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MFIN 600 Financial Reporting and Modelling

Fall 2016 Course Outline

Finance and Business Economics Area DeGroote School of Business

McMaster University

COURSE OBJECTIVE

Provide a solid knowledge in preparation and analysis of financial information. Emphasize the importance of high quality accounting information in the current business-, economic-, and social context.

INSTRUCTOR AND CONTACT INFORMATION

Instructor: Balazs Szabo, ACCA Office: TBA Tel: TBA E-mail: szbalazs@hotmail.com Office Hours: Wednesday 10:30-11:30 Class Location and Time:

Section 1

Class Time: Wednesday 11:30 to 14:30 Class Location: GS-102

Section 2

Class Time: Wednesday 15:00 to 18:00 Class Location: ABB-270

Course Website: Please visit Avenue to Learn at http://avenue.mcmaster.ca

COURSE ELEMENTS

Credit Value: 3 Leadership: No IT skills (Microsoft Excel):

Yes Global view: Yes

Avenue: No Ethics: No

Numeracy: Yes Written skills: Yes

Participation: Yes Innovation: Yes

Group work: Yes Oral skills: Yes

Evidence-based

Yes Experential No

Final Exam Yes Guest Speaker

No

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COURSE DESCRIPTION

The course is designed to provide an understanding of accounting principles, practices used in the preparation of financial information and also to develop a critical approach to analyze, interpret it. Consequently the course approaches the subject from both the view of the user and the preparer of financial statements.

LEARNING OUTCOMES

Upon completion of this course, students should be able to complete the followings:

Prepare accounting entries of usual business transactions and based assemble financial statements

Gather, process and analyze information conveyed in a full set of financial statements in terms of profitability, liquidity, solvency, performance, efficiency

Draw conclusions from the analysis and present them in a concise way Identify the roles and responsibilities of the participants of the financial information

communication process from preparer to end user Textbooks Required: LLG (e-book) Libby, R, P. Libby and D.G. Short, Financial Accounting, 5th, Canadian Edition (price: $89) (ISBN: 9781259019821) or LLG (print) Libby, R, P. Libby and D.G. Short, Financial Accounting, 5th, Canadian Edition (price: $144.95) (ISBN: 9780071339469) Recommended: Kaplan Schweser: CFA Exam Prep Level 1 book 3 Financial Reporting and Analysis

Websites for group project: http://www.annualreports.com/ https://www.sec.gov/edgar/searchedgar/companysearch.htm http://www.tsx.com/ http://www2.morningstar.ca/ http://www.sedar.com/ Websites for standards, regulators, professional organizations: http://www.ifrs.org/Pages/default.aspx http://www.fasb.org/home http://www.iasplus.com/en http://www.cpaontario.ca/ https://www.cpacanada.ca/

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https://www.sec.gov/ http://www.osc.gov.on.ca/ Movie: https://freedocumentaries.org/documentary/enron-the-smartest-guys-in-the-room

EVALUATION

You will be evaluated based on the following components and weights:

Participation, in-class contribution 10%

Homework assignments 10%

Group project 10%

Midterm exam 30%

Final exam

40%

Total

100%

Grade Conversion

Grade %

A+ 90-100 A 85-89 A- 80-84 B+ 75-79 B 70-74 B- 60-69 F 00-59

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Communication and Feedback

If you have any question related to the topics that we cover in class, please feel free to come to see me before and after classes. Other consultation opportunity (probably on Saturdays) will be later confirmed. You can also e-mail your questions to me and I will attempt to respond to them within 48 hours. In case you have any comments and/or concerns about the course, I hope that you will not hesitate to let me know. Students who wish to correspond with instructors or TAs directly via email must send messages that originate from their official McMaster University email account. This protects the confidentiality and sensitivity of information as well as confirms the identity of the student. Emails regarding course issues should NOT be sent to the Administrative Assistant

ACADEMIC DISHONESTY

You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university. It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at;

www.mcmaster.ca/academicintegrity

The following illustrates only three forms of academic dishonesty:

1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained.

2. Improper collaboration in group work. 3. Copying or using unauthorized aids in tests and examinations

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MISSED ACADEMIC WORK

Missed Mid-Term Examinations / Tests / Class Participation

Where students miss a regularly scheduled mid-term or class participation for legitimate reasons as determined by the Student Experience office, the weight for that test/participation will be distributed across other evaluative components of the course at the discretion of the instructor. Documentation explaining such an absence must be provided to the Student Experience Office within five (5) working days upon returning to school. Students unable to write a mid-term at the posted exam time due to the following reasons: religious; representing university at an academic or varsity athletic event; conflicts between two overlapping scheduled mid-term exams; or other extenuating circumstances, have the option of applying for special exam arrangements. Such requests must be made to the Student Experience office at least ten (10) working days before the scheduled exam along with acceptable documentation. Instructors cannot themselves allow students to unofficially write make-up exams/tests. Adjudication of the request must be handled by Student Experience. If a mid-term exam is missed without a valid reason, students will receive a grade of zero (0) for that component.

Missed Final Examinations A student who misses a final examination without good reason will receive a mark of 0 on the examination. All applications for deferred and special examination arrangements must be made to the Student Experience office. Failure to meet the stated deadlines may result in the denial of these arrangements. Deferred examination privileges, if granted, must be satisfied during the examination period at the end of the following term. There will be one common sitting for all deferred exams. Failure to write an approved deferred examination at the pre-scheduled time will result in a failure for that examination, except in the case of exceptional circumstances where documentation has been provided and approved. Upon approval, no credit will be given for the course, and the notation N.C. (no credit) will be placed on the student’s transcript. Students receiving no credit for a required course must repeat the course. Optional or elective courses for which no credit is given may be repeated or replaced with another course of equal credit value.

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Requests for a second deferral or rescheduling of a deferred examination will not be considered. Any student who is unable to write a final examination because of illness is required to submit an application for deferred final examination and a statement from a doctor certifying illness on the date of the examination. The request for a deferred examination privilege must be made in writing to the Student Experience office within five business days of the missed examination. Special examination arrangements may be made for students unable to write at the posted exam time due to compelling reasons (for example religious). In such cases, applications must be made in writing to the Student Experience office at least ten business days before the scheduled examination date and acceptable documentation must be supplied.

STUDENT ACCESSIBILITY SERVICES

Student Accessibility Services (SAS) offers various support services for students with disabilities. Students are required to inform SAS of accommodation needs for course work at the outset of term. Students who require academic accommodation must contact Student Accessibility Services (SAS) to make arrangements with a Program Coordinator. Academic accommodations must be arranged for each term of study. Student Accessibility Services can be contacted by phone 905-525-9140 ext. 28652 or e-mail sas@mcmaster.ca For further information, consult McMaster University’s Policy for Academic Accommodation of Students with Disabilities;

http://www.mcmaster.ca/policy/Students-AcademicStudies/AcademicAccommodation-StudentsWithDisabilities.pdf

POTENTIAL MODIFICATIONS TO THE COURSE

The instructor and university reserve the right to modify elements of the course during the term. The university may change the dates and deadlines for any or all courses in extreme circumstances. If either type of modification becomes necessary, reasonable notice and communication with the students will be given with explanation and the opportunity to comment on changes. It is the responsibility of the student to check their McMaster email and course websites weekly during the term and to note any changes.

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COURSE SCHEDULE

CLAS

S DATE TOPIC

1 21-9-2016 Financial Statements and Business Decisions Investing and Financing Decisions and the Accounting System

2 28-9-2016 Operating Decisions and the Accounting System

3 5-10-2016 Adjustments, Financial Statements, and the Quality of Earnings, Introduction to Financial Ratios

4 12-10-2016 Communicating and Interpreting Accounting Information Reporting and Interpreting Sales Revenue, Receivables, and Cash

5 19-10-2016 Reporting and Interpreting Cost of Goods Sold and Inventory Exam preparation

6 26-10-2016 Mid-term exam

7 2-11-2016 Reporting and Interpreting Property, Plant, and Equipment; Intangibles; and Natural Resources Reporting and Interpreting Liabilities

8 9-11-2016 Reporting and Interpreting Bond Securities Reporting and Interpreting Stockholders’ Equity

9 16-11-2016 Analyzing Financial Statements, Evaluating the Quality of Financial Information

10 23-11-2016 Statement of Cash Flows

11 30-11-2016 Analyzing Financial Statements, 4 Statement Model (Microsoft Excel)

12 7-12-2016 Group project presentations, exam preparation

Note: The above schedule is subject to change.