THE INTERNATIONAL BUSINESS SCHOOL
BRANDEIS UNIVERSITY
FIN216f FINANCIAL STATEMENT ANALYSIS
Spring 2016 Module I
Professor: Lydia Schroter
Office location: Sachar International 1D
Office hours: By Appointment
774-573-9977
lschroter@brandeis.edu
TA: TBD
COURSE PRE-REQUISITE: FIN212a or FIN213a
COURSE DESCRIPTION AND OBJECTIVES
The primary objective of this course is to present techniques of financial statement analysis that deepen
the understanding of financial statements and the information they provide. The course will expose
students to the contemporary financial reporting environment and current reporting practices of U.S.
companies. Students will analyze cases to foster an understanding of the economic and strategic
information conveyed in financial reports. This course will NOT cover equity valuation. The course is
organized in the following manner:
 Introduction and Review of Financial Reporting and Statements
 Financial Analysis Techniques using financial ratios and cash flow analysis
 Case Studies
LEARNING GOALS AND OUTCOMES:
The course has been designed to achieve the following goals and outcomes:
1. Business Strategy Analysis: Identify key value drivers and risks of a firm.
2. Accounting Analysis: Evaluate accounting policies, earnings quality, and adjustments necessary
to best reflect a firm’s economic reality.
3. Financial Statement Analysis: Apply analytical tools and techniques to financial statements and
related data to derive estimates and inferences useful in business decision making.
COURSE MATERIALS:
Charles H. Gibson; Financial Reporting and Analysis: Using Financial Accounting
Information, 13e, South-Western Cengage Learning, 2013. (Required). For online e textbook,
visit ( http://www.coursesmart.com/IR/8491214/9781133188797?__hdv=6.8)
COURSE REQUIREMENTS AND GRADING POLICY
Course Grading and Exams
Your course grade will be determined based on the following formula:
Class Participation & Attendance
Homework assignments
Assigned Cases (4)
Final Exam
10%
10% (chapter 1-4)
40%
40%
100%
Class Participation:
Attendance is required. Students are expected to adequately prepare for each class session and to
actively participate in class discussion. Class participation involves being regularly engaged in the
discussion/lecture and making a positive contribution by asking thoughtful questions, sharing relevant
experiences, requesting clarification and making comments.
Homework: (Chapter 1-4)
Homework will be assigned to facilitate course learning.
graded.
Homework solutions will be collected and
Cases
Case assignments should be submitted for grading via Latte prior to the class due date. Copies of the
case should be brought to class for discussion. NO LATE ASSIGNMENTS WILL BE ACCEPTED EXCEPT
IN EXTREME HARDSHIP CIRCUMSTANCES AND MUST BE PRE-APPROVED BY THE
INSTRUCTOR. The instructor will grade your case and provide feedback.
You can find the three assigned cases at https://cb.hbsp.harvard.edu/cbmp/access/tbd
Final Exam
THERE WILL BE NO MAKE-UP EXAM GIVEN. The final exam will be administered on the last
night of class. The exam will be comprehensive and will include all material covered in class. The
exam will be open book and usage of a lap top will be permitted.
Student Accommodations
If you are a student with a documented disability on record at Brandeis University and wish to have a
reasonable accommodation made for you in this class, please see me.
Academic Integrity
Academic integrity is central to the mission of educational excellence at Brandeis University. Each
student is expected to turn in work completed independently, except when assignments specifically
authorize collaborative effort. It is not acceptable to use the words or ideas of another person- be it a
world-class philosopher or your lab partner- without proper acknowledgement of that source. This
means that you must use footnotes and quotation marks to indicate the sources of any phrases,
sentences, paragraphs or ideas found in published volumes, on the internet, or created by another
student. You are expected to be familiar with and to follow the University’s policies on academic
integrity (see http://www.brandeis.edu/studentlife/sdc/ai/). Instances of alleged dishonesty will be
forwarded to the Office of Campus Life for possible referral to the Student Judicial System. Potential
sanctions include failure in the course and suspension from the University.
Academic honesty
You are expected to be honest in all of your academic work. Please consult Brandeis University Rights
and Responsibilities for all policies and procedures related to academic integrity. Students may be
required to submit work to TurnItIn.com software to verify originality. Allegations of alleged academic
dishonesty will be forwarded to the Director of Academic Integrity. Sanctions for academic dishonesty
can include failing grades and/or suspension from the university. Citation and research assistance can
be found at LTS - Library guides
International Students
If you enroll in an internship or experiential learning (EL) practicum course, and are required to pursue
an activity off-campus as part of the course, you may be required to obtain authorization from the
International Students and Scholars Office (ISSO) or U.S. Citizenship and Immigration Services based
on your student visa status BEFORE beginning the off-campus activity. Please email
isso@brandeis.edu to schedule an appointment with your ISSO advisor to determine if such
authorization is required.
**********************************************************************************
Tentative Schedule
NOTE: Case assignments should be submitted for grading via Latte prior to the class due date.
Date
1/19/16
1/26/16
2/2/16
2/9/16
2/16/16
2/23/2016
03/1/2016
3/8/2016
Topic
Introduction to Financial
Reporting
Introduction to Financial
Statements and Other
Financial Reporting
Topics
Balance Sheet
Reading
Chapter I
Income Statement
Chapter 4
Basics of Analysis
Liquidity of Short Term
Assets: Related DebtPaying Ability
Expanded Analysis/LIFO
Reserve
Solvency: Long Term
Debt-Paying Ability
No class
Profitability
For the Investors
Statement of Cash Flows
Final Exam
Chapter 5
Chapter 6
Chapter 2
Chapter 3
Chapter 11
Homework Assignments and HBP case
P1-2
Case 1-5
P2-6. P2-7
Case 2-3, Case 2-5
P3-14
Case 3-8
P4-16, p4-17
Case 4-1
HBP case: TBD
HBP case: TBD
Chapter 7
Chapter 8
Chapter 9
Chapter 10
HBP case: TBD
HBP case: TBD
NOTE:
*Prior to the first night of class, students are expected to review the materials from their pre-requisite
financial accounting course(s). Students are expected to have a full comprehension of introductory financial
accounting prior to this course.