New York University-POLY
Department of Civil Engineering
Construction Management Graduate Program
Construction Accounting and Finance for Development
Course No. XXXXXXXXX
FALL 2009 Wednesday, 5:45PM to 8:15PM
Prof. Ralph D. Amicucci
Telephone: (914) 741-5206
FAX: (914) 495-3317
E-Mail Address: ramicucci@aol.com
Course Description
This course gives an overview of the uses of accounting and financial analysis in decision making in a
construction and development environment. The course will help construction professionals-both those
who are working in the construction industry and those seeking degrees in construction management-learn
how the principles of accounting and financial management can be adapted to and used in the management
of construction companies and project management. Students will review accounting concepts, rules,
regulations and reporting requirements as they apply to construction and development and discuss the
financial tools needed to understand the financial statements and financial positions of development and
construction projects. This course requires minimal proficiency in the use of the Hewlett-Packard HP 12C
calculator and EXCEL or their equivalents.
Required Text:
Construction Accounting and Financial Management by Seven J. Peterson, ISBN: 13-978-0-13-501711-1
Grading
This course will combine lectures with analysis and solution of problems. There will be a term project,
which will be assigned to you and required to be completed by you during the semester. Informed class
participation will be required, as well as a mid-term and final exam.
Term Project
Class Participation
Mid-Term Examination
Final Examination
30%
10%
30%
30%
Session
Date
1
9/09/09
Topics
INTRODUCTION
 Class Introduction
 Review Term Project
 Review of HP Calculator
 Calculations to perform on HP-12C
2
9/16/09
CONSTRUCTION FINANCIAL MANAGEMENT
 What is Financial Management
 Why is Construction Financial Management Different
 Who is Responsible for Construction Management
 What does a Financial Manager Do
3
9/23/09
ACCOUNTING IN ACTION
 What is Accounting
 External vs. Internal Users
 Relationship with CPA
 GAAP and TAX
 Basic Accounting Equation
 What are Assets, Liabilities and Owner Equity
 T-Accounts
 Debit-Credits
 Trial Balance
4
09/30/09
5
10/07/09
CONSTRUCTION ACCOUNTING SYSTEMS
 Cost Reporting vs. Cost Control
 The General Ledger
 Methods of Accounting
 Financial Statements
 Construction/Capitalized Costs

ANALYSIS OF FINANCIAL STATEMENTS
 Quick Ratio
 Current Ratio
 Return on Equity
 Return on Assets
6
10/14/09
7
10/21/09
8
10/28/09
FINANCIAL ANALYSIS: (Power Point Single Year Analysis.)
 Valuation Principles
 Time Value of Money
 REVIEW ASSUMPTIONS FOR PROJECT
 REVIEW MIDTERM
9
11/04/09
MEASURING INVESTMENT RETURN : (Power Point Multi-Year Analysis)
 Cash Flows (BTCF, ATCF, TI and NOI)
DEPRECIATION:
 Basis for Depreciation
 Demolition Costs
 ACRS Depreciation Methods: Accelerated, Straight Line

MID TERM EXAMINATION





Present Value
IRR, DCF
REVIEW DEPRECIATION SCHEDULE FOR PROJECT
REVIEW AMORTIZATION SCHEDULE FOR PROJECT
DO CASE ONE
10
11/11/09
DEVELOPMENT AND CONSTRUCTION ISSUES:
Accounting Methods in Construction
 completed contract method
 percentage of completion
 Budget issues in construction
 Construction capitalization rules
 REVIEW CONSTRCTION BUDGET FOR PROJECT
 REVIEW CONSTRUCTION LOAN FOR PROJECT
 DO CONSTRUCTION LOAN PROBLEM
11
11/18/09
DO CASE PROBLEM TWO
REVIEW LEASE-UP SCHEDULE and PRO-FORMA FOR PROJECT
REVIEW BTCF and AFTC FOR PROJECT
12
12/04/09
DO CASE PROBLEM THREE
REVIEW PERMANENT LOAN SCHEDULE FOR PROJECT
REVIEW REAL ESTATE PROPERTY TAX CALCULATION FOR PROJECT
REVIEW IRR CALCULATION FOR PROJECT
13
12/09/09
ACCOUNTING FOR CONSTRCTION EQUIPMENT LEASES
 Operating Lease
 Capital Lease
 Synthetic Lease
14
12/16/09
FINAL EXAM and TERM PROJECT DUE
 REVIEW TERM PROJECT