MBA 501

Corporate Financial Reporting

Fall 2019

Instructor: Michael S. Drake, PhD, CPA Office: 558 TNRB

Phone: 801-422-1877 Email: mikedrake@byu.edu

Course Description & Objectives

This course introduces the concepts and issues of financial reporting with an emphasis on how
financial statements reflect economic events. We discuss the accounting principles used to report
these events and learn to assess the quality of the reported numbers. By the end of the course,
you should feel comfortable with corporate financial reports. The course objectives (learning
outcomes) are formally stated as follows:

1. Construct and interpret the balance sheet, income statement, and statement of cash flows.
2. Apply financial accounting rules in the following areas:
 Receivables and reserves
 Inventory
 Investments
 Non-current assets (PPE and intangibles)
 Liabilities
 Equity
 Revenue recognition
3. Discuss accounting issues and solve accounting problems in a group setting.
4. Discuss ethical challenges in the context of financial reporting.
5. Assess the quality of financial reports.
6. Assess the health and prospects of companies using financial reports.

Required Texts

MyEducator eBook: 2019 BYU MBA 501 Corporate Financial Reporting

You purchase the eBook directly from MyEducator (the publisher) by doing the following:
(1) Copy and paste the following link into your internet browser (use Chrome or Firefox):
https://app.myeducator.com/s/1sUmsJTvs01/

(2) There should be one item in your cart: Lifetime access to the content 2019 BYU MBA 501
Corporate Financial Reporting for $99.99.

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(3) Click on the "Checkout" button and make your payment.

(4) You will be asked to create an account with MyEducator if you do not already have one.

(5) Once complete, you will be transferred to the Corporate Financial Reporting material.

(6) To Login - After you have purchased the eBook, you can log into the eBook site at any time
by visiting www.myeducator.com. Log in with the account you created.

Internet Resources / Emailing

Course materials, cases requirements, problem sets, activities, and quizzes will be made
available via the BYU Learning Suite platform. The “Schedule Tab” is your course guide. If you
are looking for something related to class – assignments, instructions, homework problems,
powerpoint slides, practice problems – then go to course schedule. After class, all materials used
in class, including PowerPoint slides, will be posted to Learning Suite in the Schedule Tab.

Emailing is my preferred method of communication for this course. My expectation is that you
will regularly (that is “daily,” Monday through Friday) check your email for updates and
announcements.

** IMPORTANT **

Please do not send me emails via the Learning Suite system. Send them directly to my BYU email
account: mikedrake@byu.edu.

Course Logistics

In Learning Suite, the course schedule (located in the Schedule Tab) is your guide to navigate the
course.

What will I do prior to coming to each class session?

Before each class period, you will do the following:

1. Read assigned topics in the eBook.

2. Complete an EDGAR Financial Statement Analysis mini-case. Please complete all
questions -- even those not included in the problem set.

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 3. Complete a problem set (multiple choice and true/false format) that relates to the reading
and EDGAR mini-cases.
4. Input your answers to the problem set into a Learning Suite “scantron” located in
Learning Suite in the Exams Tab.

All of the above needs to be completed by the Learning Suite scantron due date, which is set at
11:59 pm the day before the scheduled class session.

What will we do during class?

The class sessions will be interactive and include several group breakouts. I will provide you
with a session handout each class period. This handout will contain all of the necessary materials
to complete the break-out activities and space to take notes. I will use PowerPoint to facilitate
the discussion, but will not make the PowerPoint slides available to you until after class (these
slides will be posted in Learning Suite in the far right column of the Schedule Tab after each class
session). I do not provide the PowerPoint slides before class because I find that doing so
sometimes encourages students to coast and adopt an “I’ll just follow along” approach to
learning.

What will I do after class?

I will post the PowerPoint slides after class so that you can review the material. I will also post a
series of “post-class practice problems” to help you prepare for the mid-term quizzes and the
final exam. These practice problems are not turned in, but are provided for practice and study.

Evaluation

Your grade in the course will be determined by your relative performance in the areas listed
below. The distribution of grades will conform to the MBA policy: A (15%), A- (35%), B+ (35%),
B and below (15%).

Graded Element Weight

Twelve pre-class problem sets 20%
Three financial statement activities 10%
Two mid-term quizzes 20%
Final Exam 50%

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Pre-Class Problem Sets (20%) Prior to each class, you will complete a problem set that relates to
the reading materials and EDGAR financial statement cases. The problem set questions are
posted on Learning Suite in a word document (see the Schedule Tab). The questions are
generally multiple choice or true/false. After completing the problem sets, you will input your
answers to these problems in Learning Suite via an online scantron (see the Exams Tab).

You are encouraged to work on the problem set questions in groups. Let me repeat that. You are
encouraged to work on the problem set questions in groups. You should be discussing the
problems together, sharing your work, and asking questions of each other. Make this a team
effort. A word of caution here: don’t outsource YOUR learning! Each student must contribute
some time and effort to help answer the problems. I will view it as a violation of BYU’s Honor
code if you wholesale “borrow” the responses from another student (in or out of your group) to
answer problem set questions without giving the problems any thought at all.

Each student must individually submit their answers to the problem set questions into Learning
Suite. Credit will not be given to students who complete the problem set with their group in
advance of class, but fail to input their answers into Learning Suite by the stated deadline.

You must submit your answers in Learning Suite before 11:59 pm on the day before the schedule
class period. For example, when preparing for the class session on Wednesday, September 11,
you will submit your problem set answers before 11:59 pm on Tuesday, September 10.

** IMPORTANT**

The 11:59 pm quiz deadline is firm. At 11:59 pm the availability of the problem set scantron will
be removed. There will be no late submissions and no make-ups. However, I will drop your
lowest score at the end of the semester before determining final grades.

The only exception to the 11:59 pm Tuesday deadline is for problem set scantron #1, which is due
the Friday after the first class session by 11:59 pm.

Financial Statement Activities (10%) There are three financial statement activities. Here is a
brief description of each and their due dates:

Activity #1: Due September 28 by 11:59 pm

The activity is completed in Excel. The objective of the assignment is to help you see how
the three primary financial statements link together. The spreadsheet and the assignment

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 instructions are posted on the course calendar in Learning Suite (see the left hand column
on September 28).

Can I complete the assignment with my group? No. Not or this assignment. I would like each
of you to complete this one on your own without help from any other classmate or
individual.

Activity #2: Due November 2 by 11:59 pm

This activity is completed on a Harvard Business Publishing online platform. The

objective of the assignment is to help you see how the economics and strategies of
different industries flow through into the financial statements. Instructions on how to
complete the assignment are posted on the course calendar in Learning Suite (see the left
hand column on November 2).

Can I complete the assignment with my group? Yes. This first time around, you are
encouraged to complete the assignment in groups. However, each student must create
their own Harvard Business Publishing account and submit their answers.

Activity #3: Due December 7 by 11:59 pm

The activity is a repeat of activity #2 using different companies. Instructions on how to

complete the assignment are posted on the course calendar in Learning Suite (see the left
hand column on December 7).

Can I complete the assignment with my group? No. Not this time around. You will complete
this assignment entirely on your own without help from any other student or individual.

Mid-term Quizzes (20%) There are two mid-term quizzes during the semester. The quizzes will
be administered in Learning Suite in the Exam Tab. The quizzes will consist of questions that
relate to class discussions and the posted practice problems for each topic. You must not consult
anyone during the quiz or share details about the quiz after you have taken it. The quiz due
dates are listed in the course calendar on Learning Suite (again in the Schedule Tab).

Final Exam (50%) There will be a comprehensive final exam. All pre-class preparation materials,
in-class materials, and post class practice problems are fair game.

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Group work and notes – quick reference

The following chart is a quick reference to remind you when you can and cannot work as a
group and use your notes.

Individual Work Group Work Open to notes*

Pre-class Problem Sets (all 12)
Financial Statement Activity #1
Financial Statement Activity #2
Financial Statement Activity #3
Mid-term #1
Mid-term #2
Final Exam
X YES!
X YES!
X YES!
X YES!
X YES!
X YES!
X No

*Open to notes means that you are welcome to use any MBA 501 materials during the
assignment or activity. This includes the MyEducator eBook, lecture materials, practice problem
solutions, etc. Open to notes does not mean that you can access any other materials, including
materials from other class, textbooks or general internet searches.

Participation and Professionalism

Professionalism: It is my expectation that all students will attend and participate in class, and
behave with outstanding professionalism. I commit to do the same. In the end, common-sense
rules generally apply. Historically, professionalism has not been a problem, but issues
occasionally arise and will be addressed on a case-by-case basis.

Participation: Attendance in all class sessions is required. While in class, you are expected to be
actively engaged working through a lecture handout. Laptops and tablets may be used for note
taking in Word and for calculations in Excel. Out of respect for those around you, if you choose
to use a laptop, please refrain from web search, checking email, and working on assignments in
other courses. Cell phones should generally be kept out of sight unless personal circumstances
dictate otherwise. Please let me know in advance of class if you need to monitor your cell
phone.

During class, you will work through a number of activities and mini-cases in groups. Each
student is expected to participate in these group activities and help to arrive at a solution or
groups response. During these break-out sessions, I will be observing participation levels. As I
debrief each activity, I will cold call on groups to share their thoughts. As the semester
progresses, some groups will be tempted to adopt a “wait until the answer is revealed”

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philosophy. Please resist this temptation! The group(s) I target for participation will not always
be random.

The Fine Print: This syllabus is subject to change, but not without full
disclosure and repeated reminders (and apologies).

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