Course Syllabus
Overview of financial statement analysis
- Objectives of financial statement analysis
- Types and components of business analysis (business, accounting and prospective analysis)
- Limitations
Advanced financial statement analysis analytical procedures
- Advanced quantitative analysis
- Qualitative analysis
Advanced analysis of financial statement
A comprehensive company analysis using company's financial information, market data, and other publicly available data
Earnings management
- Motivation of earnings management
- Application of earnings management techniques
- The mechanics of earnings management
- Application of theories relevant to earnings management
Earnings quality
- The relationship between earnings management and earnings quality
- Steps in evaluating earnings quality
- Characteristics of quality earnings
- Importance of earnings quality
Financial statement fraud
- Red flags
- Discuss articles relevant to fraudulent reporting
- Discuss relevant fraud cases
- Ethical issues
- Objectives of financial statement analysis
- Types and components of business analysis (business, accounting and prospective analysis)
- Limitations
Advanced financial statement analysis analytical procedures
- Advanced quantitative analysis
- Qualitative analysis
Advanced analysis of financial statement
A comprehensive company analysis using company's financial information, market data, and other publicly available data
Earnings management
- Motivation of earnings management
- Application of earnings management techniques
- The mechanics of earnings management
- Application of theories relevant to earnings management
Earnings quality
- The relationship between earnings management and earnings quality
- Steps in evaluating earnings quality
- Characteristics of quality earnings
- Importance of earnings quality
Financial statement fraud
- Red flags
- Discuss articles relevant to fraudulent reporting
- Discuss relevant fraud cases
- Ethical issues
Frequently Asked Questions
Q1 : What is earnings management?
A1 : (1) Managing earnings is the process of taking deliberate steps within the constraints of generally accepted accounting principles to bring about the desired level of reported earnings. (Davidson, Stickney and Weil, 1987, cited in Schipper, 1989, p.92). (2) Managing earnings is a purposeful intervention in the external financial reporting process, with the intent of obtaining some private gain (as opposed to say, merely facilitating the neutral operation of the process).A minor extension of this definition would encompass real earnings management, accomplished by timing investment or financing decisions to alter reported earnings or some subset of it." (Schipper, 1989, p.92). (3) Earnings management occurs when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers. (Healy and Wahlen, 1999, p.368).
Q2 : Is it necessary for me to have the basic financial accounting knowledge in order to enroll in this course?
A2 : It is not necessary, but having the fundamental knowledge of financial accounting would be greatly beneficial.
Q3 : Do learners need to be technologically literate to use FAR741 MOOC?
A3 : Learners need not be technologically literate as FAR741 MOOC is relatively simple and easy to use. Learners will be exposed to a right information management, develop critical thinking skills, and adhere to proper digital online learning behaviour.
A1 : (1) Managing earnings is the process of taking deliberate steps within the constraints of generally accepted accounting principles to bring about the desired level of reported earnings. (Davidson, Stickney and Weil, 1987, cited in Schipper, 1989, p.92). (2) Managing earnings is a purposeful intervention in the external financial reporting process, with the intent of obtaining some private gain (as opposed to say, merely facilitating the neutral operation of the process).A minor extension of this definition would encompass real earnings management, accomplished by timing investment or financing decisions to alter reported earnings or some subset of it." (Schipper, 1989, p.92). (3) Earnings management occurs when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers. (Healy and Wahlen, 1999, p.368).
Q2 : Is it necessary for me to have the basic financial accounting knowledge in order to enroll in this course?
A2 : It is not necessary, but having the fundamental knowledge of financial accounting would be greatly beneficial.
Q3 : Do learners need to be technologically literate to use FAR741 MOOC?
A3 : Learners need not be technologically literate as FAR741 MOOC is relatively simple and easy to use. Learners will be exposed to a right information management, develop critical thinking skills, and adhere to proper digital online learning behaviour.