This course explores the subtleties and complications that arise in applying financial accounting standards to investments in equity and debt securities.
Students will analyze the financial information – in particular, financial statements – in quarterly and annual reports of publicly traded corporations to gain insight in the valuation of securities issued by them. To achieve its main objective, the course first imparts students with a thorough understanding of the fundamental principles of financial accounting and reporting and exposes them to key accounting measurement topics and issues as they relate to the preparation and analysis of financial statements.
Second, the course discusses conceptual and technical problems in measuring the performance, assets, and liabilities of firms. In particular, the material discussed covers specific accounting issues such as long-lived assets, inventories, and on and off-balance sheet liabilities.
Lastly, the course concludes with a dis-cussion of financial statement analysis techniques and methods, finan-cial forecasting, and valuation of corporations.