

1. Active Lecturing
Active lecturing approach, which is preceded by the
presentation of the students is applied for the topics .
2. Collaborative Learning
Collaborative learning will be used for topics that have many
sub-topics and require a deep understanding. This method
allows students to focus on the mastery of a particular
material and then share and gain an understanding of other
material from other students.
Under this method, students are divided into groups and
discuss the specific cases in Home Group Discussion (HGD)
and Focus Group Discussion (FGD). There are several subtopics for FGD and then all of FGDs topics will be discussed
in HDG. In each discussion (FGD and HGD) students will
assess their peer in a peer review form. Finally, each group
will present the results of discussions with the lecturer as
facilitator. Results of the discussion and presentations are
expected to improve students understanding about the
concept and its implementation. This presentation sessions
are also expected to benefit the students to learn from other
focus group discussion.
Class Contacts:
Lectures

32
Hours
10
Hours
28
Hours

Collaborative Learning
Presentation
Other student study effort:
Preparation for project/assignment/tests
Reading List
and
References

30
Hours

Required Readings:
1. Godfrey, Jayne, Allan Hodgson, Ann Tarca, Jane Hamilton, and Scott
Holmes. Accounting Theory, 7th Ed. John Wiley & Sons, Inc. 2010.
(GOD)
2. Scott, William R. Financial Accounting Theory, 6th Ed. Pearson
Prentice Hall, 2012. (WRS)
3. Paik, Gyung. The Value Relevance of Fixed Asset Revaluation
Reserves
in
International
Accounting.
International
Management Review, 2009. (Paik, 2009)
4. McCarthy, Mark G., and Douglas K. Schneider. Classification of
Financial Instruments with Characteristics of Both Debt and
Equity: Evidence Concerning Convertible Redeemable
Preferred Stock. Academy of Accounting and Financial Studies
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Journal, 2001. (McCarthy and Schneider, 2001)

5. Mintz, Stephen M. Proposed Changes in Revenue Recognition
under U.S. GAAP and IFRS. The CPA Journal, 2009. (Mintz, 2009)
6. Martin, Jim. Accounting for Expenses. The CPA Journal, 2009.
(Martin, 2009)
7. Caylor, Marcus L. Strategic Revenue Recognition to Achieve
Earnings Benchmark. Journal of Accounting & Public Policy, 2010.
(Caylor, 2010)
8. Ikatan Akuntan Indonesia, Standar Akuntansi Keuangan,
Jakarta: Salemba Empat, 2009 (PSAK)
9. Kode Etik Ikatan Akuntan Indonesia.
Supplementary Readings:
Students are expected to actively search for other readings which are
relevant to the topics

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