Fall 2002
ACC 742 Financial
Statement Analysis
Bulletin
Description
Financial trends of financial and corporate reports are analyzed for solvency, quality of earnings, investments, and forecasting implications. Emphasis is placed upon ratio and trend analysis from the detection and interpretation of problem areas of the business. A term paper is required.
The purpose of this three-credit course is to help students learn to use financial data to evaluate the operating performance and financial position of firms. The majority of the course is devoted to teaching students how to analyze financial statements using a small set of statistics. Operating performance analysis focuses on how well the organization is matching revenues and expenses or expenditures while financial position analysis focuses on how well positioned the organization is to pay its bills. Managers have strong incentives to use the changing business environment and the latitude and ambiguity in GAAP to benefit themselves and shareholders. This is what makes financial reporting so interesting and exciting. Additionally, the goal of this course is to develop an understanding of the environment in which reporting choices are made, what the options are, how to use these data in making decisions, and how to avoid misusing financial statement data. To this end this course will integrate the perspectives of accounting, corporate finance, and economics to grasp how transactions get reported.
Required: Financial
Reporting Analysis, (Eighth Edition) by Charles Gibson (
Recommended: Supplemental readings,
familiarity with spreadsheets, and word-processors.
Fall 2002
ACC 742 Financial
Statement Analysis
The class meets once a week for 13 weeks. Each class is one hour and fifty minutes. Chapter readings and assigned homework should average between 4 to 6 hours per week.
Explanatory lectures, problem solving, research projects, case solving, internet and database access will prepare students to complete assignments which are reviewed in class. This course involves a substantial study commitment from students. Students must attend class and complete all assignments on a timely basis. Preparation for class by reading the chapters and working the homework problems is essential. Students should keep up to date with the class throughout the semester. Text reading assignments are to be completed prior to the class in which the material is introduced. Participation in class discussions and problem-solving exercises is expected.
Examples or problems dealing with business ethics and international
accounting and financial reporting will be addressed, when applicable.
Integration of
Internet-Based Projects
The textbook selected for this course includes a number of internet-based projects. Students are individually required to prepare written position papers on four (4) internet-based projects. These assignments are coded with INT on the syllabus. Attention should be given to the professional quality of work. The finished project should be typewritten (double-spaced) and handed in by the assigned due date.
Students are expected to come to class prepared – meaning they have read the chapter(s) to be covered for each session and have completed all assigned homework to the best of their ability.
Students are asked to refrain from using cell phones and beepers during class. If you need to be accessible, set the telephone or beeper on vibrate mode and discretely excuse yourself.
Students will be withdrawn by the Professor for more than 2 unexcused absences.
Make-up examinations will not be given except at the Professor's discretion for most unusual circumstances.
Fall 2002
Mid-Term Exam 30%
Final Exam 30%
Cases 15%
Internet write-ups 15%
Class participation 10%
Total 100%
Class Participation
Evaluations of class participation will be based on the instructor’s periodic assessment of each student’s contribution to the class sessions. Students may feel that this process results in a very subjective evaluation of one’s talents. But, when these observations are spread over a significant
period of time, reasonable conclusions can be drawn about an individual’s abilities. Both the quality and quantity of each student’s contributions are important.
Internet Write-ups and Case Solving
Internet write-ups and case assignments have been chosen to reinforce the learning objectives presented in the course. The textbook selected for this course includes a number of assignments. These assignments are coded with INT or CASE on the syllabus. Students are required to submit typewritten (double-spaced) assignments, which are generally due the week following the completion of each respective chapter. Attention should be given to the professional quality of the finished assignment.
Center
For Business Research (CBR)
The CBR is the business library located on the second floor of the C.W. Post
campus library. Students will find extensive online and print sources for
research assignments in all business subjects. Knowledgeable business
librarians are available seven days a week to assist you in selecting and
focusing your research topics, and retrieving the most relevant information you
need to complete assignments. Use of this resource is recommended to (1) access
unique materials not available on the Web, and (2) get expert help from a
research librarian. Visit the CBR home page at www.liu.edu/cwis/cwp/library/cbr/cbrhome.htm
for a quick look before your visit
Fall 2002
Adherence to
Calculation of
Grade
The student's grade will be determined as follows:
Grade Percentage
A >90%
B+ 85%-89%
B 80%-84%
C+ 75%-79%
C 70%-74%
D 60%-69%
F <59%
My office is located in Lorber Hall – room 212. I am available during office hours or by
appointment, if the posted hours are inconvenient for you. Call 516 - 299-3279 to
contact me by telephone. The office fax is 516 - 299-2297.
My e-mail address is charles.barragato@liu.edu
My web page address is http://phoenix.liu.edu/~cbarraga
Fall 2002
|
Chapter |
Problem Assignments (in-class) |
Homework
Assignments (hand in) |
|
1 & 2 |
P1-2 |
|
|
3 |
P2-5, P2-6, P3-7, P3-11 |
Case 1-7 |
|
4 |
P4-9, P4-11 |
|
|
5 |
P5-5 |
INT1 (page 146) Case 4-3 |
|
6 |
INT1 (page182) |
|
|
|
Mid-term |
|
|
7 |
P7-5, p7-9 |
|
|
8 |
P8-3, p8-5 |
Case 7-7 |
|
9 |
P9-3, p9-4 |
Case 8-2 |
|
10 |
P10-1, P10-3 |
INT1 (page 264) |
|
11 |
P11-2, P11-4, P11-5 |
Case 10-6 |
|
12 |
None |
|
|
|
|
|
|
|
Final Exam |
|