Professional Documents
Culture Documents
Smrity Randhawa
Spring 2017 Syllabus
Office
Hours
Tuesdays
&
Thursdays
9
am
to
9:45
am
srand&
12:30
pm
to
1:45
pm
or
By
and
Location
Appointment;
ACC
210
Course
Notes
Lecture
slides
and
notes
and
other
class
information
will
be
available
on
Blackboard
Financial
Reporting,
Financial
Statement
Analysis
and
Valuation,
8th
Edition,
by
Required
Materials
Wahlen,
Baginski
and
Bradshaw
Prerequisites
1
from
BUAD
215
or
BUAD
306
and
1
from
ACCT
370
or
ACCT
370B
or
ACCT
415
Course
Description
and
Objectives
In
this
course
we
will
use
financial
statements,
related
disclosures
and
other
publicly
available
information
to
analyze
the
performance
of
firms.
Furthermore,
we
use
this
information
to
forecast
the
future
financial
performance
of
the
firm.
The
main
topics
of
focus
are
going
to
be
as
follows:
1. Understanding
the
impact
of
company’s
industry
and
strategy
on
its
financial
statements.
2. Evaluating
financial
statement
quality
of
a
given
company.
Do
financial
statements
present
the
correct
picture
of
the
current
financial
position
and
performance
of
the
firm?
Do
we
need
to
make
adjustments
to
the
presented
information
in
order
to
understand
the
financial
performance
of
the
company
better?
3. Using
the
current
financial
statement
&
other
publicly
available
information
to
forecast
the
future
financial
performance
of
the
firm.
4. Finally,
using
these
forecasted
financial
statements
as
an
input
to
value
a
firm.
This
class
will
focus
on
the
discounted
cash
flow
and
earning
based
valuation
approaches.
Required
Class
Materials:
1. Financial
Reporting,
Financial
Statement
Analysis
and
Valuation,
8th
Edition,
by
Wahlen,
Baginski
and
Bradshaw
(ISBN:
978-‐1-‐285-‐19090-‐7).
The
book
has
not
been
ordered
at
the
bookstore
because
there
are
a
number
of
cheaper
options
available:
a. You
can
get
access
to
an
eBook
from
the
publisher
(https://www.cengagebrain.com/shop/isbn/9781285190907&cid=APL1)
for
$41.49
for
4
months.
b. You
can
rent
the
Hardcover
for
$56.99
for
6
months
from
the
publisher
(you
get
access
to
the
eBook
for
free
while
the
book
ships).
The
main
caveat
is
that
you
might
have
to
pay
for
any
damage
to
the
book
at
the
end
of
the
rental
period.
c. You
can
buy
the
eChapters
for
$15.99
each.
We
use
8
chapters
from
the
book
so
the
total
cost
of
buying
8
chapters
would
be
around
$112
(the
first
chapter
is
free).
d. There
are
more
options
to
rent
or
buy
the
textbook
through
Amazon.com.
2. Additionally,
you
will
need
to
purchase
the
two
cases
from
HBS
(http://cb.hbsp.harvard.edu/cbmp/access/56508997).
The
two
cases
are
available
as
a
course
pack
for
$8.50.
Grading
Policies
Your
grade
in
this
class
will
be
determined
by
your
relative
performance
on
quizzes,
a
midterm
exam,
case
analyses,
a
final
project,
in-‐class
exercises
and
class-‐participation.
Weight
Individual
Case
Analysis
3%
Group
Case
Analysis
5%
Two
Quizzes
12%
Midterm
30%
Class
Participation
10%
In-‐class
Exercises
5%
Final
Project
35%
Final
grades
represent
how
you
perform
in
the
class
relative
to
other
students.
Your
grade
will
not
be
based
on
a
mandated
target,
but
on
your
performance.
Historically,
the
average
grade
for
this
class
is
about
a
3.3
(i.e.,
a
“B+”).
Three
items
are
considered
when
assigning
final
grades:
1.
Your
score
for
each
of
the
items
above
weighted
by
the
appropriate
factor
and
summed.
2.
Your
overall
percentage
score
for
the
course.
3.
Your
ranking
among
all
students
in
the
course(s)
taught
by
your
instructor
during
the
current
semester.
Individual
Case
Analysis
The
Individual
Case
(BNL
Case)
analysis
is
due
on
January
19th.
You
are
expected
to
answer
the
questions
in
less
than
2
pages
of
text
(not
including
the
data
analysis
for
supporting
your
findings).
This
case
will
provide
you
with
a
good
opportunity
to
work
on
your
Excel
skills.
Group
Case
Analysis
The
Group
Case
(NuWare
Case)
analysis
is
due
on
January
31st.
This
is
a
case
on
assessing
earnings
quality.
Each
group
is
expected
to
provide
one
printed
version
of
their
case
analysis.
The
text
should
not
exceed
3
pages
(not
including
the
data
analysis
for
supporting
your
findings).
Quizzes
There
will
be
two
quizzes
on
January
24th
and
February
21st
at
the
beginning
of
class.
Quizzes
may
include
multiple-‐choice
questions,
exercises
and
problems.
Quizzes
will
be
based
on
the
assigned
readings
and
class
discussions.
Midterm
There
will
be
one
midterm
exam
held
on
February
7th
during
class
time.
The
midterm
may
include
multiple-‐
choice
questions,
brief
essay
questions,
exercises
and
problems.
In
order
to
prepare
for
the
midterm
please
make
sure
you
understand
the
assigned
readings
and
the
concepts
discussed
in
class.
ACCT
416
Syllabus
–
Page
2
The
Leventhal
School
of
Accounting
policy
is
exams
should
not
be
missed
unless
there
is
a
very
serious
emergency
AND
it
can
be
properly
documented.
In
addition,
to
the
extent
possible,
you
must
inform
the
instructor
of
the
emergency
prior
to
the
exam
(it
is
understood
this
is
not
always
possible).
If
you
miss
an
exam
for
something
other
than
a
serious
emergency
and
/
or
you
cannot
provide
documentation,
you
will
receive
a
zero
grade
for
the
exam.
Class
Participation
Your
class
participation
score
will
be
based
on
the
following
factors:
1. Class
attendance:
This
class
covers
a
lot
of
material
in
half
a
semester,
as
a
result
it
is
really
important
to
attend
as
many
classes
as
possible.
2. Quality
of
comments
and
observations
made
in
class:
It
is
important
to
participate
in
class
discussions
and
provide
insightful
questions
and
comments.
3. Professionalism:
It
is
important
to
maintain
a
high
level
of
professionalism
while
interacting
with
your
peers.
Final
Project
For
your
final
project
you
will
be
working
in
a
team
of
4
to
5
students
to
analyze
a
company.
This
project
will
utilize
the
financial
statement
analysis,
forecasting
and
valuation
skills
you
will
learn
over
the
course
of
the
class.
No
more
than
one
team
from
a
section
can
select
the
same
company.
Please
note
that
you
will
need
to
use
your
Excel
skills
extensively
to
work
on
this
final
project.
The
grade
for
the
final
project
would
be
based
on
the
following
two
components:
Written
Component
65%
Team
Presentation
35%
100%
The
project
outline
details
will
be
available
by
February
7th.
Scores
for
individual
student
contributions
to
team
projects
are
assigned
by
me,
based
on
my
observations
of
the
team’s
working
dynamics,
my
assessment
of
the
team’s
project
quality,
and
thoughtful
consideration
of
the
information
provided
through
your
peer
evaluations.
Add
/
Drop
Policy
In
compliance
with
USC
and
Marshall’s
policies,
classes
are
open
enrollment
(R-‐clearance)
through
the
first
week
of
class.
All
classes
are
closed
(switched
to
D-‐clearance)
at
the
end
of
the
first
week.
This
policy
minimizes
the
complexity
of
the
registration
process
for
students
by
standardizing
across
classes.
I
can
drop
you
from
my
class
if
you
don’t
attend
the
first
two
sessions.
Please
note:
If
you
decide
to
drop,
or
if
you
choose
not
to
attend
the
first
two
sessions
and
are
dropped,
you
risk
being
not
being
able
to
add
to
another
section
this
semester,
since
they
might
reach
capacity.
You
can
only
add
a
class
after
the
first
week
of
classes
if
you
receive
approval
from
the
instructor.
Marshall
Grading
Guidelines
Course
Grading
Policy:
Marshall’s
target
mean
GPA
is
3.0
for
required
classes
and
3.3
for
electives.
The
mean
target
for
graduate
classes
is
3.3.
Assignment/Exam
Grading
Policy:
The
instructor
determines
what
qualifies
as
an
accurate
grade
on
an
assignment,
exam,
or
other
deliverable,
and
the
instructor’s
evaluation
of
the
performance
of
each
individual
student
is
the
final
basis
for
assigning
grades
for
the
course.
ACCT
416
Syllabus
–
Page
3
Retention
of
Graded
Coursework
All
graded
work
which
affects
the
course
grade
will
be
retained
for
one
year
after
the
end
of
the
course
if
the
graded
work
has
not
been
returned
to
the
student
(i.e.,
if
I
return
a
graded
paper
to
you,
it
is
your
responsibility
to
retain
it).
Technology
Policy
Laptop
and
Internet
usage
is
not
permitted
during
academic
or
professional
sessions
unless
otherwise
stated
by
the
respective
professor
and/or
staff.
Use
of
other
personal
communication
devices,
such
as
cell
phones,
is
considered
unprofessional
and
is
not
permitted
during
academic
or
professional
sessions.
ANY
e-‐devices
(cell
phones,
PDAs,
iPhones,
Blackberries,
other
texting
devices,
laptops,
iPods,
iPads,
etc.)
must
be
completely
turned
off
during
class
time.
Upon
request,
you
must
comply
and
put
your
device
on
the
table
in
off
mode
and
FACE
DOWN.
You
might
also
be
asked
to
deposit
your
devices
in
a
designated
area
in
the
classroom.
Videotaping
faculty
lectures
is
not
permitted,
due
to
copyright
infringement
regulations.
Audio
taping
may
be
permitted
with
prior
approval
by
the
professor.
Use
of
any
recorded
material
is
reserved
exclusively
for
USC
Marshall
students.
Statement
for
Students
with
Disabilities
Any
student
requesting
academic
accommodations
based
on
a
disability
is
required
to
register
with
Disability
Services
and
Programs
(DSP)
each
semester.
A
letter
of
verification
for
approved
accommodations
can
be
obtained
from
DSP.
Please
be
sure
the
letter
is
delivered
to
me
as
early
in
the
semester
as
possible.
DSP
is
located
in
STU
301
and
is
open
8:30
a.m.–5:00
p.m.,
Monday
through
Friday.
The
phone
number
for
DSP
is
(213)
740-‐0776.
Statement
on
Academic
Integrity
USC
seeks
to
maintain
an
optimal
learning
environment.
General
principles
of
academic
honesty
include
the
concept
of
respect
for
the
intellectual
property
of
others,
the
expectation
that
individual
work
will
be
submitted
unless
otherwise
allowed
by
an
instructor,
and
the
obligations
both
to
protect
one’s
own
academic
work
from
misuse
by
others
as
well
as
to
avoid
using
another’s
work
as
one’s
own.
All
students
are
expected
to
understand
and
abide
by
these
principles.
SCampus,
the
Student
Guidebook,
contains
the
Student
Conduct
Code
in
Section
11.00,
while
the
recommended
sanctions
are
located
in
Appendix
A
of
the
Student
Guidebook.
http://scampus.usc.edu/university-‐governance/
Students
will
be
referred
to
the
Office
of
Student
Judicial
Affairs
and
Community
Standards
for
further
review,
should
there
be
any
suspicion
of
academic
dishonesty.
The
Review
process
can
be
found
at
http://www.usc.edu/student-‐affairs/SJACS/
Failure
to
adhere
to
the
academic
conduct
standards
set
forth
by
these
guidelines
and
our
programs
will
not
be
tolerated
by
the
USC
Marshall
community
and
can
lead
to
dismissal.
Emergency
Preparedness/Course
Continuity
In
case
of
emergency,
and
travel
to
campus
is
difficult,
USC
executive
leadership
will
announce
an
electronic
way
for
instructors
to
teach
students
in
their
residence
halls
or
homes
using
a
combination
of
Blackboard,
teleconferencing,
and
other
technologies.
ACCT
416
Syllabus
–
Page
4
ACCT 416 | Financial Reporting & Analysis
Session Date Chapter Topic Assigned Reading* Deliverables
Introduction to the Financial
Statement Analysis, Public
sources of company data,
Understanding the Industry of a
1 Jan 10 Company Chapter 1- pp. 1 to 30
Understanding the Industry &
Company's Strategy (Contd.) &
2 Jan 12 Statement of Cash Flows Chapter 3 - pp. 148 to 182
Statement of Cash Flows (Contd.)
3 Jan 17 & Introduction Profitability Analysis Chapter 4 - pp. 241 to 297
BNL Case
4 Jan 19 BNL Case Chapter 3 - pp. 182 to 195 Analysis
5 Jan 24 Risk Analysis Chapter 5- pp. 353 to 380
Chapter 6- pp. 416 to 425,
6 Jan 26 Accounting Quality 443 to 469
Nuware Case
7 Jan 31 Nuware Case Analysis
8 Feb 2 Midterm Review
9 Feb 7 Midterm
Chapter 10 - pp. 761 to
10 Feb 9 Forecasting Financial Statements 787
Chapter 10 - pp. 787 to
11 Feb 14 Forecasting Financial Statements 822
Chapter 12 - pp. 905 to
908, Exhibit 12.2 (Right
hand side), 914 to 915,
920, 922 to 924, 927 to
12 Feb 16 DCF Model 932
Chapter 13 - pp. 967 to
13 Feb 21 Earnings Based Model 976, 981 to 987
Sensitivity Analysis/Day to work
14 Feb 23 on project
15 Feb 28 Group presentations Final Project
16 Mar 2 Group presentations Final Project
*Wahlen, Baginski and Bradshaw
ACCT
416
Syllabus
–
Page
5
ACCT 416 | Financial Reporting & Analysis
USC Leventhal School of Accounting
Important Dates
Spring 2017
Leventhal Scholarship Applications Due
Monday, February 6
USC Career Day
Thursday, February 9
Summer Leadership Programs, Information Session Panel Friday, February 10, Noon
Meet the Firms – Galen Center (Accounting Society) Wednesday, February 15, 6-9pm
Last Class Meeting for Regular (001) and 442 sessions Friday, April 28
ACCT
416
Syllabus
–
Page
6
ACCT 416 | Financial Reporting & Analysis
The
Leventhal
School
of
Accounting
adheres
strictly
to
the
grading
standards
of
the
University
and
the
School
of
Business
Administration.
Additionally,
the
Leventhal
School
of
Accounting
has
supplemented
those
standards
with
certain
others.
For
students'
convenience,
and
to
prevent
misunderstanding,
these
additional
standards
are
summarized
below.
GRADING STANDARDS
The
following
grades
are
used:
A
-‐
excellent;
B
-‐
good;
C
-‐
fair;
D
-‐
minimum
passing;
F
-‐
failure.
The
grade
of
F
is
awarded
for
failing
work
at
the
end
of
the
semester.
The
assignment
of
minuses
and
pluses
when
earned
is
required.
The
grade
of
W
(Withdraw)
is
assigned
if
the
student
officially
withdraws
after
the
third
week
but
before
the
end
of
the
twelfth
week
of
the
semester.
No
withdrawals
will
be
permitted
after
the
end
of
the
twelfth
week
except
by
student
petition
to
the
University's
Committee
on
Academic
Policies
and
Procedures.
Students
may
elect
to
audit
courses
during
the
first
three
weeks
of
the
semester.
A
course
taken
for
audit
(V)
will
be
assessed
at
the
current
tuition
rate.
A
course
taken
for
audit
(V)
will
not
receive
credit
and
will
not
appear
on
the
USC
transcript
or
grade
report.
Under
no
circumstances
will
the
University
allow
a
change
in
the
registration
status
of
a
course
from
letter
grade
or
credit
to
audit
(V)
or
vice
versa
after
the
third
week
of
a
given
semester.
In
incomplete
(IN)
grade
may
be
assigned
due
to
an
“emergency”
that
occurs
after
the
6th
week
of
classes
for
half
semester
courses
or
the
12th
week
for
full-‐semester
courses..
An
“emergency”
is
defined
as
a
serious
documented
illness,
or
an
unforeseen
situation
that
is
beyond
the
student’s
control,
that
prevents
a
student
from
completing
the
semester.
Prior
to
the
6th
or
12th
week,
the
student
still
has
the
option
of
dropping
the
class.
Arrangements
for
completing
an
IN
course
should
be
initiated
by
the
student,
and
negotiated
with
the
instructor.
Class
work
to
complete
the
course
should
be
completed
within
one
calendar
year
from
the
date
the
IN
was
assigned.
The
IN
mark
will
be
converted
to
an
F
grade
should
the
course
not
be
completed.
Students
enrolled
in
any
class
offered
by
the
Leventhal
School
of
Accounting
are
expected
to
uphold
and
adhere
to
the
standards
of
academic
integrity
established
by
the
Leventhal
School
of
Accounting
Student
Honor
Code.
Students
are
responsible
for
obtaining,
reading,
and
understanding
the
Honor
Code
System
handbook.
Students
who
are
found
to
have
violated
the
Code
will
be
subject
to
disciplinary
action
as
described
in
the
handbook.
For
more
specific
information,
please
refer
to
the
Student
Honor
Code
System
handbook,
available
in
class
or
from
the
receptionist
in
ACC
101.
ACCT
416
Syllabus
–
Page
7
ACCT 416 | Financial Reporting & Analysis
The
grade
point
average
prerequisites
for
any
undergraduate
student
enrolled
in
any
accounting
course
is:
a
minimum
2.5
gpa
for
all
completed
accounting
courses
for
students
entering
USC
prior
to
Fall
2013;
a
minimum
2.7
gpa
for
all
completed
accounting
courses
for
students
entering
USC
in
Fall
2013
or
later.
In
computing
grade
point
average
prerequisites,
BUAD
280,
281,
285ab,
286ab,
305
and
302T
are
considered
accounting
courses.
Grades
in
accounting
courses
taken
at
other
institutions
will
not
be
included
in
the
computation
of
the
cumulative
accounting
grade
point
average.
When
a
student's
cumulative
accounting
grade
point
average
falls
below
2.5
or
2.7,
the
student
is
placed
on
probation.
If
a
student
on
probation
does
not
regain
a
minimum
accounting
cumulative
GPA
of
2.5
or
2.7
after
completing
the
next
12
semester
hours
in
all
courses
(including
accounting
courses)
attempted
within
the
University,
that
student
will
not
be
permitted
to
continue
as
an
accounting
major
in
the
Leventhal
School
of
Accounting.
Exceptions
to
this
policy
may
be
granted
only
in
unusual
circumstances
by
the
Academic
Standards
Committee
of
the
Leventhal
School
of
Accounting.
Decisions
of
the
Academic
Standards
Committee
are
final.
To
be
removed
from
probationary
status,
a
student
may
elect
either
to
take
another
accounting
course
or
courses
for
which
prerequisites
are
met
or
to
repeat
an
accounting
course
or
courses
in
an
attempt
to
earn
a
higher
grade.
Regardless
of
the
course
of
action
taken,
all
courses
completed
will
be
counted
in
computing
the
cumulative
accounting
grade
point
average.
The
grade
of
"W"
in
an
accounting
course
taken
while
a
student
is
on
probation
will
not
extend
probation.
The
probation
period
ends
at
the
end
of
that
semester
during
which
the
student
completes
a
cumulative
total
of
12
semester
hours
of
courses
in
any
subject(s)
at
the
university.
Under
no
conditions
will
the
student
be
permitted
more
than
two
successive
semesters,
including
the
summer
semester,
to
complete
the
12
semester
hours
of
courses.
Students
must
attain
a
minimum
2.5
or
2.7
cumulative
accounting
grade
point
average
to
graduate
with
a
Bachelor
of
Science
in
Accounting
degree.
See
the
USC
Catalogue
for
further
restrictions
on
including
grades
in
repeated
classes
in
the
overall
grade
point
average
computation.
1.
The
ability
of
students
to
write
clearly
and
concisely
is
a
necessary
prerequisite
to
success
in
accounting
work.
Accordingly,
students
will
be
required
to
demonstrate
writing
capability
in
all
accounting
courses.
This
may
be
accomplished
primarily
through
the
inclusion
of
essay-‐type
questions
on
course
examinations.
ACCT
416
Syllabus
–
Page
8