Page 1 of 11 Cohort MBA Fall 2007

AIM 6201: Financial Accounting

Course Syllabus

Course Information
Course Number/Section AIM 6201 MBC
Course Title Financial Accounting
Term Fall 2007
Days & Times Tuesday & Thursdays, 9AM to 11AM, 8/21 to 10/4, 2007

Professor Contact Information

Professor Suresh Radhakrishnan
Office Phone 972 883 4438
Other Phone
Email Address sradhakr@utdallas.edu
Office Location SM 4.426
Office Hours Mondays 3PM to 4PM OR by appointment
Other Information

Course Pre-requisites, Co-requisites, and/or Other Restrictions

Admission into the Cohort MBA Program

Course Description
Accounting reports are an important means of communication with investors and a basis for
writing contracts both within and outside the firm. This course is designed to provide an
understanding of what these reports contain, what assumptions and concepts accountants use
to prepare them, and why they use those assumptions and concepts. The course will provide a
disciplined way of thinking about and managing a business and reporting its financial status
and performance. It will provide basic institutional setting and discuss some of the
controversial accounting issues.

We will use simple examples to illustrate the basic concepts. We will stress the application of
the basic concepts to real world cases. For this purpose, we will use the financial reports of
U.S. Corporations and articles from newspapers and business journals to critically examine
the accounting concepts and practices.

Student Learning Objectives/Outcomes

1. Be able to summarize the information provided by the balance sheet, income statement
and statement of cash flows and interpret individual amounts (assets, liabilities, equities,
revenues and expenses, cash flows from operating, investing and financing activities).
2. Be able to compute financial ratios and use financial ratios and other information to
compare companies competing in an industry in terms of profitability and liquidity (short and
long term).
3. Be able to recognize ethical issues in reporting financial results and assess the impact of
those issues on shareholders and external users of the information.

Professor Suresh Radhakrishnan 1

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AIM 6201: Financial Accounting
Required Textbooks and Materials
Required Texts
Required Text: Financial Accounting: A Business Process Approach, Jane L. Reimers, 2nd
edition, Prentice Hall.
Required Materials
Solutions Manual for the Reimers text will be posted on WebCt.

Suggested Course Materials

Suggested Readings/Texts
Reference Self Study Material: Financial Accounting Tutor, Version 8.0, by D. Gode
and R. Gode, Wiley (NOT REQUIRED)
Suggested Materials
Read the business press from any leading newspaper

Assignments & Academic Calendar

Topics, Reading Assignments, Due Dates, Exam Dates

SEE ATTACHMENT A FOR TENTATIVE COURSE OUTLINE AND DUE DATES

Grading Policy
There are three parts to the evaluation.
1. Three Quizzes (Individual): The Quizzes are designed to test your understanding of the
basic accounting concepts. All quizzes will be cumulative. Each quiz will contain about
60% to 75% of the questions taken directly from the text material, the practice problems
and the problems we go over in class. The rest will be some challenge problem/questions,
which will be based upon the materials that we cover. All quizzes will be closed book and
closed notes. No make-up quizzes will be given. The two best scores will be weighted
about 40% each and the worst score will be weighted about 20% for the final evaluation
[see table below].
2. Annual report project (Group): Each group will select one company of their choice/interest
and obtain their three or four recent annual reports. You will need to perform a ratio
analysis and provide a brief prognosis of their beliefs on the firm’s future performance. I
strongly recommend that you choose and obtain the annual reports of the firms for the
project as early as possible. [SEE ATTACHMENT B FOR PROJECT GUIDELINES
& REQUIREMENTS]
3. Group peer evaluation: Each group member will evaluate the other group members. A peer
evaluation form is provided at the end of this handout. You are expected to work in your
assigned group. Only one copy of the report per group needs to be turned in. At the end of
the course you will be asked to evaluate the contribution of each of the individuals in the
group. [SEE ATTACHMENT C FOR DIMENSIONS OF EVALUATION]

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AIM 6201: Financial Accounting
The grades will be based on relative performance. The weights for evaluation are:
Quiz [worst 10%, other two 25% each] 60%
Annual report project (group) 20%
Peer evaluation - Individual contribution to the group 20%

The target grade distribution is

A 60%
B 20%
C 20%

Course Policies
Make-up exams
As a policy no make-up exams will be given. I will consider each student’s request for a
make-up made before the exam date in writing to me, and will decide on the merit of giving a
make-up purely at my discretion. As such, there is bound to be considerable subjective
judgement on my part. Therefore, to decrease ex post disappointment, assume that no
make-up exams will be given.

Extra Credit
No extra credit will be awarded.

Late Work
Late submission of project will be given a grade of zero.

Special Assignments
The annual report project guidelines are included at the end of this outline.

Class Attendance
No grades are awarded for class attendance.

Classroom Citizenship
Accounting is the language of business. As with learning any new language, you will need to
practice the language at two levels. First, you will need practice with the basic grammar,
which is the mechanics and concepts of accounting /mechanics. Second, you will need
practice with interpreting and understanding the language, as it is used in the real world.

To help you with the first level, we will introduce the concepts and mechanics in-class with
simple examples. We will also be going over some select problems, so that you become
comfortable with the mechanics of accounting. From time to time, depending on the need I
may convert some of the class session into tutorials where a teaching facilitator would take
you through some of the practice problems.

To help you with the second level, I have designed the project where you perform a ratio
Professor Suresh Radhakrishnan 3
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AIM 6201: Financial Accounting
analysis.
You will be responsible for going over the relevant chapters and do the practice problems. I
will make the solutions to the practice problems and some additional problems also made
available to you. I strongly urge you to go over the materials before class. This will help you
grasp the important aspects and internalize them when we go over them in class. It will be
your responsibility to let us know if you are having difficulties with the materials. I will
attempt to help each and every one of you.

I will use a mix of lecture and discussion modes. You are strongly urged to participate in the
class discussions. Please feel free to share any report or article that you may read in the
popular press about the language. In fact, I strongly urge you to read the business section of
the New York Times and/or the Wall Street Journal.

Overall, let us try to help each other make it a nice experience.

Professor Suresh Radhakrishnan 4

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AIM 6201: Financial Accounting
Field Trip Policies / Off-Campus Instruction and Course Activities
Not applicable

Student Conduct & Discipline

The University of Texas System and The University of Texas at Dallas have rules and regulations for
the orderly and efficient conduct of their business. It is the responsibility of each student and each
student organization to be knowledgeable about the rules and regulations which govern student conduct
and activities. General information on student conduct and discipline is contained in the UTD
publication, A to Z Guide, which is provided to all registered students each academic year.

The University of Texas at Dallas administers student discipline within the procedures of recognized
and established due process. Procedures are defined and described in the Rules and Regulations,
Board of Regents, The University of Texas System, Part 1, Chapter VI, Section 3, and in Title V, Rules
on Student Services and Activities of the university’s Handbook of Operating Procedures. Copies of
these rules and regulations are available to students in the Office of the Dean of Students, where staff
members are available to assist students in interpreting the rules and regulations (SU 1.602,
972/883-6391).

A student at the university neither loses the rights nor escapes the responsibilities of citizenship. He or
she is expected to obey federal, state, and local laws as well as the Regents’ Rules, university
regulations, and administrative rules. Students are subject to discipline for violating the standards of
conduct whether such conduct takes place on or off campus, or whether civil or criminal penalties are
also imposed for such conduct.

Academic Integrity

The faculty expects from its students a high level of responsibility and academic honesty. Because the
value of an academic degree depends upon the absolute integrity of the work done by the student for
that degree, it is imperative that a student demonstrate a high standard of individual honor in his or her
scholastic work.

Scholastic dishonesty includes, but is not limited to, statements, acts or omissions related to applications
for enrollment or the award of a degree, and/or the submission as one’s own work or material that is not
one’s own. As a general rule, scholastic dishonesty involves one of the following acts: cheating,
plagiarism, collusion and/or falsifying academic records. Students suspected of academic dishonesty
are subject to disciplinary proceedings.

Plagiarism, especially from the web, from portions of papers for other classes, and from any other
source is unacceptable and will be dealt with under the university’s policy on plagiarism (see general
catalog for details). This course will use the resources of turnitin.com, which searches the web for
possible plagiarism and is over 90% effective.

Email Use

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AIM 6201: Financial Accounting
The University of Texas at Dallas recognizes the value and efficiency of communication between
faculty/staff and students through electronic mail. At the same time, email raises some issues
concerning security and the identity of each individual in an email exchange. The university
encourages all official student email correspondence be sent only to a student’s U.T. Dallas email
address and that faculty and staff consider email from students official only if it originates from a UTD
student account. This allows the university to maintain a high degree of confidence in the identity of all
individual corresponding and the security of the transmitted information. UTD furnishes each student
with a free email account that is to be used in all communication with university personnel. The
Department of Information Resources at U.T. Dallas provides a method for students to have their U.T.
Dallas mail forwarded to other accounts.

Withdrawal from Class

The administration of this institution has set deadlines for withdrawal of any college-level courses.
These dates and times are published in that semester's course catalog. Administration procedures must
be followed. It is the student's responsibility to handle withdrawal requirements from any class. In other
words, I cannot drop or withdraw any student. You must do the proper paperwork to ensure that you
will not receive a final grade of "F" in a course if you choose not to attend the class once you are
enrolled.

Student Grievance Procedures

Procedures for student grievances are found in Title V, Rules on Student Services and Activities, of the
university’s Handbook of Operating Procedures.

In attempting to resolve any student grievance regarding grades, evaluations, or other fulfillments of
academic responsibility, it is the obligation of the student first to make a serious effort to resolve the
matter with the instructor, supervisor, administrator, or committee with whom the grievance originates
(hereafter called “the respondent”). Individual faculty members retain primary responsibility for
assigning grades and evaluations. If the matter cannot be resolved at that level, the grievance must be
submitted in writing to the respondent with a copy of the respondent’s School Dean. If the matter is
not resolved by the written response provided by the respondent, the student may submit a written
appeal to the School Dean. If the grievance is not resolved by the School Dean’s decision, the student
may make a written appeal to the Dean of Graduate or Undergraduate Education, and the deal will
appoint and convene an Academic Appeals Panel. The decision of the Academic Appeals Panel is
final. The results of the academic appeals process will be distributed to all involved parties.

Copies of these rules and regulations are available to students in the Office of the Dean of Students,
where staff members are available to assist students in interpreting the rules and regulations.

Incomplete Grade Policy

As per university policy, incomplete grades will be granted only for work unavoidably missed at the
semester’s end and only if 70% of the course work has been completed. An incomplete grade must be
resolved within eight (8) weeks from the first day of the subsequent long semester. If the required

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AIM 6201: Financial Accounting
work to complete the course and to remove the incomplete grade is not submitted by the specified
deadline, the incomplete grade is changed automatically to a grade of F.

Disability Services

The goal of Disability Services is to provide students with disabilities educational opportunities equal to
those of their non-disabled peers. Disability Services is located in room 1.610 in the Student Union.
Office hours are Monday and Thursday, 8:30 a.m. to 6:30 p.m.; Tuesday and Wednesday, 8:30 a.m. to
7:30 p.m.; and Friday, 8:30 a.m. to 5:30 p.m.

The contact information for the Office of Disability Services is:

The University of Texas at Dallas, SU 22
PO Box 830688
Richardson, Texas 75083-0688
(972) 883-2098 (voice or TTY)

Essentially, the law requires that colleges and universities make those reasonable adjustments necessary
to eliminate discrimination on the basis of disability. For example, it may be necessary to remove
classroom prohibitions against tape recorders or animals (in the case of dog guides) for students who
are blind. Occasionally an assignment requirement may be substituted (for example, a research paper
versus an oral presentation for a student who is hearing impaired). Classes enrolled students with
mobility impairments may have to be rescheduled in accessible facilities. The college or university
may need to provide special services such as registration, note-taking, or mobility assistance.

It is the student’s responsibility to notify his or her professors of the need for such an accommodation.
Disability Services provides students with letters to present to faculty members to verify that the student
has a disability and needs accommodations. Individuals requiring special accommodation should
contact the professor after class or during office hours.

Religious Holy Days

The University of Texas at Dallas will excuse a student from class or other required activities for the
travel to and observance of a religious holy day for a religion whose places of worship are exempt from
property tax under Section 11.20, Tax Code, Texas Code Annotated.

The student is encouraged to notify the instructor or activity sponsor as soon as possible regarding the
absence, preferably in advance of the assignment. The student, so excused, will be allowed to take the
exam or complete the assignment within a reasonable time after the absence: a period equal to the
length of the absence, up to a maximum of one week. A student who notifies the instructor and
completes any missed exam or assignment may not be penalized for the absence. A student who fails to
complete the exam or assignment within the prescribed period may receive a failing grade for that exam
or assignment.

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AIM 6201: Financial Accounting
If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose of observing
a religious holy day] or if there is similar disagreement about whether the student has been given a
reasonable time to complete any missed assignments or examinations, either the student or the
instructor may request a ruling from the chief executive officer of the institution, or his or her designee.
The chief executive officer or designee must take into account the legislative intent of TEC 51.911(b),
and the student and instructor will abide by the decision of the chief executive officer or designee.

These descriptions and timelines are subject to change at the discretion of the Professor.

Professor Suresh Radhakrishnan 8

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AIM 6201: Financial Accounting
ATTACHMENT A: Tentative Course Outline
Date
s# Time Topic Practice Problems Class Problems
(2007)
¾ Introduction, Basic concepts, Mechanics • P3-4A, P3-9A, P3-10A,
Pre-te 8/10, 8/13
8:30AM to 12:30PM of Accounting (Chapter 1, 2 &3 of P3-2B, P3-4B, P3-7B, P3-9B, z P3-7A
rm & 8/14
Reimers) P3-10B
z P4-1A, P4-8A, P4-9A, P4-6A,
8/21, ¾ Purchase and Use of Assets (Chapter 4) z P4-1B, P4-2B, P4-6B, FSA4-2
1,2 9:00AM to 11:00AM FSA4-1
8/23, 8/30 ¾ Inventory (Chapter 5) z P5-11A, P5-8B, P5-13B
z P5-12A
¾ Quiz I : Chapters 1 through 3 (Lead
3 8/28 9:00AM to 11:00AM
camp portions)
z E6-6A, E6-7A, E6-8A, E6-10A,
¾ Payment and Accounts Receivables
4,5 8/30, 9/4 9:00AM to 11:00AM P6-8A, E-6-6B, E6-7B, E6-8B, z E6-9A, E6-13A, FSA6-3
(Chapter 6)
E6-9B, E6-10B, E6-13B, P6-8B
z P7-4A, P7-5A, P7-6A, E7-1B,
z E7-1A, E7-2A, E7-3A,
6,7 9/6, 9/11 9:00AM to 11:00AM ¾ Liabilities (Chapter 7) E7-2B, E7-3B, P7-4B, P7-5B,
FSA7-1
P7-6B, FSA7-2

8 9/13 9:00AM to 11:00AM ¾ Equity capital (Chapter 8) z P8-3B, E8-10B, P8-8B z P8-3A, E8-10A, FSA8-2

9 9/18 9:00AM to 11:00AM ¾ Quiz II: Chapters 1 through 8

9/20, ¾ Statement of cash flows (Chapter 9)

10 to z P9-1B, P9-8B, E9-14B, E9-15B, z P9-1A, P9-8A, E9-17A,
9/25, 9:00AM to 11:00AM ¾ Financial Statement Analysis (Chapter
13 P9-4A, P9-4B E9-17B,
9/27, 10/2 10)

14 10/4 9:00AM to 11:00AM ¾ Quiz III: Chapters 1 through 10

10/18 12 Noon ¾ Project and Peer Evaluations Due

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AIM 6201: Financial Accounting
ATTACHMENT B: Final Project Guidelines & Requirements (Group)
Financial Statement Analysis

Objective: The objective is to apply the ratio analysis framework to U. S. companies, so

as to give you a hands-on experience in interpreting and using data.

Suggested Approach:
¾ Choose a U.S. firm that is traded in the stock market. The companies that you choose
could be ones that you had or want to work for.
¾ Obtain at least the three or four most recent annual reports for the firm. That is, at least
have four years of income statement data and four years of balance sheet data for the firm.
¾ Collect information from the press releases, news reports and the MD&A.
¾ Perform ratio analyses to provide you an understanding of the economic environment.
Hypothesize and identify the stragtegy.
¾ Provide logical inference on whether the firm is going in the direction in which the press
releases indicate.
¾ Given the future expectations, how would you expect the ratios to trend in the future?

Source:
¾ Annual reports: You may find the SEC’s database of company filings useful [the internet
site is http://www.freeedgar.com/. Use 10-Ks (the annual reports) for a company. You
may order the annual report from the company directly, or find copies of the annual report
on the company’s home page. Please do not use databases such as the COMPUSTAT,
VALUELINE etc.
¾ Press releases may be obtained from the company’s homepage or Lexis-Nexis at the UTD
library.
Note that the above is a list of suggested sources. You will need to show some enterprise in
obtaining data. Please document the source and provide a copy of the annual report (the
relevant sections and footnotes) in the appendix with the final report.

Write-up: The main report should be not more than 10 pages not including the appendix
[typewritten, 1.5 or double-spaced]. Please put the details of the computations and the data in
the appendix. Please don’t send me excel spread sheets by email as part of the report. I want
only hard copies of everything, similar to a professional consultant’s report.

Clarity of final report will be rewarded.

DUE DATE: The report is due on or before 10/19 in my room SM4.426 or my mail box
in room SM 4.217.

ATTACHMENT C: Evaluation of Individual Contribution to Group

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AIM 6201: Financial Accounting

NAME OF EVALUATOR:

NOTE: Please do not evaluate yourself !

Dimensions of evaluation
A. Distribution of work
B. Helpful in explaining difficult topics
C. Helpful with ideas, questions and discussion
D. Quality and timeliness of work performance
E. Leadership and overall collegiality

Total
NAME OF GROUP MEMBER A (0-4) B (0-4) C (0-4) D (0-4) E (0-4)
(0-20)

Each dimension is to be evaluated on a scale of 0-4 with 0 the minimum and 4 the
maximum. For example, if you perceive that you did more work, and the rest was
distributed evenly across other group members, you might want to give a 2 to all the
group members.

Professor Suresh Radhakrishnan 11