Financial Accounting
BMA 5003
2014 Semester I
Professor Srini Sankaraguruswamy
BIZ 1 #07-34
6516-4473 (voice)
Skype: srinisankar or srini sankar
Email: bizsrini@nus.edu.sg
Class Meetings
Tuesday 3 to 6
Wednesday 6 to 9
Thursday 3 to 6
Description
The course stresses the theory of accounts, generally accepted accounting principles, and the
interpretation of financial statements. The perspective of the course is that of managers and
investors as knowledgeable users of accounting information.
Course Objectives
After taking this course, you should:
==> Have a broad view of the role of accounting in providing information for financial markets.
==> Understand the fundamental accounting concepts, principles, the elements of financial
statements, and the implications of management’s judgment and choice in accounting
measurement.
==> Know how the principles of accounting may prompt opportunistic behavior by management
to further their own gain.
==> Have basic competence to comprehend how accounting numbers are created and to analyze,
synthesize, and evaluate accounting information in the context of concrete business problems.
==> Be aware of international differences in accounting and of multinational accounting problems.
==> Develop sensitivity to ethical and social issues and to the macro implications of accounting.
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Pedagogical Notes
The objectives of the course are achieved through a combination of lectures, discussion, problem
solving, reading, and financial analysis projects. I want to stress from the outset that this is a
challenging course. It is also enjoyable and rewarding. I have planned the different elements of the
course keeping in mind that I want to get a graduate student with a rudimentary or no knowledge
of basic accounting to a level that will make her or him competitive in an increasingly global
environment. This is a challenging but attainable goal. Remember that accounting is cumulative.
It can best be learned incrementally and gradually. It cannot be learned all at once. Experience
shows that best learning results can be achieved by keeping up with new material and concepts
as they are introduced and by mastering each major new concept before proceeding to the next.
Experience also shows that class lecture/discussion can be effective only if the topics have been
reviewed beforehand. So here are a few simple steps you should follow: (1) read the assigned
chapter and related class notes and attempt some of the assigned problems before the topic is
discussed in class, (2) participate in class discussion to clarify the issues that were not clear
enough when you first read the chapter or class notes, and (3) read the chapter and class notes
again after class and attempt a few more problems. Also remember that correct answers to
problems are less essential than studying and comprehending the issues and concepts to gain
familiarity with underlying objectives of financial reporting. Class discussion of problems,
collaborative and individual work, research, and analysis are essential for gaining proficiency and
communicating your thoughts and ideas to others. Only through constant reinforcement, questions
and answers and individual reflection will it be possible to gain a sufficient level of comfort in a
short period of time.
Text and Collateral Readings
Financial Accounting, Eighth Edition, Short, Libby, and Libby (SL&L), McGraw Hill, 2014
Lecture notes, assignments, and past exams will be posted periodically on IVLE. Please check
IVLE regularly for new material.
The Asian Wall Street Journal is recommended, a few minutes reading every day.
Useful Websites
==> Securities and Exchange Commission filings: www.sec.gov. Select EDGAR for company
data. This is the main site for company annual reports (10-Ks) and quarterly reports (10-Qs).
==> FASB website for financial accounting standards: www.fasb.org.
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IASC website for international financial accounting standards: www.iasc.org.uk
Business times Singapore www.businesstimes.com.sg (Available on NUS Library web site)
CNBC: http://www.cnbc.com/
FT: http://www.ft.com/home/asia
Assignments and Examinations
A tentative schedule of assignments is attached. Any changes will be announced in class.
Quizzes
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There will be three quizzes. The quizzes will be cumulative and closed book. This is mainly
because the concepts and topics in this course are so basic and important for your career, including
interviews and internships, that it is imperative to know them without having to resort to books.
Copies of past exams will be posted on IVLE. Each quiz will count for 25 points.
Crunchy Cones
The goal of the project is to develop projected financial statements for a new business. Separate
instructions for the project will be distributed. This project will count for 5 points of your grade
and is individual effort. Please do not pass excel sheets around and use only the one from IVLE as
your template.
Annual Report Project
For this project, you will work with a group. You will select two publicly traded companies from
the same industry. You are expected to become an “expert” on your companies and contribute that
knowledge to class discussion. You are also required to complete a written end-of-semester group
report that analyzes the companies’ financials and accounting and disclosure policies. The project
is due the last day of classes. It will count for 10 points.
Cases
We will study 4 cases during the course. These cases are group effort and your group will submit a
write up on the case before the class starts. The cases will be discussed in class by group and I will
call upon all or any groups to discuss parts of the case. The cases will count for 10 points.
Grade Determination
Your grade will be based on the following:
1st quiz
2nd quiz
3rd quiz
Cases
Annual Report Project
Participation
25 points
25 points
25 points
10 points
10 points
5 points
100 points
Policy on Class Attendance
Students are responsible for adhering to all course procedures and policies, including class
attendance, set down by an instructor for the successful completion of a course; absence from class
for whatever reason carries with it the obligation of making up missed work.
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