Waiver Guidelines for Core Courses

Course Overview
This course develops and applies models of the world’s economies to explain long-run trends and short-run fluctuations in key macroeconomic variables, such as GDP, wage and profit rates, inflation, interest rates, employment and unemployment, budget deficits, exchange rates, and trade balances.

Waiver Exam Overview
The waiver exam will ask questions about both theories and applications of the concepts that are useful for understanding the macroeconomics of consumer spending, business investment, fiscal and monetary policies, imports and exports, and rates of interest, inflation, exchange, and economic growth. Ensure that you are comfortable with these concepts and applications at the level of conventional intermediate-level macroeconomics textbooks and that you can apply the concepts to discuss current events. You may also view two syllabi, here (evening) and here (weekend) from previous years, as well as a sample final exam (weekend), sample midterm study guide (evening), sample final exam study guide with answers (2016) and final exam and answer guide (2018) (evening) to assist you in studying for the exam. Please note that these items are meant to serve only as references.

*Eligible for an automatic waiver*

Course Overview
This course provides an introduction to the principles of financial accounting. The course objective is to help the student develop into an informed user of financial statements information. The textbook and materials provided will be used to present the concepts and mechanics associated with the accounting topics of interest. The theoretical material will be supplemented by demonstrating the effects and implications of the topics we studied in real-world settings. This is accomplished through study cases and analyses of financial statements of actual publicly-held corporations. The course topics include the Balance Sheet and Double Entry Accounting, the Income Statement, the Cash Flow Statement, Revenue Recognition, Receivables, Inventories and Cost of Goods Sold, Introduction to Financial Statement Analysis, Fair Value Accounting, Long-Lived Assets and Intangible Assets, Liabilities, Marketable Securities and Investments, and Owners’ Equity.

Waiver Exam Overview
If you have a solid foundation in the basics of financial accounting, including at least one course at the intermediate level, you may consider taking the waiver exam. The exam is a set of basic questions and problems that you must complete in three hours. You may bring a basic financial calculator. You may not use any books or notes. You may also view a syllabus from a previous year here (weekend). Please note that this is meant to serve only as a reference.

A Note from Professor Konchitchki
As you consider whether or not to waive this class, I encourage you to consider a few things. First, most importantly, this course covers topics well beyond basic accounting rules. Indeed, this course provides big-picture insights on the intersection between financial reporting, capital markets, financial decision making, and the macroeconomy. These topics are strongly tied to your role as a manager. They also provide you with a high return on your MBA investment and with strong foundations for other classes at Haas. In the past, even CPAs who waived it expressed their dissatisfaction with their decision to waive this course because of its richness and importance as part of the MBA studies.

Overall, this course provides financial literacy across a number of dimensions, enabling success in future student careers and in real-life situations. It covers the language of the business world — how events in the life of a company map into financial data and how to read balance sheets, income statements, statements of cash flows, and other financial reports of primary importance for investors, suppliers, analysts, banks, regulators and other users of financial data.

The course also shows from where financial amounts are coming, as well as it introduces key topics in financial statement analysis and fair value accounting – topics at the heart of the business world nowadays.

The course also demonstrates how the U.S. Securities and Exchange Commission (SEC) and the U.S. Financial Accounting Standards Board (FASB) play a key role in financial reporting in general, and in the recent financial crisis and the Great Recession that followed in particular.

Throughout the course, it also emphasizes how financial data is tied to the stock prices of corporations and to the macroeconomy. It also refers to real-life examples using financial data such as Alphabet (Google), Walmart, Tesla, Bank of America, Salesforce, PG&E, Uber, WeWork, the 2007-2008 financial crisis, the recent recession, etc.

In addition, the course shows how managers’ decisions can be enhanced using the covered financial reporting topics, such as:

– predicting bankruptcies of companies years before the events;

– conducting event study analyses that are centered on various economic signals such as earnings announcements, analyst forecasts, and stock options awards.

The course also covers the bond market and how bonds work, from the perspectives of investors making investment decisions as well as how bonds are recognized in financial statements.

Other topics include forecasting macroeconomic activity (using GDP growth), identifying turning points in the macroeconomic business cycles, forecasting operating and stock return performance, and introducing cutting-edge insights from capital markets research in finance, accounting, and economics.

Please talk with me if you have any questions about course content and learning outcomes.

• *Eligible for an automatic waiver*

Course Overview
This is the introductory MBA course in finance. It is designed to help students (i) develop a set of tools useful for making financial decisions, (ii) develop a basic understanding of financial markets, and (iii) prepare students for future coursework.

We start by covering present value and future value. We then discuss criterion for making investment decisions and how to project cash flows. We apply these concepts to evaluate new projects (e.g., starting a company). Next we turn to financial markets with the objective of providing an introduction to bonds, stocks, diversification, optimal portfolio choice and develop an understanding for how risky cash flows are valued. With an understanding of how asset prices are determined, we return to corporate finance decisions. We assess the appropriate measure of project risk and use this to calculate investors’ required return (the cost of capital) for a given project. We will also analyze the impact of leverage on the cost of capital. The course may or may not conclude with a discussion of market efficiency.

Waiver Exam Overview
If you have a solid foundation in the basics of financial markets and asset pricing theory, you may consider taking the waiver exam. The exam is a set of questions and problems that you must complete in three hours. You should bring a financial calculator. You may not use any books or notes. You should review a sample waiver exam and the executive summary. You may also wish to view a previous year’s syllabi: evening and weekend. Please note that these items are meant to serve only as references.

Please read the following information carefully. It will prepare you for what an online proctored exam entails. Hopefully this will prevent you from experiencing technical issues and lengthy chats with Honorlock customer support.

We highly recommend setting aside 15 minutes the day before your exam to review the Honorlock website and this test taking guidelines document. A few best practices are outlined below:

#1: Google Chrome is the only supported browser.

#2: Be prepared to add the Honorlock Chrome extension. This allows the remote proctoring process to happen.

#3: Use your personal computer or laptop. Your work machine may be incompatible with HonorLock.

#4: If you’re using a Mac, conduct a system check through Honorlock in advance of your planned exam start time. The following pathway was provided by a Mac user: System preferences> Security and Privacy>Screen Recording> Select Google Chrome> Then quit Chrome> Restart.

#5: Watch this 3-minute video: https://www.youtube.com/watch?v=VjY7cIVaTAw.

Again, please do all of these things the day before, or at least several hours before you intend to start your exam. Being prepared and having everything set up in advance will reduce the time you spend downloading or looking for things or consulting with customer support, when what you really want to do is start your waiver exam.

Students taking waiver exams agree to adhere to the UC Berkeley Student Code of Conduct and conduct themselves with integrity.

The full text of the Haas School of Business Academic Integrity Statement can be found here and is also copied below:

“As a member of the UC Berkeley community, I act with honesty, integrity, and respect for others.” – UC Berkeley Honor Code

When enrolling in the University, students assume an obligation to conduct themselves in a manner compatible with the University’s function as an educational institution. Academic misconduct includes but not limited to cheating, fabrication, plagiarism, or facilitating academic dishonesty as outlined in Section 102.01 in the Berkeley Campus Code of Student Conduct and is grounds for disciplinary action. When UC Berkeley and/or Haas School of Business policies and standards are violated, the UC Berkeley Graduate Division with the recommendation of the Haas School of Business and EWMBA Program Office has final jurisdiction over administrative and academic decisions that terminate or otherwise restrict a graduate student’s progress towards graduation.

Achievement and proficiency in subject matter include the student’s realization that neither is to be achieved by cheating. It must be understood that any student who knowingly aids in plagiarism or other cheating, e.g., allowing another student to copy a paper or examination question, is as guilty as the cheating student.

I understand and agree to the policies and expectations indicated above and the policies and code of conduct established by UC Berkeley and the Haas School of Business. 

Automatic waivers are available for the following three core courses:

• EWMBA 202: Financial Accounting — passed the CPA exam administered by the American Institute of Certified Public Accountants or the ACCA exam administered by the Association of Chartered Certified Accountants. Other international accountants also may be waived. Contact your academic advisor for more information OR if you passed level II of the CFA exam.
• EWMBA 203: Introduction to Finance — passed level III of the CFA exam.
• EWMBA 204: Operations — passed the CPIM exam administered by the American Production and Inventory Control Society.

Please send your documentation (certificate or transcript demonstrating completion of requirement) to Hannah Fischer.

If you qualify for an automatic waiver and/or pass a waiver exam, you have several options. These will be communicated to you in greater detail via email.

1) Waive and don’t replace immediately
Our recommendation is that you replace units by taking additional class(es) during the elective phase of your curriculum OR during summer.

2) Don’t waive
You may also choose not to waive the course(s). We will keep you registered for the course(s) and you will be responsible to pay the per-unit fee.

3) Waive and replace in the current semester
If you are receiving financial aid and need 6 units to remain eligible and/or are interested in enrolling in an elective(s) the semester in which you’re waiving a core course, you will need to participate in the Add/Drop Process. Your enrollment priority will be after 3rd and 2nd year students. If you choose to replace the units, please familiarize yourself with the Registration Timeline.

A few things to consider:

• Keep in mind that completion of the entire core curriculum is an assumed prerequisite for most electives even though some Course Descriptions don’t specify a prerequisite.

• Core courses are taught in 7-9 week modules (Fall A & B and Spring A & B). Electives are mostly taught for 10 or 15 weeks across the entire semester (please refer to the latest Academic Calendar). If you choose to replace a waived core course(s) with an elective(s), you will need to ensure that the elective(s) do/does not conflict (i.e. dates don’t overlap) with your Fall or Spring core course(s). This will usually require you to enroll in an elective offered outside your normal cohort schedule.

• Participation in Add/Drop does not guarantee placement in the desired elective.

• In general, we utilize a “like for like” model when it comes to replacing a core class with an elective. In other words, if you waive a 2-unit core class, you should substitute with either a 1- or 2-unit elective. If you would like to replace your waived core course with more units, please talk with your advisor and submit an Exception Request.

• If you successfully waive one or more core courses, either automatically or by passing a waiver exam, you will receive an email with a list of appropriate electives that you could try to sign up for during Add/Drop. If you would like to enroll in an elective that is not on this list, please talk with your advisor and submit an Exception Request.

Your advisor is always a great resource to help you think through your options.