IB9Y9-15 Financial Reporting and Financial Statement Analysis
Introductory description
To provide students with an introduction to financial reporting and financial statement analysis.
Module aims
To enable students to interpret financial statements in context and apply appropriate models and techniques for company valuation and related business issues. To enable students to gain an understanding of how accounting provides data for corporate finance analysis.
Outline syllabus
This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.
Introduction to financial reporting and financial analysis
Cash flow and profit as financial performance measures
Reformulating financial statements for valuation analysis
Ratio analysis and forecasting financial performance
Cash flow and accounting valuation models: Concepts
Cash flow and accounting valuation models: Practice
Value relevance of financial statements: past, present and future
Learning outcomes
By the end of the module, students should be able to:
- Demonstrate understanding of the value-relevance of accounting information and its relationship with other company information.
- Demonstrate understanding of the impact of financial reporting standards on financial statements and other issues that may impact on the interpretation of financial statements.
- Critically assess the major issues affecting company forecasting and valuation.
Indicative reading list
Palepu, Krishna G., Healy, Paul M., and Peek, Erik (2016), Business Analysis and Valuation, IFRS edition (PHP).
Penman, Stephen H. (2013), Financial Statement Analysis and Security Valuation, 5th edition (Penman).
Robinson, T. R., Henry, E., Pirie, W., and Broihahn, M.A., (2015) International Financial Statement Analysis, CFA series, Wiley (Robinson et al.) Chapter 1, 2, 4-7, 11-12, and 16-18.
Research element
The research element of this module is at the basic level where the students do the basic data collection and analysis.
Interdisciplinary
The valuation theory and concepts bridges accounting data and corporate finance concepts. Strategy concepts and practice are reflected through accounting data.
International
The valuation theory and concepts can be applied universally. So, the module is practical and the skills can be implemented internationally.
Subject specific skills
Evaluate company performance from an assessment of financial statements and information from other sources.
Interpret financial statements through a structured approach to ratio analysis.
Implement company valuation models.
Transferable skills
Written skills.
Study time
| Type | Required |
|---|---|
| Lectures | 1 session of 2 hours (1%) |
| Practical classes | 8 sessions of 2 hours (11%) |
| Online learning (scheduled sessions) | 8 sessions of 1 hour (5%) |
| Private study | 49 hours (33%) |
| Assessment | 75 hours (50%) |
| Total | 150 hours |
Private study description
Private study to include pre-reading for lectures and seminars, and assessment preparation.
Costs
No further costs have been identified for this module.
You do not need to pass all assessment components to pass the module.
Assessment group A4
| Weighting | Study time | Eligible for self-certification | |
|---|---|---|---|
Assessment component |
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| Mid-session Class Test | 20% | 15 hours | No |
|
45 minute class test |
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Reassessment component is the same |
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Assessment component |
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| Individual Assignment. | 80% | 60 hours | Yes (extension) |
Reassessment component is the same |
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Feedback on assessment
Assessments will be graded using standard University Postgraduate Marking Criteria and written feedback will be provided. Feedback will take the form of detailed comments and a marksheet.
Courses
This module is Core for:
- Year 1 of TIBS-N1C3 Postgraduate Taught (Financial Management)
This module is Core optional for:
- Year 1 of TIBS-N4N3 MSc in Accounting and Finance
This module is Optional for:
- Year 1 of TIBS-N300 MSc in Finance
- Year 1 of TIBS-LN1J Postgraduate Taught Finance and Economics