Scoring Model 1_International Graduate School of Accounting Policy (IGSAP

2015 FALL Semester

Class Time: October 3, 2015-January 23, 2016, 10:30-12:00, Saturdays

Classroom: Kasumigaseki Building 33F
3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo-to, Japan 100-6028
Instructor: Masumi Nakashima, M.B.A., Ph.D.
Adjunct Instructor at Tohoku University IGSAP
Chair and Professor of Accountancy at Chiba University of Commerce
Email: masumi.nakashima.e8@tohoku.ac.jp
Office hours: By appointment

1. Course Objectives
This course provides a comprehensive framework for business analysis and valuation
by using financial statement information. Students can learn not only the concepts and
principles for evaluating a firms financial performance and predicting its future
economic condition but also tools for the financial statements analysis. Topics are
covered: Strategy Analysis, Accounting Analysis, Financial Analysis, and Prospective
Analysis. The goal is to understand the basic principles of fundamental analysis and to
obtain skills and techniques to analyze the financial statements and determine the
fundamental value.

2. Course materials
#1 Business Analysis Valuation: Using Financial Statements, Krishna G. Palepu and Paul
M. Healy 5th edition, 2013. South-Western College Publishing (ISBN-10: 1111972303 |
ISBN-13: 978-1111972301).
#2 Earnings Management and Earnings Quality: Evidence from Japan, Masumi Nakashima,
2015, Hakuto Shobo Publishing (ISBN: 9784561362104)
The above textbooks are to be stored at the classroom at Hirai.
http://www.hakutou.co.jp/book/b194409.html
Supplemental materials
#3 Jones, J. 1991. Earnings management during import relief investigations, Journal of
Accounting Research, (Autumn). 193-228.
#4 Roychowdhury, S. 2006. Earnings management through real activities manipulation.
Journal of Accounting and Economics, 42:335-370.

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3. Grading
(1) Contribution to class 25%,
(2) Analysis Paper 50%, and
(3) Presentation 25%.

4. Schedule
Class is to be held on Sundays, 10:30 - 12:00 from October 4, 2015 through January 24,
2016. This course has 15 classes in total. No class because of the IGSAP Orientation on
October 4 and an international conference on November 1.
The following is the tentative schedule.
# Date Topic Contents Reference
1 10.3 IGSAP Orientation Skip but counted 1
2 10.10 Orientation Students should
understand the course
9:30 objective, course
class materials, schedule,
starts and grading of this
course.
3 10.17 Framework for business Students learn a Read Chapter 1
analysis and valuation comprehensive in #1 Palepu and
framework for business Healy
analysis by using
financial statement
information.
4 10.24 Strategic analysis Students understand Read Chapter 2
how to evaluate the in #1 Palepu and
economic condition of a Healy
firm and to identify the
firms profit drivers and
key risks. If students
obtain the skills, he or
she can assess the
sustainability of the
firms operations and to
forecasts its future
performance.

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5 10.31 Accounting analysis: Students learn how to Chapter 3 #1
Earnings management analyze the degree of Palepu and
Numbers Game distortion in a firms Healy
accounting numbers.
Students need to Read #3 Jones
understand two kinds of (1991) and #4
earnings management: Roychowdhury,
accruals management (2006).
by employing accruals
and real management
by using cash flows.
6 11.7 CUC International Professor Matthias
Conference at CUC Kipping, York
13:00-14:30 University
International Careers
in Accounting, Finance
and Consulting
7 11.14 Accounting analysis: Students learn how to Chapter 4 in #1
analyze the degree of Palepu and
distortion in a firms Healy
accounting numbers.
Students need to Read #3 Jones
understand two kinds of (1991) and #4
earnings management: Roychowdhury,
accruals management (2006).
by employing accruals
and real management
by using cash flows.
8 11.21 Earnings quality 1 Students learn how to Read #2
assess earnings quality Earnings
such as accruals Management
quality, discretional and Earnings
accruals, and accuracy Quality
for future cash flows. (Nakashima
2015)

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9 11.28 Earnings quality 2 Students learn how to Read #2
assess earnings quality Earnings
such as accruals Management
quality, discretional and Earnings
accruals, and accuracy Quality
for future cash flows. (Nakashima
2015)
10 12.5 Earnings quality 3 Students learn how to Read #2
assess earnings quality Earnings
such as accruals Management
quality, discretional and Earnings
accruals, and accuracy Quality
for future cash flows. (Nakashima
2015)
11 12.12 Financial analysis: ratio Students understand Read Chapter 5
analysis financial analysis such in #1 Palepu and
9:30 as ratio analysis. Ratio Healy
class analysis involve
starts. assessing how the items
in a firms financial
statements are related
to one another. Also, the
ratio analysis focus on
examining a firms
income statement item
such as net profit
margin and its balance
sheet item such as asset
turnover and financial
leverage.

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12 12.19 Financial analysis: cash Cash flow analysis Read Chapter 5
flows analysis. involve evaluating the in #1 Palepu and
firms financial Healy
flexibility and liquidity,
and how the firm
manages the cash flows
from operating,
investing, and financing
respectively. Cash flow
analysis also provides
an indication of
the quality of the
information in the
firms income statement
and balance sheet.
13 1.9 Prospective analysis: We focus on forecasting Read Chapter 6
Forecasting future performance. in #1 Palepu and
Students learn a Healy
comprehensive
forecasting approach.
Students need to
understand the
approach to focus on
projecting condensed
financial statements.
14 1.16 Paper presentation 1 Paper submission due Presentation by
prior to presentations PPT is
regarding their selected encouraged.
firm analysis. Students
present their analysis
paper.
15 1.23 Paper presentation 2 Paper submission due Presentation by
prior to presentations PPT is
regarding their selected encouraged.
firm analysis. Students
present their paper.

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