New format for OBE-SCL Lesson Plan Oct2021

FAKULTI PERAKAUNAN
UNIVERSITI TEKNOLOGI MARA

SEMESTER: OCTOBER 2021

PROGRAM NAME : Bachelor in Accountancy

PROGRAM CODE : AC220
COURSE NAME : Accounting: Theory and Emerging Issues
COURSE CODE : FAR 661
LECTURE : 2 hrs/wk
TUTORIAL : 1 hr/wk
LECTURER : MISS SALINA BINTI ABDULLAH ROOM: KPP2 AG 19 TEL: 012-6022423

COURSE OUTCOMES

CO1 Explain development of accounting theories and conceptual framework in the accounting profession.

CO2 Perform analysis on creative accounting practices by Malaysian companies.

CO3 Evaluate impacts of emerging issues in accounting on the accounting profession in Malaysia

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PROGRAM OUTCOMES
PO1 Apply accounting knowledge (C) and understanding in relevant organizations.
PO2 Display (P) practical skills and digital skills in accounting tasks for relevant organizations.
PO3 Demonstrate leadership, autonomy and responsibilities in providing accounting services to stakeholder (A).

PO4 Adhere to values attitudes and professionalism in societal professional engagement (A).
PO5 Collaborate with diverse team members through effective communication (A).
PO6 Provide solutions using numeracy and scientific skills (C) to accounting issues and problems.
PO7 Demonstrate lifelong learning. (A)
PO8 Demonstrate entrepreneur skills. (A)

CO-PO MATRIX

PO PO PO PO PO PO PO PO PO
1 2 3 4 5 6 7 8 9

CO /
1

CO /
2

CO /
3

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PLAN STRUCTURE

CONTACT LEARNING
NO WEEK TOPIC LECTURE/TUTORIAL COVERAGE TOPIC OUTCOME (TO) CO PO ASSESSMENT
HOURS MODEL
1 1 Introduction on Ability to:
OBE-SCL, ▪ Understand the
Entrance significance important of
survey, adopting OBE for the
course.
Assessment ▪ Recognize FACT
plan and SLT ▪ Ice breaking. Sharing of
program educational
▪ Overview of OBE. materials
objectives (PEOs). Entrance
▪ Overview of the course via
▪ Recognize FACT and Survey
lesson plan and syllabus
program outcomes information
contents.
(POs).
▪ Recognize the course
outcomes (COs).
▪ Recognize the course
topic outcomes (TOs).

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1 Financial 3(2L, Introduction and Financial Ability to:

Regulatory 1T) Regulatory. ● Explain various
definition and other
▪ The introduction- what is roles of accounting
accounting ● Illustrate the history
▪ Development in and the development in
accounting and accounting and
accounting theory: an accounting theory.
overview ● Explain the overall
▪ The financial reporting financial accounting
environment: Malaysia environment
setting ● Explain Accounting
▪ The development of regulations (rules and
accounting concepts and guidelines);
principles. International Lecture,
PO Final exam,
perspective; Malaysian CO1 Tutorial
1 and test
perspective;
● Describe the
development of
accounting concepts
and principles –

✔ Management
contribution phase.

✔ Institution contribution
phase.
✔ Professional
contribution phase.

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✔ Overt politicization
phase.

● Identify RECENT
Development in
Accounting Theory and
● Discuss the importance
and the limitation of
accounting history

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2 2,3 Formulation 6 Formulation and Verification of Ability to:

and Verification (4L,2T) Accounting Theory Definition of ● Describe the
of Accounting impairment assets. characteristics of ideal
Theory theory
Part 1: ● Classify and compare
● Describe the characteristics the theories according
of ideal theory
to the assumptions
● Classify and compare the
theories- pragmatic, they rely on and how
normative, positive, they are formulated –
behavioural ✔ Pragmatic
● Formulation of Accounting ✔ Normative
Theory- deductive and
✔ Positive
inductive approach
● Formulation of Accounting ✔ Behavioural
CO1 PO1 Lecture, Final exam &
Theory – other approaches: And recommend how
Tutorial & Test
the ethical approach, the these theories
sociological approach, the contribute to the shape
economic approach, and the of accounting today.
eclectic approach.
● Describe how theories
are developed and
formulated from
deductive approach
and inductive approach
● Compare between
deductive and inductive
approach

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Part 2:
● Positive Accounting Theory
● Understand how a positive
theory differs from a
normative theory.
● Principal-agent relationship;
Agency costs – monitoring
costs; Bonding costs;
Residual loss;
● Accounting Theory and its
Economic Consequences;
The opportunistic vs.
efficient strategy
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● Describe how theories
are developed and
formulated from other
approaches: ethical,
sociological, economic
and eclectic approach.
Understand how a positive
theory differs from a
normative theory.
● Be aware of the
origins of Positive
Accounting Theory
(PAT).
● Understand that PAT
uses insights from
agency theory and
why agency theory is
of relevance to
financial accounting
practices.
● Be aware of the
central assumptions
of PAT.
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● Be aware of the
meaning and nature
of agency costs.
● Understand why an
organisation can
usefully be referred to
as a ‘nexus of
contracts’.
● Be aware of what
constitutes
‘conservative’
accounting
procedures and why
conservative
accounting
procedures provide
efficient mechanisms
for minimising the
contracting costs
within an
organisation.
● Be able to identify
some of the criticisms
of PAT.

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3 4, 5 Regulatory 6(4L,2T) Part 1: The underlying

Approach of an theories:
Accounting Introduction: Ability to:
Define the meaning of
Theory ● Describe the meaning of
‘regulation’ together with some
‘regulation’ together with
of the various theoretical
some of the various
arguments for regulating the
theoretical arguments for
practice of financial accounting.
regulating the practice of
financial accounting.

Understand some of the ● Interpret and criticise the

theories that explain why free-market perspective
regulation is initially introduced. ✔ Private economic-
based incentives Lecture & Final exam
✔ ‘Market for CO1 PO1
Tutorial &Test
managers’
✔ ‘Market for
corporate
takeovers’
✔ ‘Market for lemons’

Understand various theoretical ● Interpret and criticise the

perspectives that describe the free-market perspective
parties who are likely to gain the
greatest advantage from the

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implementation of accounting ✔ There are theories

regulation. available to explain
Various theoretical arguments what motivates
that have been proposed in politicians/regulators
favour of reducing the extent of to introduce
regulation of financial regulation.
accounting. ✔ These theories
include:
Understand that accounting 1. public interest
standard-setting is a very theory
political process which seeks 2. capture theory
the views of a broad cross- 3. economic interest
section of financial statement group theory
users. And its potential (private interest
economic and social impacts theory)
arising from accounting
regulations.

Part 2: Financial Reporting Ability to:

Environment: Malaysia- the
Identify the key players in
financial reporting regime
Malaysia Financial
and the regulatory bodies
reporting environment:
1. Financial Reporting Act
Malaysia Financial Reporting
1997
regime: an overview
2. Financial Reporting
(Amendment) Act 2004
3. Companies Act 2016

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4. Income Tax Act 1967

5. Guidelines of the
Securities Commission
1995
6. KLSE Listing
Requirements
submission of reports
additional disclosures
7. Bank Negara Malaysia

Role and function of some key ● Explain the importance

regulatory bodies in Malaysia: and the function of the
● FRF following key regulatory
● CCM bodies in Malaysia.
● SC
● Audit Oversight Board ● FRF
● MASB ● CCM
● Role ● SC
● Due process in issuance ● Audit Oversight
of MASB standards Board
● Other roles ● MASB
✔ Role
✔ Due process in
issuance of MASB
standards- how

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accounting
standards are
formulated, and
Other emerging issue: issued.
Accounting Standard Overload ● Other roles
● Discuss factors that
contributed to the
standards overload
● Evaluate the potential
effects of accounting
standards overload and
potential ways to solve it.

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4 6,7 Discussion on 6 Part 1(A): an overview of CF
Conceptual (2L,2T)
Framework ● The development
● The debate- advantages and
disadvantages
● Principle based and rule
based standard setting
Part 1 (b): an overview of CF-
Accounting postulates &
principles:
● Financial statements and
the reporting entity
● Elements of financial ● Differentiate between
statements
– entity, going-concern,
accounting period,
measurement etc.
The accounting principles –
cost, revenue, matching etc
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Ability to:
● Describe how CF
develops over time
● Debate about the
advantages and some
critics on CF
● Recall the elements of
financial statements,
the accounting
postulates and
principles - that
shaping the overall CF.
Lecture & Final exam &
CO1 PO1
Tutorial Test
principles and rule
based standard setting
● Recall the elements of
financial statements,
the accounting
postulates and
principles - that
shaping the overall CF.
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Part 2: CF- Malaysia Ability to:

● Characteristics of useful
financial information Understand the scope of
● An overview of CF- important findings on
recognition,
measurement and Malaysia Conceptual
disclosure concepts Framework:
● MASB role and
standard-setting due ● Objective of financial
process reporting
● Important findings on ● Qualitative and
Malaysia CF
characteristics of useful
● Concepts of capital and
capital maintenance financial information-
Similarities ✔ relevancy &
faithfully representation
✔ Enhancement of
information:
comparable,
verifiable, timely and
understandable
✔ Provide information
about: economic
resources, claims and
effects of transactions

● Explain the definition,

recognition and

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measurement of the
elements from which
financial statements are
constructed-
● Explain the concept of
capital and capital
maintenance- an
overview

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Part 3: CF-The measurement Ability to:

and the recognition ● Discuss the concept of
recognition and
● Recognition and de- derecognition
recognition
● Discuss the three main
● Measurement presentation
and disclosure income and
✔ The three main income and measurement systems-
capital measurement definition, concepts,
systems- Historic cost advantages, challenges
accounting, CCA , exit price and/or criticisms:
accounting ✔ Historic cost
● The definition, concept,
accounting
advantages,
challenges and ✔ Current cost
debates accounting
▪ financial capital
maintenance (the
purchasing power of
the financial capital)
▪ physical capital
maintenance (the
physical ability to
produce goods and
services)
✔ Exit price
accounting

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5 8, 9 Creative 6(2L,2T) Creative Accounting Ability to:

Accounting Apply the relevant
accounting Theory and its
Economic Consequences;
Part 1: The Motive and the
The opportunistic vs.
theories
efficient strategy; The
● The motives behind implication on the policies
creative accounting behind the choice of
● The theories- PAT method of accounting;
and EMH
Examine the following
motives in engaging
accounting manipulation PO
from EMH and PAT 6 Lecture, Final exam &
CO2 Tutorial
perspectives: Project

✔ Bonus plan
hypothesis
✔ Debt
Contracting
✔ Political costs

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Part 2: Earnings Management

of accounting standards. Ability to:

● Earnings ● Define creative

Management accounting
● Off-Statement of ● Define earnings
Financial Position
management
transactions
● Grey areas in ● Identify common
accounting features of earnings
● Engaging in management
management ● Understand fraudulent
discretion financial reporting, its
● The impacts of technics and
creative accounting
motivations
● Differentiate between
EM and Financial fraud
● Analyse the potential
action plans to mitigate
the creative accounting
and/or financial fraud
exercise.

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6 10- The emerging 15 Part 1: The new technologies Ability to:

14 issues (5L,5T) New technologies ● Define and understand
✔ Are ● Data automation the introduction of the
accountant ● Blockchain
✔ new technologies
still ● Artificial Intelligence
relevant? ● Cloud computing ✔ rapid changes in
● Big data accountant’s role
✔ Rapid ✔ integrated reporting
changes in ✔ Changes in new MFRS,
accountant MPES, MPSAS
’s role ● Understand the
Part 2: Rapid changes in
accountant’s role background of the
✔ New emergence of this new
MFRS. ● Data analyst Final exam,
changes/ development. PO3 Lecture,
MPERS, ● Business Advisory Test &
● Identify the challenges CO3 Tutorial
MPSAS ● Commoditised Accounting
services and the advantages/ Presentation
✔ Integrated opportunities of the
reporting discussed topic to the
Part 3: Integrated reporting profession and
● Discuss and provide
any suggestions to help
Part 4:New MFRS,MPERS and
solving the issue.
MPSAS

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Assessment:
Coursework:
Test 1 10%
Test 2 10%
Presentation 10%
Project 20%
50%
Final exam 50%
Total 100%

Recommended Text

● Tan L. T. (2017), Financial Accounting & Reporting in Malaysia, Vol. 1 & 2, 6th ed., CCH-Asia, Malaysia.
● Rankin, Ferlauto, McGowan, Stanton (2018), Contemporary Issues in Accounting, Wiley & Sons (2nd ed)
.

References

● Deegan, C. (2013), Financial Accounting Theory. McGraw-Hill Irwin (4th ed.)

● Belkaoui, Ahmed (2004), Accounting Theory, Business Press (5th ed.)
● Scott, W.R. (2011), Financial Accounting Theory. Prentice Hall (6th ed.).
● Lazar, J. & Huang, C.C. (2012), Malaysian Financial Reporting Standards, Revised 3rd ed., McGraw Hill: Malaysia.
● Godfrey, J, Hodgson, A, Tarca, A, Hamilton, J, Holmes, S. (2010), Accounting Theory. Wiley & Sons (7th ed.)
● MFRS and MPERs

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