Handbook

Financial-statement information is used in a wide range of business decisions. We will discuss financial statements from a user's perspective, and use a variety of tools to break apart financial reports into meaningful units for analysis, forecast financial statements, and value a firm's shares. We will also look at the role of managerial incentives and accounting rules in assessing the quality of financial statements.

The course is divided into five sections: (1) Information collection, (2) Processing information (accounting analysis), (3) Processing information (the role of incentives), (4) Forecasting, and (5) Valuation and decision-making. These sections will provide us with the structure we need to help us become more informed users of financial information.