Course Title: Financial Accounting Theory

Part A: Course Overview

Course Title: Financial Accounting Theory

Credit Points: 12


Course Code




Learning Mode

Teaching Period(s)


City Campus


615H Accounting


Sem 1 2006,
Sem 2 2006,
Sem 1 2007,
Sem 2 2007,
Sem 1 2008,
Sem 2 2008,
Sem 1 2009,
Sem 2 2009,
Sem 1 2010,
Sem 2 2010,
Sem 1 2011,
Sem 2 2011,
Sem 1 2012,
Sem 2 2012,
Sem 1 2013,
Sem 2 2013,
Sem 1 2014,
Sem 2 2014,
Sem 1 2015,
Sem 2 2015,
Sem 1 2016,
Sem 2 2016,
Sem 1 2017


Hong Kong Management Associatn


615H Accounting


Offsh 3 10


Kolej Metropolitan


615H Accounting


Offsh 3 09,
Offsh 1 11


Singapore Inst of Management


615H Accounting


Offsh 1 09,
Offsh 3 09,
Offsh 1 11,
Offsh1 12,
Offsh3 12,
Offsh1 13,
Offsh3 13,
Offsh1 14,
Offsh3 14,
Offsh1 15,
Offsh3 15,
Offsh1 16,
Offsh3 16,
Offsh1 17,
Offsh3 17


RMIT University Vietnam


615H Accounting


Viet3 2008,
Viet1 2009,
Viet2 2009,
Viet3 2009,
Viet1 2010,
Viet2 2010,
Viet1 2011,
Viet2 2011,
Viet3 2011,
Viet1 2012,
Viet2 2012,
Viet3 2012,
Viet1 2013,
Viet2 2013,
Viet1 2014,
Viet2 2014,
Viet3 2014,
Viet2 2015,
Viet1 2016,
Viet3 2016,
Viet2 2017


Universitas Pelita Harapan


615H Accounting


Offsh3 16

Course Coordinator: Dr Meredith Tharapos

Course Coordinator Phone: +61 3 9925 5711

Course Coordinator Email:

Course Coordinator Location: Melbourne

Pre-requisite Courses and Assumed Knowledge and Capabilities

Required Prior Study
You should have completed the RMIT course Financial Accountability and Reporting or equivalent.

Course Description

Financial Accounting Theory is a compulsory core unit in the Bachelor of Business (Accountancy) degree, and Bachelor of Business (Professional Accountancy) degrees.

The aim of Financial Accounting Theory is to examine various theories that have been put forward to understand the role of financial accounting in decision making. In this course you will explore how entities make decisions concerning accounting methods and disclosure of financial information in the absence of complete regulation. The emphasis in this course will be on theories that explain contemporary financial accounting practice and current financial reporting regulation.

As future accounting professionals, an appreciation of accounting theories will allow you to think more critically about the construction and use of financial reports and their associated disclosures.

Financial Accounting Theory is designed to enable you to apply accounting theories to a contemporary workplace situation. It includes a Work Integrated Learning (WIL) experience in which your knowledge and skills are applied and assessed in a real simulated workplace context and where feedback from industry and/or community is integral to your experience.

Objectives/Learning Outcomes/Capability Development


On the successful completion of this course you will be able to:

  1. Evaluate the relevance of accounting theories to a contemporary business environment characterised by incomplete financial reporting regulation.
  2. Apply relevant accounting theories to contemporary business contexts to form judgements about likely outcomes and appropriate reporting responses.
  3. Use and reference a broad knowledge of accounting theories to support decision making as an accounting professional across a range of business and social contexts.
  4. Effectively communicate analysis and application of relevant accounting theories within the context of a global financial reporting environment.

Overview of Learning Activities

In this course you are encouraged to be an active learner. Your learning will be supported through various in-class and online activities comprising individual and group work. These may include quizzes, assignments, prescribed readings, sourcing, researching and analysing specific information, solving problems, conducting presentations, producing written work and collaborating with peers on set tasks or projects.

Overview of Learning Resources

Various learning resources are available online through MyRMIT Studies\Blackboard. These may include topic notes and slides, a study schedule, assessment details, links to relevant internet information, readings and communication tools to facilitate collaboration with your peers and sharing of information.

Resources are also available online through RMIT Library databases and other facilities. If you require assistance with the RMIT library facilities contact the Business Liaison Librarian for your school. Contact details for Business Liaison Librarians are located online on the RMIT Library website.

Additional resources and/or sources to assist your learning will be identified by your course coordinator and will be made available to you as required during the teaching period.

Overview of Assessment

 The assessment tasks, their weighting and the course learning outcomes to which they are aligned are as follows:

Assessment Task 1: 30%
Linked CLOs: 2, 3, 4
Assessment Task 2: 20%
Linked CLOs: 1, 2
Assessment Task 3: 50%
Linked CLOs: 1, 2, 3, 4

Feedback will be provided throughout the semester in class, online and by individual consultation.