ACCOUNTG 342 - Corporate Financial Reporting

Course Overview

The objectives of this course are to 1) increase your familiarity with advanced financial reporting topics by considering the economics of selected transactions, 2) develop your understanding regarding whether and how treatment under generally accepted accounting principles captures the economics of those transactions and events, and 3) enhance your ability to rigorously evaluate corporate financial reports.  The course builds on the concepts and methods introduced in ACCOUNTG 340, taking the perspective of both the user and the preparer of financial statement information. It examines in more detail the FASB/GAAP accounting model and the financial reporting environment, including management reporting incentives. The course focuses on contemporary reporting issues critical to understanding corporate financial statements, emphasizing the interpretation of financial statement disclosures and how this information is used by analysts to evaluate the financial health of a firm. It is highly recommended for anyone with an interest in consulting, credit and equity analysis, investment and commercial banking, and any other career in which financial statement information is part of the decision making process.

Course Requirements

Readings, exercises, and problems and cases are assigned for each class. Lectures, handouts, and course pack materials summarize background information and technical issues. Assigned problems and cases are the major focus of class discussion. Grades will be determined based on two quizzes, three assignments, class participation and a comprehensive final examination.

Representative Topics

Changes in Net Assets
Revenue Recognition
Reserve Accounting
Inventories
Equity investments without controlling influences
Long Lived Tangible and Intangible Assets
Pension and Post Retirement Obligations
Taxes
Leases (including synthetic leases)
Stock Options
Derivatives
Earnings Per Share

Representative Readings

The principal textbook is Financial Reporting and Analysis by Revsine, Collins, Johnson and Mittelstaedt (5th Edition), McGraw-Hill Irwin .