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The University of Illinois Executive MBA July 13, 2004

Tentative Syllabus
Managerial Perspective on Financial Accounting
Accountancy 401X; Fall 2004
Michael J. Sandretto, 225C David Kinley Hall
(217) 244-6410 (office); (217) 352-4832 (home, before 10:30 p.m.) sandrett@uiuc.edu or michaeljsandretto@earthlink.net

Texts:
Antle, Rick, and Stanley J. Garstak, Financial Accounting, Southwestern (United States), second edition, 2004 (Antle).

Palepu, Krishna G., Paul M. Healy, and Victor L. Bernard, Business Analysis and Valuation: Using Financial Statements, Text Only, Southwestern (United States), fourth edition, 2004 (Palepu).

Background: Accounting is called the language of business for at least two reasons. First, accounting terms such as sales, revenues, profit, net income, costs, gross margin, expense, and capitalize are widely used in business. Any businessperson is expected to understand those terms. Second, managers rely on accounting to understand an organization’s economic condition at a point in time and its economic performance over a period of time. As a result, they use accounting information to communicate with others.

Managerial Perspective on Financial Accounting will help you understand publicly available financial statements for publicly traded companies and financial statements prepared for internal use. It is also an introduction to financial statement analysis and valuation methods. The basic financial accounting methodology, double-entry bookkeeping, was first published in 1494. However, double-entry bookkeeping was first used in the 1100s to help merchants monitor economic performance of their trading ships in the Mediterranean. Since those rules are nearly identical to the ones we now use, it is safe to say that managers and others find accounting useful, even if the rules are far from perfect.

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