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MBA FSA Syllabus

This document provides the course description and syllabus for ACCT-GB.2303 Financial Statement Analysis taught in spring 2015. The course is divided into two parts: Part I focuses on understanding a company's value creation activities and reformulating financial statements for analysis. Part II focuses on adjusting specific line items like revenue, expenses, assets and liabilities to identify accounting issues. Students will be assessed based on class exercises, a midterm exam, and a group presentation. The syllabus outlines the topics to be covered in each class session over the semester.

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Jian Huan
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Download as PDF, TXT or read online on Scribd
185 views

MBA FSA Syllabus

This document provides the course description and syllabus for ACCT-GB.2303 Financial Statement Analysis taught in spring 2015. The course is divided into two parts: Part I focuses on understanding a company's value creation activities and reformulating financial statements for analysis. Part II focuses on adjusting specific line items like revenue, expenses, assets and liabilities to identify accounting issues. Students will be assessed based on class exercises, a midterm exam, and a group presentation. The syllabus outlines the topics to be covered in each class session over the semester.

Uploaded by

Jian Huan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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ACCTGB.

2303FinancialStatementAnalysis
Spring2015
ProfessorJulianYeo

Financial Statement Analysis


Course Descriptions and Syllabus
Your instructor
Professor:
Email:
Consultation hours:

Julian Yeo
[email protected]
By appointments

Your Teaching Assistant


TBA
Course Descriptions
Overview
Financial Statement Analysis builds upon Core Introductory Accounting and aims to equip
you with the skills to read, analyze and interpret financial statement data to make informed
business decisions regarding investment or resource allocation. Such skills are required of
executives, bankers, analysts, investment managers, and other users of financial information.
We typically turn to financial information to understand the operational and financial
workings of a company.
However, uncovering and translating this information into
actionable insights is not always straightforward or easy. To help you acquire such
knowledge and skills, the course is organized in two parts:
Part I: Framework uncovering a companys value-creation activities
We need to first understand the business environment and company-reported
accounting information. We focus on accounting choices that will help/hiner our
understanding of the business. In addition to reviewing the line items we learned
from Core Introductory Accounting, an overview of other line items to be covered in
Part II will also be provided.
In order to truly assess managements value-creation activities, we discuss the needs
to reformulate financial statements. We will implement reformulation of financial
statements suitable for profitability analysis. We then focus on the analysis and
interpretation of our profitability analysis (along with other common ratios) for
companies from different industries.
Part II: Adjusting and assessing specific line items
In part II, we will apply tools for adjusting and assessing specific line items to identify
primary red flags for accounting quality issues and potential abuses. More
specifically, what adjustments would an equity analyst make.
1

The line items are organized as follows:


i.
ii.
iii.
iv.
v.

Revenue and Accounts Receivables


Operating Capacity
Fixed Claims
Estimated Claims
Equity Claims

In addition, we will translate our knowledge of the business environment and companys
current status to form predictions about future financial performance and conditions. This
will prepare you for Advanced Financial Statement Analysis in which the forecasted
information is applied to various valuation models.
The course has a very practical emphasis. We will apply the tools and concepts via a series
of class exercises, a mid-term exam (3 hours), and a final group presentation.
Mandatory Reading Materials
Class notes will be made available electronically on NYU Classes.
Recommended Text
Financial Statement Analysis and Valuation, 4th edition, by Peter Easton, Marry Lea
McAnally, Gregory Sommers and Xiao-Jun Zhang, published by Cambridge Business
Publishers.
Other Course Materials
You may access all other course materials including class exercises, solutions to class
exercises, requirements for group presentation on NYU Classes. No hard copies of handouts
will be distributed in class.
Assessments
Your final grade is calculated based on:
Class Exercises (only ones that you have been asked to turn in)
Mid-term Exam (3 hours)
Group Presentation

20%
40%
40%

Tentative Class Schedule

Session/
week

Topics

Mandatory
Readings Class Notes

Background
Readings from
Recommended
Text

Part I - Framework to uncover a companys value-creation activities

Introduction Earnings Quality and Earnings


Management
- Business Activities and Articulation of
Financial Statements
- Earnings vs Cash and concept of
CN1
accrual accounting
- Concept of cookie jar reserve
- Overview of Earnings Quality and
Earnings Management
- How accounting choices help/hinder our
understanding of the business
Review of Financial Statements
- Review of line items from Core
Introductory accounting and their
earnings quality issues and common
abuses
- Overview of other line items to be
covered in Part II

CN2

Reformulation of Financial Statements


- Why the need to reformulate statement?
- Implementation issues when
CN3
reformulating statements
- Profitability Analysis
- Other ratio analysis (growth prospects
and risk)
Profitability Analysis and Interpretation (cont.)
- Profitability analysis for different
industries

CN3 (cont.)

Modules 1 & 2

Module 2

Module 3

Modules 3 & 4

Session/
Topics
week
Part II - Adjusting and assessing specific line items
Revenue and Accounts Receivables
- Revenue Recognition
5
- Percentage of Completion
- Accounts Receivables Factoring

10

11

12*

Operating Capacity
- Inventory
- Property, Plant and Equipment
- Intangible Assets
- Other Assets
Mid-Term Exam
Fixed Claims
- Investments in Debt Securities
- Debt
- Leases (lessees perspective)
- Derivatives
Estimated Claims
- Pension and Other Postretirement
Benefits
- Income Taxes
- Contingencies
- Accrued Liabilities (related to
Restructuring)
Equity Claims
- Investment in Equity Securities,
Business Combinations, and
consolidation
- Shareholders equity, share-based
payments and EPS
Forecasting
- Constructing Pro-Forma Statements
- Analysis of Growth
- Requirements for Group Presentations

Mandatory
Readings Class Notes

Background
Readings from
Recommended
Text

CN4
Module 5

CN5
Modules 5 & 6

CN6

Modules 7 & 10

CN7

Modules 5 & 7

CN8

Modules 8 & 9

CN9

Module 11

Group Presentations
* Day-time MBA, this would be take place over weeks 12 & 13.

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