Advanced Financial Reporting and Analysis

This unit develops students’ ability to prepare, present, and interpret key financial statement components including the statement of cash flows, asset valuation (depreciation, inventory), liabilities (bonds, leases), equity changes, and explanatory disclosures. Students will practice preparing schedules, reading annual reports and Form 10-K disclosures, applying FASB guidance, and identifying misleading items and preparer responsibilities in external reporting.

Learning Objectives

• Prepare and reconcile the statement of cash flows using both direct and indirect methods, and demonstrate cash-management effects on operating, investing, and financing activities
• Apply inventory valuation and depreciation methods to compute cost of goods sold, depreciation expense, and prepare depreciation schedules and book-vs-tax comparisons
• Analyze balance sheet and equity account presentations (including bonds, lessor accounting, stockholders’ equity reductions) and interpret common explanatory notes, annual reports, and Form 10-K disclosures
• Evaluate financial statements for unusual or misleading items, apply FASB guidance and ethical preparer responsibilities, and identify red flags that require disclosure or corrective entries