Accounting (ACCT)

Accounting (ACCT)  1

ACCOUNTING (ACCT)

ACCT1010 Accounting and Financial Reporting

This course is an introduction to the basic concepts and standards

underlying ﬁnancial accounting systems. Several important concepts will

be studied in detail, including: revenue recognition, inventory, long-lived

assets, present value, and long term liabilities. The course emphasizes

the construction of the basic ﬁnancial accounting statements - the

income statement, balance sheet, and cash flow statement - as well as

their interpretation.

Fall or Spring

1 Course Unit

ACCT1020 Strategic Cost Analysis

Strategic Cost Analysis is the process of analyzing and managing

costs in order to improve the strategic position of the business. This

goal can be accomplished by having a thorough understanding of

which activities and costs support an organization's strategic position

and which activities and costs either weaken it or have no impact.

Subsequent cost management efforts can then focus on reducing or

limiting expenditures on activities that add little or no strategic value,

while increasing expenditures on activities that support the strategic

position of the organization. Performance can then be evaluated to

ensure that the chosen actions are taken, and that these actions are

yielding improved strategic performance. Throughout the course, a

strategic cost analysis and management framework will be applied

across functions and organizations to highlight the cost analysis

and performance evaluation methods available to forecast ﬁnancial

performance and improve strategic position.

Fall, Spring, and Summer Terms

1 Course Unit

ACCT2120 Financial Measurement and Disclosure

This course builds on the knowledge you obtained in your introductory

ﬁnancial accounting course. This is an intermediate level course on

ﬁnancial reporting which covers more complicated transactions than

those found in ACCT1010. We will cover major valuation and ﬁnancial

reporting topics on all three major sections of the balance sheet-assets,

liabilities, and equity-along with their consequences for net income and

cash flows. Case studies and illustrative examples from the ﬁnancial

press will be used to increase your familiarity with actual ﬁrms' ﬁnancial

statements and to emphasize the effect of ﬁnancial accounting rules

on the information presented in ﬁnancial statements. After completing

this course, you will have obtained many of the tools necessary to both

prepare and analyze ﬁnancial statements and accounting information

provided by ﬁrms. You will acquire an understanding of both the "how" of

accounting procedures and the underlying reasons "why" these practices

are adopted. These skills are essential for pursuing a broad range of

professions in accounting and ﬁnance.

Fall

Prerequisite: ACCT1010

1 Course Unit

ACCT2420 Accounting and Business Analysis

In the course, students learn how to analyze ﬁrms' ﬁnancial statements

and disclosures to determine how a ﬁrm's particular accounting choices

reflect the underlying economics of the ﬁrm. As a result, the course

strengthens students' ability to use ﬁnancial statements as part of an

overall assessment of the ﬁrm's strategy and valuation. The course is

especially useful for anyone interested in working on the buy or sell side.

The course provides both a framework for and the tools necessary to

analyze ﬁnancial statements. At the conceptual level, it emphasizes that

preparers and users of ﬁnancial statements have different objectives

and incentives. At the same time, the course is applied and stresses

the use of actual ﬁnancial statements. For example, students learn how

to detect when ﬁrms are managing earnings and/or balance sheets. It

draws heavily on real business problems and uses cases to illustrate the

application of the techniques and tools. If ACCT2420 is not offered in a

given year, Undergraduate students can take ACCT7420. Please submit a

permission request through Path@Penn.edu.

Fall or Spring

Mutually Exclusive: ACCT7420

Prerequisite: ACCT1010

1 Course Unit

ACCT2430 Accounting for Mergers, Acquisitions, and Complex Financial

Structures

Since ACCT2430 will not be cross listed with ACCT7430 in the Fall 2021

semester, students interested in ACCT2430 will need to be permitted into

ACCT7430. All prerequisites need to be completed in order to receive a

permit. Please submit a permission request through Path@Penn.edu.

Undergraduate students will be notiﬁed in August regarding a permit.

Also this class will follow the MBA calendar. The objective of this course

is to discuss and understand the accounting that underlies merger,

acquisition, and investment activities among ﬁrms that result in complex

ﬁnancial structures. Key topics include the purchase accounting method

for acquisitions, the equity method for investments, the preparation and

interpretation of consolidated ﬁnancial statements, tax implications

of mergers and acquisitions, earnings-per-share considerations, the

accounting implications of intercompany transactions and non-domestic

investments, etc.

Fall or Spring

Mutually Exclusive: ACCT7430

Prerequisite: ACCT1010 AND (ACCT2120 OR ACCT2420)

1 Course Unit

2022-23 Catalog | Generated 12/01/22

Partial preview of the text

Download Accounting (ACCT) and more Slides Financial Statement Analysis in PDF only on Docsity!

ACCT 1010 Accounting and Financial Reporting This course is an introduction to the basic concepts and standards underlying financial accounting systems. Several important concepts will be studied in detail, including: revenue recognition, inventory, long-lived assets, present value, and long term liabilities. The course emphasizes the construction of the basic financial accounting statements - the income statement, balance sheet, and cash flow statement - as well as their interpretation. Fall or Spring 1 Course Unit ACCT 1020 Strategic Cost Analysis Strategic Cost Analysis is the process of analyzing and managing costs in order to improve the strategic position of the business. This goal can be accomplished by having a thorough understanding of which activities and costs support an organization's strategic position and which activities and costs either weaken it or have no impact. Subsequent cost management efforts can then focus on reducing or limiting expenditures on activities that add little or no strategic value, while increasing expenditures on activities that support the strategic position of the organization. Performance can then be evaluated to ensure that the chosen actions are taken, and that these actions are yielding improved strategic performance. Throughout the course, a strategic cost analysis and management framework will be applied across functions and organizations to highlight the cost analysis and performance evaluation methods available to forecast financial performance and improve strategic position. Fall, Spring, and Summer Terms 1 Course Unit ACCT 2120 Financial Measurement and Disclosure This course builds on the knowledge you obtained in your introductory financial accounting course. This is an intermediate level course on financial reporting which covers more complicated transactions than those found in ACCT 1010. We will cover major valuation and financial reporting topics on all three major sections of the balance sheet-assets, liabilities, and equity-along with their consequences for net income and cash flows. Case studies and illustrative examples from the financial press will be used to increase your familiarity with actual firms' financial statements and to emphasize the effect of financial accounting rules on the information presented in financial statements. After completing this course, you will have obtained many of the tools necessary to both prepare and analyze financial statements and accounting information provided by firms. You will acquire an understanding of both the "how" of accounting procedures and the underlying reasons "why" these practices are adopted. These skills are essential for pursuing a broad range of professions in accounting and finance. Fall Prerequisite: ACCT 1010 1 Course Unit ACCT 2420 Accounting and Business Analysis In the course, students learn how to analyze firms' financial statements and disclosures to determine how a firm's particular accounting choices reflect the underlying economics of the firm. As a result, the course strengthens students' ability to use financial statements as part of an overall assessment of the firm's strategy and valuation. The course is especially useful for anyone interested in working on the buy or sell side. The course provides both a framework for and the tools necessary to analyze financial statements. At the conceptual level, it emphasizes that preparers and users of financial statements have different objectives and incentives. At the same time, the course is applied and stresses the use of actual financial statements. For example, students learn how to detect when firms are managing earnings and/or balance sheets. It draws heavily on real business problems and uses cases to illustrate the application of the techniques and tools. If ACCT 2420 is not offered in a given year, Undergraduate students can take ACCT 7420. Please submit a permission request through Path@Penn.edu. Fall or Spring Mutually Exclusive: ACCT 7420 Prerequisite: ACCT 1010 1 Course Unit ACCT 2430 Accounting for Mergers, Acquisitions, and Complex Financial Structures Since ACCT 2430 will not be cross listed with ACCT 7430 in the Fall 2021 semester, students interested in ACCT 2430 will need to be permitted into ACCT 7430. All prerequisites need to be completed in order to receive a permit. Please submit a permission request through Path@Penn.edu. Undergraduate students will be notified in August regarding a permit. Also this class will follow the MBA calendar. The objective of this course is to discuss and understand the accounting that underlies merger, acquisition, and investment activities among firms that result in complex financial structures. Key topics include the purchase accounting method for acquisitions, the equity method for investments, the preparation and interpretation of consolidated financial statements, tax implications of mergers and acquisitions, earnings-per-share considerations, the accounting implications of intercompany transactions and non-domestic investments, etc. Fall or Spring Mutually Exclusive: ACCT 7430 Prerequisite: ACCT 1010 AND (ACCT 2120 OR ACCT 2420) 1 Course Unit

ACCT 2640 Climate and Financial Markets Climate change might be the defining challenge of our times, with a wide range of effects on financial markets and the broader economy. At the same time, financial markets play an important role in financing the transition to a net-zero economy. This role, however, is shaped by the information that is available to market participants. In this course, we examine how climate risks—both physical and regulatory—affect firms, financial markets (including carbon and renewable-energy certificate markets), and markets for energy and real estate. We examine the role that firms’ disclosures and third-party information sources play. As climate change is high on the agenda of almost every company and government, this course will be valuable both for students with the ambition to pursue a career centered around sustainability and those who want to gain a better understanding of how climate issues affect more traditional roles in the financial sector, consulting, or non-profits. The starting point for this course is that financial market participants increasingly realize that climate change represents an important investment risk. One central concern focuses on transition risks, and in particular on the effects that regulatory responses to climate change have on the business models of carbon-intensive energy companies. We discuss how concerns about various climate risks influence the way investors allocate their capital and exercise their oversight of firms. We start with the price impacts of climate risks in equity, debt and real estate markets, including the role played by shareholder activism and engagement, divestment and portfolio alignment. Next, we study carbon markets with a focus on pricing and discuss strategies to hedge climate risks through financial instruments such as carbon or renewable-energy credits and derivative contracts. We then explore how different firms in the global energy sector—ranging from oil & gas to renewable energy to electric utilities—have responded to climate-related pressures from their investors and other stakeholders. Because outsiders’ reactions depend on the information that they have, we investigate the impact of ESG reporting on financial markets and on the choices that managers make. Here, we also discuss the costs and benefits of regulating ESG reporting and the impact of greenwashing. We pay special attention to the impact of climate risk and reporting on decisions inside organizations, such as spin-offs, hedging, catastrophe insurance, and the structure of executive- compensation contracts. Further topics include life-cycle emissions and the social cost of carbon. Spring Also Offered As: BEPP 2640 Mutually Exclusive: BEPP 7640 Prerequisite: ACCT 1010 AND BEPP 2500 0.5 Course Units ACCT 2700 Forensic Analytics Recent trends in Big Data and predictive analytics are revolutionizing the way stakeholders analyze financial data. This course teaches students the hands-on skills necessary to manipulate large-scale financial databases and build predictive models useful for strategic and investment decisions. The course will cover three applications of predictive analytics: (i) forecasting future earnings, (ii) predicting accounting fraud, and (iii) detecting insider trading. The course will draw on cutting-edge academic research in each area; introduce students to the basic SQL coding skills necessary to manipulate Big Data and conduct meaningful analyses; and leverage the datasets and computing power of Wharton Research Data Services. The course is organized as a hybrid of a traditional seminar course and a computer science course. The first few classes of each unit will cover the conceptual material and source material related to each topic. The later classes in each unit will cover the technical material and programming skills needed to manipulate the respective datasets, estimate predication models, and backtest algorithms. Spring Prerequisite: ACCT 1010 AND STAT 1020 1 Course Unit ACCT 2970 Taxes and Business Strategy The objective of this course is to develop a framework for understanding how taxes affect business decisions. The key themes of the framework

all parties, all taxes and all costs - are applied to decision contexts such as investments, compensation, organizational form, and mergers and acquisitions. The ultimate goal is to provide a new approach to thinking about taxes that will be valuable even as laws and governments change. If ACCT 2970 is not offered in a given year, Undergraduate students interested in ACCT 2970 will need to submit a permission through Path@Penn.edu. All prerequisites need to be completed in order to receive a permit. Also this class will follow the MBA calendar. Spring Also Offered As: FNCE 2970 Prerequisite: ACCT 1010 AND FNCE 1010 1 Course Unit ACCT 3990 Independent Study Intensive reading and study with some research under the direction of a faculty member. Approval from one of the departmental advisers must be obtained before registration. Also a 3.4 average in major related subjects required. Fall or Spring 0.5-1 Course Unit

ACCT 7640 Climate and Financial Markets Climate change might be the defining challenge of our times, with a wide range of effects on financial markets and the broader economy. At the same time, financial markets play an important role in financing the transition to a net-zero economy. This role, however, is shaped by the information that is available to market participants. In this course, we examine how climate risks—both physical and regulatory—affect firms, financial markets (including carbon and renewable-energy certificate markets), and markets for energy and real estate. We examine the role that firms’ disclosures and third-party information sources play. As climate change is high on the agenda of almost every company and government, this course will be valuable both for students with the ambition to pursue a career centered around sustainability and those who want to gain a better understanding of how climate issues affect more traditional roles in the financial sector, consulting, or non-profits. The starting point for this course is that financial market participants increasingly realize that climate change represents an important investment risk. One central concern focuses on transition risks, and in particular on the effects that regulatory responses to climate change have on the business models of carbon-intensive energy companies. We discuss how concerns about various climate risks influence the way investors allocate their capital and exercise their oversight of firms. We start with the price impacts of climate risks in equity, debt and real estate markets, including the role played by shareholder activism and engagement, divestment and portfolio alignment. Next, we study carbon markets with a focus on pricing and discuss strategies to hedge climate risks through financial instruments such as carbon or renewable-energy credits and derivative contracts. We then explore how different firms in the global energy sector—ranging from oil & gas to renewable energy to electric utilities—have responded to climate-related pressures from their investors and other stakeholders. Because outsiders’ reactions depend on the information that they have, we investigate the impact of ESG reporting on financial markets and on the choices that managers make. Here, we also discuss the costs and benefits of regulating ESG reporting and the impact of greenwashing. We pay special attention to the impact of climate risk and reporting on decisions inside organizations, such as spin-offs, hedging, catastrophe insurance, and the structure of executive- compensation contracts. Further topics include life-cycle emissions and the social cost of carbon. Spring Also Offered As: BEPP 7640 Mutually Exclusive: BEPP 2640 Prerequisite: (ACCT 6110 OR ACCT 6130) AND MGEC 6110 AND MGEC 6120 0.5 Course Units ACCT 8970 Taxes and Business Strategy The objective of this course is to develop a framework for understanding how taxes affect business decisions. Traditional finance and strategy courses do not consider the role of taxes. Similarly, traditional tax courses often ignore the richness of the decision context in which tax factors operate. The key themes of the framework - all parties, all taxes and all costs - are applied to decision contexts such as investments, compensation, organizational form, regulated industries, financial instruments, tax-sheltered investments, mergers and acquisitions, multinational, and multistate. The ultimate goal is to provide a new approach to thinking about taxes (and all forms of government intervention) that will be valuable even as laws and governments change. Fall or Spring Also Offered As: FNCE 7970 Prerequisite: (ACCT 6110 OR ACCT 6130) AND FNCE 6110 0.5-1 Course Unit ACCT 9300 Empirical Design in Accounting Research This is an empirical research design course covering topics related to empirical methodology, causal inference, econometric analysis, and panel data approaches. At least one graduate level course in econometrics is recommended. 1 Course Unit ACCT 9400 Research in Accounting I This is Part I of a theoretical and empirical literature survey course covering topics that include corporate disclosure, cost of capital, incentives, compensation, governance, financial intermediation, financial reporting, tax, agency theory, cost accounting, capital structure, international financial reporting, analysts, and market efficiency. Fall 1 Course Unit ACCT 9410 Research in Accounting II This is Part II of a theoretical and empirical literature survey sequence covering topics that include corporate disclosure, cost of capital, incentives, compensation, governance, financial intermediation, financial reporting, tax, agency theory, cost accounting, capital structure, international financial reporting, analysts, and market efficiency. Please contact the accounting doctoral coordinator for information on the specific upcoming modules/topics that will be taught. Spring 1 Course Unit ACCT 9420 Research in Accounting III This is Part III of a theoretical and empirical literature survey sequence covering topics that include corporate disclosure, cost of capital, incentives, compensation, governance, financial intermediation, financial reporting, tax, agency theory, cost accounting, capital structure, international financial reporting, analysts, and market efficiency. Please contact the accounting doctoral coordinator for information on the specific upcoming modules/topics that will be taught. Spring 1 Course Unit ACCT 9430 Research in Accounting IV This is Part IV of a theoretical and empirical literature survey sequence covering topics that include corporate disclosure, cost of capital, incentives, compensation, governance, financial intermediation, financial reporting, tax, agency theory, cost accounting, capital structure, international financial reporting, analysts, and market efficiency. Please contact the accounting doctoral coordinator for information on the specific upcoming modules/topics that will be taught. 1 Course Unit ACCT 9810 Workshop Colloquium I Students attend workshops in departments outside of accounting to provide student exposure to theory, research designs and methods that are being explored outside of accounting to provide breadth of exposure to foster innovative research ideas. Students are required to attend 15 non-accounting workshops over one academic year and write up a referee report for 8 of those workshop papers. They are also required to write up at least one research proposal that stems from theories or research methods gleaned from one or more of the workshops attended. 1 Course Unit

ACCT 9820 Workshop Colloquium II Students attend workshops in departments outside of accounting to provide student exposure to theory, research designs and methods that are being explored outside of accounting to provide breadth of exposure to foster innovative research ideas. Students are required to attend 15 non-accounting workshops over one academic year and write up a referee report for 8 of those workshop papers. They are also required to write up at least one research proposal that stems from theories or research methods gleaned from one or more of the workshops attended. 1 Course Unit

Accounting (ACCT), Slides of Financial Statement Analysis

Related documents

Partial preview of the text

Download Accounting (ACCT) and more Slides Financial Statement Analysis in PDF only on Docsity!

ACCOUNTING (ACCT)