Preview of Electives

Financial and Managerial Accounting

2005-2006

Why MUST you take more accounting classes?

ENRON
Global Crossing
Accounting is HOT!!!

TYCO WorldCom/MCI

Accounting Division
Financial Accounting
(for external purposes)

Managerial Accounting & Control

(for internal purposes)

Taxation (also in economics)

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

Group I Financial Accounting

(external purposes)

B6013 Accounting I Core Course

B8100 Earnings Quality Brott F Yee - Sp

B8104 Fin. Stmt. Analysis

B8110 Valuation and Fin. Stmts.

Mohanram - Sp

Penman F (Ken Yee - Sp?)

B8100
Financial Statement Analysis and Earnings Quality
My assessment: B6013 with Angus Beef

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 ratio analysis.

Taught by Alan Brott and Kenton Yee

Course web-site for Yee http://www.gsb.columbia.edu/faculty/kyee/indb8110.html

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 and future 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.

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 make wise investment choices? For M&A? For private equity?
Taught by Stephen Penman (and Kenton Yee)

B8110 (cont.)
Valuation & Financial Statements
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

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

Group II Managerial Accounting & Control

(internal purposes)

B6016 Accounting II Core Course

B8102 (1/2 sem) Strategic Mgmt. & Control

Sp

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 Robin Cooper) entitled Implementing Activity-based Cost Management

Evaluating people and/or internal products, projects, divisions

Group III Taxation

B8299 (econ/fin) Taxes & Bus. Strategy

OR B8153 Taxes & Bus. Strategy

B9301-063 Inv. Banking Tax Factors

F Sp Sp

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

Sample Topics
Economic Framework for thinking about taxes and:
Personal Financial Planning Compensation (e.g., stock options) Taxable/Non-taxable M&A Divestitures Financial Innovation and Taxes International/Multi-state taxation

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.

B8100
Fin. Statements & Earnings Quality

B8102
Strategic Mgmt. Control Systems

B8104
Financial Statement Analysis

B8110
Valuation & Fin. Statements

B8153
Taxes and Business Strategy

B9001-063

Tax Factors in Investment Banking

Commercial Banking Entrepreneurship

Fin. Analyst / Corp. Fin.

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Fin. Control/ Controller General Consulting Human Res. Mgmt. I-Banking/M&A Manufacturing Marketing Not-for-profit/Public Real Estate

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