Financial Accounting: Analysis and Reporting Incentives

Learning Outcomes

Students will be able to extract and interpret information in financial statements; explain both a framework for and the tools necessary to analyze financial statements; to use financial statements as part of an overall assessment of a firm’s strategy and the potential rewards and risks of dealing with the firm (as an investor, creditor, supplier, employee, etc.)

Topics

1. The Economic and Institutional Setting for Financial Reporting and the Role of Financial Information in Contracting
2. Essentials of Financial Statement Analysis
3. Ratio Analysis
4. Cash Flow Quality
5. The role of financial information in Valuation
6. Earnings Quality
7. Revenue recognition: gross vs net
8. Expenses recognition
9. Fair value accounting
10. Leases: lessee and lessor accounting