University of Illinois at Urbana Champaign Accountancy 493D Financial Reporting Fall 2002 Instructor Rajib Doogar Office 225 E David Kinley Hall Phone 217 244 8083 E mail doogar uiuc edu Office hours M W 10 00 11 30 and by appointment Course Home Page www cba uiuc edu doogar Accy493 493 htm TA Keejae Hong Office 235 S Armory Phone 217 265 8198 E mail kphong uiuc edu Office hours Tuesday 3 00 5 00 and by appointment Class meeting times Text and readings Section D1 M W 8 00 9 50 Section MSA M W 3 00 4 50 431 Armory 215 DKH Readings and Case Packet Course Objectives This course examines financial reporting by business entities Accounting reports are useful for among other things determining how stakeholders share in the economic surplus generated by a firm and as part of a complex mosaic of information used in lending and investment decisions Consequently financial reports and accounting policy choices are influenced by the economic self interests of managers and owners as well as key decision makers need for reliable and relevant information This course is organized around some recurrent themes of the craft How are transactions to be classified How should values be measured How should they best be disclosed or communicated We use these questions to better understand the basics of US GAAP for some important classes of transactions and for key elements of the financial statements Expectations I expect you to prepare the assigned readings for the day and to work through the homework problems before you come to class If the assigned reading is a case you should read the case several times and do any preliminary calculations that you think may be informative No late work will be accepted under any circumstances No make up work will be assigned My goal is to help you learn Please e mail me as soon as you detect a problem with your progress Grading Item Homework Quizzes 10 out of 12 10 points each Class participation Midterm Exams 2 125 points each Presentation and Final Project Total Points 100 50 250 100 500 Your final grade will be based on the sum of the points earned on these components applied to a final grade scale University of Illinois at Urbana Champaign Accountancy 493D Financial Reporting Fall 2002 Homework Quizzes There will be random quizzes and homework exercises assigned in class All homework must be turned in on the date time announced Missing class is not an acceptable excuse for not turning in homework on time There will be more than ten opportunities to turn in homework quizzes but only the ten best scores will count Bring two copies of homework solutions to class you will be asked to turn in one copy at the beginning of class The other copy will be very useful to you during the class discussion Class Participation Class participation points are awarded based on some combination of 1 preparedness with facts and numbers 2 ability to make or ask pertinent comments questions 3 your impact on other people s thinking and 4 my subjective assessment of your overall contribution to the learning environment over the course of the semester Two things to note about my class First merely showing up for class earns zero credit Second lack of preparedness is an unforgivable sin in an accounting professional and I hold every student to a very high standard of preparedness It is your professional obligation to thoroughly prepare the material for each day before coming to class Midterm Exams These are two in class closed book closed notes exam with no text storing calculators allowed The first exam will cover material from days 1 9 the second exam days 11 21 No makeup exams will be given If you cannot take one of the mid terms for reasons I do not approve of you will be assigned a score of zero for the exam Group work Presentations and Reports Teams of up to four students will analyze and prepare a 10 15 page report on a preassigned case and present and defend their analysis in class Other My policy is to address issues before they become problems Consequently I encourage students to provide me with feedback about all aspects of the course and my interactions with you It is best to contact me by e mail However you are welcome to stop by during office hours or by appointment as well University of Illinois at Urbana Champaign Accountancy 493D Financial Reporting Fall 2002 Class Meeting Day 1 Wed 8 28 Day 2 Wed 9 4 Day 3 Mon 9 9 Day 4 Wed 9 11 Day 5 Mon 9 16 Day 6 Wed 9 18 Day 7 Mon 9 23 Day 8 Wed 9 25 Day 9 Mon 9 30 Day 10 Wed 10 2 Day 11 Mon 10 7 Day 12 Wed 10 9 Day 13 Mon 10 14 Day 14 Wed 10 16 Day 15 Mon 10 21 Day 16 Wed 10 23 Day 17 Mon 10 28 Day 18 Wed 10 30 Day 19 Mon 11 4 Day 20 Wed 11 6 Day 21 Mon 11 11 Day 22 Wed 11 13 Day 23 Mon 11 18 Day 24 Wed 11 20 Day 25 Mon 12 2 Day 26 Wed 12 4 Day 27 Mon 12 9 Day 28 Wed 12 11 Readings Course Introduction Financial Reporting Fundamentals Labor Day Holiday Strategic Aspects of Financial Reporting The Role of Asymmetric Information Choice of Organizational Form and Implications for Accounting Globalization and Choice of Organizational Scope Location Strategic Investments Alliances and Equity Investments Mergers and Acquisitions Economic and Strategic Considerations Mergers and Acquisitions Accounting for Business Combinations I Mergers and Acquisitions Accounting for Business Combinations II Topics in Reporting Foreign Currency Translations and Segmental Reporting Reorganization Divestiture Restructuring and Bankruptcy Review Exam 1 Financing Capital Structure Theory and Practice Debt Convertibles Equity Common Preferred Convertible EPS Repurchases Dividends Compensation Compensation continued Leases Pensions Pensions continued Review Exam II Quality of Earnings and Project Review Making Effective Business Presentations Thanksgiving Break Presentations II Final Project Presentations II Final Project Presentations II Final Project TBA As Read m TBA T Re Re Re University of Illinois at Urbana Champaign Accountancy 493D Financial Reporting Fall 2002 Tentative Class Schedule and Readings List Changes in content and or scheduling may be made as the course progresses These changes will be announced in class or communicated via e mail You are responsible for making yourself aware of these changes Note RC indicates that the reading appears in the Readings and Cases readings packet Module 1 Introduction and Overview Day 1 Course Introduction Financial Reporting Fundamentals HBS 9 100 010 Perspective Institutions and Basic Issues RC 1 HBS 9 101 119