593-Schedule

Spring

Exam

Date

1/11

1/25

2/1

2/8

2/15

2/22

3/1

3/8

3/15

3/22

4/5

4/12

4/19

4/26

5/3

Day

Mon

Sessions are as denoted in the description below. All sessions may not have assigned dates.
paper saver - two pages in one sheet.

Standard Article Assignment • Class Discussion Assignment Question

§ ASC Assignments (Codification) 1 (Individual)

4 Analysis of Accounting Information

1 Long-Run Stock Returns Following Briloff'S Analyses • Discussion Questions •

2 European-U.S. “GAAP Gap”: IFRS to U.S. GAAP Form 20-F Reconciliations • Assignment • Discussion Questions •

§ Case: Graphics Inc

5 Proforma Earnings

1 Financial Reporting Regulation and the Reporting of Pro Forma Earnings • Gary M Entwistle, Glenn D Feltham, Chima Mbagwu. 2006.• Questions •

2 Empirical Evidence on Recent Trends in Pro Forma Reporting • Nilabhra Bhattacharya, Ervin L Black, Theodore E Christensen, Richard D Mergenthaler. Accounting Horizons. 2004 • Questions •

SEC Final Rule: Conditions for Use of Non-GAAP Financial Measures

§ Case: eToys Pro Forma reports and going concern issues

6 New Legal Environment: Audit Firm Size and Going-Concern Reporting

1 Going-concern opinions in the "new" legal environment • Geiger, Raghunandan • Questions •

2 Audit Firm Size and Going-Concern Reporting Accuracy • Geiger, Rama • Questions •

Case: Moyer Banking Enterprise; Look at EITF No. 04-10, Determining Whether to Aggregate Operating Segments That Do Not Meet the Quantitative Thresholds; and FASB Statement No. 131, Disclosures about Segments of an Enterprise and Related Information

7 Restatements

1 The Reputational Penalty For Aggressive Accounting- Earnings Restatements & Management Turnover; Desai, H, C Hogan, M Wilkins • Questions •

2 Financial Restatements GAO 2006 (Focus on pages 1-52); • Questions •

Financial Restatements GAO 2002

Financial Restatements GAO 2003 Letter

Case: T-Shirts by Tommy Look at: EITF 01-10, Accounting for the Impact of the Terrorist Attacks of September 11, 2001; FASB Statement No. 5, Accounting for Contingencies; FASB Statement No. 13, Accounting for Leases; FASB Interpretation No. 14, Reasonable Estimation of the Amount of a Loss

8 Auditor Fees

1 Initial evidence on the association between nonaudit fees and restated financial statements • • K Raghunandan, William J Read, J Scott Whisenant • Assignment • Questions •

2 Audit Fees & Auditor Dismissals In The Sarbanes-Oxley Era; Ettredge, Michael L, Chan Li and Susan Scholz;•

Case: Christopher’s Computers, Inc. Look at FASB Statement No. 144, Accounting for the Impairment or Disposal of Long-lived Assets; para 30 and Appendix A example.

9 Mid term Exam

10 Politicization and Stock Option Reporting

[1-4] Congressional Intervention In The Standard-Setting Process - An Analysis Of The Stock Option Accounting; Farber, David B, Marilyn F Johnson, and Kathy R Petroni • Questions •

[5-7] The Trouble With Stock Options; Brian J. Hall and Kevin J. Murphy • • Why do companies really grant stock options and what is the case for expensing stock options? (BP response)•

11 Options Scandals

[5-7] Managing Pro Forma Stock Option Expense Under SFAS No 123; Balsam, Steven, Haim A Mozes, and Harry A Newman • Assignment •

[1-4] On The Timing Of CFO Stock Option Awards; Lie, E; • Assignment • Questions •

§ He's Making Hay As CEOs Squirm

Case: FAS 123(R), Share-Based Payment A multidisciplinary approach Price Waterhouse Coopers ; This PWC manual is 400 pages long. Look at chapter 3 and chapter 7 first part. Redo case 7-1 in the manual with the numbers in the revised case numbers

12 Fair-Value Accounting

Fair Value Reporting - Questions

[1-4] Fair-Value Accounting - A Cautionary Tale From Enron; Benston, GJ;

[5-7] SFAS 159 The Fair Value Option; James Cataldo and Morris McInnes

PWC - Guide to Fair Value Measurement - 2008

FAS 157 Roundtable Open Discussion of Mark-to-Market Accounting Video Webcast Parts 1 and 2

Case When Would Market to Book Be Less Than One? Does Acquisition by Stock Explain JDS Uniphase Corp.? (From Book)

13 Earnings management

14 SEC Regulation Fair Disclosure

[1-4] Regulation fair disclosure, analyst following, and analyst forecast dispersion • Afshad J Iran, Irene Karamanou 2003 • Questions •

[5-7]

Additional Readings

CEO and CFO Certification

CEO and CFO Certifications of Financial Information Marshall A Geiger, Porcher L Taylor III. Accounting Horizons. Dec 2003. Vol. 17, Iss. 4; p. 357

Corporate Governance and Fraud

Corporate Governance And Accounting Scandals; Anup Agrawal And Sahiba Chadha October, 2005 48 J. Law & Econ. 371

Governance and Performance Changes after Accusations of Corporate Fraud; Dalia Marciukaityte, Samuel H Szewczyk, Hatice Uzun, Raj Varma. Financial Analysts Journal. Charlottesville: May/Jun 2006. Vol. 62, Iss. 3; p. 32 (10 pages)

Board Composition and Corporate Fraud; Hatice Uzun, Samuel H Szewczyk, Raj Varma. Financial Analysts Journal. Charlottesville: May/Jun 2004. Vol. 60, Iss. 3; p. 33 (11 pages)