Course Descriptions

Course catalog descriptions for courses offered in all currently published terms.

Accounting

Department Chairperson: Lehavy, Reuven
Department Website: http://www.bus.umich.edu/Academics/Departments/Accounting
 
 
ACC 502 Principles of Financial Accounting
  2.25 hours Core Terms Offered: F13(A), F14(A)
  Course Prerequisites: No credit in ACC 501 
   
  Principles of Financial Accounting --- This course introduces the basic concepts and methods used in corporate financial statements for the information of investors and other interested external parties. Readings, problems and cases are used. Major topics included are: The Basic Accrual Model, Analysis of Transactions, Balance Sheet, Income Statement and Cash Flow Statement Construction and Analysis. The course also emphasizes analysis of cases and actual financial reports and concerns the applications of the basic concepts and methods of financial accounting to issues such as long-term assets, inventory, sales, receivables, debt securities, corporate ownership, international operations, and analysis of financial statements.
 
 
ACC 552 Management Accounting
  2.25 hours Core Terms Offered: W14(A), W15(A)
  Course Prerequisites: No credit in ACC 551 
   
  Management Accounting --- This course introduces the basic concepts of managerial accounting for internal decision-making. Major topics included are product costing, emphasizing costing approaches used in today's business environments, relevant costs for decision analysis, variance analysis, divisional performance evaluation, and transfer pricing.
 
 
ACC 555 Corporate Financial Research and Reporting
  2.25 hours Core Terms Offered: F14(A)
  Course Prerequisites: ACC 501 or 502 or 591 
   
  Corporate Financial Research and Reporting --- Corporate financial statements are a key source of information about the economic activities of a firm. This course is intended to enhance your ability to relate economic events to financial statement and to aid in developing a coordinated set of concepts and principles to serve as a framework for analyzing a wide variety of financial reporting issues. In addition, we will work on developing your skills in researching an accounting problem. The goal is to provide you with the skills and information to research and understand transactions the most corporations face.
 
 
ACC 557 Evaluating Financial Performance
  2.25 hours Core Terms Offered: M14
   
  Evaluating Financial Performance --- This course introduces basic concepts and methods used in the preparation, interpretation and analysis of corporate financial statements as a source of information for investors and other interested stakeholders. The major objective is to understand the structure, relevance and information content of the basic financial statements - balance, sheet, income statement and statement of cash flows - from the user's perspective. The course emphasizes analysis of cases and actual financial reports and concerns the applications of the basic concepts and methods of financial accounting to issues such as case flows versus accruals, receivables and revenue recognition, inventory, capital assets, intellectual property, debt securities, corporate ownership, and deferred taxes. Consideration is given to financial statements prepared both under U.S. GAAP and International Financial Reporting Standards.
 
 
ACC 558 Cost Measurement & Control
  2.25 hours Core Terms Offered: W15(B)
  Course Prerequisites: No credit in ACC 551 
   
  Cost Measurement and Control --- This course is concerned with the use of accounting data inside the organization to assist in decision making, planning and control, and evaluating performance.
 
 
ACC 560 Federal Taxation and Managerial Decisions
  3 hours Elective Terms Offered: F13, F14
  Advisory Prerequisites: ACC 501/503 
   
  Federal Taxation and Managerial Decisions --- The goal of this course is to develop the ability to recognize and understand tax issues in both the personal and business world. Accordingly, students are introduced to the tax implications of a wide range of topics, including personal investments, executive compensation, alternative forms of doing business (e.g., C corporations, S corporations, partnerships, LLCs, etc.), international operations, mergers and acquisitions, estate planning, and current trends in tax planning. This course focuses on real world applications as opposed to in-depth coverage of the tax code; thus, the class does not cover tax law in the detail it is tested on the CPA exam.
 
 
ACC 561 Federal Taxation I
  3 hours Elective Terms Offered: F13, F14
  Advisory Prerequisites: ACC 301/501/502 
   
  Federal Taxation I --- This course is designed to provide students with a basic understanding of the fundamentals of federal income tax law. The course emphasizes individual taxation but also provides an introduction to corporate and partnership taxation as well. The course is intended for students who need some technical knowledge of tax law, as well as for those students who wish to pursue further tax law education.
 
 
ACC 564 Corporate Financial Reporting
  2.25 hours Elective Terms Offered: F13(A), F14(A), F14(B), F13(B), W14(A), W15(A)
  Advisory Prerequisites: ACC 312, 501, 502 (or equivalent) 
   
  Corporate Financial Reporting --- This course is an intermediate financial accounting class that extends your understanding of accounting by covering more in depth issues first considered in ACC501, and addressing completely new topics. The goal of this class is to enable you to have a deep understanding of the advantages and the limitations of using the accounting model to track firm performance. The class is user-oriented as opposed to preparer-oriented, and is useful for anyone who will be using financial statement information as an input into economic decision-making.
 
 
ACC 565 Financial Instruments and Structured Finance
  2.25 hours Elective Terms Offered: F14(B), F13(B)
  Advisory Prerequisites: ACC 564 
   
  Financial Instruments and Structured Finance --- Corporations are increasingly entering into complex financial transactions as a tool to protect the value created in their core operations. Examples include equity-based compensation, hybrid securities, derivatives, asset securitizations and other forms of financial engineering including contingently convertible bonds, credit default swaps, and synthetic collateral debt obligations. This course introduces students to increasingly complex financial reporting issues behind these transactions to both understand the economics behind the transactions as well as create the ability to effectively analyze the financial conditions of firms that employ them.
 
 
ACC 586 Entrepreneurial Accounting
  1.5 hours Core Terms Offered: F13(A), F14(A)
   
  Accounting for the Entrepreneurial Firm --- This is a survey course in the analysis and use of accounting data for future entrepreneurs. As such, it will compare, contrast and examine three important sets of accounting data utilized by all for-profit enterprises: financial, managerial and tax.
Financial Accounting considers the extant reporting environment of GAAP-basis financial statements provided to external stakeholders (lenders, suppliers, equity investors, etc.). You will learn how the financial statements (the balance sheet, income statement, statement of cash flows) are prepared, as well as how to use the information that financial statements provide. The primary emphasis will be directed towards obtaining an understanding of the accounting for certain transactions and economic events with respect to the measurement of the associated assets, liabilities, and related income and cash flow consequences. This level of understanding should include insights into the fundamental strengths and limitations of the financial reporting process. The knowledge obtained in this class will provide you with an important set of tools that are vital for anyone who will be expected to use financial statements in a meaningful way.
Managerial Accounting is concerned with the use of proprietary data by managers to implement decisions such as efficiency improvements, product costing, budgeting and control. The objective of cost management systems is to provide relevant information about the costs of the goods and services sold by the firm. We will consider a variety of cost measurement systems with increasing levels of sophistication to address the needs of a variety of product and service oriented firms as they emerge from startup phases with emphases on growth and sales to more mature enterprises with the need for achieving cost efficiencies and control.
Tax accounting is concerned with the measurement of firm performance under the extant federal income tax regulations. We will briefly consider the major differences between financial and tax reporting regimes and how they influence key managerial decisions particularly with respect to the startup enterprise. This will include a brief overview of various forms of organizational ownership such as sole-proprietor, Subchapter S and C-corporation rules of taxation.
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ACC 591 Principles of Financial Accounting
  2.25 hours Core Terms Offered: W14(B), W15(B)
  Advisory Prerequisites: Global MBA students 
   
  Principles of Financial Accounting --- This course introduces the basic concepts and methods used in corporate financial statements for the information of investors and other interested external parties. Readings, problems and cases are used. Major topics included are: The Basic Accrual Model, Analysis of Transactions, Balance Sheet, Income Statement and Cash Flow Statement Construction and Analysis. The course also emphasizes analysis of cases and actual financial reports and concerns the applications of the basic concepts and methods of financial accounting to issues such as long-term assets, inventory, sales, receivables, debt securities, corporate ownership, international operations, and analysis of financial statements.
 
 
ACC 593 Management Accounting
  2.25 hours Core Terms Offered: P14, P13
  Advisory Prerequisites: Global MBA students 
   
  Management Accounting --- This course considers decision-making in organizations, where the decisions involve the generation, analysis, or use of financial information. The major topics in this course are cost management systems and management control systems. Cost management systems develop product and service cost information for pricing and other decisions. Traditional and activity-based costing systems are discussed. Management control systems focus on the measurement and control of managerial performance. Business unit measures, such as ROI, EVA, and the balanced scorecard are discussed. Methods useful for both performance evaluation and control, such as variance analysis, are also discussed. Throughout the course, a managerial viewpoint is stressed. Cases are used.
 
 
ACC 601 Accounting Information System Design
  1.5 hours Elective Terms Offered: F13(A), F14(A)
   
  Accounting Information System Design --- This course will provide students with a thorough understanding of the design of information systems that support the accounting function of a firm. Topics to be covered will include business transaction cycles and processes, technology used for AIS, management of the system development life cycle, computer control and audit, IT governance, Sarbanes-Oxley and AIS, and COBIT. The course will be taught using lecture/discussion, cases, and hands-on exercises. The course will meet the accounting systems requirements for the CPA exam in all states.
 
 
ACC 618 Financial Communication and Investor Relations
  2.25 hours Elective Terms Offered: F14(B), F13(B)
  Advisory Prerequisites: ACC 502, FIN 503, STRATEGY 502 
   
  Financial Communication and Investor Relations --- Financial Communication and Investor Relations is a course that helps students to learn about the flow of information in financial markets. We take a managerial perspective and lay out the factors that impact financial communication. This includes understanding your investors, creditors and other stakeholders as well as the role of financial intermediaries such as analysts and the media. We also will discuss the role of visibility and credibility in financial markets. While building this foundation, we will examine communication around IPO's, Mergers, Accounting Restatements, Activist Investors and Short Attacks, among others. The course will rely heavily on cases and student participation.
 
 
ACC 620 Federal Taxation II
  2.25 hours Elective Terms Offered: W14(B), W15(B)
  Advisory Prerequisites: ACC 561/equivalent 
   
  Federal Taxation II --- This course is designed to provide students with a technical familiarity in a wide range of tax topics, including complex corporate and individual topics, estate and gift taxation, the taxation of international transactions, tax issues associated with not-for-profit entities, and selected other topics. The course is intended for those considering a career in taxation.
 
 
ACC 625 Advanced Financial Accounting
  2.25 hours Elective Terms Offered: W14(A), W15(A)
  Advisory Prerequisites: ACC 564/permission of instructor 
   
  Advanced Financial Accounting --- The primary focus of this course is on the GAAP and tax implications of transactions frequently encountered in the area of corporate finance, including mergers, acquisitions, divestitures, spinoffs, IPOs, and leveraged buyouts. As a result, students gain an understating of the GAAP and tax advantages and disadvantages associated with the different methods of structuring such transactions. Other topics covered include deferred tax issues associated with mergers and acquisitions and fund accounting for governmental entities.
 
 
ACC 630 Auditing and Assurance
  1.5 - 3 hours Elective Terms Offered: F14(B), F13(B), W14(A), W15(A)
  Advisory Prerequisites: ACC 312, 564/equivalent 
   
  Auditing and Assurance --- This course focuses on the auditing practice performed by public accountants. The topics covered in the course include the theory and philosophy of auditing, prescribed auditing standards, the design and evaluation of accounting systems and controls, professional ethics, legal obligations of reporting companies and auditors, sampling techniques, and other auditing procedures and considerations.
 
 
ACC 640 Advanced Management Accounting
  1.5 hours Elective Terms Offered: W14(B), W15(B)
  Advisory Prerequisites: ACC 552 
   
  Designing Competitive Organizations: Internal Control --- We examine internal accounting systems' crucial strategic role in helping management motivate and coordinate employee behavior to ensure organizational success. The course is case-based and will enhance students' communication and numerical skills (variance analysis, transfer pricing, etc.). Course is suited for private equity specialists, strategy consultants, and audit specialists.
 
 
ACC 650 Cost Management Systems
  1.5 hours Elective Terms Offered: W14(A), W15(A)
  Advisory Prerequisites: ACC 552 
   
  Designing Competitive Organizations: Cost Management --- We examine the crucial strategic role internal accounting systems play by helping management understand and control organizational resource costs for competitive survival. The course is case-based and will enhance students' communication and numerical skills. Course is suited for private equity specialists, strategy consultants, and audit specialists.
 
 
ACC 695 MAcc Graduate Research Seminar
  3 hours Core Terms Offered: S13, W15, W14
   
  MAcc Graduate Research Seminar:

Directed study in accounting research, methods and theory. Capstone experience of MAcc degree candidates to gain in-depth knowledge beyond that available in core coursework related to emerging accounting issues and extant academic research.
 
 
ACC 711 Financial Statement Analysis I
  2.25 hours Elective Terms Offered: F14(B), F13(B), W14(A), W15(A)
  Course Prerequisites: No credit in ACC 712 
  Advisory Prerequisites: ACC 564 
   
  Financial Statement Analysis I --- This course provides a systematic framework for using financial statements in business analyses. It considers a comprehensive set of tools to analyze the information contained in financial statements and demonstrates how to use the information to evaluate financial performance. It addresses questions such as: (1) how do operating and financial decisions contribute to a firm's return, (2) why does firm performance differ between competitors, (3) has the firm distorted the accounting numbers and how will this influence reported performance, and (4) how does the financial performance today predict future events, such as credit default.
 
 
ACC 713 Financial Statement Analysis II
  2.25 hours Elective Terms Offered: W14(B), W15(B), W14(A), W15(A)
  Course Prerequisites: No credit in ACC 712 
  Advisory Prerequisites: ACC 711 
   
  Financial Statement Analysis II --- This course focuses on a rigorous understanding of how to construct robust business forecasts (a Good forecast is probably the most important predictor of business success!), and on the latest techniques on how to use these forecasts to derive firms' values. This course is a "must" for students pursuing careers in the financial sector or consulting. Students planning careers in general management (marketing, operations) will also find the knowledge and skills extremely useful.
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ACC 725 Managing the Maize and Blue Fund
  1.5 hours Elective Terms Offered: F14(B), F13(B)
  Advisory Prerequisites: (ACC 711 and 713), or ACC 712 
  Cross-listed with: FIN 725 
   
  Managing the Maize and Blue Fund --- In this course students act as portfolio managers for the Maize and Blue (Student Managed) Fund. Student teams follow and analyze particular sectors, pitching stocks from their sectors to their peers. Through a series of applied assignments, students learn to use the cutting-edge tools available in the Tozzi Finance Center. The emphasis of the course is on combining the skills acquired in traditional courses with the latest financial technology to develop effective strategies for active portfolio management.
 
 
ACC 726 Maize and Blue Fund
  1.5 hours Elective Terms Offered: W14(A), W15(A)
  Advisory Prerequisites: (ACC 711 and 713), or ACC 712 
  Cross-listed with: FIN 726 
   
  Managing the Maize and Blue Fund --- In this course students act as portfolio managers for the Maize and Blue (Student Managed) Fund. Student teams follow and analyze particular sectors, pitching stocks from their sectors to their peers. Through a series of applied assignments, students learn to use the cutting-edge tools available in the Tozzi Finance Center. The emphasis of the course is on combining the skills acquired in traditional courses with the latest financial technology to develop effective strategies for active portfolio management.
 
 
ACC 728 Managing the Maize and Blue Fund as a Senior Analyst
  1.5 hours Elective Terms Offered: W14(B), W15(B), W14(A), W15(A)
  Advisory Prerequisites: (ACC 711 & 713) or ACC 712 
  Cross-listed with: FIN 728 
   
  Managing the Maize and Blue Fund as a Senior Analyst --- In this course students act as portfolio managers for the Maize and Blue (Student Managed) Fund. Student teams follow and analyze particular sectors, pitching stocks from their sectors to their peers. Through a series of applied assignments, students learn to use the cutting-edge tools available in the Tozzi Finance Center. The emphasis of the course is on combining the skills acquired in traditional courses with the latest financial technology to develop effective strategies for active portfolio management.
 
 
ACC 750 Independent Study Project
  1 - 3 hours Elective Terms Offered: S13, P14, W15, M13, S14, F13, P13, F14, W14, M14
  Advisory Prerequisites: Graduate standing 
   
  Independent Study Project --- Independent study projects, supervised by faculty, are available to graduate business students in good academic standing. To select a project, students should consult the appropriate professor about the nature of the project and the number of credit hours the work would earn. Students earn one to three credit hours per project and may elect only one study project in a term. Graduate business students should consult their program bulletins for information
regarding total number of projects and credits that can be applied to their degree. To register for a project students must submit an approved Independent Study Project application, available online.