Dr Andrea Mennicken OLD 3.12

This course is available on the Diploma in Accounting and Finance, MPA in European Public and Economic Policy, MPA in International Development, MPA in Public Policy and Management, MPA in Public and Economic Policy, MPA in Public and Social Policy, MSc in Accounting and Finance, MSc in Accounting, Organisations and Institutions, MSc in Development Management, MSc in International Political Economy, MSc in Law and Accounting, MSc in Management and Regulation of Risk, MSc in Management and Strategy, MSc in Regulation and MSc in Risk and Finance. This course is available with permission as an outside option to students on other programmes where regulations permit.

There are no specific pre-requisites and the course does not require a background in accounting.

This course examines the fast changing practices and institutions of accounting in the global economy, with a particular emphasis on the roles of accounting in global financial governance. International accounting and auditing standards have been advocated as a way of enhancing global financial stability, so as to stimulate the flow of cross-national investment, expand the scope for market-oriented development, and integrate local enterprises into global financial markets. This course critically examines dynamics of international standard-setting and consequences for financial statement users, business entities and wider local and global stakeholders.

Topics include:

Political, institutional and economic influences in changing national and international financial reporting frameworks. The political economy of accounting standard-setting. The work of the International Accounting Standards Board (IASB), the European Union, national accounting bodies, and their political and economic environments.

The effects of national financial reporting requirements and International Financial Reporting Standards (IFRS) on business entities and economic development, particularly developing and emerging economies (including the BRIC countries: Brazil, Russia, India, China). The enforcement of financial reporting requirements through auditors, securities regulators, the World Bank and others.

Specific technical challenges (for example, mergers and acquisitions, foreign currency transactions, derivatives and other financial instruments, fair value accounting and intangible assets).

The course explores issues from different theoretical perspectives through comparative empirical analysis.

18 hours of lectures and 8 hours of seminars in the MT. 2 hours of lectures in the ST.

It is intended to run a small number of additional lectures with invited speakers who are centrally involved at a senior level in the setting, enforcement and convergence of international accounting regulations. Further details will be provided at the start of the session.

Students are required to write an assessed essay of 3,500-4,000 words, to be submitted after the Christmas break. This written work forms 40% of the overall assessment. A workshop will be held in preparation for the essay assignment. Individual feedback will be given on essay outlines. Further readings, exercises and case studies are set for class discussion each week.

Detailed reading lists will be given out at the start of the session, and are largely based on academic journal articles. Other readings include policy briefings, regulatory documents, green and white papers, World Bank reports (ROSC). Relevant books: Botzem, The Politics of Accounting Regulation (Edward Elgar, 2012); Chapman, Cooper & Miller, Accounting, Organizations and Institutions (Oxford University Press, 2009); Djelic & Quack, Transnational Communities: Shaping Global Economic Governance (Cambridge University Press, 2010); Bowden & Seabrooke, Global Standards of Market Civilization (Routledge, 2006); Doupnik, International Accounting (McGraw-Hill, 2014); Nobes & Parker, Comparative International Accounting (Prentice Hall, 2012); Walter, Governing Finance: East Asia's Adoption of International Standards (Cornell University Press, 2008); Walton & Aerts, Global Financial Accounting and Reporting (Cengage, 2013).

Exam (60%, duration: 1 hour and 30 minutes) in the main exam period.
Essay (40%, 4000 words) in the lent term.