University of Pittsburgh Katz Graduate School of Business Course: Financial Accounting, BACC2401 Semester: Fall 2010 Required Material: Financial Accounting, Stickney, Weil, Schipper and Francis, SouthWestern Cengage Learning, 2010 (13 th edition) PPG 2009 Annual Report (distributed in class) The most recent annual reports of FedEx Corporation and CR Bard, Inc., available in electronic format on Courseweb. Selected articles, all to be available through Courseweb. Recommended but not required (see tab on Courseweb): Ivy Software, Financial Accounting: A Management Perspective Regular reading of the Financial Times, Wall Street Journal or other financial publication, paying particular attention to articles that relate to topics covered in this course, is highly recommended. Time: Lecture Room: Instructor: Office Hours: Mon, 6:20-9:20PM 114 Mervis Hall Elise Boyas, PhD Campus Phone: 412-648-1514 E-mail: eaboyas@katz.pitt.edu Preferred communication method is via email. Campus office, 226 Mervis Monday, 4:00-6PM and by appointment Course Description/Objective: The major objective of this course is to help students understand the basic structure and substance of a firm s financial statements from a user s point of view. This includes what is (and what is not) included in the financial statements, and how and when economic events affect the financial statements. The course materials will focus on generally accepted accounting principles used in the United States (US GAAP) and introduce International Financial Reporting Standards (IFRS) which are currently used in many other countries. Students will acquire an understanding of the inferences that can be made from financial statements about the past operations, present position and future prospects of a firm. (3 credits) Course Format and Requirements: To get the most out of this course, it is important that students quickly master the details and structure of accounting, i.e. the language of accounting, so they can move on to develop a deeper conceptual understanding of important issues. A good understanding of financial accounting and its role in business is critical for success in the remainder of the MBA program. 1
The primary format of this course is lecture, problem solving, discussion and review. Students are expected to have read the material and worked the assigned homework as it is covered in class. It is absolutely imperative that students keep up with the reading and assignments. It is also imperative that students bring curiosity and determination to this course. All handouts and solutions will be available on Courseweb. Important course announcements will be posted on Courseweb and emailed to students. Please make sure that you check Courseweb and your Pitt email account regularly. There is a short assessment of your knowledge of the accounting cycle to be administered within the first three weeks of the course. To earn the full points for this assessment you must score an 80% or higher. Students who score lower than 80% will be required to take a second exam to be scheduled outside of the class meeting time. This assessment is open book and open notes. There is one midterm exam covering approximately the first half of the course and there is one final exam concentrating on the material presented in the second half of the course. All students are expected to take the examinations on the scheduled day; make-ups for the examinations will be at the discretion of the instructor, only considered in extreme circumstances and will not be permitted once the exam is reviewed with the class. Students do not keep any exams; they are the property of the instructor. These exams are closed book except for two double sided sheets of notes which are prepared by the student. Graded Assignments will be due throughout the semester. Students may work with up to one other student (for a maximum of two in a group) on these assignments or they may work alone. The assignments must be typed. On the due date, students must bring two copies of the assignment to class, one to be handed in and one to be referred to as the solution is discussed. If a student is unable to attend class or will arrive late, the student must email the assignment prior to class to Professor Boyas at eaboyas@katz.pitt.edu as an attachment in either Word or Excel or in pdf format. Assignments will not be accepted if received after 6:20PM on the due date. The lowest grade will be dropped. The course has the following graded requirements: Midterm Exam 200 Final Exam 200 Graded Assignments (25 pts each) 200 Accounting Cycle Assessment 50 Total Points Possible 650 2
Tips for Success: This is a difficult course which presents a great deal of material. It is critical that students have a positive and determined attitude toward the course, attend regularly, keep up with the readings and assignments and, if necessary, obtain extra help early on in the semester. If a student is confused or overwhelmed there are several options for obtaining extra help: 1. See Professor Boyas during office hours or make an appointment. 2. Email questions to eaboyas@katz.pitt.edu. Every effort is made to answer email questions promptly. Many questions can be effectively answered via email or via a follow up phone conversation. Make sure that you identify the problem/page/etc. that you are asking a question about and be as specific as possible 3. Access the supplemental material on the textbook website and on Courseweb and on the publisher s website available at http://www.wadsworth.com/cgiwadsworth/course_products_wp.pl?fid=m20b&product_isbn_issn=9780324651140& discipline_number=400&token=6027f2fd64a46f5f61a1a82feaf2b9d833bcd 82116C566C80E6E62A1F6A098F0DBCAD7CE6F6BADF35C2EC2ABBA65833F The supplemental material includes practice multiple choice, practice exams, and chapter summary material. 4. Feel free to work with other students in the course when completing in-class homework, and feel free to work with one other student on the Graded Assignments, but make sure that you are contributing to this effort and have an understanding of the material. 5. Students should arrange to obtain class notes from another student for any missed classes. Check Coursweb and contact Professor Boyas for more detail in order to stay current. Course Etiquette: 1. Students should bring all necessary materials to class including the text, calculator, notepaper, etc. 2. Students may bring a laptop to class to take notes or for another legitimate class related task, but may not check email, surf the web, etc. 3. Students should turn off all cell phones and pagers before class. If you must take a call, please set your phone on silent and leave the room to take the call. Do not text during class. 4. Students should do their best to arrive on time and to not leave the room during class. Late arrivals and students coming in and out throughout class are very disruptive. 5. Students should refrain from behavior that is annoying or disruptive to other students, such as personal conversations. Disabilities/Learning Support: If a student has a disability which requires an accommodation (such as learning support or a physical accommodation), the student is encouraged to contact both Professor Boyas and Disability Resources and Services (DRS, 140 William Pitt Union, (412) 648-7890/(412) 383-7355 (TTY), www.drs.pitt.edu), as early as possible in the term. DRS will determine the extent and type of any accommodations which may be appropriate for this course. 3
Academic Integrity: All students are expected to understand and adhere to the standards of Academic Integrity as stated in the University of Pittsburgh Guidelines on Academic Integrity which can be found at: http://www.provost.pitt.edu/info/ai1.html Any student who violates the Academic Integrity Policy as implemented in this course is subject to sanctions as outlined in the Policy. If you have any questions about the policy, please consult the web site or ask Professor Boyas. In this course, all exams/assessments are individual efforts. Calculators are permitted but laptops, hand-held pdas/electronic devices or cell phones are not permitted to be used during an in-class exam. Graded Assignments can be a collaborative effort with other students in accordance with the specific requirements as described in another section of this syllabus. Using cell phones or other devices to take pictures of any in-class material is prohibited. Any unauthorized use of electronic devices to record in-class discussions/lectures is prohibited. 4
Schedule (subject to change) Note: Class does not meet on Monday 9/6/10, Monday 10/11/10 and Monday 11/22/10. Class meets on Friday 9/10/10. Session Topics Pages in Text Graded Assignment In-Class Homework* 8/30 Introduction Chapter 1 Chapter 1-18, 19, 20, 26, 33, 35, 39 Accounting Cycle Chapter 2 Chapter 2-12, 27, 34 (use T- Accts), 35 (use T-Accts) 9/10(Fri) Balance Sheet Chapter 3 Chap 3-12, 14, 21, 22, 24, 35 Income Statement Chapter 4 Chap 4-11, 13, 18, 30 9/13 Statement of Cash Flows Chapter 5 #1-Accounting Cycle Chap 5-22, 23, 25, 33, 34, 42, 43 Intro to Revenue Recognition 9/20 Revenue and Receivables Chapter 7 #2 Revenue Recognition Chap 7 23, 31, 34 On Line Accounting Cycle Assessment Closes at 6PM 9/27 Working Capital, Inventories Chapter 8 #3 - Receivables Chap 8 22, 26, 27, 29, 31, 37, 38 10/4 Long-lived Assets Chapter 9 #4 Inventory Chap 9 14, 19, 20, 24, 26, 27 Introduction to Impairment Revisit Valuation Issues 10/18 MidTerm Exam (Chapters 1-9) 10/25 Review Exam #5 Long Lived Assets/Impairment Time Value of Money Bonds Chapter 10 Chap 10 20, 21 (use T-Accts), 28, 34 11/1 Liabilities Chapter 10 #6 - Bonds Off Balance Sheet Debt #7 Contingent Liabilities Other Liabilities Chapter 11 Chap 11-28 5
Session Topics Pages in Text Graded Assignment In-Class Homework 11/8 Finish Other Liabilities Chapter 11 #8 Pension Liabilities Chap 11-28 Marketable Securities Chapter 12 Chap 12 12, 15, 18 Investments Chapter 13 Chap 13 13, 14, 15, 16, 21, 28 11/15 Finish Investments Chapter 13 Shareholders Equity Chapter 14 Chap 14 22, 24, 30, 33 11/29 Financial Statement Analysis Chapter 6 #9 Fincl Stmt Analysis Ch 6-11, 13-14, 16-17, 19, 25, 27, 32 Revisit Cash Flows Chapter 15 Chap 15 8, 13 12/6 Synthesis Chapter 16 Chap 16 3; Comprehensive Review Problem, PPG Review Problem 12/13 Final Exam *In Class Homework is NOT collected. Not all the problems will be reviewed in class. 6