Module ECON42915: FINANCIAL STATEMENT ANALYSIS

Department: Economics, Finance and Business (Economics and Finance)

ECON42915: FINANCIAL STATEMENT ANALYSIS

Tied To

• L1K209: Accounting and Finance

Pre-requisites

Corequisites

Excluded Combinations

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

• 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.

• 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.

• 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, practical sessions, 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

Summative Assessment

Formative Assessment

Work prepared by students for practical sessions; answers to questions either discussed during a practical session, or posted on DUO; feedback on discussions with teaching staff during consultation hours, or via e-mail.