Accounting and Financial Analysis

Undergraduate / Graduate

Course is designed to improve students' understanding of financial information beyond an intro accounting class. It is designed to provide the knowledge of financial statements necessary to conduct a reasonably sophisticated financial statement analysis. Focus is on the use of financial statements, although this requires some understanding of the process by which financial statements are produced. It will benefit students who want to become investment bankers, economic consultants, analysts, or other jobs that requires more than a superficial understanding of financial reporting. Not limited to study of financial statements. Will also work with supplemental disclosures, which help the user to interpret the financial statements and to understand better the economic transactions that gave rise to them. Techniques employed will be useful for variety of purposes including (but not limited to) equity, credit, and complex deals (such as M&A) analysis. Although this course does not cover forecasting, valuation, or models of complex deals, a thorough understanding of financial reporting issues is critical to being able to use such techniques. This course especially useful as a prelude to Financial Statement Analysis (B20150/B30130), Advanced Financial Analysis and Valuation for Global Firms (B30131), and Deal Structuring and Financial Reporting Implications (B30122). Must submit answers to 5 cases based on actual financial statements. There are two in-person exams (Weeks 5 & 10).