Hailey Ballew

Introduction to the preparation, analysis, and use of corporate financial reports. Covers the basic techniques of financial reporting and analysis from the perspective of managers as well as external users of information such as investors. Required for MBA.

Financial statements are a key source of information about the economic activities of a firm. This course addresses the construction and interpretation of financial statements. The goal of the course is not to train you to become an accountant. Rather, the course should equip you to become an informed user of financial statement information. Because annual reports are somewhat formidable, we will study how firms present the information for various accounts in their financial statements, including the footnotes. By the end of the course, you should have a basic understanding of financial statements and the ability to use them for decision making. Fulfillment of these objectives involves acquiring several skills. The course will emphasize (i) gaining familiarity with the types of transaction firms engage in, (ii) the mapping of transactions into accounting numbers, (iii) understanding the accounting-related choices that managers have for transactions and the rationale behind the various methods, (iv) developing fluency in accounting terminology, and (v) appreciating the complexity of accounting due to the (often considerable) discretion and judgment involved in choosing among alternative accounting methods, making estimates, and disclosing information in financial statements.