COURSE OUTLINE

ACCOUNTING DEPARTMENT
FACULTY OF ECONOMICS AND BUSINESS, UNIVERSITAS BRAWIJAYA

COURSE CODE COURSE GROUP CREDITS SEMESTER REVISED

Financial Accounting Theory EKA1207 Financial Accounting T=3 P=1 First/Second
AUTHORIZATION Course Outline
Course Coordinator Head of Study Program
Developer

(Signature) (Signature) (Signature)

Learning
Outcome Study Program
Learning Outcome of Undergraduate Program of KKNI based Accounting consists of:

ATTITUDE
1. Showing devotion to God Almighty and having religious attitude;
2. Upholding the value of humanity in carrying out duties based on religion, morals and ethics. Having national identity
3. Having national identity
4. Contributing to improving the quality of community, nation, state and civilization life based on Pancasila;
5. Acting as a proud and loving citizen of the country, having nationalism and a sense of responsibility to the country and nation;
6. Respecting the diversity of cultures, views, religions, and beliefs, as well as other people's original opinions or findings;
7. Working together and having social sensitivity and care for the community and the environment;
8. Obeying the law and discipline in community and state life;
9. Internalizing academic values, norms and ethics;
10. Showing responsibility for work in the field of expertise independently;
11. Internalizing the spirit of independence, struggle, and entrepreneurship
12. Applying the principles of business ethics and the accounting profession.

GENERAL SKILL
1. Capable of applying logical, critical, systematic, and innovative thinking in the context of the development or implementation of
science and technology that takes into account and applies the value of humanities
2. Capable of showing independent, quality and measurable performance;
3. Capable of studying the implications of the development or implementation of science and technology that pay attention to and
 applying the value of the humanities based on rules, procedures and scientific ethics in order to produce solutions, ideas, designs or
criticisms;
4. Capable of compiling a scientific description of the results of the study above in the form of a thesis or final project report, and
uploading it on the college page;
5. Capable of making appropriate decisions in the context of problem solving based on the results of information and data analysis;
6. Capable of maintaining and developing a network of supervisors, colleagues, colleagues both inside and outside the study program.
7. Capable of taking responsibility for the achievement of group work and supervising as well as evaluating the completion of work
assigned to workers under their responsibilities;
8. Capable of carrying out a process of self-evaluation of work groups under its responsibility, and learning independently;
9. Capable of documenting, storing, securing, and rediscovering data to ensure validity and prevent plagiarism;
10. Capable of combining technical competence and professional expertise to complete work assignments
11. Capable of presenting information and expressing ideas clearly, both verbally and in writing, to stakeholders

KNOWLEDGE MASTERY
1. Mastering theoretical concepts in depth about planning, procedures, and audit reporting
2. Mastering theoretical concepts in depth about
a. The basic framework for the presentation and preparation of financial statements
b. Accounting policies and principles
c. Accounting cycle
d. Recognition, measurement, presentation and disclosure of elements of financial statements
e. Analysis of financial statements
3. Mastering theoretical concepts in depth about
a. Calculation and control of product and service costs
b. Planning and budgeting
c. Activity based management
d. Performance measurement and control
4. Mastering the theoretical concepts in general quality management
5. Understand business ethics and the ethical code of the accounting profession
6. Mastering the concepts, principles and techniques of financial management which include:
a. Financial decision
b. Time value of money
c. Capital budgeting
d. Capital structure, capital costs, and financing
e. Working capital requirements
f. Cash flow analysis
g. Fundamentals of risk management
h. Financial restructuring
 i. Securities assessment
7. Mastering the principles of investment in financial assets
8. Mastering theoretical concepts in depth about the information needs for decision making
9. Mastering techniques, principles, and procedural knowledge about the use of information technology, information technology
applications, and database management
10. Mastering the concepts and regulations of taxation and business law
11. Mastering the basic concepts of tax management
12. Mastering the concepts and principles of economics
13. Mastering the theoretical concepts of management in general, marketing management, operational management and strategic
business management
14. Mastering the concepts and principles about
a. Organization,
b. Governance,
c. Risk management
d. Strategy management,
e. Internal control, and
f. business environment

SPECIFIC SKILL
1. Capable of independently preparing an audit working paper through the collection and summary of audit evidence on the financial
statements of commercial entities in accordance with audit standards and statutory provisions applicable in the audit of financial
statements
2. Capable of supervising, assessing the risk of material errors in the financial statements and considering their impact on the audit
strategy
3. Capable of supervising audit evidence evaluation on the financial statements of commercial entities in accordance with audit
standards and statutory provisions that apply in the audit of financial statements.
4. Capable of independently compiling, analyzing, and interpreting the financial statements of a separate entity by applying accounting
principles to transactions in accordance with general financial accounting standards, sharia financial accounting standards,
government accounting standards and applicable ETAP financial accounting standards.
5. Capable of supervising the preparation, analysis, and interpretation of the consolidated financial statements of an entity by applying
accounting principles to transactions in accordance with general financial accounting standards, sharia financial accounting
standards, government accounting standards and applicable ETAP financial accounting standards
6. Capable of independently preparing a report of the results of the analysis of financial and non-financial information as well as
relevant and reliable related disclosures for managerial decision making by applying accounting and financial analysis techniques
and methods.
7. Capable of supervising compiling investment and funding reports, which include reports on cash and working capital requirements,
proforma financial reports, capital budgeting reports, which are relevant for financial and investment decision making by applying
 financial and investment management techniques.
8. Capable of independently compiling and analyzing management accounting reports, covering production costs, planning and
budgeting, cost management, quality control, performance measurement, and benchmarking, which are relevant and reliable in
supporting operational and strategic decision making and management control by applying techniques management accounting
techniques.
9. Capable of independently designing business processes in an accounting information system that supports the provision of
information technology-based information to support management control and organizational decision making using a system
development cycle approach (SDLC)
10. Capable of independently preparing a report to meet tax obligations for both individual and corporate taxpayers by calculating and
performing tax reconciliation in accordance with applicable tax laws in Indonesia.
11. Capable of independently operating and utilizing software in the framework of preparing financial and management reports, budgets,
tax administration, auditing, and research
12. Capable of creating innovative business strategies and concepts based on market opportunities and capability of owned resources;
Course
Upon completing this course:
1. Students are expected to have an understanding of theories to explain, predict and prescribe accounting practices, especially financial
accounting.
2. Students are also expected to be able to evaluate and criticize accepted accounting practices and theories.
Course This course discusses accounting theory which covers the understanding and development of accounting theory, financial reporting
Description environment, regulatory theory, normative theory, international accounting, positive accounting theory, political economy theory,
legitimacy theory, stakeholder theory, efficient market theory and securities market reaction to financial reporting, individual reactions to
financial reporting, earnings management, social responsibility accounting and critical perspectives
Reference Main:
1. Deegan,C. & Unerman, J. (2006). Financial Accounting Theory.- European edition McGraw-Hill Education (UK) Limited (DU)
2. Scott, W.R (2015) Financial Accounting Theory. Pearson Prentice Hall. Toronto, Canada (S)
Supplementary:

Learning Software: Hardware:

Media

Team
Teaching
Prerequisite Intermediate Financial Accounting 2 (L), Intermediate Financial Accounting 3 (L), Advanced Financial Accounting (L)
Course
Week CP-MK Learning Material Learning Assessment
 Methods/Strategies Percentag
Indicator Form
(Estimated Time) e
1 Students know the Overview of lecture Capable of Verbal quiz
general description material, RPS Lecture (90 menit), mentioning general
of lecture material Discussion (60 menit) description of
lecture material
2 Students know and Accounting Theory and Presentation (30 menit)  Capable of  Developing
understand its development Lecture (60 menit), mentioning the Individual RMK
accounting theory  Definition of Theory Discussion (60 menit) definition of  Arranging paper
and its development  Overview of theory and group
Accounting Theory  Capable of presentations
 Evaluate accounting explaining
theory various
 Evaluation of theories accounting
based on logic and theories
empirical evidence  Capable of
explaining
  (DU Ch. 1) differences in
accounting
theories
 Capable of
explaining
theories based
on logic, basic
assumptions,
and empirical
evidence
3 Students know and Financial reporting Presentation (30 menit)  Capable of  Developing
understand the environment Lecture (60 menit), explaining the Individual RMK
concept of the  Overview of Discussion (60 menit) history of the  Arranging paper
financial reporting developments and profession and and group
regulations on accounting presentations
environment
accounting practices regulations  Written quiz
 Rationale for  Capable of
regulating financial explaining some
accounting practices opinions about
  Professional judgment the existence of
rules in accounting regulations
reports  Capable of
 The role of explaining
accountants perspective
perspectives that
(DU Ch. 2) will be used in
explaining the
existence of
regulation
 Capable of
falsifying how
and why groups
can influence
the standard
setting process
 Capable of
explaining
various
professional
judgment rules
in accounting
reports
 Capable of
explaining the
role of auntan in
preparing
accounting
standards
4 Students know and Regulatory Theory Presentation (30 menit)  Capable of  Developing
understand  The concept of a free Lecture (60 menit), explaining Individual RMK
regulatory theory market perspective Discussion (60 menit) various theories  Arranging paper
 The concept of pro used to regulate and group
regulation perspective financial presentations
 The concept of public accounting
interest theory practices
 The concept of  Capable of
 capture theory explaining the
 Economic and social concept of a free
impacts of accounting market
regulations perspective
(DU Ch. 3)  Capable of
explaining the
concept of pro
regulation
perspective
 Capable of
explaining the
concept of
public interest
theory
 Capable of
explaining the
concept of
capture theory
 Capable of
explaining the
economic and
social impacts
of accounting
regulations
5 Students know and Normative Theory Presentation (30 menit)  Capable of  Developing
understand  Historical cost Lecture (60 menit), explaining the Individual RMK
normative theory concept Discussion (60 menit) weaknesses of  Arranging paper
 Accounting concepts the historical and group
for price changes cost concept presentations
 Overview of  Capable of  Written quiz
conceptual framework explaining
 Conceptual accounting
framework as a form concepts for
of legitimacy of price changes
standard  Capable of
arrangements identifying the
strengths and
 (DU Ch. 5 & 6) weaknesses of
alternative
accounting
methods
 Capable of
explaining the
rules in the
conceptual
framework used
in accounting
practices
 Capable of
identifying,
explaining, and
evaluating the
basic framework
in the
preparation of
conceptual
frameworks
 Capable of
explaining the
strengths and
weaknesses of
developing
conceptual
frameworks
6 Students know and International Accounting Presentation (30 menit)  Capable of  Developing
understand the  International Lecture (60 menit), explaining the Individual RMK
concept of accounting concepts Discussion (60 menit) concept of  Arranging paper
international  Differences in international and group
accounting accounting practices accounting presentations
in other countries  Capable of
 Harmonization and mentioning
standardization of differences in
accounting standards accounting
policies and
 (DU Ch. 4) practices that
exist in other
countries
 Capable of
explaining why
a country
chooses certain
accounting
policies
 Capable of
explaining the
concept of
harmonization
and
standardization
of accounting
standards
 Capable of
explaining key
factors in the
selection of
standards used
(example:
Europe)
7 Students know and Positive accounting Presentation (30 menit)  Capable of  Developing
understand the theory and efficient Lecture (60 menit), explaining the Individual RMK
concepts of positive contracts Discussion (60 menit) concept of  Arranging paper
accounting theory  The concept of positive and group
and efficient positive accounting accounting presentations
contracts theory theory  Written quiz
 Opportunistic  Capable of
perspectives and explaining the
efficient contracts concept of
 Owner / manager opportunistic
contracting perspectives and
 Debt contracting efficient
 Political costs contracts
  Criticism of positive  Capable of
accounting theories explaining the
 concept of
(DU Ch. 7 & S Ch. 8) Owner /
manager
contracting,
Debt
contracting,
Political cost
 Capable of
explaining
criticisms of
positive
accounting
theory
8 Students understand Midterm exam Written test in class (120 Capable of Written test in class
accounting theory minutes) explaining (120 minutes)
and its development accounting theory
(regulatory theory, and its development
normative theory, (regulatory theory,
and positive theories normative theory,
and efficient and positive theory
contracts) and efficient
contracts)
9 Students know and Unregulated financial Presentation (30 menit)  Capable of  Developing
understand the reporting Lecture (60 menit), explaining the Individual RMK
concept of financial  Political economy Discussion (60 menit) concept of  Arranging paper
reporting without theory political and group
regulation  Legitimacy theory economy theory presentations
 Stakeholder theory  Capable of
 Institutional theory explaining the
concept of
(DU Ch. 8) legitimacy
theory
 Capable of
explaining the
concept of
 stakeholder
theory
 Capable of
explaining the
concept of
institutional
theory
 Capable of
explaining the
theory can be
applied in
explaining
voluntary
disclosure
10 Students know and Efficient Market Theory Presentation (30 menit)  Capable of  Developing
understand the  Overview of capital Lecture (60 menit), explaining the Individual RMK
concept of efficient market research Discussion (60 menit) concept of  Arranging paper
market theory  Definition and capital market and group
characteristics of research presentations
efficient markets  Capable of  Written quiz
 The concept of profit explaining the
 The cost of capital definition and
model characteristics
 The relationship of an efficient
between capital market
market research and  Capable of
financial statements explaining the
concept of profit
(DU Ch. 10 & S Ch. 4)  Capable of
calculating the
cost of capital
 Capable of
explaining the
relationship
between capital
market research
with financial
 statements

11 Students know and Behavioral Accounting Presentation (30 menit)  Capable of  Developing
understand the  Basic concepts of Lecture (60 menit), explaining the Individual RMK
concept of behavioral research Discussion (60 menit) basic concepts  Arranging paper
accounting behavior  Brunswilk Lens model of behavioral and group
 Decision making model research presentations
 Heuristic concept  Capable of
explaining the
(DU Ch. 11) concept of the
Brunswilk lens
model, decision
making, and the
concept of
heuritis
 Capable of
explaining
differences in
behavioral
accounting
research with
the capital
market
 Capable of
explaining the
weaknesses of
behavioral
research
12 Students know and Accounting for social Presentation (30 menit)  Capable of  Developing
understand the responsibility Lecture (60 menit), explaining the Individual RMK
concept of social  The concept of social Discussion (60 menit) concept of  Arranging paper
responsibility responsibility social and group
accounting accounting responsibility presentations
 Stages in sustainability accounting  Written quiz
reporting  Capable of
 A theoretical explaining the
perspective on stages in
 sustainability reporting sustainability
procedures reporting
(DU Ch. 9)  Capable of
explaining
theoretical
perspectives in
sustainability
reporting
procedures
13 Students know and Critical Accounting Presentation (30 menit)  Capable of  Developing
understand the  Definition of critical Lecture (60 menit), mentioning the Individual RMK
concept of critical accounting Discussion (60 menit) definition of  Arranging paper
accounting  Critical accounting critical and group
research accounting presentations
 The impact of critical  Capable of
accounting research explaining the
in social practice types of critical
accounting
research
(DU Ch. 12)
 Capable of
explaining the
impact of
critical
accounting
research in
social practice

14 Students know and Profit management Presentation (30 menit)  Capable of  Developing
understand the  The concept of Lecture (60 menit), explaining the Individual RMK
concept of earnings earnings management Discussion (60 menit) concept of  Arranging paper
management  Motivation for earnings and group
earnings management management presentations
 Implications of  Capable of
earnings management explaining
in accounting motivation for
practices earnings
management
 (S Ch. 11)  Capable of
explaining the
implications of
earnings
management in
accounting
practices
15 Students know and Standard Setting Presentation (30 menit)  Capable of  Developing
understand the  The concept of setting Lecture (60 menit), explaining the Individual RMK
concept of standard standards based on Discussion (60 menit) concept of  Arranging paper
setting economic issues setting standards and group
 Public interest theory based on presentations
 Interest group theory economic issues  Written quiz
 Conflicts in setting  Capable of
standards explaining
Public interest
(S Ch. 12 & S Ch. 13) theory
 Capable of
explaining
interest group
theory
 Capable of
mentioning
conflicts in
setting standards
16 Students understand Final exam Written test in class (120 Capable of  Written test in
the concept of minutes) explaining the class (120
financial reporting concept of financial minutes),
without regulation, reporting without  Compilation of
efficient market regulation, efficient structured
theory, behavioral market theory, papers
accounting, social behavioral
responsibility accounting, social
accounting, critical responsibility
accounting, earnings accounting, critical
management, accounting,
standard setting earnings
management,
standard setting