Syllabus
BUS 512M Financial Reporting & Analysis
Susan Crosson
Office: Room 462
Cell phone: 352-219-0770
Email: susan.crosson@emory.edu
Description
Financial accounting is a conceptual model and methodology for measuring, processing, and
communicating financial information about the business activities of an organization. Financial
reporting consists of corporate financial statements and other financial disclosures that
companies provide to investors and other stakeholders. Financial Statement Analysis includes
both “accounting” analysis and “financial statement ratio” analysis. This course covers financial
accounting, financial reporting, and accounting analysis, as well as financial statement ratio
analysis to a limited extent. Financial statement ratio analysis is covered more extensively in the
corporate finance sequence in the program.
Managers often have a significant amount of latitude in deciding how to treat economic events
in the financial accounting model and how to report them in the financial statements; hence, it
is important for companies to develop accounting policies and strategies to achieve relevant
and reliable financial reporting that is consistent with their business strategies. This course is
presented from a “user” or “managerial” perspective, rather than a “preparer” perspective.
Upon completing it, students will have an understanding of the financial accounting and
reporting model and how it is applied in a wide variety of organizations and applications. We
will use the annual reports of publically traded companies as our primary frames of reference in
the course.
Course Learning Objectives
1. Understand basic measurement concepts underlying primary financial statements and the
relative importance of the Income Statement, Balance Sheet, Statement of Cash Flows, and
Statement of Retained Earnings.
2. Locate and use information on a corporate annual report to analyze a company’s financial
performance and position.
Course Text
Pratt, Jaime, Financial Accounting in an Economic Context, Wiley, 2009 (8th Edition).
E-Resources
1. There is a 512M-15 course in Blackboard that will be used for all outside-of-class
communications. All course materials, including announcements, assignments, lecture
notes, explanations, assignment solutions, and other course materials will be provided at
various times in Blackboard.
2. As stated above, we will use the annual reports of publically traded companies like CocaCola, Walmart, and Novo Nordisk as our primary frames of reference in our study of
financial reporting. Links to annual reports used will be posted to the 512M-15 Blackboard
course. In addition, photo copies of financial statements from annual reports used in class
will be provided to you in your residency materials.
Pre-Course Work
Financial Reporting & Analysis requires students to have a minimum working knowledge in
financial accounting before beginning the first residency of the course. Therefore, depending on
your background, there may be a significant amount of work to do during the Pre-Course Work
period for the first residency. Financial reporting relies on the system of double-entry
accounting, the basic structure of financial statements, and a specific set of terms and concepts
that should be mastered before our first course meeting. Several resources are available in the
Module One folder in Blackboard or at http://bus.emory.edu/scrosso to assist you in achieving
these necessary skills, including YouTube videos and pencasts. You can also read the first five
chapters of the Financial Accounting textbook that cover these concepts and procedures.
To assist you in assessing your readiness to begin the 1st residency, a homework assignment
will be available for this course October 27, 2013. Your solution to this assignment which
applies pre-course material, should be submitted for grading at the start of class on
November 21, 2013. There will be an optional homework help session Wednesday 5:30-6:30
pm the week of your second residency (November 17-23).
Determination of Grades:
Grades will be based on the following:
Homework/Quizzes/Participation/Engagement
30%
Mid-term Exam-Individual Assignment
35%
Final Exam-Individual Assignment
35%
100%
Grades will be based on the School’s MBA grading policy. The top 15% of the class will receive a
grade of DS, and the next 35% will receive a grade of HP. If all goes well -- and if we all fulfill our
respective responsibilities -- no more than 10% will receive a grade lower than PS.
Description of Grade Components:
The quizzes and exams will be open book and open notes. The mid-term and final exams
typically consist of a combination of multiple choice questions, short-answer questions and
problems, and questions based on actual annual reports. Quizzes and exams will be submitted
to me via Blackboard or email, susan.crosson@emory.edu.
The homework/participation/engagement component attempts to measure the quality of an
individual’s contribution to his/her classmates’ learning experience and the effort applied in
learning the course material. The grade is based on three types of information: (1) a peer
evaluation where each student lists five classmates (at most) that have had a positive impact on
their learning experience, (2) my own assessment of in-class interaction and online
engagement, and (3) the number of completed homework assignments turned in. To receive
credit for homework, students should submit a copy of it on or before it is due. It is entirely
appropriate to work these with other classmates, provided each person makes a good faith
effort to work the assignments independently. Merely copying someone else’s solution should
not be done as doing the homework aids considerably in improving your understanding of the
course material. Homework is graded for effort and not accuracy.
Preparation & Participation
Course preparation is crucial to the learning process. In fact, most of the actual learning takes
place outside of the classroom, which is then modified and/or reinforced by the in-class
discussion. Because financial accounting is an integrated conceptual model, each part of the
model must be understood before subsequent elements are introduced. Hence, staying up with
the pace of the course is vital. It is essential that you read and study the assigned chapter
material in advance of each class. In addition, each problem assignment for the class must be
analyzed and prepared (either by you individually or in study groups) prior to the class.
Electronic copies of the assignment solutions will be made available to you after we have
covered the assignments in class, or for the on-line segment of the course, after you have
turned in your assignments. YouTube videos and/or pencasts will be provided to you for each of
the topics in advance of the coverage of the topic online or in class. During the distance learning
modules, there will be optional online discussions (on Adobe Connect) of selected issues
covered in the modules, these will be recorded and archived for later viewing.
Readings & Assignments
The following pages present the required readings and assignments for the entire course. The
numbered assignments are from the Pratt textbook. Homework will be submitted for grading
for Modules 1, 2, 3, 5, 6, 8, and 9. Homework for the other modules will be discussed but will
not be collected. Homework submitted for grading should be sent to me via Blackboard or
email susan.crosson@emory.edu on or before the due dates listed.
You are encouraged to find articles relevant to course topics as you read The Wall Street
Journal or other financial publications on a regular basis. Please send me the article via email
and state the relevant course topic when you find one. The WSJ and other business
publications are available to you on-line without cost on the Goizueta Library data bases. Please
note that all of the copyrighted course materials posted on Blackboard will be obtained from
the Emory Library data bases, which are available directly to all Goizueta students. By
downloading articles from the Library data bases not only are they more convenient but it is
done with the express permission of the Emory Library staff and does not violate any copyright
laws or the Library’s agreements with its data base providers.
Submitting Homework and Exams Via BlackBoard or Email
Please observe the following guidelines in submitting work:

If Excel files are submitted, the spreadsheets should be formatted so that all related
materials will print on the same page. I recommend that, before sending any materials in Excel
files, you print them to make sure they are properly formatted. You can also save them as a
pdf.

The names of all attached files should include your name, plus a brief description of the
document; for example, “Jdoe Hwk #1” or “Jdoe Mid-term.”

All required submitted assignments and exams should be submitted using the Subject
line “512M-Name of the Assignments-Your First and Last Name.”
Assignment Due Date Chart
Module
Module
Module
Module
1:
2:
3:
5: Allowance for Bad Debts
Module 6: Alternative Inventory Methods
Module 8: Depreciation Methods and
Equipment Disposal
Module 9: Treatment of Bonds and
Determining the Effective Interest Rate
At the start of class on November 21, 2013
At the start of class on November 22, 2013
At the start of class on November 23, 2013
In Blackboard on or before NOON December
23, 2013
In Blackboard on or before NOON December
23, 2013
At the start of class on February 4, 2014
At the start of class on February 5, 2014
Other Guidelines
To enable everyone in the class to gain the most from the in-class experience, students are
requested to observe the following guidelines during the residencies:

Please be in class and prepared to begin on time for each class and after each break.

Please do not leave the room during class except for personal emergencies. If you need
to leave, please do so as quietly as possible;

It is important to bring your textbook and/or handouts with you to all class sessions
since we will be covering textbook problems and/or handouts in most class sessions. Failure to
bring these materials will make it difficult for you to participate adequately in class discussions
and may result in a loss of participation credit. It is also requested that you bring a company
you are interested in or your company’s annual report to class.

The MEMBA Program policy regarding notebook computers will apply to this course;
consequently, we will observe a “closed notebook” policy during class time.
MEMBA’15 Course Calendar -- 512M
Date
Topic
Text Reading
10/27
to
11/16
PRE-WORK
PERIOD FOR
NOVEMBER
RESIDENCY
Module 1
Mechanics of
Financial
Accounting
10/27
to
11/16
Prepare for
Modules 2, 3,
and 4.
11/20
11/21
8:0011:30
11/22
8:0011:30
11/23
7:0010:30
Pratt Chapter
4
Assignments & Preparation
Module 1 folder
Assignment
for Evaluation
Complete
Homework #1
and submit a
copy at the
beginning of
class 11/21.
There will be
an optional
face-to-face
help session
on 11/20
5:30-6:30 pm.
Pratt
Module 2 folder
Chapters 2, 3, Module 3 folder
5, 14, and
Module 4 folder
Appendix A
There is an optional face-to-face help session on 11/20 at 5:30-6:30 pm for Homework #1.
Module 2
Pratt
Module 2 folder
Complete
Using
Chapters 2
Homework #2
Financial
and 5
and submit a
Statement
copy at the
Information
beginning of
class 11/22.
Module 3
Pratt Chapter Module 3 folder
Complete
Using Cash
5 and 14
Homework #3
Flow
and submit a
Information
copy at the
beginning of
class 11/23
Module 4
Pratt Chapter Module 4 folder
Measurement 3 and
Fundamentals Appendix A
Midterm will be distributed electronically before December 1 and will be Due before 8AM
(Atlanta time) Monday December 16, 2013.
Week Module 5
Pratt Chapter Module 5 folder
Submit
of
Cash and
6
Homework #4
12/8
Accounts
Webinar 12.14.13 10-11AM Atlanta time Allowance for
Please log in at
Receivable
Bad Debts
http://emory.adobeconnect.com/crosson1 before NOON
12/23
Week
of
12/15
Module 6
Merchandise
Inventory
Pratt Chapter
7
Module 6 folder
Week
of 1/5
Module 7
Current
Liabilities
Pratt Chapter
10 pages 437450
Module 7 folder
PRE-WORK
PERIOD FOR
FEBRUARY
RESIDENCY
Prepare for
Modules 8, 9,
and 10.
Module 8
Accounting
for
Investment
Decisions
Pratt
Chapters 8, 9,
10, 11, and
12
1/12 –
2/1
2/3
8:0011:30
2/4
8:0011:30
Module 9
Accounting
for Financing
Decisions
2/5
Module 10
Submit
Homework #5
Webinar 12.16.13 8-9PM Atlanta time
Alternative
Please log in at
Inventory
http://emory.adobeconnect.com/crosson1 Methods
before NOON
12/23
Enjoy the holidays 12/24 to 1/5.
Webinar 1.6.14 8-9PM Atlanta time
Please log in at
http://emory.adobeconnect.com/crosson1
Module 8 folder
Module 9 folder
Module 10 folder
Pratt Chapter
8 pages 33361 (equity
investments)
and Chapter 9
pages 385418
(property,
plant , and
equipment
and
intangibles)
Pratt Chapter
10 pages 4506 (contingent
liabilities),
Chapter 11
pages 485514 (bonds
and notes),
Module 8 folder
Complete
Homework #6
Alternative
Depreciation
Methods and
Equipment
Disposal and
submit a copy
at the
beginning of
class 2/4
Module 9 folder
Complete
Homework #7
Treatment of
Bonds and
Determining
the Effective
Interest Rate
and submit a
copy at the
beginning of
class 2/5
Chapter 12
Module 10 folder
8:0011:30
Accounting
for Financing
Decisions
(continued)
and
Sustainability
Reporting
pages 547-75
(owners’
equity)
Final Exam distributed electronically February 5 and is Due before 8:00 AM (Atlanta time) on
Monday February 24, 2014.