SYLLABUS Financial Statement Analysis Spring Semester 2014 Class Sessions 10:10 a.m. – 11:50 a.m. Wednesdays 8:00 a.m. – 9:40 a.m. Fridays Classroom: Lianxing Bldg (联兴楼) R405 TA: Ms. Hongmei Li, Email: [email protected], Phone: 135-9953-6270 TA Sessions: TBD Instructor: Helen Chen Clark Email: [email protected] Office: Econ Bldg B503 Office Hours: 2:30 - 3:30 pm Wednesdays ACADEMIC HONESTY Students are expected to adhere to the highest standard of academic honesty. Fraud, plagiarism, and other acts of dishonesty in taking examinations and/or in the performance of academic assignments are regarded by the faculty and WISE as major offenses which merit stern disciplinary action. For details, refer to the Students’ Handbook. FSA Spring 2014 WISE, Xiamen University COURSE OVERVIEW Financial Statement Analysis is primarily concerned with reviewing and understanding a company’s financial statements (e.g. balance sheet, income statement, statement of stockholders’ equity, and statement of cash flows), assessing the financial health of the company, its strengths and weaknesses by using various sources and analytical tools, thus enabling more effective management/credit/investment decision making. Some basic accounting concepts will be reviewed and discussed as building blocks throughout the course. INSTRUCTIONAL MATERIALS Textbook Financial Statements Analysis Evaluation, Third Edition (2013) ISBN 978-1-61853-009-7 Easton, McAnally, Sommers and Zhang, Cambridge Business Publishers Other reading materials and case studies will be assigned. COURSE GRADING Percent of Grade Mid-term Exam Final Exam (Comprehensive) Quizzes *Group Project and Presentation **Class Participation ----------------------------------------------------TOTAL: 20% 35% 15% 20% 10% -------100% *Groups will be formed in week 2 to work on a project and other class assignments. Each group will select a Fortune 500 (publicly traded) firm in the US and conduct a comprehensive financial performance analysis. Presentation in class is required. Guidelines and requirements for the project will be discussed in class. **Class Participation consists of attendance, discussions, presentation Q&A sessions, and other tasks. Grade Definition (for graduate students; for others, see XMU requirements) >= 90% Excellent work – exceptional quality and mastery of the subject >= 80% Good work – high quality and certain knowledge of the area >= 70% Satisfactory work – average quality and working knowledge of the subject < 70% Unsatisfactory work – failure to show measurable knowledge in the area COURSE POLICIES ATTENDANCE Absence from class sessions is discouraged. You are only allowed up to two times with or without bona fide reasons. Final grade will be deducted by 5 points for each absence beyond this limitation. 2 FSA Spring 2014 WISE, Xiamen University HOMEWORK Students should complete the reading assignments (textbook modules, additional reading materials, etc.) prior to each workshop and module-related problems after each workshop. Teamwork and TA session attendance are highly recommended. FINAL GRADE Grading criteria will be strictly followed. Curving grades and/or assigning additional work for extra credits are at the discretion of the instructor. OTHER REQUIREMENTS  Recommended tools to bring to each workshop: textbook, PPT, calculator, and highlighters.  Cell phones and other electronic devices (except for e-textbook and software for notewriting) need to be turned off during class session. COURSE SCHEDULE Wk 1 Wk 2 Wk 3 Wk 5 Wk 6 Wk 7 Wk 8 Module 3 - 4 Module 4 & Case Study Module 5 Module 6 Mid Term Wk 14 Wk 15 Wk 16-18 Case Study Review & Final Exam (Comprehensive) Module 1 Module 2 Wk 9 Wk 10 Wk 11 Wk 12 Wk 13 Module 8 Group Project Presentations Group Project Presentations Group Project Presentations Module 7 Module 3 Wk 4 Module 9 Note: 1) Week numbers are per XMU Calendar 2013 – 2014; 2) Course contents by the above schedule might be modified according to the progress of the class; 3) WISE/TAs will notify the students on class rescheduling, if any (e.g. national holidays). LIST OF MODULES MODULE 1 Framework for Analysis and Valuation MODULE 2 Overview of Business Activities and Financial Statements MODULE 3 Profitability Analysis and Interpretation MODULE 4 Credit Risk Analysis and Interpretation MODULE 5 Revenue Recognition and Operating Income MODULE 6 Asset Recognition and Operating Assets MODULE 7 Liability Recognition and Nonowner Financing MODULE 8 Equity Recognition and Owner Financing MODULE 9 Incorporate Entities 3