ACC7500 Schedule Fall, 2005 Syllabus Company analysis project
Date and Topic	Reading assignment (WSH is the text book)	Required Problems / mini-cases	Class and Instructional power point slides
August 31 (wk 1) Review of financial reporting	WSH – (as necessary for review) ch 1, ch 3 (pp. 168-175), ch 4 (pp. 196-212), ch 6 (pp. 359-362) Intangible Assets (skim) Standard setting (skim) Principles-based accounting (skim) Selectrica internal control deficiencies	Grace’s Dress Company (transaction analysis) DuPont mini-case.doc (Introduction to financial statements) DuPont 2004 10-K.pdf DuPont Audit committee charter Sarbanes-Oxley certifications (for DuPont mini-case) H-P mini-case.doc (Discontinued operations) Asset measurement mini-case	Week 1 class slides Introduction.ppt Transaction analysis.ppt
September 7 (wk 2) Accruals Projections	WSH –Ch 2 Accruals and future stock performance WSH – Ch 10	Accrual vs. cash exercise International Paper mini-case.doc (accruals) Sears mini-case.doc (A/R reserves) Coca-Cola mini-case (projections) Coca-Cola data set	Week 2 class slides
September 14 (wk 3) Income flows vs. cash flows	WSH ch 7 Manipulation of Cash Flow Operating cash flow Sustainable cash flow Year-end adjustments Tyco Free cash flow - WSJ Financing of customers Differing free cash flow definitions Delphi’s proforma cash flow	Cash flow preparation exercise IBM mini-case.doc IBM data series.xls (Analysis of cash flows) Tyco mini-case Tyco 2001 Annual Report (2.7 megs) – skim for cash and don’t print out … 242 pages.	Week 3 class slides Cash Flow Examples Cash flow.ppt
September 21 (wk 4) Core earnings and non-recurring items Foreign Currency translation	WSH ch 6 (pp. 319-333) Accounting Quality Restructuring Charges Accounting.doc Restructuring Charges Accounting.pdf P&G restructuring charges.doc Transitory earnings items.pdf S&P Core Earnings Write-offs call 1990s profits into question.doc WSH ch 5 (pp. 285-297)	Kellogg mini-case.doc (restructuring charges) IBM sga mini-case.doc (Hidden gains) Transitory items exercise Foreign currency translation exercise	Week 4 class slides
September 28 (wk 5) Residual Income Valuation (RI) and Discounted Cash Flow (DCF)	DuPont analysis – operating method DCF/ROPI valuation	ROE - Identifying and Computing Operating Working Capital and Operating Assets exercise ROE disaggregation analysis – P&G ROE - Pfizer Valuation Exercise.doc ROE - Margin and Turnover tradeoff exercise EVA exercise	Week 5 class slides Financial statement analysis.ppt Analysis and Valuation Spreadsheet Template (for use in your company analysis projects - paste into Thompson Research spreadsheet @ line 113 and replace NA w 0 – the TR database is available through the Horn Lib)
October 5 (wk 6) Leases and other off-balance sheet financing techniques VIE’s (variable interest entities) Derivatives	WSH ch. 3 (pp. 120-136) Synthetic Leases.doc Forbes – synthetic lease article WSH ch 3 (pp. 161-167) Off balance-sheet financing – R&D vehicles.pdf Off balance-sheet financing – transferring risk New rules for SPEs WSH ch 4 (pp. 221-230) Derivative Accounting.pdf What analysts need to know about derivative accounting	FedEx mini-case.doc (Operating lease capitalization) FIN46(R) - Dell mini-case Campbell soup mini-case Campbell Soup 2001 Annual Report	Week 6 class slides Leases.ppt Effective lease capitalization spreadsheet.xls
October 12 (wk 7)	Midterm Exam
October 19 (wk 8) Pension plans Deferred taxes	WSH ch 3 (pp. 136-158) Pension income.pdf Proposed new disclosures WSH ch 6 (pp. 352-358) Understanding the deferred tax footnote Deferred tax accounting.pdf