Accounting (ACCT) 453

Financial Accounting Theory (Revision 9)

ACCT 453 course cover

Permanently closed, effective April 25, 2019.

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Delivery Mode: Individualized study online (with eTextbook)

Credits: 3

Area of Study: Applied Studies
(Business and Administrative Studies)

Prerequisites: ACCT 352 and FNCE 370.

Faculty: Faculty of Business

ACCT 453 is not available for challenge.


This course explores some of the theoretical issues that underlie the discipline of financial accounting and some of the practical consequences of these issues. The course draws on related fields of study, particularly economics and finance, to examine the efficient markets hypothesis and its implications for financial reporting. Applications of the present value model in accounting, agency theory and its implications for financial reporting, the accounting standard-setting process, and the economic consequences of accounting decisions are also discussed.


ACCT 453 consists of ten lessons:

  • Lesson 1: Accounting under Ideal Conditions
  • Lesson 2: Decision Usefulness Approach to Financial Reporting
  • Lesson 3: Efficient Securities Markets
  • Lesson 4: The Information Approach to Decision Usefulness
  • Lesson 5: The Measurement Approach to Decision Usefulness
  • Lesson 6: Economic Consequences and Positive Accounting Theory
  • Lesson 7: An Analysis of Conflict
  • Lesson 8: Conflict Between Contracting Parties
  • Lesson 9: Standard Setting: Economic Issues
  • Lesson 10: Standard Setting: Political Issues


To receive credit for ACCT 453, you must complete and submit two written assignments and a research paper; you must also write a midterm and a final examination. Your final grade is determined by a weighted average of the grades you receive on these activities. To receive credit for this course, you must achieve a minimum grade of D (50 percent) on the final examination and an overall grade of at least a D (50 percent) for the entire course. The weightings for each assignment and the exam are as follows:

Activity Weighting
Assignment 1 2.5%
Assignment 2 2.5%
Research Paper 15%
Midterm Exam 30%
Final Exam 50%
Total 100%

The examination(s) for this course will be written in the traditional pen and paper format.

To learn more about assignments and examinations, please refer to Athabasca University's online Calendar.

Course Materials


Registration in this course includes an electronic textbook. For more information on electronic textbooks, please refer to our eText Initiative site.

Scott, W. R. (2012). Financial Accounting Theory (6th ed.). Toronto: Pearson Education Canada. ISBN: 978-0-13-511915-0

The textbook publisher is offering a print-on-demand option in which you may purchase an unbound copy of the textbook at a discounted rate; you can also acquire a print textbook on your own, if you wish.

Other Resources

All other learning resources will be available online. These include the CICA Handbook and the CGA Ethics Readings Handbook.

Students must have access to a computer with Internet Explorer in order to view the CGA Ethics Readings Handbook.

Athabasca University reserves the right to amend course outlines occasionally and without notice. Courses offered by other delivery methods may vary from their individualized-study counterparts.

Opened in Revision 9, October 10, 2013.

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