PEPPERDINE UNIVERSITY THE GEORGE L. GRAZIADIO SCHOOL OF BUSINESS AND MANAGEMENT

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1 PEPPERDINE UNIVERSITY THE GEORGE L. GRAZIADIO SCHOOL OF BUSINESS AND MANAGEMENT Advanced Accounting (ACCT500) Dr. Michael D. Kinsman SYLLABUS Dr. Michael Kinsman Page 1 of 6 ACCT 500

2 THE GEORGE L. GRAZIADIO SCHOOL OF BUSINESS AND MANAGEMENT 6100 CENTER DRIVE LOS ANGELES, CALIFORNIA MICHAEL D. KINSMAN, CPA, PH.D. PROFESSOR OF ACCOUNTING AND FINANCE (949) Attached is your syllabus for Fall, I am looking forward to working with you to ensure that we have the best possible class in advanced accounting, which will allow you to use this material in your business life and in your MBA endeavors. This letter shares a requirement for the class not listed in the syllabus. You will need: A financial calculator capable of doing internal rates of return: Any calculator that does present and future value, including Internal Rate of Return, is acceptable. If you are going to purchase a new calculator, I suggest that you purchase one of first two (I do not have a financial interest in HP!): 0) If you have an iphone, ipad or and ipod Touch, strongly consider the version of this calculator available at the itunes store called "10BII Calc HD." The icon is blue on top and green on the bottom. For $5.99, you get all of the same look and feel of the HP-10BII plus a huge number of useful add-on features. This is a real buy. Its author is Ernest Brock. 1) An HP-10BII calculator, which costs around $40, is also a good choice 2) The HP-12c financial calculator (about $90), is the "old standby" in the finance industry. 3) I have not used, but have instructions for, the TI BA-II calculator on my website. If you have this calculator, it should work. If you do not have it, please consider buying one of those listed above. 4) I have posted additional calculator sheets for the HP17 and HP19 calculators, in case you have them. I have a handout that shows the keystrokes for doing financial problems with each of these calculators. To get a preview of this, check my website at I will not show them for other calculators though if you already have a financial calculator and know how to use it, that will not be a detriment to you. I will not be able to help you learn to use other calculators (because I don't know them). Please come to each class with your calculator. If you have an old financial calculator at your house that is not one of the ones listed above and you don't know how to use it, please buy a new one you will use this calculator a lot and the price of a slow start is high. Web access. You will want to download and carefully read the uploaded notes each week before class. They are at [The center menu is a pull down menu.] If you want to use your iphone or ipad for the notes, you will need to enter Preferences>Safari. At the bottom of those preferences, you will find JavaScript (it needs to be ON) and Block Pop-ups (it needs to be OFF). Dr. Michael Kinsman Page 2 of 6 ACCT 500

3 Advanced Accounting Dr. Michael Kinsman ACCT500 Saturday, 1 pm to 5 pm, OCC room 400 (949) Fall, 2014 MKinsman@pepperdine.edu Syllabus Prerequisite: FINC 474 and ACCT472 or equivalent. No exceptions. The text for the course is: You may use the same accounting text you used for ACCT472 and the same Finance text you used for FINC474. You need no other books for the class. Please prepare the readings and materials listed below each session for that session. We all need to be aware of the need for flexibility as we work through this course together. If something is not working for you, I am willing to make changes to make this the best course it can possibly be for you and for our group. A number of changes will undoubtedly be made for this time through based on student input. It is my intention that this be one of the best courses you have ever taken. If something is occurring that is different from that, please let me know. Grading and attendance: attendance issues. Please see the last page of this syllabus regarding grading and Conduct: The Graziadio School of Business and Management has asked me to direct your attention to pages of the catalog, regarding conduct expected of a graduate student and of an employee of the University. Policy on disabilities: The Graziadio School of Business and Management has asked me to direct your attention to page 37 of the catalog, regarding assistance for students with disabilities. Session I September 6 Review of financial accounting Read: Be certain that you are up to speed on financial accounting. See the topics below for items we will cover in our first (long) afternoon together. You WILL need to review your textbook in accounting to make sure that you know these materials. Do not believe a shallow knowledge will suffice in this advanced accounting class. Introduction to the course Reasons for this course Debits and credits what are they? Entering items into accounts The eight column worksheet Preparing financial statements Balance sheet Income statement Statement of cash flows Dr. Michael Kinsman Page 3 of 6 ACCT 500

4 Session II September 20 Ratio analysis and cash flows. statements. Problems with financial Read: In your finance book, the section on ratios and ratio analysis How can accounting numbers be made to "cheat?" Rules that proscribe "cheating" Standards setting Accounting analysis Balance sheets: Assets Balance sheets: Liabilities and equities Problems in measuring assets, liabilities and equities Income statements: Revenues Income statements: Expenses The overall entity Prepare: Case handed out in class Session III October 4 Taxation and depreciation, present value Read: In your accounting book, the sections on taxation and on depreciation In your finance book, the section on present value analysis Types of depreciation: SL, DB, MACRS Taxation of various kinds of sales Ordinary income versus capital gains What assets qualify for capital gains treatments What are the advantages of capital gains treatments The dread AMT Present value: What and why? Using your calculator for PV, FV, IRR, NPV another other letter combinations The most important question in finance Assigned: By October 12, send the professor a list of companies you would like to analyze for our week 6 team presentations. Session IV October 18 Forecasting Read: In your finance text and your accounting text, any materials on forecasting and budgeting Forecasting the future Why forecast? How completely do you forecast What do you forecast How far out do you forecast Variables versus constants Including ratios in my forecast Variables versus constants I wonder what if... Assigned: Teams for class presentations at week 6 Dr. Michael Kinsman Page 4 of 6 ACCT 500

5 Session V November 1 Using present value analysis Read: Only a review of what you are now panicked about Does market efficiency make analysis bogus for equities? Can I make money by doing analysis? Using financial analysis to assess credit worthiness Using financial analysis to rate debt A methodology for assessing financial health of companies Prepare: Case provided in class Session VI November 15 Team class presentations For each of you, the final examination will be a team presentation of a case handed out in class at about week 4. Each team will present for 35 minutes; each team will critique another team for 15 minutes. Dr. Michael Kinsman Page 5 of 6 ACCT 500

6 How will my grade be computed? Your grade will be based on your total points on in class quizzes (one per week for six weeks), the final examination and your class participation as follows: Weekly quizzes will be 30 percent of the total points in the class. Your in-class participation will be 20 percent of the total points in the class. The final examination (in class) will be 50 percent of the total points in the class. Included in this final examination will be one case your team presents (35 percent of the total class points) and one case your team critiques (15 percent of the class points). Grades will be assigned as follows: A: Over 95 percent of the possible points in the class A-: 90 to 95 percent of the possible points in the class B+: 87 to 90 percent of the possible points in the class B: 83 to 87 percent of the possible points in the class B-: 80 to 83 percent of the possible points in the class C+: 77 to 80 percent of the possible points in the class C: 73 to 77 percent of the possible points in the class C-: 70 to 73 percent of the possible points in the class D+: 67 to 70 percent of the possible points in the class D: 63 to 67 percent of the possible points in the class D-: 60 to 63 percent of the possible points in the class F: Fewer than 60 percent of the possible points in the class I reserve the right to lower this scale at any time for example, I may determine that 93 points should be an A. I will not raise it. At any time during the class, I will be happy to discuss any assignment or your grade or any other aspect of the class with you. I hope you will use this opportunity. Missing sessions of the class will have an adverse effect on your grade. Each absence will lower your points by 5 percentage points of the total points in the class. Dr. Michael Kinsman Page 6 of 6 ACCT 500