NYU Stern School of Business

Undergraduate College

ACCT-UB.0003.001 (C10.0003): FIN STATEMENT ANALYSIS

Summer 2012

Instructor Details

Gengrinovich, Michael

mgengrin@stern.nyu.edu

by appointment

10-184


You should feel free to stop by with questions, or if you are having difficulty with the material.  Don't wait till the mid-term or the final to realize that you have a problem, by then it will be too late.

It is a very intensive course, and I am happy to spend time with you outside class hours to make sure that you learn.

 

Course Meetings

TR, 6:00pm to 9:00pm

Tisch T-UC25


Mid-term:  June 7th

Final project due - June 26th

Final Exam:  June 28th

Schedule exceptions
    Class will not meet on:
    Class will meet on:

 

Course Description and Learning Goals

This course is designed to prepare you to interpret and analyze financial statements effectively.   This course explores in greater depth financial reporting topics introduced in the core course in financial accounting and also examines additional topics not covered in that course.  The viewpoint is that of the user of financial statements.   However, we develop sufficient understanding of the concepts and recording procedures, to enable you to interpret various disclosures in an informed manner.  We discuss each financial reporting issue in terms of its effect on assessments of a firm’s profitability and risk.  We then apply the analytical tools and concepts in competitor analysis, and credit decisions.    This course is designed primarily for students who expect to be intensive users of financial statements as part of their professional responsibilities, and expect to work a lot during the course.  You should expect to spend 18-20 hours per week on the class.

 

Course Pre-Requisites

Thorough knowledge of introductory accounting, and some familiarity with intermediate accounting.

 

Course Outline

May 22nd

Read Chapters 1 & 2

Do problems:

1-1, 1-3, 1-11, 1-23

2-2, 2-6, 2-11, 2-14, 2-17, 2-21, 2-23.

Yes, for the avoidance of doubt, you are expected to read these two chapters before coming to class and do the homework.

 

May 24th

Read Chapter 3

Do problems:

3-1, 3-3, 3-4, 3-9, 3-12, 3-15

 

May 29th

 

Read Chapter 4

Do problems:

4-1, 4-4, 4-11, 4-19, 4-22, 4-27

Also read the following papers:

1)      Detecting earnings management by Dechow & Sloan, Accounting Review 1995

2)      Do stock prices fully reflect information in accruals and cash flows about future earnings?  Sloan in Accounting Review 1996

3)      Causes and consequences of earnings manipulation: an analysis of firms subject to enforcement actions by the SEC.  Authors: PM Dechow and RG Sloan, published in 1996

 

May 31th

Read Chapter 6

Do problems: 6-1, 6-4, 6-7, 6-10, 6-12, 6-14, 6-17,6-21

 

June 5th

Read chapter 7

Do problems: 7-1, 7-4, 7-8, 7-10

 

June 7th

MIDTERM

 

June 12th

Read chapter 8

Do problems: 8-2, 8-5, 8-7, 8-10.

 

June 14th

Read Chapter 9

Do problems: 9-3, 9-6, 9-10, 9-11, 9-14.

 

June 19th

Read Chapter 11

Do problems: 11-1, 11-5, 11-7, 11-9, 11-14, 11-19.

 

June 21th

Read Chapter 12

Do problems: 12-1, 12-3, 12-4, 12-9, 12-15, 12-21, 12-22.

 

June 26th

Class project is due (will be discussed first of day of class, but the idea is you find an accounting fraud and write-up a case on it.)

June 28th

Final exam

 

Required Course Materials

The readings, problems and cases for the course will come from either the textbook or will be distributed by me in class. 

The textbook is “The analysis and use of financial statements” by White, Sondhi and Fried, third edition.

 

Assessment Components

Grading

In general, 25-35% of the students will get As (for excellent work), 50-70% will get Bs (for good or very good work) and 5-15% of the students will get C or lower (for adequate or unsatisfactory work.)  Obviously, if all students work  hard and do a good job grades will be higher, and the opposite applies as well.

The final grade will be based on homework, mid-term exam, final exam and a class project.  Homework will probably be ten percent of your grade, mid-term, final exam and a class project will probably be 30% each.

 

Group Projects

Guidelines for Group Projects

Business activities involve group effort. Consequently, learning how to work effectively in a group is a critical part of your business education.

Every member is expected to carry an equal share of the group’s workload. As such, it is in your interest to be involved in all aspects of the project. Even if you divide the work rather than work on each piece together, you are still responsible for each part. The group project will be graded as a whole:   its different components will not be graded separately. Your exams may contain questions that are based on aspects of your group projects.

It is recommended that each group establish ground rules early in the process to facilitate your joint work including a problem-solving process for handling conflicts. In the infrequent case where you believe that a group member is not carrying out his or her fair share of work, you are urged not to permit problems to develop to a point where they become serious. If you cannot resolve conflicts internally after your best efforts, they should be brought to my attention and I will work with you to find a resolution.

You will be asked to complete a peer evaluation form to evaluate the contribution of each of your group members (including your own contribution) at the conclusion of each project. If there is consensus that a group member did not contribute a fair share of work to the project, I will consider this feedback during grading.

 

Grading

At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter.  In general, students in undergraduate core courses can expect a grading distribution where: 

Note that while the School uses these ranges  as a guide, the actual distribution for this course and your own grade will depend upon how well  you actually perform in this course.

 

Re-Grading

The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged from pursuing arbitrary challenges to it.

If you believe an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have the grade re-evaluated may be submitted. You must submit such requests in writing to me within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading has been made.

 

Professional Responsibilities For This Course

Attendance

 

Participation

In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.
You can excel in this area if you come to class on time and contribute to the course by:

 

Assignments

 

Classroom Norms

 

Stern Policies

General Behavior
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior.  Students who fail to do so may be asked to leave the classroom. 

 

Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission. 

 

Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.

 

Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.

 

Recording of Classes

Your class may be recorded for educational purposes

 

Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.

 

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