Taxation and Finance: Eight Tuesdays, 7:45pm 9:45pm, beginning May 3rd.
Our principal text will be Management Accounting Principles by Robert N. Anthony and James S. Reece (published by Richard D. Irwin, 1975). Since this book may be difficult to locate and possibly cost more than this course, I will hand out reprints of selected passages. Please go to a used bookstore or college bookstore and purchase any introductory accounting text, the older the better. You will find almost any textbook useful. As I intend to cover a great deal of material in a limited period of time, I will keep questions and tangential discussions constrained. However, I encourage all of you to remain after class to explore specific issues and arguments.
Course Outline:
I Introduction to Accounting: (may 3rd) The Equation, The Chart of Accounts, Liquidity, Capitalization and Expensing, Debt vs. Equity, Long and Short Term,
Trial Balance, The Income Statement and The Balance Sheet, Financial Statements
II Accounting II: (may 10th) Recognition of Cost and Revenue, Accrual vs. Cash,
Advantages and Disadvantages, The Roots of Manipulation, Accounts Receivable, Accounts Payable, The Birth of Credit, Depreciation Tangible and Intangible
III Introduction to Finance: (may 17th) a brief history, Ratios, Inventory, Working Capital, Leverage What it is and how to use it, Relationship of Assets to the Method used to Finance them, Bonds, Rates of Return, Discounted Cash Flow, Equities (dE)
IV Taxation: (may 24th) a long-winded mystery, Public Entities, Income Taxes vs.
Consumption Taxes vs. Asset based Taxes, The Current System, Social Engineering,
The Costs of Taxation, The Hobby Loss Rules, Great Case Studies, Tax Terrorism
V Taxation and Finance: (may 31st) Debt better than Equity, Mortgages Bonds as a Special Case, Tax Accounting vs. External Reporting, The Crucible, Internal Reporting,
Earnings, EBITDA, Introduction to Cost Accounting, Methods of Tax Evasion
VI The Entertainment Industry: (june 7th) Cost Accounting, Divisional Accounting, Transfer Pricing, Intercompany Loans, The Eddie Murphy Case Why there is no Net,
Non Profit Entities, Taxes, Wealth, Accumulation, Museums and Intellectual Property
VII Wall Street: (june 14th) A Question of Value, Another History, Regulation leading to Deregulation leading to more Regulation, The Mines Bigger Than Yours Theory, A Brief Survey of Security Analysis, The Recent Scandals How and Why They Happened
VIII Summary/Review/Exam: (june 21st) looking at all the material as a singular total,
Review of Specific Issues and Questions that seem to stand out from the total, Exam, The Solution of the Exam, The Future of Taxation and Finance and participant feedback
Email: tax@howiesolo.com