GB 6330 - Financial Reporting and Analysis

This course adopts a user’s perspective of financial statements rather than a preparer’s perspective. Financial statement data will be analyzed and then used in decision making situations such as equity valuation, credit extension, and maximation of shareholders’ wealth. This course serves as a bridge between accounting and finance, integrating the concepts of these disciplines. This course is designed to provide the student with: 1) the ability to analyze financial statements, 2) an understanding of the incentives of companies to “manage” earnings through their choices of accounting methods, which are somewhat flexible within GAAP, 3) an understanding of the limitations to the usefulness of financial statements, and 4) despite these limitations, an understanding of the value of financial statements in decision making situations such as stock price evaluation, loan approvals, and maximizing shareholder wealth. We accomplish this through a body of knowledge developed by research in finance, accounting, and economics.

3 credits