Financial reporting provides a window into the operational and financial workings of a company. However, translating this information into actionable insights is anything but straightforward. It requires an understanding of Generally Accepted Accounting Principles (GAAP), the quality of financial information, and the adjustments and analyses required to accurately measure and evaluate profitability, exposures, growth prospects, and value.
The course starts with a review of financial reporting and then focuses on various modules of fundamental analysis, including performance evaluation, risk assessment, forecasting, and valuation (this is the “Fundamental Analysis” part of the course; for a detailed outline, please see topics 1 through 4 in Section VII below). The second part of the course is devoted to a systematic study of GAAP, earnings quality, and related analyses, utilizing many actual financial disclosures and cases of accounting abuses (this is the “Earnings Quality” part of the course; for a detailed outline, please see topic 5 in Section VII below).
While the course covers the theoretical underpinning of the various analyses, it focuses on implementation and practical uses. Many real-world examples will be analyzed, including using Excel tools that will be provided to the students.
The primary objective of the course is to acquire a deep understanding of accounting information and how to intelligently use it in making investment, credit, and similar resource allocation decisions. Such knowledge is required of executives, consultants, bankers, analysts, investment managers, and other users of financial information.
James L. Dohr Professor of Accounting; Accounting Division Chair
Jonathan Glover is a Professor of Accounting in the Graduate School of Business at Columbia University. Prior to joining Columbia in 2015, Professor Glover was the Richard M. Cyert Professor of Management and Economics and Professor of Accounting at the Tepper School of Business at Carnegie Mellon University. Jonathan’s research is on accounting theory and information economics. The topics he...