Financial Statement Analysis

UNIVERSITY OF TEXAS AT DALLAS

Course Syllabus
Spring 2006

Instructor: Shu Lin

Course Number: AIM 4336
Semester Hours: 3
Location: SOM 2.112
Time: Monday, 7:00-9:45 pm
Office Hours: Monday 3:30 – 5:30pm or by appointment
Office Number: SOM 4.421
Office Phone: (972) 883-4442
Email Address: Use my WebCT email address

Course Overview:
The course will cover financial statement from a user’s perspective. My goal is to develop
your understanding of the relation between accounting numbers and underlying economic
activity, and to develop your ability to use accounting numbers in several decision contexts.
These contexts include corporate performance evaluation, financial reporting strategy, and
valuation.

Through a mixture of lecture/case discussion, you will develop the following essential
financial analysis skills:
1. Understanding the business environment in which a firm operates and the firm's
financial, accounting and operating strategies;
2. Understanding how the accounting process that generates financial numbers affects
the quality of those numbers used in decisions;
3. Assessing a firm's performance, including ratio and cash flow analysis;
4. Using accounting numbers to make a reasonable assessment of the firm’s future
position.

Prerequisites:
Pre-requisite: AIM -2301
Pre-requisite: AIM -2302
Pre-requisite: MATH-1325
Pre-requisite: MATH-1326
Pre-requisite: MATH-2333

Course Materials:

Required
Charles Gibson, Financial Reporting & Analysis, 9th Edition, 2004, South-Western
Publishing.
Material on the Web
Class Readings (WebCT)
Homework Assignments (WebCT)
Solutions to Selected Text Problems (WebCT)

Homework:
There are two types of homework assignment: effort-based versus answer-based (see the
session outline).

Effort-based homework is marked with an asterisk. It is to be turned in at the beginning of the

class. Your work will receive a score of 1 (if there is evidence that you have made a serious
attempt on all parts of the assignment), 0.5 (if the work is incomplete), or 0 (if no work is
turned in). Late work will not be accepted. Keep a copy of your work for reference during
class discussions.

Answer-based homework is on the session outline to the right of heading “HW” with a
associated due date. Answer-based homework is graded based on your answer. Late work
will not be accepted.

Participation
The extent to which this course provides you with valuable skills is greatly determined by the
level and consistency of your preparation in class. To provide both an incentive and a reward
for being prepared and participating, you will receive a class participation score. Quality of
participation is evidenced by quality questions, comments and answers. You should be fully
prepared to discuss the cases, problems and articles in class. Note that excused absences from
class will not adversely affect my evaluation of your class participation.

Examinations
There are two exams for this course. Anyone missing an exam will automatically receive a
grade of zero for that test. Exceptions for documented medical or family reasons may be
permitted. Where possible, I should be contacted prior to the time of the exam. At my
discretion, either a make-up exam will be scheduled or a reallocation of the weight to
remaining examinations will be made.
Grading:

Your grade will consist of the following:

Percent
Homework 20%
Class participation 5%
Midterm Exam 35%
Final Exam 40%
Total 100%

Academic Dishonesty:

Candidates are expected to be above reproach in scholastic activities. Candidates who

engage in scholastic dishonesty are subject to disciplinary penalties, including the possibility
of failure in the course and dismissal from the University. “Scholastic dishonesty includes,
but is not limited to cheating, plagiarism, collusion, the submission for credit of any work or
materials that are attributable in whole or in part to another person, taking an examination
for another person, any act designed to give unfair advantage to a student or the attempt to
commit such acts.” 1 Since scholastic dishonesty harms the individual, all candidates,
and the integrity of the University, policies on scholastic dishonesty will be strictly enforced.