ACG 6026 ACCOUNTING FOR MANAGERS EMBA (Boot camp, November 30 and December 1) Class dates, December 4, February 19, 2011

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1 ACG 6026 ACCOUNTING FOR MANAGERS EMBA (Boot camp, November 30 and December 1) Class dates, December 4, February 19, 2011 GENERAL INFORMATION Instructor: Ruth Ann Mc Ewen Phone: Office: RB 210 Office Hours: Saturday 12:30 PM TO 1:30 PM, and by appointment Class Sessions: Boot camp: November 30 and December 1, 6-8:30 pm in CBC 240; 8:30am - 12:30 on December 4,11,18 and January 8 in CBC 154; 1:30pm 5:30 on January 15, 22, 29, February 12 and 19 in CBC RuthAnn.McEwen@fiu.edu COURSE DESCRIPTION Please do not leave the classroom while class is in session. The extensive use of accounting information is central to organizational evaluation and performance measurement. The current economic climate has centered financial accounting in national debate. Mark-to-market has evolved from a technical accounting treatment of certain types of investments to a commonly used phrase. In addition, the SEC indicates that the US may adopt international financial reporting standards (IFRS). Further, recent corporate events, like backdating of stock options, implementation issues with The Sarbanes-Oxley Act, the conviction of top executives for accounting scandals, etc., have brought ethical issues to center stage. In this course we will focus on accounting as an information system that measures performance and provides decision useful information stakeholders like stockholders, other financial market participants, governmental regulators, and managers. This course has two components: financial accounting (nearly 80% of the course) and managerial Page 1 of 10

2 accounting (20%). The objective of the financial accounting component is to develop an understanding of how business transactions are accounted for according to GAAP (Generally Accepted Accounting Principles), how financial statements are prepared and the analysis of information in the financial statements. The course will highlight critical areas of divergence between US GAAP and International Financial Reporting Standards. The objective of the managerial accounting component is to understand cost, its measurement, analysis, relationship to profits, and its use in budgeting and performance evaluation by managers. Throughout this course, we will pay considerable attention to the ethical conflicts involved in the preparation, analysis and use of accounting information for decision making, particularly, performance evaluation. COURSE OBJECTIVES At the conclusion of this course, you should be able to: Understand key accounting principles that underlie a corporate annual financial statements Master the basic accounting cycle, and understand journal entries Analyze disclosures in the income statement, balance sheet, statement of owners equity, and statement of cash flows Account for basic transactions involving cash, receivables, inventories, investments, plant assets, intangible assets, current and long term liabilities, and stockholders equity Analyze costs and link them to key business activities and business profitability Use accounting information for managerial decisions and performance evaluation MAJOR & CURRICULUM OBJECTIVES TARGETED The preparation of financial statements Use of accounting information for managerial decisions and performance evaluation. TEXTBOOK and Class Notes Accounting: Tools for Business Decision Making (3rd edition) by Kimmel, Weygandt, and Kieso [E-book with Wiley-Plus provides problems and solutions. Since I do not assign or collect homework, this tool will be extremely helpful.] Publisher: Wiley ISBN: PowerPoint slides of each lecture are available for you in BlackBoard. Page 2 of 10

3 Harvard Business School Online Course and BOOT CAMP Since many of you are being exposed to financial accounting for the first time, you have been provided access to an online accounting primer course by Harvard Business School, and two boot camp sessions are scheduled. Tuesday, November 30, CBC 240 Thursday, December 1 (you will take a quiz on this day, see below), CBC 240 *On November 30, we will go over what you should have learned from the online materials. On December 1, you will take a quiz that tests your understanding of the material. We will discuss solutions to the quiz in the remaining time that day. This quiz is not part of the class grade. TEACHING METHODOLOGY A typical class would involve lecture, discussions, and students working on assignments in groups. I would expect the students to have read the material assigned prior to class. Missed in-class assignments cannot be made up. I do not assign nor do I collect homework. Attendance in every meeting is essential. Missed exams cannot be made up. However, I will drop the lowest score. COURSE PREREQUISITES For more information about prerequisites, click here. COMMUNICATING WITH THE INSTRUCTOR is my most preferred mode of communication GRADING Course Requirements Weights Tests (I will drop the lowest exam score) 60% Financial Analysis Project (Group) 30% Page 3 of 10

4 In-class group assignments 10% Total 100% Letter Range Grade A % A B B B C F <70 ASSURANCE OF LEARNING As a College, we care about the quality of the business education we are providing you. More on the College s commitment to Assurance of Learning can be found at the following link: The Accounting Cycle Examination You should plan to meet with the group assigned to you by the EMBA office several times across the first few weeks of class. During our first class session, I will cover financial statements derived from the accounting cycle, summarized in Chapters 1-5. After that class, I will assign a problem as a take home examination. I expect you to work with your group to complete the exam during the first week of class. Your group will turn in one paper examination at the beginning of Session 2. This exam is open book and open notes. Your score for the exam will be based 50% on the correctness of the work and 50% on the assessment of the other students in your group concerning your participation in the assignment. Fgfgfgf In Class Exams These will be taken in class on an individual basis. They will reflect material discussed in class, in the homework and assigned readings. You may not use notes, books or information from other students. Generally, these exams will consist of multiple choice questions to be answered in 2 hours. You may not use smart phone calculators for the exams. Since they will be graded by a machine, you must use a #2 pencil for the exams. Page 4 of 10

5 FINANCIAL ANALYSIS PROJECT Your final group assignment is to perform financial statement analysis for a company whose securities are traded on the US NYSE Stock Exchange. Each group should perform a ratio analysis of financial information, disclosures in the annual statements and the business press, and interpret this information from the point of view of an investor. You will find the format for this assignment on the F/S scoring rubric on the Blackboard web site. Each group member must present in class using PowerPoint, and the group must submit a written report. The report must focus on whether you would recommend investing in this company, and why. Your report is limited to 10 pages excluding ratios, graphs or other illustrations. The format for your report is summarized by the Financial Statement grading rubric in BlackBoard. Be sure to use proper English in your report. Your group may choose the company, but I must approve it. IN-CLASS GROUP ASSIGNMENTS Complex problems from the textbook will be assigned. You will work on these problems in your groups. Some will involve making a written recommendation. These would be graded for effort and writing. Students who miss a class CANNOT make up any missed in-class group assignment. RESEARCH PAPER There is no research paper required for this class. However see Financial Analysis Project above. DISABILITY NOTICE If you have a disability and need assistance, please contact the Disability Resource Center (University Park: GC190; ) (North Campus: WUC139, ). Upon contact, the Disability Resource Center will review your request and contact your professors or other personnel to make arrangements for appropriate modification and/or assistance. RELIGIOUS HOLIDAYS The University's policy on religious holy days as stated in the University Catalog and Student Handbook will be followed in this class. Any student may request to be excused from class to observe a religious holy day of his or her faith. RULES, POLICIES, and ACADEMIC MISCONDUCT Page 5 of 10

6 It is expected that interactive learning and teaching will enrich the learning experience of all students, and that each student will work in partnership with the professor to create a positive learning experience for all. Student engagement is a necessary condition for an effective learning experience, and includes contributions to debate and discussion (if any), positive interactive learning with others, and an enthusiastic attitude towards inquiry. Everyone is expected to be a positive contributor to the class learning community, and students are expected to share the responsibility of teaching each other. Statement of Understanding between Professor and Student Every student must respect the right of all to have an equitable opportunity to learn and honestly demonstrate the quality of their learning. Therefore, all students must adhere to a standard of academic conduct, demonstrating respect for themselves, their fellow students, and the educational mission of the University. As a student in the College of Business taking this class: I will not represent someone else s work as my own I will not cheat, nor will I aid in another s cheating I will be honest in my academic endeavors I understand that if I am found responsible for academic misconduct, I will be subject to the academic misconduct procedures and sanctions as outlined in the Student Handbook Failure to adhere to the guidelines stated above may result in one of the following: Expulsion: Permanent separation of the student from the University, preventing readmission to the institution. This sanction shall be recorded on the student's transcript. Suspension: Temporary separation of the student from the University for a specific period of time. Additionally the following two documents should be used by every student in business classes that require individual or group written assignments: Certification of Authorship Assignment Cover Page (Individual) Certification of Authorship Assignment Cover Page (Groups) For details on the policy and procedure go to ACADEMIC MISCONDUCT. (Section 2.44) NOTE: Intensive Auditing of the course will be conducted to prevent academic misconduct. Laptop and smart-phone policy: I do not allow open laptops or use of smart-phones during class. You may not use smart-phone calculators during your exams. EXPECTATION OF THIS COURSE Page 6 of 10

7 If you diligently work through the material, participate actively in class, and turn in a wellresearched and executed financial analysis project, you should be able to achieve the course objectives listed earlier. COURSE CALENDAR Session 1: The Evolving Accounting Environment in the US (December 4) 8:30am - 12:30 on December 4,11,18 and January 8 Lecture Topics: 1) The economic environment of accounting 2) Adoption of international accounting standards in the US. 3) Detailed structure of the major financial statements 4) The accounting cycle and financial statements PowerPoint and Text Readings: 1) Class Notes US Accounting Environment and Standard Setting Accounting Cycle and Financial Statements 2) Text Chapters 1-5 Exam 1 will be assigned. Session 2: Accounting for Assets (December 11) 8:30am - 12:30 on December 4,11,18 and January 8 Exam 1 is due at the beginning of Session 2 (8:30 am). I do not accept late assignments. Your score for the exam will be based 50% on the correctness of the work and 50% on the assessment of the other students in your group concerning your participation in the assignment. Lecture Topics: 1) Nature of current assets and accounting for current assets 2) Issues related to accounting for long-lived real assets 3) Issues related to accounting for intangible assets and impairments 4) Inventory Readings: 1) Class Notes Accounting for Assets Inventories Page 7 of 10

8 2) Text Chapters 6, 7, 8, 9 There will be an in-class assignment in Session 2. Session 3: Accounting for Liabilities, Present Value, Bonds, Stockholders Equity, Treasury Stock and EPS (December 18). 8:30am - 12:30 on December 4,11,18 and January 8 Exam 2 on Assets Chapters 6, 7, 8, 9 at the beginning of Session 3 Lecture Topics: 1) Nature of current and long-term liabilities. 2) Accounting for long-term liabilities, specifically, the use of market rates for Bonds. 3) Components of stockholders equity. 4) Transactions involving common and preferred shares. 5) Accounting for treasury stock Transactions; EPS. Readings: 1) Class Notes Accounting for Liabilities, Stockholders Equity, EPS 2) Text Chapters 10 (including Appendices A and B), Chapter 11 Session 4: Accounting for Liabilities, Present Value, Bonds, Stockholders Equity, Treasury Stock and EPS (January 8). 8:30am - 12:30 on December 4,11,18 and January 8 There will be an in class assignment in Session 4 Lecture Topics: 1) Nature of current and long-term liabilities. 2) Accounting for long-term liabilities, specifically, the use of market rates for Bonds. 3) Components of stockholders equity. 4) Transactions involving common and preference shares. 5) Accounting for treasury stock Transactions; EPS. Readings: 1) Class Notes Accounting for Liabilities, Stockholders Equity, EPS 2) Text Chapters 10 (including Appendices A and B), Chapter 11 Page 8 of 10

9 Session 5: Cash Flow, Basic Financial Statement Analysis (January 15) 1:30pm 5:30 on January 15, 22, 29, February 12 and 19 Exam 3 on Chapters 10 ((including Appendices A and B), Chapter 11 Lecture Topics: 1) Structure and two main methods of preparing cash flow statements 2) Computation of key ratios and their interpretations. 3) Limitations of ratio and financial analyses. 4) Ethical, accounting and economic issues re: executive compensation 5) Ethical issues created by incentives for financial analysts. Readings: 1) Class Notes Statement of Cash Flows Financial Ratios 2) Text Chapters 12 and 13 and appendix to Ch 13 Session 6: Cost-Volume-Profit and Other Topics in Managerial Accounting (January 22) 1:30pm 5:30 on January 15, 22, 29, February 12 and 19 There will be an in class assignment in Session 6 Topics: 1) Various definitions of cost 2) Cost-Volume-Profit Relationships 3) Decision-making using costs Readings: Text Chapters 14, 18, 19 and 23 Session 7: Topics in Managerial Accounting (January 29) 1:30pm 5:30 on January 15, 22, 29, February 12 and 19 1) Various definitions of cost 2) Cost-Volume-Profit Relationships 3) Decision-making using costs Page 9 of 10

10 Readings: Text Chapters 14, 18, 19 and 23 There will be an in class assignment in Session7 Session 8: (February 12) 1:30pm 5:30 on January 15, 22, 29, February 12 and 19 In class: Final Exam: the exam will last for approximately 2 hours. You will have additional time to work with your groups for the final presentation. Session 9: Financial Analysis Project Presentations (February 19) 1:30pm 5:30 on January 15, 22, 29, February 12 and 19 In-Class Presentations of the financial analysis project Financial Statement Analysis paper due. Use turnitin.com to submit your analysis. College of Business Administration - Enterprise Technology Center (RB 107) Tel: (305) Fax: (305) cbasys@fiu.edu Copyright 2006 FIU College of Business Page 10 of 10