Monday-Wednesday Classes
OWEN GRADUATE SCHOOL OF MANAGEMENT
VANDERBILT UNIVERSITY
INTRODUCTION TO FINANCIAL ACCOUNTING
FALL SEMESTER, 2014
Introduction to Accounting
Management 311
Monday-Wednesday
Instructor: Paul Chaney
COURSE OBJECTIVE:
This accounting course is designed to provide students with the ability to understand
information reported in corporate financial statements and to appreciate the issues faced by
corporate managers as they design a financial reporting strategy. This course covers both
accounting analysis and some financial analysis. Accounting analysis is the process of evaluating
the extent to which a company’s accounting reflects economic reality. Financial analysis is the use
of financial statements to analyze a company’s financial position and performance, and to assess
future financial performance.
The specific objectives are to gain knowledge of the functions, limitations, and challenges
of financial accounting and to develop the capability to evaluate critically and understand financial
accounting theory and practice, primarily through analyzing annual reports that require the
identification of relevant data in complex situations. The course also offers some perspective on the
role of financial reporting and financial statement analysis in the capital markets, and an
appreciation for the importance to business managers of their own financial reporting and disclosure
policies. A secondary objective is to be able to convey the interpretation and analysis of financial
data through written expression.
Class Deliverables
Due Date
First week
August 25 (Mon.)
August 27 (Wed.)
September 1 (Mon.)
September 3 (Wed.)
Class
Session
1&2
3
4
5
6
September 8 (Mon.)
September 10 (Wed.)
September 9 (Mon.)
September 17 (Wed.)
7
8
9
10
Assign-5, AR-2
September 22 (Mon.)
September 24 (Wed.)
September 29 (Mon.)
October 1 (Wed.)
11
12
13
14
Assign-8
Assign-9
Assign-10, AR-3
Assign-11, 12
October 6 (Mon.)
Graded
Deliverables
Other
Graded
Assign-1
Assign-2
Assign-3, AR-1
Assign-4
Quiz
Assign-7
FINAL
TEXT:
DMP:
Dyckman, Magee, Pfeiffer, Financial Accounting, 4rd ed., (Cambridge), 2014.
Helpful Supplemental Texts (not required)
1. Core Concepts of Accounting (any edition after the 7th) ISBN: 0-13-040671-6 Prentice Hall, authors:
Anthony and Breitner
2. Essentials of Accounting (any edition after the 7th) ISBN: 0-13-040672-4 Prentice Hall, authors: Anthony
and Breitner
CLASSROOM PROCEDURES:
The most effective and efficient use of classroom time is to reinforce and/or clarify what the
student has tried to learn on an individual, or sometimes group, basis before attending the
class. Therefore, an important element of optimal learning is achieved by wholehearted
preparation via studying the assigned readings and solving the assigned problems.
The use of wireless laptops in the classroom is prohibited, punishable by death or maybe
you will be asked to leave.
EXAMINATIONS:
There will be one mid-term quiz and a comprehensive final. The mid-term quiz will be
given on Wednesday September 10.
ANNUAL REPORT ASSIGNMENTS (AR):
Throughout the semester, students will be required to submit three typed reports dealing
with various aspects of a company’s annual report. No late reports will be accepted. Each
report should be two pages or less in length. All projects are individual assignments. These
assignments are listed on the syllabus as AR-1 through AR-3. They can be found on
blackboard in the annual report section.
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311 RESOURCES:
There is a website on blackboard for this course. This site can be used to download the
syllabus, annual report project assignments, homework solutions, and exam solutions.
Students are responsible for checking this site for any announcements related to the course.
GRADING:
Grades will be determined using the Owen School Grade Distribution, but the following
distribution can be used to gauge your performance.
90% x Total points = A, 4.0, bunny, superior pass
80% x Total points = A-/B+, 3.5, bull, high pass
70% x Total points = B, 3.0, bear, pass
60% x Total points = B-/C+, 2.5, possum, low pass
Below 60% x Total points = F, 0.0, skunk
Total points consist of the following:
Date
Midterm quiz
Wed., Sept. 10
Final Exam
Homework (drop the two lowest scores)
Annual Report Assignments (no assignments dropped)
Total points
Points
120
200
90
30
440
HONOR CODE
I strongly encourage students to work together in small groups on homework, annual report
projects, and in preparation for exams. You will find that this approach will improve your
accounting experience. For instance, I suggest that you attempt the homework on your own;
then, get together with your group to discuss differences in your answers. You will find that
using this technique, you can quickly determine if you understand the material. However,
each student needs to turn in individual work (no copies or photocopies of the same
spreadsheet, or multiple names on the same work, etc.).
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Labor Day
CLASS SCHEDULE:
Date
Readings
8-18
DMP -Cha. 1 & 2
Read 19, 21, 22
Topical Coverage
Introduction to Accounting
Homework Assignments
8-20
DMP -Cha. 2
Read 1, Read 26
Financial Statements
Assign-1 (due 8-25)
8-25
DMP -Cha. 3
Read 15
Accounting Concepts
Recording Transactions &
Assign-2 (due 8-27)
8-27
DMP -Cha. 3
Read 2, 24, 25
Adjustments and Accruals
Assign-3 (due 9-1)
AR-1 (due 9-1)
9-1
DMP -Cha. 6 (pp.
282-299) Read 5
Short-term Liquid Assets
(included in current assets)
Assign-4 (due 9-3)
9-3
DMP -Cha. 7
Read 4, 3
Inventory
Assign-5 (due 9-8)
AR-2 (due 9-8)
9-8
DMP -Cha. 8
Read 7, 17, 18
Non-Current Assets
Assign-6 (not graded)
9-10
Quiz
9-15
DMP -Cha. 9
Bonds
Assign-7 (due 9-17)
9-17
DMP – Cha. 11
Read 8, 9
Bonds/Stockholders’ equity
Assign-8 (due 9-22)
9-22
DMP – Cha. 10,
Read 16
Leases & Deferred Taxes
Assign-9 (due 9-24)
AR-3 (due 9-29)
9-24
DMP Cha. 4, 5
Read 14, 23
Statement of Cash Flows
Assign-10 (due 9-29)
9-29
Cha 4, 5 Continued
Read 11, 20
Statement of Cash Flows
Assign-11,12 (due 10-1)
10-1
Financial analysis
Review for final exam
10-6
Final Exam
DMP = Dyckman, Magee, Pfeiffer Text, AR = annual report. All homework assignments
(Assign) are to be turned in at the beginning of class.
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Readings
Read 1: What have IASB and FASB Convergence Efforts Achieved?” Journal of
Accountancy, February, 2013.
Read 2: “SEC Releases Staff Report on IFRS Work Plan,” Accounting Today, July 13,
2012.
Read 3: “Assessing the Allowance for Doubtful Accounts,” Journal of Accountancy,
September, 2009.
Read 4: “Ghost Goods: How to Spot Phantom Inventory,” Journal of Accountancy, June
2001, pp. 33-36.
Read 5: “Presto Chango! Sales are Huge!” Fortune, March 20, 2000.
Read 6: “Earnings Management and the Abuse of Materiality,” Journal of Accountancy,
September 2000, pp. 41-44.
Read 7: “Earnings Hocus-Pocus,” Business Week, October 5, 1998.
Read 8: “Microsoft Employee Stock Plan Brings Mixed Bag for Investors,” Investor’s
Business Daily, July 11, 2003.
Read 9: “Stock Market Time Bomb; Buybacks and Options: a Lethal Duo,” Business Week,
November 15, 1999.
Read 10: “Irrational Ratios,” Journal of Accountancy, August 2001, pp. 80-83.
Read 11: “Warning the Use of EBITDA May be Dangerous to Your Career,” Strategic
Finance, September 2001, pp. 35-37.
Read 12: “Home Depot Analyst Report”
Read 13: “FASB: Rewriting the Book on Bookkeeping,” Business Week, May 20, 2002, pp.
123-124.
Read 14: “The Ins and Outs of Cash Flow,” Business Week, January 22, 2001, pp. 102-104.
Read 15: “Yahoo, Google, and Internet Math,” The Wall Street Journal, May 10, 2004, p.
c1.
Read 16: “Open Secrets: How Leases Play a Shadowy Role in Accounting; Despite a PostEnron Push, Companies Can Still Keep Big Debts Off Balance Sheets.” Wall
Street Journal New York, N.Y.: Sep 22, 2004
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Read 17: How to Evaluate the Quality of EPS (October 17, 2010)
http://www.investopedia.com/articles/analyst/03/091703.asp
Read 18: Surprising Earnings Results (January 9, 2010)
http://www.investopedia.com/articles/stocks/06/earningssurprises.asp
Read 19: What you need to know about financial statements (April 1, 2011)
http://www.investopedia.com/articles/basics/06/financialreporting.asp
Read 20: A clear look at EBITDA (April 17, 2010)
http://www.investopedia.com/articles/06/ebitda.asp
Read 21: Reading the Balance sheet (July 14, 2012)
http://www.investopedia.com/articles/04/031004.asp
Read 22: Understanding the Income Statement (October 10, 2011)
http://www.investopedia.com/articles/04/022504.asp
Read 23: The Essentials of Corporate Cash flows (March 14, 2011)
http://www.investopedia.com/articles/01/110701.asp
Read 24: An Investor’s Checklist to Financial Footnotes (February 26, 2009)
http://www.investopedia.com/articles/analyst/03/100103.asp
Read 25: Footnotes: Early Warning Signs for Investors (February 26, 2009)
http://www.investopedia.com/articles/analyst/03/101503.asp
Read 26: Top 8 Ways Companies Cook the Books, February 14, 2011
http://www.investopedia.com/articles/analyst/071502.asp
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