Professional Documents
Culture Documents
Instructors
Carolyn Reichert, Ph.D. Phone: (972) 883.2726 (W) Fax: (972) 883.6164
Course Manager (972) 867.7088 (H)
Course Objectives
This course provides an introduction to the concepts and issues of financial accounting
with an emphasis on the interpretation of financial statements. The first part of the
course presents how to prepare financial statements (income statement, balance sheet,
and statement of cash flows) starting from business transactions. It also presents a
systematic approach to utilizing the information contained in financial statements.
Without a solid understanding of this material, the remainder of the course will prove to
be very difficult. Accordingly, I urge you to keep up with the course from the start.
The remainder of the course focuses on how corporate financial statements report
particular economic events. We will discuss the generally accepted accounting
principles for these events, their limitations, their alternatives, and the notion of earnings
quality. By the end of the course you should feel comfortable with a company's annual
report. You should be able to come to a reasoned conclusion about a company's
financial health and be able to make comparisons across firms and periods of time. You
should be able to pick up a set of financial statements, understand where the numbers
came from, and be able to take the statements apart and put them back together again
so that they suit your decision making needs.
Learning Outcomes
Resources
Other: Solutions to selected text problems, class readings, solutions manual for
the text, sample true/false exam questions, sample reports for the financial
statement analysis project, and team member evaluation form for the
project are posted on Blackboard.
The Cases in Financial Reporting text provides you with exposure to a wide range of
financial disclosures. A good part of our class time will be spent on the cases in this
text. Class Readings (posted on Bb) consist of articles from business publications such
as The Wall Street Journal, Fortune, and Forbes. The purpose of these readings is to
place the concepts we discuss into perspective and to examine the impact of
accounting standards on decision making. I strongly encourage you to do additional
reading of this nature. It will not only improve your understanding of the role of financial
accounting but will also broaden your knowledge of business.
I've adopted an active learning approach. For each class session, you are expected to
read the background material and do the required homework assignment. For most
students, this will be the first time you've covered the area and so you may not be able
to do the assignments correctly. However, I would like you to give it a good try and
make note of your difficulties. I expect that my discussion of the assignment in the next
session should address most of your difficulties. I find that this approach is very
effective in understanding and retaining new concepts. I will grade your homework
based largely on effort and not accuracy.
Homework assignments are due by the date and time indicated in the Schedule of
Assignments below. NO EXTENSIONS WILL BE GIVEN FOR ANY REASON. Late
work will not be accepted. Keep a copy of your work for reference during class
discussions. Your work will be graded as follows:
• 1.0 –There is evidence that you made a serious attempt on all parts of the
assignment.
• 0.5 – The work is incomplete.
• 0 – No work is turned in.
Homework assignments are to be turned in individually. Although I would encourage
that you work on these assignments in groups, you should write-up your submissions
individually. That is, you should not have one group member type the solution and share
the document, electronic or otherwise, with the other members. Doing so is not only an
act of academic dishonesty, but significantly reduces the learning experience. If such
cases come to my attention, all parties involved will receive grades of zero for that
assignment. Repeat offenses will be dealt with more harshly.
There are two exams for this course. Anyone missing an exam will automatically receive
a grade of zero for that test. Exceptions for documented medical or family reasons may
be permitted. Where possible, either the course manager or I should be contacted prior
to the time of the exam. At my discretion, either a make-up exam will be scheduled or a
reallocation of the weight to remaining examinations will be made. Exams will be based
on the assigned material in the textbook, casebook and Class Readings.
The timed examinations will be downloaded from Blackboard. You will have
prespecified time to complete each one and post your solutions to the Digital Drop Box.
Examinations are to be done individually. Evaluation is based on the correctness and
quality of the response. It is important to pace yourself on the exams. Content is far
more important than appearance, so don’t waste time on formatting, fonts and other
similar items.
Assignment:
Submission
Assignments should be posted on Blackboard (Bb) within the course area by the due
date. Assignments are submitted to the Digital Drop Box under Tools tab. Be sure to
use the SEND command to submit to the Drop Box. Do not use ADD command to post.
Late Assignments
THERE ARE NO EXTENSIONS FOR HOMEWORKS. Assignments are of varying
lengths. Plan well ahead so that you are not surprised by the time needed to complete
the assignment.
Evaluations:
Peer Evaluation
Students need to complete a peer evaluation for the Team Financial Statement Analysis
Project. The peer evaluation is an electronic document whose link is located on
Blackboard (Bb) in the course area under the Information button.
Course Evaluation
The completion of a course evaluation is a course requirement. Students need to
complete a course evaluation form which is an electronic document whose link is
located on Blackboard (Bb) in the course area under the Information button. Students
who do not submit a course evaluation by the due date will receive an incomplete grade
for the course.
Students in this class will be held to the standards established by Regents’ Rules and
Regulations (Part One, Chapter VI, Section 3, Subsection 3.2, Subdivision 3.22) which
states: Candidates are expected to be above reproach in scholastic activities.
Candidates who engage in scholastic dishonesty are subject to disciplinary penalties,
including the possibility of failure in the course and dismissal from the University.
“Scholastic dishonesty includes, but is not limited to cheating, plagiarism, collusion, the
submission for credit of any work or materials that are attributable in whole or in part to
another person, taking an examination for another person, any act designed to give
unfair advantage to a student or the attempt to commit such acts.” Professors randomly
use “Turnitin.com” to screen papers against other published works on the web to insure
against plagiarism.
Schedule of Assignments
Pre-retreat
Assignment: Complete Chapters 1 to 5 of “Essentials of Accounting”
(Turn it in during the retreat for evaluation)
Lecture: Valuation & Maple Leaf Garden (available after July 25)
Reebok and LA Gear (available after July 25)
Accounts Receivable
Readings: Chap. 6
Articles: Fearing Outcry Big Oil Companies Will Trim Profits (Bb)
Inside the WorldCom Numbers Factory (Bb)
Exam Date: Mid-term Exam, Saturday, July 30: 9:00 AM – 11:00 AM CST.
(based on material from Weeks 1 to 3)
________________________________________________________________
Week 4: Inventory; Property, Plant & Equipment
Lecture: Inventory
Property, Plant & Equipment & Frederick’s PPE
(available after August 1)
Readings: Chap. 7 and 8 (pages 335-357)
Practice: Ch. 7: 56, 67, 70; Ch. 8: 31, 39, 61, 70, 71
Articles: Inventory Chicanery Tempts More Firms, Fools More Auditors (Bb)
Paying FIFO Taxes: Your Favorite Charity (Bb)
Earnings Helper (Bb)
Practice: Ch. 8: 54
Articles: Real Assets, Unreal Reporting (Bb)
_______________________________________________________________
Lecture: Bonds
Leases (available after August 15)
Readings: Chap. 9 (pages 390-409 and 418-425)
Lecture: Stockholders’ Equity & Dow Chemical (available after August 22)
Intercorporate Investments
Global Accounting Standards
Exam Date: Final Exam, Saturday, August 27: 9:00 AM – 12:00 PM CST.
(Comprehensive)
________________________________________________________________
ASSIGNMENT SCHEDULE
(NO EXTENSIONS ON HOMEWORK; SOME AUDIO/SLIDES RELEASED WEEKLY)
Week Topic Readings/Practice Due
Retreat: May 13 Financial Accounting Individual Homework:
Basics Workbook; Ch 1-5
Workbook: Chapters 1-5 Due 5/13
Week 1: Financial Accounting Chap. 1, 2, 3 & 4
7/11 to 7/17 Basics Problems: Ch. 1: 36, 43;
Ch. 2: 46, 47; Ch 3: 38;
Ch 4: 39 Individual Homework:
Comprehensive Review Miniscribe
Readings: Horngren, Due 7/17 at midnight
Crackdown, Cleanup Time,
You have come a long way
Week 2: Statement of Cash Chap. 5 & 12
7/18 to 7/24 Flows, Financial Problems: Ch. 5: 57, 58, 59; Individual Homework:
Statement Analysis I, Ch. 12: 47, 48, 50-54 Maple Leaf Garden
Investor Reliance on Articles: Burning Up; Once Reebok & LA Gear
Financial Statements Hot; Return on Equity; Due 7/24 by NOON
Managing Working Capital
Readings: Horngren, Teleconference: 7/24 pm
Numbers Game
Week 3: Valuation, Financial Individual: MIDTERM
7/25 to 7/31 Statement Analysis II, Chap. 6 7/30 at 9 AM CST
Accounts Receivable Problems: Ch. 6: 55, 59, 66 Individual Homework:
Articles: Fearing Outcry; Frederick’s PPE
Inside Worldcom Due 7/31 at midnight
Week 4: Inventory; Property, Chap. 7 & 8 (Pg. 335-357) Individual Homework:
8/1 to 8/7 Plant and Equipment Problems: Ch. 7: 56, 67, 70; Alcatel, Whole Food,
Ch. 8: 31, 39, 61, 70, 71 Keysor, Chrysler,
Articles: Inventory Chicanery; Merck
Paying FIFO, Earnings Helper Due 8/7 at midnight
Week 5: Accounts Receivable, Individual Homework:
8/8 to 8/14 Inventory and Pg. 390-395; Chap. 8 (pg. AMR Corp
Intangible Assets 357-362) Due 8/14 at midnight
Problems: Ch. 8: 54 Team Project Part 1:
Articles: Real Assets Due 8/14 at midnight
Week 6: Bonds and Leases Chap. 9 (pg. 390-409; 418-
8/15 to 8/21 425) Individual Homework:
Problems: Ch. 9: 52, 53, 57 Dow Chemical
Articles: Chrysler Bonds; How Due 8/21 at midnight
Leases; Accounting Analysis
Week 7: Stockholders’ Equity, Chap. 10 (pg. 441-456); 11 Individual: FINAL
8/22 to 8/28 Intercorporate (489-498, 500-520) 8/27 at 9 AM CST
Investments and Problems: Ch. 10: 30, 32, 44, Team Project Part II
Global Accounting 61; Ch. 11: 31, 43, 45 Due: 8/31 midnight CST
Standards Articles: US GAAP; FASB
Impact; Share; Murky Waters