Financial Accounting Theory,
5th Edition

Craig Deegan

ISBN-13: 9780170460491
Copyright 2023 | Published
704 pages | List Price: USD $100.75

Craig Deegan's Financial Accounting Theory provides a concise approach while comprehensively covering both traditional and contemporary theories that have emerged as the practice of accounting has evolved. Social and environmental accountability and reporting issues are discussed in depth, along with coverage of critical perspectives, public sector accounting and fair value. The text has a reader-friendly style that uses straightforward explanations and numerous practical examples. This fifth edition of Financial Accounting Theory includes new content focusing on how different perspectives of organisational responsibilities and ‘accountabilities’ impact the way accounting is performed, and the theories that different researchers choose to use/apply.


1. Introduction to financial accounting theory
2. Accountability and its link to responsibility and accounting
3. The financial reporting environment
4. The regulation of financial accounting
5. International accounting
6. Measurement issues: accounting for the effects of changing prices and markets
7. Normative theories of accounting: the case of conceptual framework projects
8. Positive Accounting Theory
9. Unregulated corporate reporting decisions: considerations of systems-oriented theories
10. Extended corporate accountability: the incorporation of social and environmental reporting
11. Reactions of capital markets to financial reporting
12. Reactions of individuals to financial reporting: an examination of behavioural research in accounting
13. Critical perspectives of accounting

  • Craig Deegan

    Craig Deegan is Professor of Accounting within the College of Business and Economics at University of Tasmania. His research interests are in the area of social and environmental accountability and accounting, financial accounting, and financial accounting theory, and he is one of the most highly cited accounting researchers internationally. Craig is also the author of three leading textbooks, namely Financial Accounting (McGraw Hill, 9th edition 2020), An Introduction to Accounting: Accountability in Organisations and Society (Cengage, 1st edition, 2019), and Financial Accounting Theory (McGraw Hill, 4th edition 2011). He has also been the senior supervisor of over 20 PhD completions.

  • NEW Chapter 2 'Accountability and its link to responsibility and accounting' explores the link between organisational responsibilities, accountabilities, and accounting, and in doing so, introduces a four-step accountability model. It also discusses corporate governance and the linkage between corporate governance and accounting practice. Chapter 2 emphasises that relevant and reliable accounting information provides power to users of that information that enables them to make informed choices.

  • New in-chapter features to engage students: 'Why do I need to know about ...' box feature, and chapter-opening questions and answers.

  • Additional instructor resources in this edition include a Test Bank and Craig Deegan’s signature author videos, which provide an overview of the contents and act as mini lectures for online units. These videos will be available for both students and instructors, via the instructor website.

  • Coverage of emerging theories such as conceptual frameworks and the global reporting initiatives, and integrated reporting and corporate governance.

  • The only up-to-date financial accounting theory resource specifically aimed at financial accounting theory units, providing a focused and concise resource for the market.

  • Following an accountability approach to teaching the subject, this resource encourages students to think beyond the mainstream accounting theory presented by competitors.

  • A wealth of features including the opening questions, 'Why do I need to know about ...' feature and 'Reflection questions' , chapter summaries, and learning objectives with linked questions at the end of chapter, provide a variety of learning opportunities to enhance student engagement.

  • Footnotes offer students further insight into important topics, in context. References at the end of chapter guide students to extended reading.

  • Instructor website. Your #1 resource for your course. This tailored collection of teaching tools includes downloadable PowerPoint lecture slides, Instructor's Guide, author videos, and Test Bank with customisable questions for quizzes and assessments. New to this edition are the author videos and Test Bank. Log in or request an account to access instructor resources at for Australia or for New Zealand.

  • Cognero Test Bank. A bank of questions has been developed in conjunction with the text for creating quizzes, tests and exams for your students. Create multiple test versions in an instant and deliver tests from your LMS, your classroom, or wherever you want using Cognero. Cognero test generator is a flexible online system that allows you to import, edit, and manipulate content from the text's test bank or elsewhere, including your own favourite test questions.

Cengage provides a range of supplements that are updated in coordination with the main title selection. For more information about these supplements, contact your Learning Consultant.

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