Preview of Electives

Financial and Managerial Accounting

2005-2006

Why MUST you take more accounting classes?

ENRON

Global Crossing TYCO

WorldCom/MCIAccounting is HOT!!!

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 IFinancial Accounting

(external purposes)

B6013Accounting ICore Course

B6013Accounting ICore Course

B8100Earnings Quality

B8100Earnings Quality

B8104Fin. Stmt. Analysis

B8104Fin. Stmt. Analysis

B8110Valuation and

Fin. Stmts.

B8110Valuation and

Fin. Stmts.

Brott – F

Yee - Sp

Mohanram - Sp Penman – F

(Ken Yee - Sp?)

• My assessment: B6013 with Angus Beef

B8100Financial Statement Analysis and

Earnings Quality

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 YeeCourse web-site for Yeehttp://www.gsb.columbia.edu/faculty/kyee/indb8110.html

B8104Financial 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)

• 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

B8110 (cont.)Valuation & Financial Statements

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 IIManagerial Accounting & Control

(internal purposes)

B6016Accounting IICore Course

B6016Accounting IICore Course

B8102 (1/2 sem)Strategic

Mgmt. & Control

B8102 (1/2 sem)Strategic

Mgmt. & Control

Sp

B8102Strategic 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 IIITaxation

B8299 (econ/fin)Taxes & Bus.

Strategy

B8299 (econ/fin)Taxes & Bus.

Strategy F

Sp

B8153 Taxes & Bus.

Strategy

B8153 Taxes & Bus.

Strategy

B9301-063Inv. Banking Tax Factors

B9301-063Inv. Banking Tax Factors

F

OR

Sp

B8299 or B8153Taxes 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

B9001-063Investment 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 B8102 B8104 B8110 B8153 B9001-063

Fin. Statements &

Earnings Quality

Strategic Mgmt. Control Systems

Financial Statement Analysis

Valuation & Fin.

Statements

Taxes and Business Strategy

Tax Factors in Investment Banking

Commercial Banking X X X X X X

Entrepreneurship X X X

Fin. Analyst / Corp. Fin. X X X X X

Fin. Control/ Controller X X X X X X

General Consulting X X X X X

Human Res. Mgmt. X

I-Banking/M&A X X X X X

Manufacturing X

Marketing X X

Not-for-profit/Public X X X X

Real Estate X X X X