XAVIER UNIVERSITY DEPARTMENT OF ACCOUNTANCY ACCT 600-02: Financial Reporting and Analysis Spring 2010 (W 6:00-8:30) Instructor: Andrea B. Weickgenannt, MBA,CPA Phone: 745-4243 e-mail: email@example.com Mail Location: 5161 Office hours: W 5:00 – 6:00pm; also by appointment Office: 6 Hailstones Hall Our WCB Mission: We educate students of business, enabling them to improve organizations and society, consistent with the Jesuit tradition. Our Course Objectives: The overall objective of this course is to develop an appreciation and understanding of financial accounting and its use in economic decision-making. This course builds upon the principles introduced in the prerequisite financial accounting course by covering more fully the financial accounting cycle, financial statement reporting and disclosure, and the analysis and interpretation of financial statements. Specific learning objectives are also provided at the introduction to each module in the textbook. Students successfully completing this course should be able to read and analyze financial accounting reports for purposes of economic decision-making, and to explain how business transactions affect financial reporting. Catalog Description: The study of financial accounting, including financial statement presentation, disclosure, and analysis. Course Prerequisite: ACCT500 Course Materials: Texts: (1) Financial Accounting for MBAs, 4e by Easton, Wild, Halsey, and McAnally (Cambridge) (2) Cases in Financial Resporting, 6e by Engel, Hirst, and McAnally (Cambridge) Students must have an e-mail address, internet access, and Blackboard access for this course. Copies of the course syllabus, schedule, homework solutions, and other resources are posted to the XU Blackboard site for this course. Additional course readings and other materials may also be included there occasionally during the semester. Students are held responsible for checking the Blackboard site regularly for updates and announcements. Course Policies: Grade Components: The following weights are applied in determining grades for this course: Points Points Possible Percent Earned Group case assignments 120 15 % ______ Presentation and participation 80 10 % ______ 3 out of 4 quizzes at 100 points ea. 300 37.5% ______ Midterm and final exams 300 37.5% ______ Total 800 100 % Course Policies (cont.): Final Grade Determination: Course letter grades are assigned according to the following scale: Grade Weight Points Description A/A- 90-100% 720-800 points Exceptionally high achievement as a result of aptitude, effort, and intellectual initiative B+/B/B- 80-90% 640-719 points High achievement as a result of ability and effort C+/C/C- 70-80% 560-639 points Satisfactory achievement D+/D/D- 60-70% 480-559 points Minimum passing grade F Below 60% Below 480 points Course failure All grading and the assessment of final grades will be done by the instructor. Grades for individual assignments are available online throughout the semester via Blackboard. Class Format and Preparation: Classes include a combination of lecture, case presentations and analyses, discussion, and practice problems that will be worked by the instructor or in small groups. It is important to read the assigned material before it is covered in class. For all case presentations, all students should come prepared with drafted responses for each of the case concept and process questions. This provides a framework for enhanced understanding and enables participation. Questions and discussions are welcome at any time during class. After class, students desiring to master the material should study the module(s) and complete the discussion questions at the end of the textbook module. This material may be discussed and/or reviewed in class, but will not always be covered in detail. It is also important to complete the mini exercises and exercises at the end of each module, as these will typically provide the basis for much of the in-class discussion. Attendance: Class attendance and proper advance preparation are important to enhance both your class participation and mastery of the concepts required in this course. Please make every effort to be on time for class and stay for the entire class. Attendance will be taken during each class meeting both before and after the break. If you must miss a class meeting, please arrange to obtain class notes from another member of the class. If work-related travel or personal matters will require you to miss more than one class period, you should consider taking this class at an alternative time. Teaching and learning require interaction between students and the professor; electronic devices (mobile phones, iPods, etc.) interfere in a negative way with this interaction. Out of respect for others, please turn off electronic devices during class. Laptop computers may be used in class for keeping notes and completing in-class exercises, but not for web browsing, email, instant messaging, or other applications that are distractions from class participation. Please notify the instructor if individual needs require an electronic device or other special accommodations. Academic Honesty: Academic life requires a trust based upon integrity of the written and spoken word. Violations of certain standards of ethical behavior will not be tolerated at Xavier University. This includes all forms of cheating including plagiarism and unauthorized assistance on assignments and exams. Instances of academic misconduct will be handled in accordance with the university’s policy. Talk to the instructor when in doubt about a situation. Assignments and Assessment: Homework: Homework will generally not be collected for course credit; however, a certain level of “homework” is expected in order for students to be prepared for class. Some cases and end- of module exercises and problems will be assigned to supplement classroom discussions. These are important to analyze in advance to enhance your comprehension of the subject matter, as well as your potential for participation. Group Assignments: Teams of 3-4 students will work together to complete various case study assignments. In addition, each group will be required to prepare a presentation, leading the class through one of the assigned case studies. If a group project is submitted late, a grade adjustment will apply equivalent to one letter grade for each calendar day that it is late. There will be no make-ups for students who miss their group presentation or other in-class activities. Group presentations take place during class time on the dates designated on the course schedule. Each group member must participate in both the presentation and preparation of the written case analysis. Each group member will receive the same score on the written portion of the group case analysis (up to 60 points) unless otherwise determined through discussion with the instructor. However, individual group members’ scores (up to 40 points) may vary on the presentation portion of the case assignment. Grades will be based on accuracy of the solution, written and oral communication, and analytical skills. Specific grading criteria are provided in Blackboard. Quizzes: Four quizzes will be given on the dates listed in the course schedule. Approximately 45-60 minutes will be allotted for these quizzes, which will include a combination of multiple choice questions, computational problems, and short essays. Students should bring to class their own no. 2 pencils and basic calculators for use on the quizzes. Mobile phones, Blackberries, programmable calculators, or other handheld wireless devices may not be used when taking quizzes. The lowest quiz score will be dropped when computing the overall grade for the semester. If a student misses a quiz, that will count as the dropped score unless prior arrangements are made for taking the quiz at an alternative time (but no later than the following week’s class time). Students will be excused from a quiz in the case of an emergency or urgent situation. In order to be excused, the student should notify the instructor in advance of the exam, either using the phone or e-mail address noted. Verifiable documentation may also be required. Examinations: A midterm and final exam will be due on the dates listed in the course schedule. These exams will be in the form of a typewritten report on the financial statement analysis of a public company. Each student in the class will select a different company for analysis throughout the semester. Specific exam questions will be provided at least two weeks in advance of the due date. The entire Form 10-K will be required to be submitted in a 3-ring binder along with your report containing the exam questions and answers. Answers should be appropriately referenced and highlighted between the report and the 10-K, respectively. Students are expected to submit the exams at the scheduled times. A grade adjustment for late submission will apply equivalent to one letter grade for each calendar day past the due date. Participation: 5% of the course grade will be based on the instructor’s assessment of the student’s consistent and active class participation. At any point during the semester, you may be asked to submit your notes on the concept and process questions for that week’s assigned cases. Course Schedule: Pre-Class In-Class Class Reading Case Analysis no. Date Assignment or Assessment Topic(s) 1 01/13 Module 1, Course Orientation and Appendix B Financial Statement Overview 2 01/20 Module 2 & 3 General Mills(A), The Processes of Financial *Weis Markets(A) due Statement Preparation 3 01/27 Quiz I <begin module 4 after quiz> Financial Statement Analysis 4 02/03 Module 4 Cintas, Financial Statement Analysis (cont.) 5 02/10 Module 5 1. General Mills(B) Operating Income 6 02/17 2. Molson Coors, Operating Income (cont.) Lucent, Google 7 02/24 Quiz II <begin module 6 after quiz> Operating Assets 03/03 Spring break – no class 8 03/10 Module 6 3. Alcatel, Operating Assets (cont.) 4. Palfinger 9 03/17 Midterm Exam due, Operating Assets (cont.), 5. Caterpillar Investments 10 03/24 Module 7 6. State Street, Investments (cont.) Abbott Labs 11 03/31 Quiz III <begin module 8 after quiz> Non-Owner Financing 12 04/07 Module 8 7. Corning, Non-owner Financing (cont.), Rite Aid Owner Financing 13 04/14 Module 9 8. Merck, Owner Financing (cont.), Xilinx Off-Balance-Sheet Financing 14 04/21 Module 10 9. Continental Off-Balance-Sheet Financing (cont.) 15 04/28 Quiz IV <begin module 11 after quiz> Forecasting 16 05/05 Module 11 Final Exam due, Forecasting (cont.) *TBA case in-class *will be collected for course credit Important Notice regarding Syllabus Changes: Dates and assignments documented in this syllabus are subject to change at the discretion of the instructor. Every effort will be made to provide any changes to the class in writing, usually via Blackboard. Verbal notification at a class meeting, however, will constitute sufficient notice.