Excerpt from course description

Financial Accounting Theory and Empirics

Introduction

Please note that this is a preliminary course description. The final version will be published in June 2027.

This course provides a theoretically grounded and research-informed exploration of the role of financial accounting in the economy. It focuses on two central functions of accounting information: (i) its use in capital markets, where it supports valuation, investment decisions, and stewardship assessments; and (ii) its role in shaping and enforcing corporate contracts, including debt covenants, compensation agreements, and governance mechanisms.

The course is particularly suited for students aiming for careers in auditing, equity research, financial regulation (e.g. Finanstilsynet, SEC), investment management and standard setting. It emphasizes critical thinking about the economic consequences of accounting choices and the broader institutional environment in which accounting operates.

Course content

  • Accounting and regulation
  • Relevance vs reliability of accounting information
  • Market efficiency
  • The capital market impact of accounting information
  • The use of accounting information in corporate contracts
  • The standard setting process

Disclaimer

This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.