accounting electives 2005-6

8/22/2019 Accounting Electives 2005-6

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Preview of Electives

Financial and Managerial

Accounting2005-2006


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Why MUST you take more

accounting classes?

ENRON

Global Crossing TYCO

WorldCom/MCI

Accounting is HOT!!!


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Accounting Division

Financial Accounting

(for external purposes) Managerial Accounting & Control

(for internal purposes)

Taxation (also in economics)

Accounting department has historically had extremely highratings for both the core and elective courses


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Group I

Financial Accounting

(external purposes)


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B6013

Accounting I

Core Course

B8100

Earnings

Quality

B8104

Fin. Stmt.

Analysis

B8110

Valuation and

Fin. Stmts.

BrottF

Yee - Sp

Mohanram - Sp PenmanF

(Ken Yee - Sp?)


7/22

My assessment: B6013 with Angus Beef

B8100Financial Statement Analysis and

Earnings Quality


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B8100 Make students sophisticated readers

of financial statements Detailed analysis of accounting information, including cash flows,

revenue recognition, pensions, deferred taxes, stock options,financial fraud

Extensive coverage of M&A financial accounting (Yee)

Earnings Quality How do you recognize poor earnings quality?

What are the basic financial frauds?

Adjust financial statements to an apples-to-apples basis for ratioanalysis.

Taught by Alan Brott and Kenton YeeCourse web-site for Yee

http://www.gsb.columbia.edu/faculty/kyee/indb8110.html


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B8104

Financial Statement Analysis How to interpret financial statement info, adjusting for

regulation, discretion and potential manipulation.

Fix accounting numbers, do the analysis.

Use financial info statements to infer the financial health andfuture prospects

Does not focus specifically on valuation.

Accounting in specific industries: financial services, banks,credit risk analysis

Exposure to current academic research in finance & accounting.


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B8110

Valuation & Financial Statements Focus: Equity valuation.

What is intrinsic value & how do you estimate it?

How do you estimate share value based on EPS?Cash flows? BVPS? Stock option dilution?

How do you apply fundamental analysis to makewise investment choices? For M&A? For private

equity?

Taught by Stephen Penman (and Kenton Yee)


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Topics:

models of shareholder value

comparison of discounted cash flow approach

of valuation to accrual accounting

analysis of profitability

forecasting earnings and cash flows

pro-forma analysis for strategy and planning

B8110 (cont.)

Valuation & Financial Statements


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Comparison of B8104 to

B8100 and B8110 B8100 is primarily an accounting course whereas

B8104 is more finance/strategy, and B8110 is

applied valuation.

B8104 vs. B8110

B8110 emphasizes valuation and its relation to earnings

quality issues (e.g., off-balance sheet debt, synthetic

leases, and purchase price allocations for M&A).

B8104 is less analytical, more data oriented


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Group II

Managerial Accounting & Control

(internal purposes)


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B6016

Accounting II

Core Course

B8102 (1/2 sem)

Strategic

Mgmt. & Control

Sp


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B8102

Strategic Management & Control

Consultants/operations people love this course.

Taught by Lawrence Maisel,

over 25 years consulting experience

senior partner and co-founder of Paramount Consulting

has held management positions including CEO and CFO

Co-author of award-winning book (with Robert Kaplan and RobinCooper) entitled Implementing Activity-based Cost Management

Evaluating people and/or internal products, projects,divisions


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Group III

Taxation


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B8299 (econ/fin)

Taxes & Bus.

Strategy F

Sp

B8153

Taxes & Bus.

Strategy

B9301-063

Inv. Banking

Tax Factors

F

OR

Sp


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B8299 or B8153

Taxes and Business Strategy Framework for how to think about taxes in business

decisions (developed by Nobel Myron Scholes)

Helps recognition of tax planning opportunities Key themes: Tax planning must consider:

All parties:

All taxes: (e.g., explicit taxes and implicit taxes)

All costs: (e.g., financial reporting costs)

Taught by Jonah Rockoff (fall), Ira Weiss (spr)

Extremely high ratings


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Sample Topics

Economic Frameworkfor thinkingabout taxes and:

Personal Financial Planning

Compensation (e.g., stock options)

Taxable/Non-taxable M&A

Divestitures

Financial Innovation and Taxes

International/Multi-state taxation


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B9001-063

Investment Banking Tax Factors

Taught by Professor Robert Willens (Lehman) with

32 years of experience in M&A tax field

Tax principles considered by corporate managers

and their advisors in major restructurings of firms

(e.g., spin-offs)

Tax-code based.


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B8100 B8102 B8104 B8110 B8153 B9001-063

Fin.

Statements &Earnings

Quality

Strategic

Mgmt.Control

Systems

Financial

Statement

Analysis

Valuation &

Fin.

Statements

Taxes and

Business

Strategy

Tax Factors inInvestment Banking

Commercial Banking X X X X X X

Entrepreneurship X X X

Fin. Analyst / Corp. Fin. X X X X X

Fin. Control/ Controller X X X X X X

General Consulting X X X X X

Human Res. Mgmt. X

I-Banking/M&A X X X X X

Manufacturing X

Marketing X X

Not-for-profit/Public X X X X

Real Estate X X X X

accounting electives 2005-6

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