NYU Stern School of Business

Undergraduate College

C10.0021.001: FINANCIAL REPORTING & ANALYSIS

Fall 2010

Instructor Details

Zarowin, Paul

pzarowin@stern.nyu.edu

Tu, Th 12:00 - 2:00

KMEC 10-74


There is no formal teaching fellow. Please see Prof. Zarowin during office hours, if you have any questions.

 

Course Meetings

TR, 3:30pm to 4:45pm

KMC 4-80


Final Exam: data and time TBA

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

 

Course Description and Learning Goals

The course will cover an in depth examination of financial report disclosures, with an emphasis on how firms use financial reporting to achieve such ends as managing earnings or keeping debt off of the balance sheet. By the end of the course, students will have an appreciation for what information is missing from the primary financial statements, the knowledge to understand the content of important footnotes, and the tools to conduct financial analyses using the information contained therein. The course will use a combination of textbook problems, Harvard cases, and most importantly, actual financial report disclosures. The course is geared for students going into public accounting, investment banking, equity research, or consulting.

 

Course Pre-Requisites

For Graduate Students: Core course in Financial Accounting (Financial Statement Analysis is helpful, but not required)

 

For Undergraduate Students: Financial Statement Analysis

 

Course Outline

                                  Tuesday                                                           Thursday           

 

Week of (#’s are chapter #’s):

Sept. 7 Income Statement, Earnings Management,            no class – Rosh Hashanah

            Accounting Changes 1, 2(65-85), 3(143-157), 7

 

Sept. 14   Receivables 8(except 437-443)                          Receivables, cont’d                                                

 

 

Sept. 21   Inventories 9(+ App. C)                                     Inventories, cont’d 

 

 

Sept. 28   Inventories, cont’d                                             Liabilities 11(except 629-649)

                                                                                                            15 (908-913)

 

 

Oct. 5      Off-B/S Liabilities                                             Off-B/S Liabilities, cont’d

            11(629-631), 16(945-950)

 

 

Oct. 12    Off-B/S Liabilities, cont’d                                 Leases 12                                  

 

 

Oct. 19      Leases, cont’d                                                       Leases, cont’d                                                                 

 

 

Oct. 26       Midterm exam, thru Off-B/S Liabilities               Taxes 13                                                

 

 

Nov. 2        Taxes, cont’d                                                         Taxes, cont’d                          

 

 

Nov. 9       Pensions 14                                                           Pensions, cont’d

 

 

Nov. 16     Pensions, cont’d                                                    no class - Thanksgiving

 

 

Nov. 23     Pensions, cont’d                                                    Pensions, cont’d

 

 

Nov. 30     Pensions, cont’d                                                    EPS 15 (873-894)

 

 

Dec. 7        EPS, cont’d                                        Executive Compensation 15(895-908)

 

 

Dec. 14      Review                                                                  Review

 

 

Final Exam: date and time TBA

 

Required Course Materials

course materials

1. The course text is Financial Reporting and Analysis, by Lawrence Revsine, Daniel W. Collins, and Bruce Johnson (Prentice Hall), 4th Edition. I refer to the text as RCJ. The text is recommended; it is not required.

 

All other course materials are contained on the course’s Blackboard site.

 

2. Powerpoint slides, examples of financial statements, and articles from the popular press can be found on the course’s Blackboard site under Course Documents, organized by topic.

 

3. Solutions to all RCJ problems can also be found on the course’s Blackboard site under Assignments.

 

4. Problems from RCJ that will be assigned for homework can be found on the course’s Blackboard site under Assignments.

 

 

 

Assessment Components

Grading and assignments

Grading is as follows: Midterm 2/7ths, Mini-Cases 2/7ths, Final 3/7ths. Class participation will be then be taken into consideration to adjust grades where appropriate. The midterm and final are both in-class, open book and open note.

The cases are take-home mini-cases or quizzes (approx. one page) on each topic that we cover (i.e., dealing with a specific disclosure). They will be handed out on Thursday, and due the following Tuesday, and must be done individually.

 

 

 

 

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

Grading is as follows: Midterm 2/7ths, Mini-Cases 2/7ths, Final 3/7ths. Class participation will be then be taken into consideration to adjust grades where appropriate. There is no set curve for the course.

 

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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