Postgraduate Program in Management of Technology – MoT

~ Targeting Entrepreneurship and Innovation ~ ~ Targeting Entrepreneurship & Innovation ~

Module 2a & 2b ACCOUNTING & FINANCE Module Director: Prof. Larry Weiss HEC, Lausanne 2a - 15.01.04-17.01.04 and 2b -29.01.04-31.01.04 Lecturers Prof. Larry Weiss, Professor at HEC-Lausanne, University of Lausanne Mr. Vedran Capkun, Assistant at HEC, University of Lausanne [email protected] Overview: For business and legal reasons, companies have to prepare financial statements. It is therefore essential for managers to be aware of the signals they get from or give to the business community through these documents. It is also useful for them to be able to understand and interpret the signals given through the final statements of other companies.

Goal This module is due to allow participants to be able to understand, compare and analyze the different financial statements provided by companies. Evaluation Evaluation is based on a group project 50% and a final exam 50%. Students who do not attend the module have to write a working paper. The subject and the deliverables will be set in discussion with the responsible Professor. The work has to be submitted by March 1st 2003. Pre-Work: Prior to the first class, for those with little or no accounting of finance background, please go on-line and do the Shaws-Lawson Finance-Lite interactive program. Shaws-Lawson is a private firm which provides executive education to major corporations and has graciously allowed the MoT participants to use their software without charge (Professor Weiss has a professional relationship with ShawsLawson).

Postal address: CMT – EPFL CH-1015 LAUSANNE SWITZERLAND Phone: +41-21-693-5324 Fax:+41-21-693-5060 E-mail: [email protected] www.epfl.ch/mot

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Postgraduate Program in Management of Technology – MoT

~ Targeting Entrepreneurship & Innovation ~

Module 2a DAY-Time

Dates: 15.01-17.01.04 WHO

Title: Acccounting & Finance MAIN TOPICS/ CLASS ACTIVITIES

Thu 15.01.04 18:15-21:45

Prof. Larry Weiss

Introduction to Accounting and Finance The Objective of the Financial Statements The Corporate Annual Report

Fri 16.01.04 09:15-12:45

Prof. Larry Weiss

Types of Financial Statements Basis of the Financial Statements General structure for the balance sheet and the income statement. Cash, Marketable Securities & Receivables

14:15-18:00 Sat 18.01.04 09:15-10:45

Prof. Larry Weiss

Inventory and Long Term Assets

10:45-12:15

Group Work

Case - Young and Fuller

13:15-15:00

Prof. Larry Weiss

Discuss Group Project - Young and Fuller

15:30-17:15

Module Director: Larry Weiss ASSIGNMENTS

View Survey and email results to [email protected] Do - Finance-Lite program http://www.bizlitu.com/unil/finlite/

Problem - When is it Revenue Problem - A/R

Financial Statement Analysis

Postal address: MoT – EPFL, Odyssea, 1015 Lausanne, Switzerland Phone: +41-21-693-5324 Fax: +41-21-693-2489 E-mail: [email protected] www.epfl.ch/mot

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Postgraduate Program in Management of Technology – MoT

~ Targeting Entrepreneurship & Innovation ~

Module 2b

Dates: 29.01-31.01.04

DAY-Time

WHO

Thu 29.01.04 18:15-19:45

Group Work

20:15 – 21:45

Fri 030.01.04 09:15 – 12:45

Vedran Capkun

Prof. Larry Weiss

MAIN TOPICS/ CLASS ACTIVITIES

Prof. Larry Weiss

Module Director: Larry Weiss ASSIGNMENTS

Case - Does Accounting Reflect the Nature of an Industry Class Discussion of Case - Does Accounting ...

The Time Value of Money Long Term Debt - Bonds Leases & Equity The Statement of Cash Flow

14:15 – 18:00 Sat am 31.01.04 09:15-10:45

Title: Accounting & Finance

Case - An Accountant in Hollywood

Managerial Accounting - Relevant Costs

11:00-12:30

Activity Based Costing

13:30-14:30

Management Control

15:30-17:30

Exam

Postal address: MoT – EPFL, Odyssea, 1015 Lausanne, Switzerland Phone: +41-21-693-5324 Fax: +41-21-693-2489 E-mail: [email protected] www.epfl.ch/mot

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Postgraduate Program in Management of Technology – MoT

~ Targeting Entrepreneurship & Innovation ~

Module 2a & 2b: Accountings & finance

Bill of material Readings & Assignments: 1. View Survey - Tell me about yourself - please email before first class 2. Shaws-Lawson - Finance Lite - Interactive Software - http://www.bizlitu.com/unil/finlite/ 3. Corporate Annual Report 4. Weiss, Lawrence A., An Introduction to Financial Accounting, 1994 INSEAD 07/94-4320 5. International Accounting Standards IAS 2001, Framework for the Preparation and Presentation of Financial Statements - excerpts 6. Merril Lynch, How to read a Financial Report 7. Course Notes 8. Weiss, Lawrence A., Does Accounting Reflect the Nature of an Industry, 1994 INSEAD 06/944318 9. Weiss, Lawrence A., Notes for Managerial Decision Making, 1996 INSEAD 12/96-4566 10. Greer, Howard C., Anyone for Widgets? 11. Greer, Howard C., The Chop Suey Caper. 12. Kerr, Steven, On the folly of rewarding A, while hoping for B, 1995 Academy of Management Executive, Vol. 9 No. 1 13. Kaplan, Robert S. and David P. Norton, The Balanced Scorecard - Measuers That Drive Performance, January 1992 Harvard Business Review No. 92105

Postal address: MoT – EPFL, Odyssea, 1015 Lausanne, Switzerland Phone: +41-21-693-5324 Fax: +41-21-693-2489 E-mail: [email protected] www.epfl.ch/mot

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Postgraduate Program in Management of Technology – MoT

~ Targeting Entrepreneurship & Innovation ~

Module 2a & 2b: Accounting & finance

Bibliography Further Recommended Readings: * Pratt, Jamie, Financial Accounting in an Economic Context, Halsted Press; ISBN: 0470000465; 5th edition (February 2002) * PENMAN STEPHEN H., Financial Statement Analysis & Security Valuation, 1st edition, Edition Mc Graw-Hill, Boston, 2001, 770 pages * WALTON PETER, Financial Statement Analysis: An international Perspective, 1st edition, Edition International Thomson Business Press, London, 2000, 512 pages *

Zimmerman, Jerold L., Accounting for Decision Making and Control, McGraw-Hill/Irwin; ISBN: 0072501790; 4th edition (July 11, 2002)

* Kaplan, Robert S. and Robin Cooper, Cost and Effect: Using Integrated Cost Systems to Drive Profitability and Performance, Harvard Business School Pr; ISBN: 0875847889; (November 1997) * Ball, Ray, and S.P. Kothari, Financial Statement Analysis (McGraw-Hill Series in Advanced Topics in Finance and Accounting), McGraw Hill College Div; ASIN: 007004645X; (March 1, 1994)

Postal address: MoT – EPFL, Odyssea, 1015 Lausanne, Switzerland Phone: +41-21-693-5324 Fax: +41-21-693-2489 E-mail: [email protected] www.epfl.ch/mot