ACCTG 5610-001 / Reading and Interpreting Financial Statements
Course Syllabus / Fall 2017
Instructor
Paige Witt, CPA
Office: SFEBB 8220B
Phone: 720-352-2578
E-mail: (please use this email address rather than sending emails through Canvas)
Teaching Assistant
Tamaryn Braun, MAcc Student
Email:
Meeting Time and Place
Monday and Wednesday, 9:10 – 10:30 AM, SFEBB 3106
Office Hours
Monday/Wednesday 2-3PM and by appointment on Tues/Thurs 1-3PM
Course Materials
Textbook: Financial Reporting & Analysis by Revsine, Collins, Johnson, Mittelstaedt, and Soffer, 6th Edition, McGraw Hill Publishers, 2015. Purchasing the E-Book is an option as well.
Other course materials: Journal articles, overhead slides and other required reading materials are distributed electronically via Canvas throughout the semester.
Course Description and Objectives
This course focuses on reading, interpreting and analyzing financial statements, which is a critical step in making business decisions such as valuing a business or assessing its credit worthiness. For example, the process of valuing a business consists of: (1) industry and competitive strategy analysis, (2) financial reporting analysis, (3) ratio analysis, (4) forecasting, and (5) value estimation. ACCTG 5610/6610 focuses on the second step in this sequence – i.e., financial reporting analysis. Enhancing your ability to manipulate and understand the information contained in the financial reports and statements disclosed by firms will allow you to draw more informed inferences about a firm’s financial condition and future performance. This will enable you to make better economic decisions.
During the course, we will examine the effect of different accounting policy and estimate choices on reported income, assets, liabilities, stockholders’ equity, cash flows and other relevant line items reported in the financial statements. We will examine the impact of these choices on measures of financial performance including standard financial ratios. Much of our time will be focused on manipulating financial data contained in the footnotes to the financial statements. In addition, articles from the financial press will be discussed to expose you to major current concerns and controversies in financial reporting.
At the end of the course the student will be able to:
- Navigate a set of financial statements including the financial statement footnotes.
- Understand the impact of accounting policy and estimate choice on the information.
- Assess the quality of accounting information.
- Interpret financial information with an appropriate degree of skepticism.
- Interpret the implications of past financial information for future performance.
Course Prerequisites
Understanding of introductory financial accounting concepts.
Exams and Grading
Your grade will be a function of your performance on the following items:
Component / Date Due / PointsGroup Assignments / see schedule / 70
Individual Assignments, Professionalism & Participation / see schedule / 80
Concept Tests / see schedule / 150
300
All assignments are due at the beginning of class on the day indicated on the attached schedule. Each group member is expected and required to contribute to the preparation of the group’s responses to every group assignment (points will be deducted from your overall group score if the evaluation indicates that you did not actively participate in your group). Lack of active involvement in a group assignment will adversely affect your mastery of the relevant course material and performance on the term test.
Individual homework assignments must be completed individually. If you need help on the individual assignments, please come to my office hours. Individual assignments are due at the beginning of class on the day indicated on the attached schedule.
The concept tests will cover the material indicated on the class schedule (usually several topics are covered on each test). There is no cumulative exam in this course.
Use of any and all electronic devices (e.g. pagers, cell phones, smart phones, language translators, laptops, tablets, phablets, calculators, etc.) is forbidden during an exam unless otherwise specifically authorized by the instructor. A student who uses an unauthorized device may be subject to penalties for academic misconduct.
Your professionalism/participation score is assigned based on the instructor’s judgment and is a function of your professional conduct in class (e.g. arriving on time, being attentive and engaged, treating all members of the class with respect, being courteous etc.). Any potential instances of academic misconduct will be vigorously investigated and if confirmed will result in a failing grade in the course and possible expulsion from the David Eccles School of Business and the University of Utah.
Group assignments, individual assignments and concept tests are graded by a teaching assistant under the guidance of the instructor. Solutions will be discussed. It is your responsibility to review graded assignments and compare your responses to the suggested solutions. Should you have any questions or concerns about the grading of an assignment, document your concern, and return the assignment for reconsideration by the instructor. Assignments returned for reconsideration must be received by the instructor within 10 business days of the assignments having been returned to the class.
Important Dates to Remember
Classes begin / Monday, August 21Last day to add without a permission code / Friday, August 25
Last day to drop (delete) classes / Friday, September 1
Last day to withdraw from classes / Friday, October 20
Last day to reverse CR/NC option / Friday, December 1
Classes end / Thursday, December 7
Course Design
The course material is presented via a combination of lectures, readings, discussion, problems and cases. Class time is used to summarize main issues and highlight key points. Merely attending lectures will not provide you with an acceptable level of proficiency. The assigned readings, individual homework assignments and group assignments are an integral part of the course. Since the tests are similar in spirit to the individual and group assignments you can monitor your mastery of the material based on your understanding of these assignments. The material covered in this course presents a substantial leap from your introductory course and the pace of the course is fast. It is essential you be prepared to make a substantial out-of-class investment of time to complete the assigned readings and exercises. Class attendance is mandatory. On time arrival and record of class attendance will count toward your professionalism grade.
Americans with Disabilities Act (ADA) Accommodation Available
The University of Utah seeks to provide equal access to its programs, services and activities for people with disabilities. If you will need accommodations in the class, reasonable prior notice needs to be given to the Center for Disability Services, 162 Olpin Union Building, 801-581-5020. CDS will work with you and the instructor to make arrangements for accommodations.
All written information in this course can be made available in alternative format with prior notification to the Center for Disability Services.
Statement of Professional and Ethical Conduct
Because of the importance of professional and ethical behavior in business, and its emphasis in our program, professional or academic misconduct is not tolerated in the David Eccles School of Business. Students are expected to adhere to the standards of behavior outlined in the University of Utah Code of Student Rights and Responsibilities (Policy 6-400). Students engaging in behavioral misconduct could be subject to suspension or dismissal from the University. Students involved in any form of academic misconduct, including but not limited to cheating on tests, plagiarism and collusion may, at the instructor's discretion, receive a failing grade in the course, examination, or academic assignment. In addition to or instead of this sanction, the instructor may refer the case to the Student Behavior Committee for hearing. If the instructor chooses not to do so, the Associate Dean for Academic Affairs, after appropriate investigation, may do so along with a recommendation to dismiss the student from the Business School. If, after hearing the evidence, the Committee determines that the student in question is guilty of the misconduct charged, the Committee may impose sanctions in addition to those taken by the professor. If the academic dishonesty is not proven, the instructor must rescind any sanctions imposed and will be required to evaluate the student's performance with the assumption that there has been no misconduct. The School will treat the student likewise. If a student suspects another student of academic misconduct, he/she should refer the incident to the instructor, the appropriate department, the Associate Dean for Academic Affairs, or the Student Behavior Committee, administered by the Associate Dean of Students, 270 Union.
Statement of Grading Policy
Grading provides feedback to students on how well they have mastered the content and learning objectives of a particular course to allow students to capitalize on strengths and work to improve weaknesses through future courses of action. The DESB grading policy is intended to ensure grades offer reliable feedback regarding student performance, and to ensure fairness and consistency across the School. The faculty member is responsible for arriving at a grade for each student that the faculty member believes appropriately reflects the student's mastery of the course material and learning objectives. The faculty member will then consider the class' overall performance in terms of School guidelines. These guidelines are provided to ensure that grading, on average for the School as a whole, is sustained at a reasonable level over time. The guidelines are as follows:
COURSE LEVEL GUIDELINE
1000-2000 2.4-2.8
3000-3990 2.6-3.0
4000-5990 2.8-3.2
6000-6990 3.1-3.5
If students have a concern about their grade in a particular course, they should consider whether it reflects an accurate evaluation of their mastery of the course material and learning objectives, in terms of the above descriptors. If they need clarification of the instructor's evaluation, they should meet with the instructor to obtain additional information and feedback. If after doing so, they believe their grade was arrived at in an inappropriate manner, they may pursue an appeal through the School's appeals process as described in Section 5.15 of the University of Utah Code of Student Rights and Responsibilities (Policy 6-400).
This syllabus serves as an outline and guide for the course. Please note that the instructor may modify it at any time with reasonable notice to students. The instructor may also modify the class schedule at any time to accommodate the needs of the class. Students are responsible for acquainting themselves with and satisfying the entire range of academic objectives and requirements as defined by the instructor. Should you have any questions or concerns about the syllabus, it is your responsibility to contact the instructor for clarification.
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