Corporate Finance
ACCG927 CURRENT ISSUES IN ACCOUNTING & Corporate Governance
Week 1 Introduction and Overview of Accounting Theories
1
Introduction
• • • • • • • • • • About the unit Teaching and learning strategy Assessments In-class essays Essay writing workshop Research essay Turnitin requirements Oral team presentation Required readings Importance of written answers each week
2
The Nature of Accounting & Corporate Governance Theory
• What is a theory?
Kerlinger, 1964: "A set of interrelated constructs (concepts), definitions and propositions that present a systematic view of phenomena by specifying relations among variables with the purpose of explaining and predicting the phenomena."
• Concepts, definitions and propositions
– Systematic view – Variables – Explain & predict
3
Definition of Corporate Governance
ASX CGC (2007): The most authoritative definition of corporate governance (p.3): “the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations. It encompasses the mechanisms by which companies, and those in control are held to account. Corporate governance influences how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimised. Good Corporate governance structures encourage companies to create value (through entrepreneurialism, innovation, development and exploration) to provide accountability and control systems commensurate with the risks involved”
• Seminar Question: “The common issues concerning corporate governance include the quality of published information, internal controls, independent directors, auditor independence, audit committees, ethical conduct and treatment of financial statement fraud”. Discuss how the various accounting theories that you are studying in ACCG927 provide useful insights into these issues concerning corporate governance.
4
Three Main Types of Theories
•
Week 1 Introduction and Overview of Accounting Theories
1
Introduction
• • • • • • • • • • About the unit Teaching and learning strategy Assessments In-class essays Essay writing workshop Research essay Turnitin requirements Oral team presentation Required readings Importance of written answers each week
2
The Nature of Accounting & Corporate Governance Theory
• What is a theory?
Kerlinger, 1964: "A set of interrelated constructs (concepts), definitions and propositions that present a systematic view of phenomena by specifying relations among variables with the purpose of explaining and predicting the phenomena."
• Concepts, definitions and propositions
– Systematic view – Variables – Explain & predict
3
Definition of Corporate Governance
ASX CGC (2007): The most authoritative definition of corporate governance (p.3): “the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations. It encompasses the mechanisms by which companies, and those in control are held to account. Corporate governance influences how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimised. Good Corporate governance structures encourage companies to create value (through entrepreneurialism, innovation, development and exploration) to provide accountability and control systems commensurate with the risks involved”
• Seminar Question: “The common issues concerning corporate governance include the quality of published information, internal controls, independent directors, auditor independence, audit committees, ethical conduct and treatment of financial statement fraud”. Discuss how the various accounting theories that you are studying in ACCG927 provide useful insights into these issues concerning corporate governance.
4
Three Main Types of Theories
•