Fordham University Gabelli School of Business Administration
Accounting and CSR Reporting Principles
Dr. Barbara M. Porco
e-mail:BPorco@fordham.edu
COURSE DESCRIPTION AND REQUIREMENTS
The purpose of this course is to introduce students to the concepts, vocabulary, procedures, and uses of financial
accounting. Learning goals include a lexicon of the language of business, basic skills to prepare and interpret financial
statements, an understanding of the regulatory framework for the production and dissemination of financial
accounting information, and the basic measurement and recognition principles as well as the limitations of financial
reporting.
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Foremost, we will adopt the perspective of users of financial information. Users range from investment
bankers, research analysts, and credit rating professionals to individuals trying to save for retirement,
employees, consumers, and competitors. Understanding and interpreting the language of accounting is an
important part of a user’s decision-making process.
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We will take the perspective of preparers of financial information. Preparers include accountants who work for
firms that must produce financial statements on a regular basis and file them with the various regulatory
authorities, such as the Securities and Exchange Commission (SEC). These professionals may include the chief
financial officer, who, along with the chief executive officer, is responsible for the financial statements. We will
learn procedures and rules about how financial events are recognized, measured, and disclosed.
Understanding how financial information is captured, measured, and reported will facilitate our ability to
interpret the financial information, which is our main goal.
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We will adopt the perspectives of independent auditors and regulators. Independent auditors are engaged to
audit the financial statements before they are filed with the SEC, and they may work for firms such as
PricewaterhouseCoopers, KPMG, E&Y, and Deloitte (which collectively are called the “Big 4”). Under securities
laws, all publicly traded firms (those, for example, with stock that is traded on an exchange, such as the New
York Stock Exchange) must have their statements audited. Auditors and regulators are intermediaries between
preparers and users, and their role is to provide a measure of the reliability of the financial information by
providing an opinion about whether the financial statements “present fairly” the financial condition and results
of operations of the firm.
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Finally, we will consider the role of standard setters. These are the groups who write the rules that preparers
must follow and auditors must audit and users must understand. We will consider U.S. standard setters (the
Financial Accounting Standards Board, or FASB, which reports to the SEC) and international standard setters
(the International Accounting Standards Board, or IASB). We will see, and it may surprise you, how political
and contentious the standard setting process can be.
By the end of the course, you will have learned:
• The Lexicon pertaining to accounting and financial reporting and CSR/ESG Reporting
• Basic measurement and recognition principles
• Where financial accounting has shortcomings
• What other information is often used in the broader disclosure environment in addition to financial accounting
information
• The regulatory framework, both domestically and internationally, for overseeing the production and
dissemination of financial accounting information
• How accounting intersects with other disciplines, such as finance, law, ethics, strategy, statistics, and
communications
In addition, the importance of Corporate Social Responsibility (CSR) has increased in recent years as the awareness of
the effects of corporations on society and on the environment has grown. (Similar to CSR are triple bottom line—
where the three bottom lines refer to “people, planet, profit”—and environment, society, and governance, or ESG.) A
standard setting body (the Sustainability Accounting Standards Board, or SASB) began during the fall of 2012 to
consider measurement and reporting standards for these types of social and environmental issues. The SASB as well as
other standard setters in this new reporting domain will be discussed during the semester.
Alternatively, a few links to get you started are:
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Fordham University Gabelli School of Business Administration
Accounting and CSR Reporting Principles
TEXTBOOK AND HANDOUTS
Textbook: Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2017). Financial accounting (10th ed.). Somerset, NJ: Wiley.
Any format is acceptable of the current edition.
READINGS AND HOMEWORK
Students are expected to read book chapters prior to the asynchronous session and complete homework assignments
listed on the syllabus table prior to attending the synchronous session. Homework is to be completed as indicated on
the syllabus. Solutions to homework assignments will be posted after the homework due date.
ATTENDANCE AND CLASS PARTICIPATION
Attendance is mandatory for synchronous sessions.
FINAL EXAMINATION
The final examination is closed book and cumulative.
FINANCIAL ANALYSIS AND SUSTAINABILITY ANALYSIS PROJECT
The Financial Analysis Project contains four parts. Part III will focus on financial analysis including horizontal,
vertical, and ratio analyzes. The other three parts are mainly qualitative in nature, such as predictions and overall
observations. In addition to your financial analysis, you are also responsible for your ESG reporting analysis.
Additional information pertaining to the sustainability component of the course will be discussed mid-semester.
All instructions for the Financial Analysis project will be included in the instruction manual, which will be made
available to you.
GRADING POLICY
Below is how your grade for the course will be determined:
Sustainability and Financial Analysis Project
Final exam
Total
20%
80%
100%
Note: Not all chapters will be lectured on in their entirety. Students are expected to read the whole chapter,
but students are not responsible for material not covered in class for examinations.
ACADEMIC INTEGRITY
Cheating includes (a) plagiarism (that is, copying or paraphrasing material from the internet or any other
source and claiming the material as one’s own); (b) giving or receiving any assistance on an exam (or any
other assignment meant to be completed by an individual student) by any means (including, but not limited
to, verbal communication, e-mailing, text messaging, Skyping, photographing/sharing exam questions); and
(c) unauthorized use of cell phones, notes, or any other devices or materials on the final exam.
If cheating is suspected, the case will be sent immediately to the appropriate dean for processing through
the official applicable procedures of the university’s Academic Integrity Committee. A grade of “INC” will be
assigned as the student’s grade for the course until the matter has been resolved. Consequences of cheating
can include failing the assignment in question, failing the entire course, and possibly (in the event of
multiple violations) suspension or expulsion from the university.
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Fordham University Gabelli School of Business Administration
Accounting and CSR Reporting Principles
Weeks
Textbook
Chapter
1
10/03
1
2
10/10
2
3
10/17
4
10/24
5
10/31
6
11/07
7
11/14
3
4
6
8
9
10
Appendix
G
Appendix
H
8
11/21
11
9
11/28
13
10
12/05
12
Lecture Material Topic
Overview of financial statements, reporting process, and
underlying concepts; introduction to accounting and
recording process
Debits and credits schematic accounts for business
transactions and journal entries; basic accounting
recording processes with exercises
Accounting period; accrual accounting; accounting
procedures; reporting schematic; adjusting journal entries,
accrual basis accounting, and adjusting entries
Journal entries and closing process and accounting cycle
completion; Balance Sheet and Income Statement
presentation.
Balance sheet focus: Accounts Receivable and adjusting
for bad debt
Balance sheet focus: Inventory and cost of goods sold
Introduction to sustainability accounting principles and
issues; ESG reporting
Balance sheet focus: Tangible and intangible assets and
depreciation and amortization
Long-term liabilities; bond interest accounting for debt
and present value concepts
Marketable securities shareholders’ reporting and
analyzing investments and mark to market application and
entries and effects on cash flow
Equity, capital contributions; issuing of stock; equity
transactions and disclosure of changes in stockholders’
equity, equity, distributions, and earnings retention
Introduction to analysis of profitability; ratio analysis;
EPS, financial statement analysis; financial statement
analysis and limitations.
Madison Company Assignment and assessment
-NOT on the FINAL EXAMCash flow analysis and supplemental information;
reporting issues and complexities of classification
Textbook Homework
Assignments
P1-1A, P1-2A
E2-2, E2-3, E2-12,
P2-2A, P2-3A
E3-3, E3-5, E3-6,
E3-8, P3-1A , P3-2A
E4-8, E4-9, P4-3A
E6-5, E6-7, E6-8, P64A
E8-6(a)(b), E8-7, E812, P8-1A
N/A
E9-6, E9-9, P9-2A,
P9-5A
E10-1, E10-4, E10-11
E10-22, E10-23, P104A
EH-3, EH-4, EH-5
E11-3, E11-5, E11-7,
E11-11, P11-3A
E13-5, E13-6, P13-5A
E12-2, E12-4, E12-9,
P12-7A
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