Syllabus ACT 512-2300 Financial Reporting & Analysis Susan Crosson Cell phone: 352-219- 0770 Email: susan.crosson@emory.edu Description Financial accounting is a conceptual model and methodology for measuring, processing, and communicating financial information about the business activities an organization. Financial reporting consists corporate financial statements and other financial disclosures that companies provide to investors and other stakeholders. Financial Statement Analysis includes both accounting analysis and financial statement ratio analysis. This course covers financial accounting, financial reporting, and accounting analysis, as well as financial statement ratio analysis to a limited extent. Financial statement ratio analysis is covered more extensively in the corporate finance sequence in the program. Managers ten have a significant amount latitude in deciding how to treat economic events in the financial accounting model and how to report them in the financial statements; hence, it is important for companies to develop accounting policies and strategies to achieve relevant and reliable financial reporting that is consistent with their business strategies. This course is presented from a user or managerial perspective, rather than a preparer perspective. Upon completing it, students will have an understanding the financial accounting and reporting model and how it is applied in a wide variety organizations and applications. We will use the annual reports publically traded companies as our primary frames reference in the course. Course Learning Objectives 1. Understand basic measurement concepts underlying primary financial statements and the relative importance the Income Statement, Balance Sheet, Statement Cash Flows, Statement Comprehensive Income, and Statement Retained Earnings. 2. Locate and use information on a corporate annual report to analyze a company s financial performance and position. Course E- Text Pratt, Jaime, Financial Accounting in an Economic Context, Wiley, 2014 (9 th Edition). E- Resources 1. There is a FA17_ACT_512_2300 course in Canvas that will be used for all outside- - class communications. All course materials, including announcements, assignments, lecture notes, explanations, assignment solutions, and other course materials will be provided at various times in Canvas. 2. As stated above, we will use the annual reports publically traded companies like Coca- Cola and Home Depot as our primary frames reference in our study financial reporting. Links to annual reports used will be posted to the FA17_ACT_512_2300 Canvas course. In addition, photo copies financial statements from annual reports used in class will be provided to you in your residency materials. Pre- Course Work Financial Reporting & Analysis requires students to have a minimum working knowledge in financial accounting before beginning the first residency the course. Therefore, depending on your background,
there may be a significant amount work to do during the Pre- Course Work period for the first residency. Financial reporting relies on the system double- entry accounting, the basic structure financial statements, and a specific set terms and concepts that should be mastered before our first course meeting. Several resources are available in Module One folder via link in Canvas or at http://bus.emory.edu/scrosso to assist you in achieving these necessary skills, including YouTube videos. You can also read the first five chapters the Financial Accounting e- textbook that cover these concepts and procedures. To assist you in assessing your readiness to begin the 1st residency, a homework assignment is available for this course. Your solution to this assignment which applies pre- course material, should be submitted for grading at the start class on December 6, 2017. There will be an optional homework help session Tuesday early evening the week your second residency (December 3). Determination Grades: Grades will be based on the following: Homework/Quizzes/Participation/Engagement 30% Mid- term Exam- Individual Assignment 35% Final Exam- Individual Assignment 35% 100% Grades will be based on the School s MBA grading policy. The top 15% the class will receive a grade DS, and the next 35% will receive a grade HP. If all goes well - - and if we all fulfill our respective responsibilities - - no more than 10% will receive a grade lower than PS. Description Grade Components: The quizzes and exams will be open book and open notes. The mid- term and final exams typically consist a combination multiple choice questions, short- answer questions and problems, and questions based on actual annual reports. Quizzes and exams will be submitted to me via Canvas or email, susan.crosson@emory.edu. The homework/participation/engagement component attempts to measure the quality an individual s contribution to his/her classmates learning experience and the effort applied in learning the course material. The grade is based on two types information: (1) my own assessment in- class interaction and online engagement, and (2) the number completed homework assignments turned in on or before due date. To receive credit for homework, students should submit a copy it on or before it is due. It is entirely appropriate to work these with other classmates, provided each person makes a good faith effort to work the assignments independently. Merely copying someone else s solution should not be done as doing the homework aids considerably in improving your understanding the course material. Homework is graded for effort and not accuracy. Preparation & Participation Course preparation is crucial to the learning process. In fact, most the actual learning takes place outside the classroom, which is then modified and/or reinforced by the in- class discussion. Because financial accounting is an integrated conceptual model, each part the model must be understood before subsequent elements are introduced. Hence, staying up with the pace the course is vital. It is essential that you read and study the assigned chapter material in advance each class. In addition, each problem assignment for
the class must be analyzed and prepared (either by you individually or in study groups) prior to the class. Electronic copies the assignment solutions will be made available to you after we have covered the assignments in class, or for the on- line segment the course, after you have turned in your assignments. YouTube videos will be provided to you for each the topics in advance the coverage the topic online or in class. During the distance learning modules, there will be optional online discussions selected issues covered in the modules, these will be recorded and archived for later viewing. Readings & Assignments The following pages present the required readings and assignments for the entire course. The numbered assignments are from the Pratt e- textbook. Homework will be submitted for grading for Modules 1, 2, 3, 5, 6, 8a, and 9. Homework for the other modules will be discussed but will not be collected. Homework submitted for grading should be sent to me via Canvas or email susan.crosson@emory.edu on or before the due dates listed. You are encouraged to find articles relevant to course topics as you read The Wall Street Journal or other financial publications on a regular basis. Please send me the article via email and state the relevant course topic when you find one. The WSJ and other business publications are available to you on- line without cost on the Goizueta Library data bases. Please note that all the copyrighted course materials posted on Canvas will be obtained from the Emory Library data bases, which are available directly to all Goizueta students. By downloading articles from the Library data bases not only are they more convenient but it is done with the express permission the Emory Library staff and does not violate any copyright laws or the Library s agreements with its data base providers. Submitting Homework and Exams Via Canvas or Email Please observe the following guidelines in submitting work: Ø If Excel files are submitted, the spreadsheets should be formatted so that all related materials will print on the same page. I recommend that, before sending any materials in Excel files, you print them to make sure they are properly formatted. You can also save them as a pdf. Ø The names all attached files should include your name, plus a brief description the document; for example, Jdoe Hwk #1 or Jdoe Midterm. Ø All required submitted assignments and exams should be submitted using the Subject line ACT512- Name the Assignments- Your First and Last Name. Assignment Due Date Chart Module 1: At the start class on December 6, 2017 Module 2: At the start class on December 7, 2017 Module 3: At the start class on December 9, 2017 Module 5: Allowance for Bad Debts Via email on or before NOON January 15, 2018 Module 6: Alternative Inventory Methods Via email on or before NOON January 22, 2018 Module 8a: Depreciation Methods and At the start class on February 19, 2018 Equipment Disposal Module 9: Treatment Bonds and At the start class on February 20, 2018 Determining the Effective Interest Rate Other Guidelines
To enable everyone in the class to gain the most from the in- class experience, students are requested to observe the following guidelines during the residencies: ü Please be in class and prepared to begin on time for each class and after each break. ü Please do not leave the room during class except for personal emergencies. If you need to leave, please do so as quietly as possible; ü It is important to bring your e- textbook and/or handouts with you to all class sessions since we will be covering e- textbook problems and/or handouts in most class sessions. Failure to bring these materials will make it difficult for you to participate adequately in class discussions and may result in a loss participation credit. It is also requested that you bring a company you are interested in or your company s annual report to class. MEMBA 19 Course Calendar ACT 512 Date Topic Text Reading Assignments & Preparation 11/2 to 12/3 11/2 to 12/3 PRE- WORK PERIOD FOR DECEMBER RESIDENCY Module 1 Mechanics Financial Accounting Prepare for Modules 2, 3, and 4. Assignment for Evaluation Pratt Chapter 4 Module 1 folder Complete Homework #1 and submit a printed copy at the beginning first class on 12/6. There will be an optional face- to- face help session on 12/5 at 5:00 pm in W330. Pratt Chapters 2, 3, 5, 14, and Appendix A Module 2 folder Module 3 folder Module 4 folder 12/5 Optional face- to- face help session on 12/5 at 5:00 pm for Homework #1 in W330. 12/6 Module 2 Using Financial Statement Information Pratt Chapters 2 and 5 Module 2 folder Complete Homework #2 and submit a printed copy at the beginning class 12/7. There will be an optional face- to- face help session on 12/6 at 5:30 pm in W330. 12/7 12/9 Module 3 Using Cash Flow Information Module 4 Measurement Fundamentals Pratt Chapter 5 and 14 Pratt Chapter 3 and Appendix A Module 3 folder Module 4 folder Complete Homework #3 and submit a printed copy at the beginning class 12/9. There will be an optional face- to- face help session on 12/7 at 1:00 pm in W330. Midterm will be distributed electronically before December 10 and will be Due before NOON (Atlanta time) Monday December 25, 2017. Holiday- No Class 12/24
12/31 1/7 1/14 1/21 1/28 2/18 2/19 2/20 Module 5 Cash and Accounts Receivable Module 6 Merchandise Inventory Module 7 Current Liabilities and Contingencies Module 8a Long- Lived Assets PRE- WORK PERIOD FOR FEBRUARY RESIDENCY Prepare for Modules 8b, 9, and 10. Module 8b Accounting for Investment Decisions Module 9 Accounting for Financing Decisions Module 10 Accounting for Financing Decisions (continued) and CSI Accounting Case Pratt Chapter 6 Pratt Chapter 7 Pratt Chapter 10 pages 402-421 Pratt Chapters 9 Pratt Chapters 8, 11, and 12 Pratt Chapter 8 pages 309-330 (equity investments) and Chapter 11 pages 447-466 (bonds and notes) Module 5 folder January 2, 2018 9:15 pm Atlanta time Module 6 folder January 9, 2018 9:15 pm Atlanta time Module 7 folder January 16, 2017 9:15 pm Atlanta time Please log in at TBA Module 8a folder Webinar Wednesday January 23, 2018 9:15 pm Atlanta time Module 8b folder Module 9 folder Module 10 folder Module 8 folder Module 9 folder Submit Homework #4 Allowance for Bad Debts before NOON 1/15 via email Submit Homework #5 Alternative Inventory Methods before NOON 1/22 via email Complete Homework #6 Alternative Depreciation Methods and Equipment Disposal. Submit a printed copy at the beginning class 2/19. Chapter 12 Module 10 folder Complete Homework #7 Treatment Bonds and Determining the Effective Interest Rate. Submit a printed copy at the beginning class 2/20 Final Exam distributed electronically on or before February 21 and is Due before Noon (Atlanta time) on Monday March 4, 2018.