Financial Statement Analysis

513

Course Description:
Accounting addresses the measurement, aggregation, and evaluation of economic information useful for decision making. In Financial Statement Analysis, we will focus on a subset of this construct, which is labeled general purpose external financial accounting and reporting. General purpose statements are those provided to individuals who do not have the authority to compel management to provide information they desire. These individuals differ from taxing authorities or others who have not only specialized needs, but also the authority to compel enterprises to furnish the information they desire. General purpose statements are those viewed as suitable for investors, creditors, and other resource providers. External statements are those available to individuals outside of the firm. Managers, directors, and others may have access to additional internal (and often proprietary) information. This course provides a broad framework for using financial statements and other SEC-required regulatory disclosures in business analyses. Emphasis is placed on developing a critical, general manager's perspective for interpreting required financial disclosures, understanding the types of financial information available in the public domain and their purposes, developing an appreciation of (some of) the inherent ethical conflicts that may color managers' and sell-side analysts' disclosures, and formulating an approach to evaluating an enterprise's overall financial reporting and the implications of that analysis from the perspective of a potential shareholder or creditor. The course objectives are reinforced through the course reading materials, assigned problems, in-class problem solving, and class discussions. This course is useful for individuals planning careers in investment banking, portfolio management, corporate finance, management consulting, and security analysis. Pre- or corequisite: MGT 411 (can be taken concurrently). [2]

2 Credit(s)

Please Note: Not all courses are scheduled each semester. Complete class schedules are available upon enrollment.