Within the course we discuss selected topics of accounting theory based on research papers. The focus will be on positive accounting theory that explains why managers elect to adopt particular accounting methods.To address agency problems this theory assumes that companies adopt interest-alignment mechanisms based on the output of the accounting system. The course will teach participants how to read academic research. It will introduce academic literature related to information content of accounting information for equity markets, owner-manager contracting and debt contracting.

• Students get familiar with positive accounting theory and its related topics investigated in academic literature.
• Students gain good knowledge on how to read and understand academic literature. First, this helps students to improve their academic-writing skills and second, it helps students focused on a business career to critically evaluate and comprehend professional literature. This is particularly important for applying academic findings in practice.
• Students completing this course are also able to assess the importance of financial accounting as an information source in various settings as well as its inherentdiscretion.

The course consists of lectures and discussions as well as self-study and assignments. The course will be based on selected chapters from a book about financial accounting theory and selected academic papers. The assignments will be completed by the students at home. Relevan tmaterial will be provided to the students in due time.

• Assignment 1 (Executive summary of a paper): 30%
• Assignment 2 (Literature review): 40%
• Presentation: 30%

Goodknowledge of financial accounting and understanding of international corporate reporting environment. Good presentation skills. The students are expected to have knowledge from a graduate financial accounting course.