Instructor: Ram T. S. Ramakrishnan
Class: Wednesdays 3:00 to 6:45 pm
Office hours: Mondays 1:00-4:00
2301, University Hall; rramakri@uic.edu (312) - 996 - 3270
Course page: http://www.uic.edu/classes/actg/actg500rr

Required Materials:
(1) Financial Accounting: 2nd Antle & Garstka by South-Western © 2004 ISBN: 0-324-27044-5
(2) Questions, Exercises, Problems and Cases Masters Edition by South-Western © 2004

Please bring the textbook and a copy to the class every day. Wharton Service:http://wrdsx.wharton.upenn.edu/ [fsa516; ]

Catalog Description: Concepts and standards underlying the preparation and analysis of external reports; alternative effects and role of accounting in the business environment.

The recent corporate accountability crises has focused the world's attention on what accounting reports can do and what it can not do. Accounting failures at Enron, WorldCom and numerous other firms has led to extensive reforms in the US. The Sarbanes-Oxley (2002) act includes many accounting and disclosure changes. Throughout this crisis what was surprising was the lack of understanding of GAAP and basic accounting issues by many Board of Directors and Wall Street Analysts. Through this course you will gain a better understanding of some of the issues relating to analyzing financial statements. If one thinks of financial reporting as a game - the executives will try to put the firm in the best light under what GAAP allows, how could you as an analyst disentangle the information.

This course will emphasize the use of published financial reports by decision makers external to the firm (e.g. investors and creditors). Within each decision context, models of valuation and the current state of understanding of empirical research in accounting and finance will be discussed. Accounting is referred to as the "language of business" and with the knowledge gained from this course, you will be able to read, interpret and critically evaluate the published financial disclosures that firms make. You will gain insights into the intense controversies surrounding the promulgation of accounting standards and you will better understand how you may influence and be influenced by this essentially political process.

The course uses real financial statements extensively and you should be familiar with annual reports. The material is quantitative in nature and you should be comfortable with spreadsheets. As a part of the course you may be analyzing and valuing companies thoroughly. For this, you may have to download 10 - Ks and other SEC filings from 'Disclosure' etc..

Midterm Examination 37 %
Final Examination 43 %s
Collected Homework 20% Team Project 20 %