The course continues the study started in AFM 291 with emphasis on liabilities and shareholders’ equity sections of the balance sheet. Additional topics include earnings per share, income taxes, pensions, leases, changes in accounting principals, and cash flow statements, among others. While some emphasis is placed on analysis, interpretation, and use of accounting data for investing, credit, and management decisions, the reporting function of accounting to external users (investors and creditors) will be stressed. This will not only entail the study of current financial reporting and disclosure requirements, but will include controversial and emerging practices.
In this course, students need to develop and demonstrate both financial accounting knowledge and critical thinking and communication skills. Specifically, students are expected to: