ACNT 2376

Financial Statement Analysis

Master Syllabi

 

COURSE INFORMATION

SYNONYM AND SECTION NUMBER: See section specific syllabus.

COURSE DATES AND TIMES:  See section specific syllabus.

COURSE LOCATION:  See section specific syllabus.

CREDITS:  3; Lecture Hours: 3, Lab: 1

COURSE LEVEL: Intermediate (Junior Level)

 

INSTRUCTOR INFORMATION: 

OFFICE LOCATION: See section specific syllabus.

WORK PHONE: See section specific syllabus.

E-MAIL: See section specific syllabus.

BLACKBOARD COURSE WEBSITE: Can be accessed through www.austincc.edu homepage

INSTRUCTOR WEBSITE: See section specific syllabus.

OFFICE HOURS: See section specific syllabus.               

                                                                                    

PREREQUISITES: Before enrolling in ACNT 2376, you must have completed ACNT 2304, Intermediate Accounting II or its equivalent at an accredited college or university, with a C or better grade. There are no exceptions. A student may be withdrawn from the class if the prerequisite has not been successfully completed.

 Basic computer skills utilizing internet, word processing, spreadsheet (Excel), and presentation (Power Point) software are recommended for all accounting courses. Generally, all assignments are to be prepared on the computer and presented in a format that would be acceptable in a business environment. Access to computers is available at the college. 

Austin Community College has received the designation of Qualifying Educational Credit for CPA Examination by the Texas State Board of Public Accountancy (Board).  This course qualifies as one of the 30 required upper-level accounting courses; however for this course to be counted, the student MUST have completed a bachelor's degree PRIOR to taking this course. If this course is completed before a bachelor's degree is awarded, the Texas State Board of Public Accountancy will not accept it.  Please review the information on our web site http://www.austincc.edu/accting/cpainfo.php. It is the responsibility of the student to understand and comply with the requirements of the Texas State Board of Public Accountancy.

 

If you have any questions, consult with an accounting advisor.

COURSE DESCRIPTION:

¨       This course is a study of the process of evaluating financial statements.  In addition to analytical techniques, topics include prospective analysis of the enterprise, business valuation, current reporting trends and issues, SEC reporting, segment reporting and full disclosure.

¨       This course presumes a thorough understanding of intermediate accounting principles in order to successfully master the course content. While some accounting concepts may be reviewed, this course is about the analysis and evaluation of financial information based on Generally Accepted Accounting Principles.

¨       This course requires the ability to express the analysis of cases and other course work in writing that meets professional standards.

 

METHOD OF PRESENTATIONThree-hour lecture/discussion and one-hour lab each week. 

The primary methods of instruction include course lecture, periodic exams, case analysis, team assignments, and use of business software.

1.       Integration of technology -Students engage in problem solving and analysis using Internet resources and basic business software to manipulate data.

2.       Intensive writing - Students analyze financial statements and other financial data and prepare financial statement analyses.

3.       Accounting Research - Students prepare financial statement analysis project based on the results of database research.

 

REQUIRED TEXTBOOK/MATERIALSSee section specific syllabus.

 

COURSE OBJECTIVES: Upon completion of this course, the student should be able to analyze and interpret public companies’ financial statements and other parts of the 10-K through

1.       The evaluation of the quality of the financial information

2.       Vertical and horizontal analysis

3.       Ratio analysis of liquidity, solvency, risk and profitability

4.       Strategic analysis

5.       Prospective Analysis

 

COURSE RATIONALE: The goals and objectives of this course prepare students for (1) completing degree requirements; (2) obtaining or improving job skills; (3) qualifying for a business or accounting job; (4) working as an entrepreneur; (5) fulfilling personal goals; and/or (6) understanding individual income tax returns and the federal income tax law.

 

SCANS (SECRETARY’S COMMISSION ON ACHIEVING NECESSARY SKILLS): SCANS is the Secretary’s Commission on Achieving Necessary Skills. Please go to http://www.austincc.edu/mkt/scans.php for complete definitions and explanation of SCANS.  This list summarizes the SCANS competencies addressed in this particular course.

1.       Information Skills: Identifies the need for data, obtains them from existing sources or creates them, and evaluates their relevance and accuracy. Completely performing the tasks of acquiring data and evaluating information, including posing analytical questions to determine specific information needs; selecting possible information and evaluating its appropriateness, and determining when new information must be created.

2.       Problem Solving Skills: Recognizes that a problem exists (i.e. there is a discrepancy between what is and what should or could be); identifies possible reason for the discrepancy, devises and implements a plan of action to resolve it; evaluates and monitors progress; revises plan as indicated based on findings. 

3.       Writing Skills: Communicates thoughts, ideas, information, and messages in writing; records information completely and accurately; composes and creates documents such as letters, directions, manuals, reports, proposals, graphs, flow charts; uses language, style, organization, and format appropriate to the subject-matter, purpose, and audience. Includes supporting documentation and attends to level of detail; checks, edits, and revises for correct information, appropriate emphasis, form, grammar, spelling, and punctuation.

               

GRADING POLICIES: Your grade will be based on the following:

Activity

Percent

Points

3 Exams

50%

400

3  Accounting Topics Quizzes

11.25%

90

3 Case Related Quizzes

7.5%

60

Lab Research & Assignments

17.25%

138

Project

14%

112

       TOTAL

100%

800

 

        Basis for Grading:

Points

Grade

720-800

A

640-719

B

560-639

C

480-559

D

Below 479

F

 

Grade Change Policies: Click on this link to view the policy. See Student Handbook: www.austincc.edu/handbook/policies2.htm

 

Components of your Grade: See section specific syllabus.

   

CLASSROOM AND STUDENT POLICIES

Attendance/Class Participation: Regular and punctual class and laboratory attendance is expected of all students.  If attendance or compliance with other course policies is unsatisfactory, the instructor may withdraw students from the class.

 

Withdrawal: It is the responsibility of each student to ensure that his or her name is removed from the roll should he or she decide to withdraw from the class.  The instructor does, however, reserve the right to drop a student should he or she feel it is necessary.  If a student decides to withdraw, he or she should also verify that the withdrawal is submitted before the Final Withdrawal Date.  The student is also strongly encouraged to retain their copy of the withdrawal form for their records.

 

Students who enroll for the third or subsequent time in a course taken since Fall, 2002, may be charged a higher tuition rate, for that course.

 

State law permits students to withdraw from no more than six courses during their entire undergraduate career at Texas public colleges or universities.  With certain exceptions, all course withdrawals automatically count towards this limit.  Details regarding this policy can be found in the ACC college catalog.

 

Incompletes:  an instructor may award a grade of “I” (incomplete) if a student was unable to complete all of the objectives for the passing grade in a course. An “I” cannot be carried beyond the established date in the following semester. The completion date is determined by the instructor but may not be later than the final deadline for withdrawal in the subsequent semester. An “I” that is not resolved by the deadline will automatically be converted to an F.  Incomplete grades are given only on rare occasions and generally, only when a student has completed all examinations and assignments to date, with a satisfactory grade of C or better, and has personal circumstances that prevent course completion that occur after the deadline to withdraw.

Scholastic dishonesty: A student attending ACC assumes responsibility for conduct compatible with the mission of the college as an educational institution.  Students have the responsibility to submit coursework that is the result of their own thought, research, or self-expression.  Students must follow all instructions given by faculty or designated college representatives when taking examinations, placement assessments, tests, quizzes, and evaluations.  Actions constituting scholastic dishonesty include, but are not limited to, plagiarism, cheating, fabrication, collusion, and falsifying documents.    Penalties for scholastic dishonesty will depend upon the nature of the violation and may range from lowering a grade on one assignment to an “F” in the course and/or expulsion from the college.  See the Student Standards of Conduct and Disciplinary Process and other policies at http://www.austincc.edu/current/needtoknow

 

 Student Rights and Responsibilities (Academic freedom statement): Students at the college have the rights accorded by the U.S. Constitution to freedom of speech, peaceful assembly, petition, and association. These rights carry with them the responsibility to accord the same rights to others in the college community and not to interfere with or disrupt the educational process. Opportunity for students to examine and question pertinent data and assumptions of a given discipline, guided by the evidence of scholarly research, is appropriate in a learning environment. This concept is accompanied by an equally demanding concept of responsibility on the part of the student. As willing partners in learning, students must comply with college rules and procedures.

 

Students with disabilities statement: Each ACC campus offers support services for students with documented disabilities.  Students with disabilities who need classroom, academic or other accommodations must request them through the Office for Students with Disabilities (OSD).   Students are encouraged to request accommodations when they register for courses or at least three weeks before the start of the semester, otherwise the provision of accommodations may be delayed.  

 

Students who have received approval for accommodations from OSD for this course must provide the instructor with the ‘Notice of Approved Accommodations’ from OSD before accommodations will be provided.   Arrangements for academic accommodations can only be made after the instructor receives the ‘Notice of Approved Accommodations’ from the student.

 

Students with approved accommodations are encouraged to submit the ‘Notice of Approved Accommodations’ to the instructor at the beginning of the semester because a reasonable amount of time may be needed to prepare and arrange for the accommodations.   

 

Additional information about the Office for Students with Disabilities is available at http://www.austincc.edu/support/osd/

 

Safety Statement: Austin Community College is committed to providing a safe and healthy environment for study and work. You are expected to learn and comply with ACC environmental, health and safety procedures and agree to follow ACC safety policies. Additional information on these can be found at http://www.austincc.edu/ehs. Because some health and safety circumstances are beyond our control, we ask that you become familiar with the Emergency Procedures poster and Campus Safety Plan map in each classroom. Additional information about emergency procedures and how to sign up for ACC Emergency Alerts to be notified in the event of a serious emergency can be found at http://www.austincc.edu/emergency/.

 

Please note, you are expected to conduct yourself professionally with respect and courtesy to all. Anyone who thoughtlessly or intentionally jeopardizes the health or safety of another individual will be dismissed from the day’s activity, may be withdrawn from the class, and/or barred from attending future activities.

 

You are expected to conduct yourself professionally with respect and courtesy to all. Anyone who thoughtlessly or intentionally jeopardizes the health or safety of another individual will be immediately dismissed from the day’s activity, may be withdrawn from the class, and/or barred from attending future activities.

 

Use of ACC email: All College e-mail communication to students will be sent solely to the student’s ACCmail account, with the expectation that such communications will be read in a timely fashion. ACC will send important information and will notify you of any college related emergencies using this account.  Students should only expect to receive email communication from their instructor using this account.  Likewise, students should use their ACCmail account when communicating with instructors and staff.  Instructions for activating an ACCmail account can be found at http://www.austincc.edu/accmail/index.php. Also see section specific syllabus for instructor policy.
 

Testing Center Policy: Under certain circumstances, an instructor may have students take an examination in a testing center.  Students using the Academic Testing Center must govern themselves according to the Student Guide for Use of ACC Testing Centers and should read the entire guide before going to take the exam.  To request an exam, one must have:

 

Do NOT bring cell phones to the Testing Center.  Having your cell phone in the testing room, regardless of whether it is on or off, will revoke your testing privileges for the remainder of the semester.  ACC Testing Center policies can be found at http://www.austincc.edu/testctr/

 

Student and Instructional Services: ACC strives to provide exemplary support to its students and offers a broad variety of opportunities and services.  Information on these services and support systems is available at:   http://www.austincc.edu/s4/

 

Links to many student services and other information can be found at: http://www.austincc.edu/current/

 

ACC Learning Labs provide free tutoring services to all ACC students currently enrolled in the course to be tutored.  The tutor schedule for each Learning Lab may be found at:  http://www.autincc.edu/tutor/students/tutoring.php

 

For help setting up your ACCeID, ACC Gmail, or ACC Blackboard, see a Learning Lab Technician at any ACC Learning Lab.

 

 LEARNING OBJECTIVES:

1.       Understanding the financial statement analytical framework.

2.       Understand and apply the tools for assessing industry characteristics and business strategies.

3.       Able to access and use sources of information available for publicly held companies.

4.       Understand the mixed attribute accounting model relied upon by GAAP and IFRS.

5.       Understand and analyze the pervasive importance of income tax effect on reported financial results.

6.       Able to explain and analyze the relationship among net income, comprehensive income and cash flows.

7.       Able to conduct profitability analysis, using various ratio techniques, including disaggregation of ROA and ROCE.

8.       Able to analyze effect of risk on financial results, by applying analytical tools.

9.       Identify the effects of accounting methods on the reporting of financing activities.

10.   Identify the effects of accounting methods on the reporting of investing activities

11.   Able to evaluation the application of revenue and expense recognition principles.

12.   Able to analyze and evaluate accounting quality.

13.   Demonstrate the methods of forecasting financial statements.

14.   Demonstrate the techniques to value a company.

 

Note: This is a demanding, upper level college course, requiring significant study time outside of class.

COURSE CALENDAR:  See section specific syllabus