Instructor: Susan G. Watts
Course Description:
Central aspects of both financial and managerial accounting are affected by the dramatic increase in e-commerce and the growth of information available on the web. The purpose of this course is to introduce students to several of the accounting issues that have arisen because of these developments.

Potential topics in financial accounting include:

• The stock market reaction to the earnings reports of e-commerce firms
• The emergence of online, unofficial earnings forecasts called “whispers”
• Professional versus individual financial analysis
• Financial disclosures of e-commerce firms—do they differ from those of brick and mortar companies?
• Barter transactions to generate revenue

Potential topics in managerial accounting include:

• Budgeting—how are revenues (costs) budgeted when goods (inputs) are sold (bought) through an online bidding process?
• Cost allocation—how are the costs of transacting online allocated across divisions or products?
• CVP and break-even analysis—how do these incorporate alternative e-commerce selling mechanisms?
• Measures of profit and performance
• Managerial incentives and executive compensation

The course will be taught using cases and readings. Guest speakers will be brought in to supplement class discussion.