Course Description

Financial Statement Analysis - why does it matter? "Resulting from rapid technological advances and growing market globalization, the role of today's accountants has switched from the scorekeeper of business operations or financial information generator to the provider and interpreter of diversified information to various internal and external users of financial information." -- excerpt from the article Knowledge base and skill development in accounting education: Evidence from China, by Lin, Z. Jun; Xiong, Xiaoyan; and Liu, Min. Journal of Accounting Education, Vol. 23 (2005, 149-50).

Aimed at Accounting, Finance, Management, and Public Accounting majors, this course provides the foundation for understanding and analyzing financial statements for the purpose of making investment and credit decisions. Using quarterly and annual financial reports from corporate annual reports and the Securities and Exchange Commission's EDGAR database, students will develop skills in standard financial statement and business strategy analysis. Prerequisites: successful completion of Acct 202 and Fin 301.

EMA Department Mission, Accounting Learning Objectives, and the College's Core Values

EMA Depatrment Mission: Students enrolled in the Department of Economics, Management and Accounting will develop competencies in their specific fields of study. In addition, they will graduate with the essential analytical, problem solving, computer, and communication skills to excel in their chosen career or graduate studies. Upon their graduation, students also will have the necessary interpersonal skills to function as effective team players with people from diverse backgrounds. Furthermore, students will be able to demonstrate competency in conducting research, a commitment to ethical and professional behavior, an understanding of the international marketplace, and an appreciation of the importance of lifelong learning.

Accounting Program Objectives: Students of accounting and public accounting will apply the basics of financial reporting and internal control, understand how managers use accounting information, appreciate how technology impacts the accounting profession, and possess basic skills to pass a professional examination.

The Department supports the College's Core Values, and this course directly addresses several of the Core Values.

• Core Value #1 -- Liberal Arts Foundation: this course, where learning and teaching happens using a liberal arts approach, helps prepare students for careers where critical thinking, unstructured problem solving, and judgment is necessary.
• Core Value #4 -- Technology: in this course students will continue to enhance their technology proficiencies, becoming comfortable and capable with methods of communication and ways to gather information intelligently.
• Core Value #5 -- World of Work: this course provides students with an education "in the various branches of useful knowledge." Requiring students to use the skills and knowledge they acquired in their liberal education, this course's content reflects today’s realities of worldwide market orientation and an economy based deeply on information exchange.

Course Competencies

Upon completion of this course, you should be able to:

• locate quarterly and annual financial data from various electronic sources;
• obtain and review analysts' reports to gain an understanding of the investment community's approach to making credit and investment recommendations;
• understand information contained in financial statement notes;
• use commonly accepted financial statement ratios to analyze a company's financial condition and position;
• use spreadsheets to analyze financial data and choose appropriate graphing tools to clearly summarize and communicate it to others; and
• understand how political, economic, and social events affect financial reporting and financial markets.

Textbook and Materials

REQUIRED:

• Financial Reporting & Analysis, 10/e, with Thomson Analytics. Charles H. Gibson, Thomson South-Western Publishing, ©2007. ISBN: 0-324-30445-5.
• One semester subscription to the hard copy and online editions of The Wall Street Journal.
• One USB drive for use during class time

Course Components

You shall complete assigned readings from the textbook and various business and accounting periodicals. These readings, which you should view with a professionally skeptical eye, serve as the basis for class discussions and application of textbook topics. Out of class assignments such as your homework, frequent short business analyses, and the financial statement analysis project provide additional opportunities for you to apply material discussed in class or to discover information related to class topics.

Each new chapter BEGINS with a RAT (Readiness Assessment Test). The purpose of the RAT is to make sure you keep up with assigned reading and to do this reading BEFORE we start the chapter. RAT questions draw from the bold face vocabulary and phrases in the textbook. Each chapter ENDS with a CAT (Chapter Assessment Test), which evaluates and measures your ability to apply material we covered in the chapter.

We will use brief lectures, class discussions, homework, and in- and out-of-class assignments as the means of learning and applying textbook concepts. I expect active class participation from all students. You will be called on in class. Oral communication skills are a critical factor for the success of any business person! Those who participate in class tend to be more academically stronger, as they know they must prepare ahead of class, read assigned materials and review those materials already covered, and keep up with homework in order to meet the demands of class participation. Participation includes, but is not limited to: asking questions and responding to questions during class, responding to homework reviews, sharing personal experiences or making comments about class topics, finding relevant articles in newspapers or journals and introducing them to the class, etc. In addition to participating in class, you can pose questions and carry on electronic discussions by way of our class e-mail list.

Class Attendance

Attendance at class is not taken. You will be treated as an adult in this regard, responsible for the outcomes of the choices you make. Please realize, though, that because of the various teaching and learning methods employed in our class it is not possible to re-create the learning that takes place through in-class exercises, discussions, and simulations. Absences will impact your class participation grade; if you're not in class, you can't participate!

While in class, please turn off your mobile phones. If you are awaiting an emergency phone call for medical reasons, please set your mobile's alert mode to "vibrate" and leave the classroom to take the call.

To stay comfortable with and continuously work to improve my routine for Marietta College emergency preparedness, periodically we will not meet and instead conduct classes using alternate means. Just as in en emergency, you will not receive advance notice about these changes. Thus it is extremely important for you to regularly check your Marietta College e-mail and v-mail for instructions. Sometimes you will get notification via e-mail or phone, other times via a notice posted on the doors of Thomas Hall.

Computer Fluency Requirements

You are expected to have a working knowledge of: (a) e-mail and an e-mail account, (b) the World Wide Web as a search tool, (c) the Dawes Library online databases, and (d) Microsoft Excel, Word, and PowerPoint. Throughout the semester we will work with the Thomson Analytics database included with the purchase of your new textbook..

Accommodations for Students with Disabilities

Students with learning or other disabilities are encouraged to contact me at the beginning of the semester to discuss their needs for accommodation. Students with learning or other disabilities are encouraged to contact me at the beginning of the semester to discuss their needs for accommodation. Any student needing accommodations due to a documented disability should notify the Academic Resource Center, located in Andrews Hall, at the beginning of the semester for further instructions.

Academic Dishonesty

Academic dishonesty occurs when a student represents someone else's work as his or her own; it includes actions such as, but not limited to:

• Copying another person's paper,
• Copying another person's words or ideas without putting quotation marks around them or citing them as a source,
• Copying entire sentences and paragraphs from a print or electronic source without providing proper documentation and credit,
• Allowing another person to write your paper and make revisions to your work,
• Collaborating with others on examinations or assignments where the work is to be done indivdually,
• Manipulating data,
• Cheating.

Any student who engages in academic dishonesty or plagiarizes from published material (such as a web site, book, or magazine) or from unpublished material (such as another student's writing), is subject to a range of penalties, depending on the extent of the academic dishonesty, from an F on the assignment to an F for the course. Learn more about academic dishonesty, both in the Student Handbook under "Academic Dishonesty" and also on the Campus Writing Center's web site.

I want you to know that I am very persistent and diligent about seeking out plagiarism and reviewing your research and writing. I deal with offenders as stated in my policy: from issuing a "zero" on an assignment to an F for the course. Students frequently forget that the impact of academic dishonesty goes well beyond the assignment or the semester. It results in a long-term loss of my trust and confidence in you. As well, I would be unable to write an objective letter of reference for you for campus activities or work, internships, jobs, or graduate school. Simply stated: avoid any temptation to engage in academic dishonesty!

Evaluation System

Any student (with the exception of first year students) on academic probation will also be placed on co-curricular probation. At the end of spring semester first year students can be placed on co-curricular probation effect for the fall semester. Refer to p. 146-47 of the 2007-08 College Catalogue for more information about co-curricular probation.