MGT270 Corporate Financial Reporting Fall Quarter 2005 CRN: 42170 Instructor: Benjamin Segal Day/Time: TR 3:10-6:00 pm Location: 261 AOB IV Professor: Benjamin SegalOffice: AOB IV 134 Office hours: Walk-in or by appointment Telephone: (530) 754-5960 E-mail: bsegal@ucdavis.edu Course Description and ObjectivesThis course critically analyzes and evaluates contemporary issues in corporate financial accounting, and develops implications of those issues for managers, investors, accountants, and policy makers. We will discuss a wide range of financial reporting principles, emphasizing the link between the reporting principles and the financial statements. We will learn how management uses financial reporting decisions to influence reported income and asset and liability values, and acquire the tools necessary to analyze the impacts of alternative reporting decisions on financial statements. I will assume that all students are already familiar with basic accounting concepts and financial statements (Income Statement, Balance Sheet, and Statement of Cash Flows). If you are not familiar with these topics but are registered to this course, please come see me immediately. Required TextbookFinancial Reporting & Analysis by Revsine, Collins and Johnson (3rd Edition) I shall refer to the book as RCJ for short. You should bring the book with you to class. Teaching methodsIn analyzing and researching accounting issues, students should make use of the GSM’s Compustat and CRSP databases (www.gsm.ucdavis.edu/~data/), the SEC's EDGAR database (www.sec.gov/cgi-bin/srch-edgar), FASB documents (www.fasb.org/), and other sources of financial accounting data (e.g., the web site for a particular company). I encourage you to actively read the Wall Street Journal and other business publications so that you can integrate your classroom learning with what is happening in the "real world". Class is conducted around the reading and assignments for the day. Detailed class notes and other materials will be posted to the course web site. Also, announcements and other notices will be periodically mailed to your e-mail address, so check the 270 web site and your e-mail, regularly. I will be primarily using the textbook and class notes. I may go over some problem examples in class, and assign homework readings and exercises. You must submit all the homework assignments on the day of the class it is due, by e-mail, before the beginning of the class.

Please follow the following naming conventions for email subject line and file attachment: Start with the assignment number, followed by the author’s last name. Solutions to required and suggested exercises will be posted on the website and will not be covered in class. Group research project You’ll be asked to identify a recent or emerging accounting and reporting issue and select one company for which you believe this issue has important shareholder, investor, and/or management ramifications. Your presentation should be geared to an uninformed board of directors who wish to understand why the particular accounting and reporting issue is important and how they (or the company) might be affected by it. Some topics will be suggested during the quarter. The maximum group size is three. Hand in a binder that contains a two-page (max.) executive summary, a copy of your presentation slides, and an organized set of appendices that contains your work product and a basis for your conclusions. Above requirements, including an electronic version submitted by email, following the mentioned naming conventions should be submitted by 3:00PM on Tuesday, November 01 (project presentation class). GradingMid - Term Exam: 30% Final Exam: 30% Group Project: 30% (25% Content, 5% Presentation) Class Participation and Written Assignments:

10%

Exam and Project Dates Mid-term Exam: Tuesday, October 18 Project Presentations: Tuesday, November 01 Final Exam: Thursday, November 03 Examination Policies

1. All exams will be held in-class. 2. The exams will include material covered in the class lectures, notes, assigned readings,

and homework. 3. The exams may make use of multiple formats such as multiple choice, short problems

and analytical questions. 4. You are allowed to bring a single A4 sized Sheet (regular printer paper) with your hand-

written notes on the front and back of the sheet and a calculator. 5. I will not offer any make-up exams and you are required to appear for the exams on the

designated date at the designated time. However, I recognize certain unforeseen emergencies can occur and prevent you from appearing for an exam. If you have a University-approved excuse (e.g., illness or family emergency), a per-case solution will be found.

Schedule This schedule is preliminary and subject to change. Readings from the Revsine, Collins and Johnson text are noted with a "RCJ". All listed reading is required. Other readings may be added closer to the day of the class. Homework problems will be assigned in each class.

Date Topic Readings: RCJ Chapters Homework

Thursday, September 29, 2005

Review Introduction Quality of Reporting Income Statement Accounting Changes Revenue Recognition

2 (Appendix 75-84) 1, 2 (except pages 64-69) 6 (pages 284-288) 7 (357-359) 2 (pages 64-69) 3

TBD

Tuesday, October 04

NO CLASS

Thursday, October 06

Receivables Inventories

8 (Pages 397-405, 412) 9

TBD

Tuesday, October 11

PPE Non-Current Liabilities

10 11

TBD

Thursday, October 13

NO CLASS

FRIDAY, October 14 12:00-3:00PM

Leases Taxes

12 13

TBD

Tuesday, October 18

Midterm Exam Taxes (continued)

TBD

Thursday, October 20

Owners’ Equity EPS

15 (pages 821-836, 854-9) 15 (pages 836-842)

TBD

Tuesday, October 25

Executive Compensation Equity Investments

7 (pages 342-353) 15 (pages 842-854) 16 (pages 885-900)

TBD

Thursday, October 27

Pensions 14 TBD

Date Topic Readings: RCJ Chapters Homework

Tuesday, November 01

Project Presentations TBD

Thursday, November 03

Final Exam 3:00-6:00 pm Location: 261 AOB IV