The core accounting curriculum will revolve around the following offerings:
This course will acquaint students with the market paradigm that governs accounting and accounting institutions. The basic demands of accounting information that must serve the purposes of fundamental valuation as well as stewardship will be discussed. Concepts such as agency theory will be used and issues such as the need for disclosure v. accounting will be explored. Concepts of Permanent Income, Hicksian income, comprehensive income and its role in accounting clean surplus relation, and their role in fundamental valuation will be covered. Use of Book Value and Earnings as alternative anchors, and accounting policy choices that favors either book value or income statement will also be discussed. At the end of this course, the students should be able to formulate some opinion regarding the desirability or otherwise of a proposed accounting rule from the point of view of valuation, welfare and contracting.
Advanced Management Accounting
This course will expose students to the user’s perspective of the use of managerial accounting information primarily for control purposes. The exposition will fully exploit the interrelationship between cost determination, performance evaluation and economic decision making. This course will bring to focus the underlying theory of cost allocation as an applied mechanism design and focus on incentive issues that arise when cost management and control practices are implemented.
Corporate Financial Reporting
This is a comprehensive course that will go into the issue of accounting v. disclosure in depth. Apart from footnote disclosures, this course will go into restatement and its consequences, more details on accounting for risk, securitization and bank financial statements, accounting for complex financial derivatives and the concept of maximally informative accounting report. At the end of this course, the student should be able to read and analyze the financial statements of Banks, Financial institutions and investment banking institutions such Morgan Stanley and others.
Financial Statement Analysis
This course will teach the students how to actually analyze the financial statements with a view to valuing a firm from the fundamentals. This will apply knowledge from the all other courses, and get them to actually value a firm and compare their results with market valuation and attempt to reconcile the difference. Popular accounting measures such P/E ratio, M/B ratio and ROE, and ROA as well as different accounting policy choice, particularly those that are used for window dressing, will be discussed with reference to research findings. At the end of this course, the students should be ready to apply these ratios and other analysis and theory learned in Accounting Theory and other courses for financial statement analysis and develop a belief about the efficacy of window dressing of accounting numbers.
Seminar on Financial Accounting
This course will introduce the students to the basic wisdom derived from the Financial Accounting Research. Starting with the efficient market paradigm, the students will be exposed to the concept of value relevant information of the market participants and the role of accounting information. At the end of the course, the students should be able to distinguish and appreciate the difference between the dual roles of earnings as information as well as a measure of wealth.
Seminar on Strategic Cost Management
This course will examine the interrelationship of cost management and how it may affect strategy. How common practices such as cost plus pricing distort incentives for cost savings will be introduces along with the distortions caused in the delegated investment decisions and the associated performance measures. Role of activity based costing in mitigating some of the problems will also be discussed referring to the research literature. At the end of this course, the students should have a clear understanding of the interrelationship between the two competing roles of cost information; decision facilitating and decision evaluating.
The Accounting Profession
This is a year-long one unit course that exposes students to a variety of speakers from the industry and profession who provide a variety of perspective on the role of accountant in the business world and the demands made by the business environment on the accountants. Speakers from leaders from industry would make the students realize the comprehensive nature of the business discipline and help them understand the user’s perspective.
The Program will also require students to take several electives in advanced areas of Financial and Managerial Accounting, Auditing and Tax apart from some electives available to our MBA students. Internship of variable duration can also be applied towards some academic credit.