NYU Stern School of Business

Undergraduate College

ACCT-UB.0055.001 (C10.0055): Accounting & Valuation in EMT

Spring 2012

Instructor Details

Kim, Soohwan

skim@stern.nyu.edu

Th 5:00-6:00

Marketing Department guest office


Soohwan Kim is a co-portfolio manager/analyst at BNP Paribas Asset Management.  His prior employers include Deutsche Bank, AIG SunAmerica, Citibank, and UBS.  Soohwan received his MBA from New York University's Stern School of Business.  He graduated magna cum laude from Columbia University with a B.A. in economics.  He is also a CFA charterholder.

 

Course Meetings

R, 6:00pm to 9:00pm

KMC 5-75


Final Exam:

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

 

Course Description and Learning Goals

Description:

In this course, we will discuss financial economic, financial accounting, and valuation issues that pertain to the entertainment, media, and technology (EMT) industries.  The course approaches companies from an investor’s perspective.  We will discuss the underlying economics and strategy of the businesses before getting to the accounting and valuation issues. 

 

Course Pre-Requisites

Financial Accounting & Reporting or equivalent

 

Course Outline

March 29

Course overview

 

Path Dependence- Networks and Lock-in, Standards, Copyrights, and Patents

Reading - “The rise and fall of MySpace”, the Financial Times, December 4, 2009

 

April 5

Capitalizing, Immediate Expensing, and Writing off the Costs of Intangible Assets

 

Reading- Nintendo case

Mini assignment due (5 points) - Electronic Arts and THQ SEC filing excerpts

 

We will discuss the “disruptive technology” theory, examine the economics of the video game industry, and discuss how different accounting choices made by companies can make certain valuation metrics less than meaningful.

 

April 12

Capitalizing, Immediate Expensing, and Writing off the Costs of Intangible Assets

 

Reading- “Orion Pictures Corporation: Silence of the Accountants” case

Mini assignment due (5 points)

 

We will discuss film economics and accounting.

 

April 19

Revenue Recognition and Expense Matching

 

Reading– Christensen article

Mini assignment due (5 points) - Apple, Red Hat, and MicroStrategySEC filing excerpts

 

We will discuss vertical integration and revenue recognition issues associated with vertical integration.  We will also spend time on open source software (strengths/weaknesses and possible revenue models).  

 

April 26

Subscriber Bases, Market Penetration, and Churn

 

Assignment due (15 points) - Calculate the impact of churn on firm value (spreadsheet). 

 

May 3

in class Final exam

informal Q&A session

 

Required Course Materials

You will have to purchase two cases :

“Nintendo’s Disruptive Strategy”, University of Hong Kong case

“Skate to Where the Money Will Be”, Clayton Christensen, Harvard Business Review article

 

Assessment Components

Your grade will be based on final exam (50%), assignment (30%), and class participation (20%).

 

 

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.

 

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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