|The course objective is to develop sophisticated users of financial information and enhance your ability to discern the economic essence of important classes of complex business transactions from the financial statements. The course integrates financial accounting knowledge with financial economics to understand the accounting for and economic nature of complex deal structures, organizational design, financial distress, corporate governance structures, and currency risk.
The course involves a mixture of lecture and case analysis. Technical material will be developed in the class sessions. There is a set of core cases that serve as a platform for in-depth class discussion and analysis. The cases span many fascinating deals and key issues facing managers of complex organizations. You will be expected to come to class prepared to discuss the case material.
The course will benefit students seeking careers in corporate finance, banking, private equity, financial analysis, operational and strategy consulting, and leading and managing organizations. Topics include accounting issues related to:
• Control/influence over other entities and changes in control: M&A transactions, tax implications of M&A deals, step-acquisitions, non-controlling interests, joint ventures, strategic alliances, carve-outs, spin-offs, financial distress and bankruptcy restructuring.
• Inflation: Inflation adjusted financial statements, understanding vulnerability to inflation, managing subsidiaries in inflationary economies, hyper-inflation, tax implications of inflation.
• Foreign Currency: Foreign currency translation, the nature of functional currency and how it delineates currency risk, translation risk, translation in hyper-inflationary economies.
• Healthcare provider economics: A one week deep dive into current dynamics of the healthcare provider sector viewed through lens of financial accounting. This vibrant, fast changing sector offers many consulting, deal-making, managing and investing opportunities. The lecture will take both an economy-wide view of healthcare economics through lens of the Financial Statements of the U.S., and a market-based view of provider economics through lens of the financial reports of publicly traded health service providers.