This course will examine accounting theory with an emphasis on analytical modeling of accounting issues. First part of the course will stress the relation between economics and accounting, as income measurement and costing issues will be analyzed. Subsequently market valuation and accounting valuation will be contrasted and investigated. Finally the course will emphasize the relation between performance evaluation and the information content in accounting numbers.

The main topics include:

  • Income measurement and product costing;
  • Issues of accounting valuation, information, and markets including the relation between information and markets
  • Issues of accounting and control and the use of the agency model in accounting research including the inherent bias of financial reporting and errors of accounting.

The primary objective of the course is to introduce young researchers in accounting to current research paradigms related to accounting theory and to identify promising avenues for future research.

Introductory readings:

Christensen, J., and J. Demski: Accounting Theory. An Information Content Perspective, Irwin/McGraw Hill, 2003.
Christensen, J.: Accounting Errors and Errors of Accounting, The Accounting Review, Vol. 85, No. 6, 2010 pp. 1827‚Äď1838.