Postgraduate Programme and Module Handbook 2008-2009 (archived)
Module ECON42915: FINANCIAL STATEMENT ANALYSIS
Department: Economics, Finance and Business (Economics and Finance)
ECON42915: FINANCIAL STATEMENT ANALYSIS
| Type | Tied | Level | 4 | Credits | 15 | Availability | Available in 2008/09 | Module Cap | None. |
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| Tied to | L1K209 |
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Prerequisites
- International Financial Reporting (ECON43115)
Corequisites
- None
Excluded Combination of Modules
- None.
Aims
- This module has been designed to extend students’ knowledge of financial statements gained from International Financial Reporting. The aim is therefore to critically evaluate the main models and techniques used by analysts to extract information from the statements in order to answer questions relating to corporate performance, risks, the forecasting of earnings and other financial accounting numbers and security valuation.
Content
- The main topics covered include: i. The analysis of balance sheet, income and cash flow statement information. ii. Fundamental Valuation Models and analysis techniques. iii. Analysis of Profitability, Growth and sustainable Earnings. iv. Forecasting, Valuation and Business Strategy Analysis. v. Analysis of Corporate Risks.
Learning Outcomes
Subject-specific Knowledge:
- By the end of this module students should:
- have a critical awareness of how firms create value and how these values are reflected in the financial statements;
- have a critical understanding of fundamental models of corporate valuation and their relationship to published financial data.
Subject-specific Skills:
- have acquired specialist knowledge of the main financial analysis techniques used by analysts and be able to apply these tools to published financial statements to assess corporate performance and prospects.
Key Skills:
- Written Communication;
- Planning, Organising and Time Management;
- Problem Solving and Analysis;
- Using Initiative;
- Numeracy;
- Computer Literacy.
Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module
- The module will be delivered by a combination of lectures, seminars, case studies and guided reading appropriate for conveying the specialist knowledge and skills set out in the learning outcomes.
- The summative assessment is a financial statement analysis designed to test students’ knowledge, understanding, and ability to apply techniques of financial statement analysis.
Teaching Methods and Learning Hours
| Activity | Number | Frequency | Duration | Total/Hours | |
|---|---|---|---|---|---|
| Lectures | 9 | Weekly | 2 hours | 18 | |
| Seminars | 4 | Fortnightly | 1 hour | 4 | ■ |
| Preparation and reading | 126 | ||||
| Revision Session | 2 | 1 hour | 2 | ||
| Total | 150 |
Summative Assessment
| Component: Written assignment | Component Weighting: 100% | ||
|---|---|---|---|
| Element | Length / duration | Element Weighting | Resit Opportunity |
| Financial statement analysis | 3,000 words (maximum) | 100% | |
Formative Assessment:
Work prepared by students for seminars; answers to questions either discussed during a seminar, or posted on DUO; feedback on discussions with teaching staff during consultation hours, or via e-mail.
■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University