This course provides students with an understanding of the theoretical framework (conceptual framework) in implementing current accounting practices. Discusses reasoning in forming a conceptual framework that forms the basis of accounting practice. Discussed the basic framework for the preparation and presentation of financial statements and global financial reporting standards as a basis for professional judgment to determine accounting policies that reflect the economic substance of the entity, determine the appropriate accounting treatment according to the substance of the transaction to prepare relevant and reliable financial reports, prepare other reports to external parties comply with global standards, evaluate the adequacy of corporate reports, analyze the impact of standard changes on business entities, and explain issues related to specific entities (public sector, non-profit, and so on).

The Accounting Theory course helps students to better understand the context of financial reporting. This lecture will explain how the development of accounting theory and the application of accounting theory in decision making by investors and creditors. This lecture provides knowledge to students regarding concepts, theories, and applications in the process of making business decisions. In real life, management must choose an accounting method for its decision making. Management needs more information about the method chosen, the background to the method and the context of the method.