Executive Development Center

Finance and Financial Reporting for Non-Financial Managers
June 4-5, 2008

Professor Jim Sepe

Office: Kenna 305
Phone: (408) 554-4036

E-mail: jsepe@scu.edu

Course Description:

Good financial management is vital to the economic health of business enterprises. Corporate executives and managers need a solid understanding of the financial information provided by profit-oriented companies to external decision makers. They also need to be conversant with the important concepts and tools used by internal decision makers to make critical decisions affecting the profitability of the company.

The objective of this course is to provide participants with a basic knowledge of financial reporting and financial statements and the use of those statements.   We will also cover some introductory material in the area of managerial decision-making.

Materials:

Financial Accounting: A Management Perspective, Seventh Edition, Ivy Learning Systems

Various articles and handouts (in course packet)

The Chemalite, Inc. Case (to be provided)

Advance Reading:

The benefits of this program are enhanced if participants read in advance chapters 1,2,3, and 5 of Financial Accounting: A Management Perspective.  This product includes a workbook and a CD and can be obtained directly from Ivy Software for $50. The phone number is 1-800-342-5489.  Mention that you are a Santa Clara University student.  IMPORTANT! It takes from 7-10 days to receive this material after it is ordered from Ivy Software, so plan ahead!

Course Outline:

Session 1, Wednesday, June 4, 8:30 a.m. - 4:30 p.m.

Session Content:

	The environment and function of financial reporting Accounting in perspective The investment/credit decision Needs of primary users (forecasts vs. historical information) Accounting: A cash flow perspective Accounting regulation
	The basics of financial reporting Financial position and its elements Revenues, expenses, and net income Three important principles:     1. Historical cost (or original transaction value)     2. Realization (revenue recognition)     3. Matching (expense recognition) The basic financial statements Example

	The Chemalite, Inc. Case
	The accounting processing cycle
	Financial statement analysis Horizontal and vertical analysis Ratio analysis Financial Leverage

Session 2, Thursday, June 5, 8:30 a.m. - 4:30 p.m.

Session Content:

	Analysis of Dell vs. Apple
	Revenue recognition revisited Right of return - Intel's revenue recognition policy Service Revenue Software revenue recognition
	Matching principle revisited AOL's treatment of promotion costs Research and development (in general and for software development costs)

	Accounting for mergers and acquisition - in brief
	Accounting for Stock Options
	Managerial Accounting Topics: Introduction to Cost Concepts Introduction to Cost Allocation Cost-Volume-Profit Analysis Cost Estimation Methods Relevant Costs - An Example