AIM 6344-502 Financial Statement Analysis

Fall 2005

I. Instructor

Dr. Rafal Szwejkowski [shvei-kov-ski]

Class Time: M 7:00 – 9:45

Classroom: SOM 2.804

Office: SOM 4.430

E-Mail: rafalsz@utdallas.edu
(please do not use WebCT mail)

Phone: 972-883-2738

Office hours: Mondays 4:00 – 5:30 p.m

Tuesdays 6:45 p.m. – 8:00 p.m.
or by appointment

TA: Oktay Urcan

(WebCT ID: oxu022000)

TA hours: TBA

II. Course Overview

Graduate level Financial Statement Analysis course combines fundamental concepts

of accounting, risk assessment, valuation and business strategy to enable students to
understand and use information in standard financial statements such as Balance
Sheet, Income Statement and Statement of Cash Flo ws.

III. Course Materials

Financial Reporting and Statement Analysis: A strategic Perspective Stickney,

Brown, Whalen, Thomson –Southwestern, 5th ed.

IV. Course Content & Objectives

Financial statement analysis requires integration of accounting and non-accounting

information provided by the firm in order to calculate approximate firm value. In this
course we will cover this process, starting from fundamental accounting concepts,
through assessment of risk and profitability, to business valuation.

V. Course Organization

The course is lecture oriented, with the in-class material supplemented by assigned
readings from the textbook.

The TA is responsible for most of the routine help/clarification requests. Do not send
direct email to me with such requests, try the TA first. Do not worry, if the TA
cannot deal with your question he will send it to me and you will receive a reply. Use
the following WebCT id: oxu022000.

Assignments and grades are going to be posted via WebCT.

VI. Grading

Exams will feature both descriptive and quantitative questions, and are not
exclusively multiple choice. There are three exams. The research project will involve
preparing an analyst’s report for a company of your choice.

Periodically assigned homework problems will count as extra credit (up to 5% of

your final grade). Homework can be submitted after the deadline will be given half
credit.

The following are the relative weights for each component:

Exam 1 25%
Exam 2 25%
Exam 3 (Final Exam) 25%
Project 25%
Homework +5%

In an event that you must miss class, make sure that you are current with all the
covered material and assigned readings.

VII. In-Class Conduct

Students are expected to behave in a professional manner.

VIII. Academic Honesty

All students are expected to behave in accordance with academic integrity. Strict
adherence to the Policy on Cheating as stated in the Regents’ Rules and Regulations,
part One, Chapter VI, Section 3, Subsection 3.2, subdivision 3.22 is expected. This
policy reads:

Students are expected to be above reproach in all-scholastic activities. Students who engage in
scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the
course and dismissal from the university. Scholastic dishonesty includes but is not limited to cheating,
plagiarism, collusion, the submission for credit of any work or materials that are attributable in whole
or in part to another person, taking an examination for another person, any act designed to give unfair
advantage to a student or attempt to commit such acts.
 AIM 6344-502: Financial Statement Analysis Fall 2005

Schedule of Classes and Exams

Date Topic
Overview of Financial Reporting and Financial
August 22
Statement Analysis

Asset and Liability Valuation and Income

August 29
Measurement

September 12 Income vs. Cash Flow

September 19 Profitability Analysis

September 26 Risk Analysis

October 3 Exam 1

Quality of Accounting Information and

October 10
Adjustments to Reported Financial Statement Data

October 17 Revenue and Liability Recognition

October 24 Forecasting I

October 31 Forecasting II

November 7 Exam 2

November 14 Valuation: Cash-Flow Based Approaches

November 21 Valuation: Earnings-Based Approaches

November 28 Valuation: Market-Based Approaches

Final Exam