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ACCT 6351 - 18480 Summer 2014

Course Number ACCT 6351 - 18480
Course Title Financial Reporting and Analysis
Location Sugar Land
Prerequisites Graduate standing
Instructor Danny Chiang
Office 281-275-8880
Office Hours W6PM-7PM Victoria, Th 6PM-7PM Sugar Land; or by appointment
Phone 281-275-8880
Faculty Homepage/URL

Prerequisite Policy

Prerequisites for a course exist because the School of Business Administration faculty have determined that the knowledge, skills, and/or exposure students receive through the prerequisites is critical to their success in the course and their ability to contribute to their fellow students' learning experience. In addition, taking your core courses and concentration or elective courses in a prescribed sequence prepares you to integrate the knowledge and skills you are acquiring properly. Students bear the responsibility for verifying that they have the appropriate prerequisites for their courses. Students who enroll in a course without completing the prerequisites risk being dropped from the class at any time during the semester should their lack of prerequisites come to light. In addition, students who enroll without the prerequisites and as a result find themselves at a disadvantage in meeting course objectives will have no redress with the instructor.

Course Description

As a result of this course, students will be able to analyze and evaluate financial information with respect to profitability and risk of a firm. 

(UHV Catalog course description)

Textbook Information

Gibson, Financial Reporting and Analysis: Using Financial Accounting Information, 13th ed., Southwest Thompson, ISBN 9781133697251(Required)

Weygandt, Kimmel, and Kieso, Financial Accounting, 9 ed., John Wiley & Sons, ISBN 978-1118796696(Recommended)Any other financial accounting textbook would be fine; even an older edition is okay. This is an optional book, for those with weak or no accounting background.

Information on Buying Textbooks

The Victoria College Bookstore carries textbooks for all UHV SBA courses.

Students may use the publishing information posted above to order their textbooks from their favorite book vendor. However, before doing so you should find out what your vendor's anticipated shipping time is, and what their return policy is. Also, you should not write in or remove shrinkwrap from any textbook or materials you purchase from any vendor until the first class day in the event that:

  • the vendor supplies you with the wrong edition of your text,
  • the course instructor is forced to make a late change to the required textbooks,
  • you are forced to make a last-minute change to your schedule due to missing prerequisites, or
  • your course is canceled due to low enrollment.

In addition, be aware that, on occasion, certain outside vendors may substitute an international version of a textbook for the version you have requested without notice. International versions of textbooks may be quite different from the editions we require.

Course Relationship to Program Mission

The mission of the UHV MBA program is to provide individuals with the knowledge and skills needed to successfully manage organizations in a dynamic environment by offering an integrated curriculum that blends theoretical concepts with practical applications. Specifically, the MBA program seeks to develop in each graduate the capacity to:

  • understand and adapt to the changing business, political and social environments;
  • evaluate and respond to emerging threats and opportunities;
  • interact with and effectively lead diverse groups;
  • analyze and evaluate business operations and processes; and
  • synthesize and apply cross-functional approaches to organizational issues.

AACSB Accreditation Standards

The School of Business Administration is accredited by AACSB International, the hallmark of excellence in management education. AACSB International accreditation represents the highest standard of achievement for business schools worldwide. Institutions that earn accreditation confirm their commitment to quality and continuous improvement through a rigorous and comprehensive peer review. AACSB International accreditation is the hallmark of excellence in management education. AACSB International accreditation adds value to your degree. The AACSB International accreditation standards require you to:

  • Operate with integrity in your dealings with faculty and other students.
  • Engage the learning materials with appropriate attention and dedication. (This standard recognizes the role students play in the creation of high-quality education. You cannot be passive, nor can your participation be superficial.)
  • Maintain your engagement when challenged by difficult learning activities.
  • Contribute to the learning of others. (Regardless of the delivery mode of the program, students should have opportunities to work together on some learning tasks. Students need to acknowledge their responsibilities to their fellow students by actively participating in group learning experiences.)
  • Perform to standards set by faculty.

Course Objectives

As a result of this course, students will:

  1. be able to comprehend the financial accounting/reporting principles underlying the financial statements (i.e., balance sheet, income statement, and the statement of cash flows) and analyze the impact of GAAP on profitability and risk.
  2. be able to perform various financial analyses, including common-size statement, trend analysis and ratio computations.
  3. be able to identify the economic characteristics of a particular industry and the strategies that a particular firm pursues to gain competitive advantage.
  4. be able to forecast the sales and related expenses and prepare projected financial statements.

Course Evaluation Process

Grading Scale:

Your letter grade is determined using the grade distribution that follows. You can calculate your percentage grade at any time in the semester by dividing the points you have accrued by the total points available up to that point. This percentage is then matched to a letter grade.

A 90% or higher
B 80 to 89%
C 70 to 79%
D 60 to 69%
F Less than 60%

Course Assessments:

Class Preparation and Participation (LO 1, 2, 3, & 4)30 points
Mini Review Exam (LO 1)50 points
Midterm Exam (LO 1 & 2)100 points
Final Exam (LO 3 & 4)100 points
Homework (LO 1, 2, 3, & 4)
Group Projects (LO 1, 2, 3, & 4)150 points

Class Preparation and Participation (LO 1, 2, 3, & 4)

Assigned materials must be read before the first day of discussion of them. Assignments and homework problems must be completed before class. Attendance and class participation are expected and your participation will be graded as a whole at the end of the semester. You must bring your book and calculator to every class meeting. (Assessing learning objectives 1, 2, 3, & 4)

Mini Review Exam (LO 1)

One mini review exam will be given. The purpose of this exam is to refresh your knowledge of basic financial accounting concepts. Review the notes as well as some principles of financial accounting textbooks. No makeup exam will be given without receiving prior permission. Makeup exams may be subject to penalties under the instructors discretion. (Assessing learning objectives 1)

Midterm Exam (LO 1 & 2)

One midterm exam will be given. No makeup exam will be given without receiving prior permission. Makeup exams may be subject to penalties under the instructors discretion. (Assessing learning objectives 1 & 2)

Final Exam (LO 3 & 4)

One final exam will be given. The final exam is NOT comprehensive. No makeup exam will be given without receiving prior permission. Makeup exams may be subject to penalties under the instructors discretion. (Assessing learning objectives 3 & 4)

Homework (LO 1, 2, 3, & 4)

Everyone has to do the problems assigned in each chapter. Assignments and homework problems must be completed by the beginning of each week. You are NOT required to turn in the homework. However, working on the homework problems will help you understand the materials and prepare for the exams. You are encouraged to form a study group to discuss homework assignments. Solutions to homework assignments will be posted on the class website (i.e., ) after the materials are covered in class. (Assessing learning objectives 1, 2, 3, & 4)

Group Projects (LO 1, 2, 3, & 4)

You will be assigned to a group of three, at maximum, to do this real case analysis. To get some ideas about the project, read Summary Analysis (pages 438-481) on the textbook. Also, you can refer to Sample Project #1 and #2. The companies for the analysis are DSW Inc. and Crocs Inc. You can go to (i.e., EDGAR online) to locate the financial statements of publicly held companies. Do NOT retrieve financial information/ratios from other internet websites. Follow the contents in each chapter to perform your analysis. Its highly recommended that you work weekly to ensure this task is done via the applications of the techniques you learn in each chapter. Project #1 is due by 11:59pm Sunday, June 29th. You have to apply the common-size analysis and comparative analysis to and compute the financial ratios for the assigned companies. Project #2 should be submitted by 11:59pm Tuesday, July 22th. In Project #2, you will analyze and compare the companies and, then, make an investment suggestion based upon your analysis. Project #1 should be incorporated into Project #2. Length of Project #2: minimum of 12 pages, font 12, Times New Roman, single-spaced. Projects 1 and 2 weigh 50 and 100 points, respectively. Late paper will NOT be accepted. A FREE RIDER in the group will not be tolerated. However, to report an alleged free rider, you should send me a formal written complaint. You should carefully manage your group over the semester to ensure that no teammate will take the chance of turning into a free rider. Try to contact/manage your teammates frequently and inform me if any member is not willing to participate the group work so we can address this issue ASAP. A free rider will receive his/her group project grades solely based on what he/she has contributed to the projects. (Assessing learning objectives 1, 2, 3, & 4)

Reading Assessments

Your capacity to contribute to class discussions is directly related to your commitment to completing all reading assignments by the dates listed on the course schedule. Class participation grades will reflect both the quantity and the quality of your participation.

Makeup Exams

Make-up exams will only be given at the discretion of the instructor. Students are strongly cautioned to notify the instructor immediately if legitimate and insurmountable obstacles prevent them from participating in a scheduled exam session.

Late Assignments

The due dates for all assignments will be strictly followed. Late assignments may or may not be accepted at the instructor’s discretion; should the instructor accept a late assignment, he or she may reduce the grade of the assignment the equivalent of one (1) letter grade for each day the assignment is late.

Attendance Policy

According to the UHV Student Handbook, students are expected to be diligent in their studies and regular in class attendance. A student whose absences are determined by the instructor to be excessive shall be dropped prior to the last day to drop a course or withdraw from UHV with a grade of W or F. For students enrolled in online courses, "absence" connotes a failure to engage in class participation activities on a weekly basis. If an unforeseen crisis (including family emergencies, professional obligations, and technical difficulties) prevents you from fulfilling your course obligations, you are responsible for alerting your instructor to the reason for and anticipate duration of your absence.

Teaching and Learning Partnership

Teaching and learning is a partnership between faculty and students. I will fulfill my partnership obligations by serving as advisor, consultant, mentor and purveyor of general comments and clarifications of difficult or confusing concepts. To this end, I will respond to questions within 72 hours.  You will fulfill your partnership obligations by being a fully participative, responsive, helping, and working team member of the class.  You should check your UHV email frequently and respond to faculty in a timely fashion. Good business and professional etiquette is expected. No derogatory comments should be made. You may certainly disagree with others in class discussions, and you may state your disagreement (if you choose to); however, please do so in a polite manner.

Homework, take-home exams, case assignments and bulletin board participation all play an important role in your education in this course. They are an essential part of the learning process in that they require the synthesis and extension of concepts. They also help both the student and the instructor to evaluate one’s progress in mastering the material. Past experience indicates that generally the course material cannot be adequately mastered without active involvement on your part.

Discussion of homework assignments with others who are also struggling with them can be highly beneficial and is encouraged. Most real-life problems are solved through team efforts, and it is important to learn how to solve problems cooperatively. The interaction with others working on the same problem often reveals different approaches to common difficulties.

Academic Honesty

Each student is responsible for maintaining high standards of academic honesty and ethical behavior. In order that each student understands what is (or is not) acceptable behavior, the following guidelines are offered.

  • Discussion of assignments with other students and members of the faculty is both permitted and encouraged as a constructive educational practice.
  • Students are expected to write their exams, quizzes and papers on their own, based on their individual level of progress with the material.
  • Copying of another’s work and representing it as one’s own work is a serious academic offense, and will be treated as such.
  • Students are encouraged to review materials other than those required for the course in preparing assignments, but should always properly cite any sources used in assignment preparation.

UHV’s Student Handbook contains a detailed description of the university’s Academic Honesty Policy. In addition, tutors at the Academic Center (see section below) are available to assist you in providing proper citations for your source materials.

Disabled Student Policy

The University of Houston System complies with Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, pertaining to the provision of reasonable academic adjustments/auxiliary aids for students with a disability. In accordance with Section 504 and ADA guidelines, each University within the System strives to provide reasonable academic adjustments/auxiliary aids to students who request and require them. If you believe that you have a disability requiring academic adjustments/auxiliary aids, please contact your University’s student disability services center. University of Houston–Victoria, Office of Disability Services, Cheryl Worley, 3007 N. Ben Wilson St., Suite 132-B University West, Victoria, TX 77901. Office phone – 361-570-4287; E-mail; Website -

Student Absences on Religious Holidays

Per Texas state law, students will be excused from attending class and other required activities, including examinations, for the observance of a religious holy day, including travel for that purpose. A student whose absence is excused on these grounds will be allowed to take an examination or complete an assignment within one (1) week of the excused absence.

Sexual Harassment

Students who feel they are the victims of sexual harassment may contact the Associate Vice President for Student Affairs at 361-570-4290 and/or the Director of Human Resources/Affirmative Action at 361-570-4800.

Grievance Procedures

Students who have non-academic grievances or complaints may contact Student Services at 361-485-4409.

Student Success Center Services

The Student Success Center offers writing assistance to all UHV students in the form of paper reviews by peer tutors. Tutors will aid students in looking more critically at their own writing to examine issues such as organization, structure, and development of ideas. To submit a document for online tutoring, or to schedule an appointment for face-to-face tutoring, please visit the Student Success Center online For more information about the Student Success Center and its library of online resources, visit the Center's Web site at or stop by Suite 129 (University West in Victoria).