ACC 4030 A01 (3 CH) ACCOUNTING THEORY

FALL 2020 Online, TR 11.30 am– 12.45 pm

CONTENTS CONTENTS ............................................................. 1

INSTRUCTOR ......................................................... 1

COURSE DESCRIPTION........................................... 1

COURSE OBJECTIVES ............................................. 2

COURSE MATERIALS .............................................. 2

COURSE FORMAT .................................................. 2

ASSESSMENT OF LEARNING .................................. 2

MISSED EXAM POLICY ........................................... 3

GROUP PROJECT ................................................... 3

IMPORTANT DATES AND DEADLINES .................... 4

COURSE SCHEDULE ............................................... 5

INTENDED LEARNING OUTCOMES ........................ 7

ACADEMIC INTEGRITY POLICY .............................. 8

Typical Penalties for Academic Dishonesty in the Asper School ....................................................... 10

STUDENT SERVICES AND SUPPORTS ................... 11

ABOUT THE INSTRUCTOR .................................... 12

INSTRUCTOR Name: Janet Morrill Office: 496 Drake Centre Phone: 204-474-6854 Email: janet.morrill@umanitoba.ca Office Hours: Fridays, 9:00AM-noon; or by appointment

COURSE DESCRIPTION This course is about accounting, but not about how to account. After having been exposed to the methodology and practice of accounting, accounting major students need to examine the broader implications of financial accounting for the fair and efficient working of the economy. This course provide students with a critical awareness of the current financial accounting and reporting environment, taking into account the diverse interests of both external users and management.

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COURSE OBJECTIVES The main objectives of this course are:

1. To describe and explore various theories that underlie financial accounting and reporting. 2. To increase awareness of how theories relate to, or contradict, real world events 3. To critically examine the broader implications of financial accounting for the fair and efficient

operation of capital markets and managerial labor markets. 4. To develop an interest in current events and issues facing the accounting profession. 5. To understand how scholarly research tests theories and can assist policy development. COURSE MATERIALS William R. Scott and Patricia C. O’Brien. Financial Accounting Theory, Eighth Edition, Prentice Hall, 2020. ISBN: 978-0-13-416668-1 Various materials for the course are available on UM Learn. To access the course website, go to https://www.umanitoba.ca/d2l. Sign in using your University of Manitoba UMnetID and click on the ACC 4030 course title to access course materials. If you do not have a UMnetID, go to the Iridium website at: https://iridium.umanitoba.ca and click on Claim your ID. Please respect copyright laws. Photocopying textbooks or other reading material is a violation of copyright laws and is unethical, unless permission to copy has been obtained.

COURSE FORMAT Classes in this course will not involve in-person instruction. Thursday classes in this course will be conducted “live” via videoconferencing zoom: your attendance is encouraged. Power point slides with instructor voice-over will be available for both Tuesday and Thursday classes.

Please obtain the permission of the instructor prior to audio/video-recording a lecture. ASSESSMENT OF LEARNING There will be four components to the grading:

Midterm Exam 1 (October 15, 2019, 11:30-12:45; online) 20 %

Midterm Exam 2 (November 19, 2019, 11:30-12:45; online) 20 %

Group Project (due December 10, 2019, 4:00PM) 20 %

Final Exam (2 Hours, to be scheduled by the Registrar’s Office) 40 %

Midterm examination 1 covers Chapter 1 to Chapter 4, and midterm examination 2 covers Chapter 5 to

Chapter 9. The coverage of final examination is comprehensive from Chapter 1 to Chapter 13.

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Of all the students who get 50% or over in the course:

the top 5% of the class will get an A+ next 10% will get an A next 20% will get a B+ next 20% will get a B next 20% will get a C+ next 20% will get a C next 5% will get a D Getting less than 50% in the course will result in an F grade.

To protect the academic integrity of education at the Asper School, certain protocols will be observed for online exams. For instance, in some courses, the online exam will set up such that each student will get a random subset of questions from a larger question bank, which means no two students will get exactly the same exam. Further, a very small number of questions will appear on a screen and you may not have the option to move back to questions you have already answered. The instructor may require your camera be on and directed at you for the entire duration of the exam. MISSED EXAM POLICY Students who miss the midterm examination for legitimate reasons (medical, compassionate, academic conflict or university sports team travel) should inform instructor with suitable documentation within 5 working days of the missed midterm examination to have the weight of the midterm examination added to the final examination (i.e., will write a 60% or 80% final examination).

Students who miss the final examination must apply to the Undergraduate Program Office (268 Drake, if you are an Asper student) in their faculty for possible deferred examination privileges. GROUP PROJECT The purpose of this group project is to apply concepts and theories covered in this course to practical issues. In assigned groups of 4 people, you will be required to select one article from a predetermined list of articles chosen by the instructor. The electronic version of these articles will be posted on UM Learn. Your project should consist of two parts: summary and analysis. In summary part, you are expected to answer three questions: What are the questions being addressed? How does this study build on/extend previous studies or prior literature? What are the main findings and conclusion of the study? In analysis part, you are expected to cover (but not limited to) the following questions: How does this study relate to the topics that are covered in this course and explain? Present and explain this article’s practical implications for several related parties, such as, policy makers, shareholders, creditors, managers, auditors, analysts, etc.)? You should write your answers as if you were telling your classmates about the article. Therefore, your writing should be understandable, in everyday language, and should not consist of sentences taken

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directly from the article. You project should include a cover page (including title of the project, title of the article to be summarized and analyzed, names of group members, and group number), main content (should not exceed Four 8.5-inch by 11-inch pages, double-spaced, 1 inch margins, and Times New Roman 12-point font), and reference (no page limit). Your grade will be based on your understanding of the article, the quality of your answers to the above questions, and the professional presentation and communication (citation and reference format should be consistent with your selected article). All group members are expected to contribute to the project and, normally, all members will receive the same grade on the term project. There will be no formal peer evaluation for the project. However, there may be cases (expected to be rare) where a group member does not satisfactorily contribute to the project (e.g., does not respond to emails, fails to attend group meetings, does not complete work as assigned, etc.). If this occurs, students should still include all group members’ names in the formal submission (multiple submissions per group are not accepted). In addition, the instructor should be informed, in writing, of the details regarding the student(s) who did not satisfactorily contribute to the project in an equitable way. The instructor will investigate further and will determine the potential penalty on a case-by-case basis. You are expected to submit an electronic copy of the project by 4:00PM CST, December 10, 2019. Late submission will not be accepted. Projects done on an individual basis will not be accepted. IMPORTANT DATES AND DEADLINES Dates and deadlines set by the University Administration can be found at the below link: http://umanitoba.ca/student/records/deadlines/index.html

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COURSE SCHEDULE

Date Topics Suggested Questions

Sept. 10 (Zoom) Course Outline & Chapter 1. Introduction

Sept. 15

Sept. 17 (Zoom) Chapter 2. Accounting Under Ideal Conditions; Omit 2.4.1

Sept. 22 Chapter 2: 1 – 4; 7 – 13; 15; 18; 19; 22 – 24; 26; 29.

Sept. 24 (Zoom) Chapter 3. Decision Usefulness Approach; Omit 3.6.3

Sept 29 Chapter 3: 1; 2; 4 – 7; 11; 13; 16.

Oct. 1 (Zoom)

Oct. 6 Chapter 4. Efficient Securities Markets

Chapter 4: 1 – 6; 9; 15.

Oct. 8 (Zoom)

Oct. 13 Chapter 5. Value Relevance of Accounting Information

Chapter 5: 1 – 8; 10; 12; 17; 18; 20.

Oct. 15 Midterm Examination 1 11:30AM - 12:45PM

Oct. 20 Chapter 6. Valuation Approach; Omit 6.4; 6.5; 6.9.2; 6.11

Chapter 6: 1; 4 – 5; 7; 8; 12; 16.

Oct. 22 (Zoom)

Oct. 27 Chapter 7. Valuation Applications; Omit 7.6-7.11

Chapter 7: 2; 3; 6; 12.

Oct. 29 (Zoom) Chapter 8. Efficient Contracting Theory and Accounting; Omit 8.10

Chapter 8: 1; 2; 4 – 5, 17.

Nov 3

Nov. 5 (Zoom) Chapter 9. An Analysis of Conflict; Omit 9.3.2; 9.3.4

Chapter 9: 1 – 6; 10; 15; 17; 18.

Nov. 17 Chapter 10. Executive Compensation

Chapter 10: 1 – 3; 6-8; 13; 15.

Nov. 19 Midterm Examination 2 11:30AM - 12:45PM

Nov. 24 Chapter 11. Earnings Management; Omit 11.6.4

Chapter 11: 1 – 4; 7; 9; 13.

Nov. 26 (Zoom)

Dec. 1 Chapter 12: 1; 3; 6; 8; 9; 14; 15.

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Dec. 3 (Zoom) Chapter 12. Standard Setting: Economic Issues; Omit 12.6.2; 12.9

Dec. 8 Chapter 13. Standard Setting: Political Issues; Omit 13.6

Chapter 13: 1 – 4; 6; 8; 13; 16.

Dec 10 (Zoom) Catch up and Final Review; Group Project Due by 4:00pm

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INTENDED LEARNING OUTCOMES

AACSB Assurance of Learning Goals and Objectives The Asper School of Business is proudly accredited by AACSB. Accreditation requires a process of continuous improvement of the School and our students. Part of “student improvement” is ensuring that students graduate with the knowledge and skills they need to succeed in their careers. To do so, the Asper School has set the learning goals and objectives listed below for the Undergraduate Program. The checked goal(s) and objective(s) will be addressed in this course and done so by means of the items listed next to the checkmark.

Goals and Objectives in the Undergraduate Program

Goals and Objectives Addressed

in this Course

Course Item(s) Relevant to these

Goals and Objectives

1 Quantitative Reasoning

A. Determine which quantitative analysis technique is appropriate for solving a specific problem.

Chapters 2-6, 9-11

B. Use the appropriate quantitative method in a technically correct way to solve a business problem.

Chapters 2-6, 9-11

C. Analyze quantitative output and arrive at a conclusion.

Chapters 2-6, 9-11

2 Written Communication

A. Use correct English grammar and mechanics in their written work.

Group project

B. Communicate in a coherent and logical manner Group project

C. Present ideas in a clear and organized fashion. Group project

3 Ethical Thinking

A. Identify ethical issues in a problem or case situation Chapters 4-13

B. Identify the stakeholders in the situation. Chapters 4-13

C. Analyze the consequences of alternatives from an ethical standpoint.

Chapters 4-13

D. Discuss the ethical implications of the decision. Chapters 4-13

4 Core Business Knowledge Entire course

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ACADEMIC INTEGRITY POLICY The online format of class delivery does not lower the Asper School’s academic integrity standards. The same high levels of academic integrity are expected in Fall 2020 courses as they are in regular terms. It is critical to the reputation of the Asper School of Business and of our degrees that everyone associated with our faculty behave with the highest academic integrity. As the faculty that helps create business and government leaders, we have a special obligation to ensure that our ethical standards are beyond reproach. Any dishonesty in our academic transactions violates this trust. The University of Manitoba General Calendar addresses the issue of academic dishonesty under the heading “Plagiarism and Cheating.” Specifically, acts of academic dishonesty include, but are not limited to:

using the exact words of a published or unpublished author without quotation marks and without referencing the source of these words (includes Chat messages posted during videoconference sessions)

duplicating a table, graph or diagram, in whole or in part, without referencing the source paraphrasing the conceptual framework, research design, interpretation, or any other ideas of

another person, whether written or verbal (e.g., personal communications, ideas from a verbal presentation) without referencing the source

copying the answers of another student in any test, examination, or take-home assignment recording exam questions using any method, regardless of whether those are shared with others sharing exam questions with those who are yet to take the exam, including future students providing answers to another student in any test, examination, or take-home assignment taking any unauthorized materials into an examination or term test (crib notes) impersonating another student or allowing another person to impersonate oneself for the purpose

of attendance, earning class participation marks, submitting academic work, or writing any test or examination

stealing or mutilating library materials accessing test prior to the time and date of the sitting changing name or answer(s) on a test after that test has been graded and returned submitting the same paper or portions thereof for more than one assignment, without discussions

with the instructors involved Group Projects and Group Work

Many courses in the Asper School of Business require group projects. Students should be aware that group projects are subject to the same rules regarding academic integrity. All group members should exercise special care to ensure that the group project does not violate the policy on Academic Integrity. Should a violation occur, group members are jointly accountable unless the violation can be attributed to specific individuals.

Some courses, while not requiring group projects, encourage students to work together in groups before submitting individual assignments. If it’s unclear whether it is allowed, students are encouraged to seek clarification from the instructor to avoid violating the academic integrity policy.

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In the Asper School of Business, all suspected cases of academic dishonesty in undergraduate courses are reported to the Dean's office and follow the approved disciplinary process. See following table for typical penalties for academic dishonesty in the Asper School.

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Typical Penalties for Academic Dishonesty in the Asper School If the student is from another Faculty and the academic dishonesty is committed in an Asper course, the student’s Faculty could match or add penalties beyond the Asper School’s. F-DISC on transcript indicates the F is for disciplinary reasons.

ACADEMIC DISHONESTY PENALTY

Cheating on exam (copying from or providing answers to another student)

F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Sharing exam questions electronically during exam

F-DISC in course Suspension from taking Asper courses for 2 years Notation of academic dishonesty in transcript

Possession of unauthorized material during exam (e.g., cheat notes)

F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Altering answer on returned exam and asking for re-grading

F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Plagiarism on assignment F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Submitting paper bought online F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Inappropriate Collaboration (collaborating with individuals not explicitly authorized by instructor)

F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Group member had knowledge of inappropriate collaboration or plagiarism and played along

F-DISC in course Notation of academic dishonesty in transcript

Signing Attendance Sheet for classmate F-DISC in course Notation of academic dishonesty in transcript

Impersonation on exam Expelled from the University of Manitoba and reported to Winnipeg Police

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STUDENT SERVICES AND SUPPORTS The University of Manitoba provides many different services that can enhance learning and provide support for a variety of academic and personal concerns. You are encouraged to visit the below websites to learn more about these services and supports. If you have any questions, please do not hesitate to contact your instructor or the Undergraduate Program Office.

For Information on… …follow this link

Tech-related issues with UM Learn or videoconferencing Information Services & Technology

Admission, Registration, Tuition Fees, Important Dates, Final Exams, Graduation, and Transcripts

Registrar’s Office

Academic policies & procedures, regulations, Faculty-specific information, degree and major requirements

Academic Calendar

Help with research needs such as books, journals, sources of data, how to cite, and writing

Library Resources

Tutors, workshops, and resources to help you improve your learning, writing, time management, and test-taking skills

Writing and Learning Support

Support and advocacy for students with disabilities to help them in their academic work and progress

Student Accessibility Services

Copyright-related questions and resources to help you avoid plagiarism or intellectual property violations

Copyright Office

Student discipline bylaws, policies and procedures on academic integrity and misconduct, appeal procedures

Academic Integrity

Policies & procedures with respect to student discipline or misconduct, including academic integrity violations

Student Discipline

Students’ rights & responsibilities, policies & procedures, and support services for academic or discipline concerns

Student Advocacy

Your rights and responsibilities as a student, in both academic and non-academic contexts

Your rights and responsibilities

Full range of medical services for any physical or mental health issues

University Health Service

Information on health topics, including physical/mental health, alcohol/substance use harms, and sexual assault

Health and Wellness

Any aspect of mental health, including anxiety, stress, depression, help with relationships or other life concerns, crisis services, and counselling.

Student Counselling Centre

Support services available for help regarding any aspect of student and campus life, especially safety issues

Student Support Case Management

Resources available on campus, for environmental, mental, physical, socio-cultural, and spiritual well-being

Live Well @ UofM

Help with any concerns of harassment, discrimination, or sexual assault

Respectful Work and Learning Environment

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Concerns involving violence or threats, protocols for reporting, and how the university addresses them

Violent or Threatening Behaviour

ABOUT THE INSTRUCTOR Janet Morrill, PhD, FCPA, FCA, FCGA is an associate professor of accounting at the Asper School of Business, University of Manitoba, where she teaches at both the undergraduate and MBA levels. Her diverse research interests include auditor judgment, accounting in the university sector, and pension accounting. She has published in such journals as Behavioral Research in Accounting; Journal of International Accounting, Auditing and Taxation; Accounting Education; Advances in Management Accounting; Business and Society Review, and Accounting Perspectives.

Janet has received several awards for excellence in teaching including an Associates’ award for teaching, a Beta Gamma Sigma Professor of the Year award, and two University of Manitoba/UMFA merit awards for teaching.

Janet has served on the boards of several organizations including the Canadian Academic Accounting Association, the University of Manitoba University Club, the University of Manitoba Faculty Association, the Chartered Accountant School of Business, the Institute of Chartered Accountants of Manitoba, the Asper Centre of Accounting Research and Education, and the Canadian Centre for Policy Alternatives. She has served many roles on these boards including President of the Canadian Academic Accounting Association and President of the University of Manitoba Faculty Association.