Financial Statement Analysis - BUSN8006

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Module delivery information

This module is not currently running in 2024 to 2025.

Overview

This module deals with the interpretation of financial statements, valuation models and implications of market based accounting research.
Indicative topics are:
- A framework for business analysis and valuation;
- Financial analysis/ratio analysis;
- Valuation theory and concepts;
- Quality of earnings;
- Security analysis;
- Credit analysis and financial distress prediction;
- Mergers and acquisitions.

Details

Contact hours

Total contact hours: 36
Private study hours: 114
Total study hours: 150

Method of assessment

Main assessment methods:
Group Presentation (20%)
Essay (2000 words) (20%)
Final Report (5000 words) (60%).

Reassessment method:
100% coursework

Indicative reading

Barker, R. (2001) Determining Value: valuation models and financial statements, Harlow: Pearson

Kim, K.A and Nofsinger, J.A. (2004) Corporate Governance, 2nd edn, New Jersey: Pearson Prentice Hall

Palepu, K.G, Healey, P.M and Peek, E. (2013), Business Analysis and Valuation. 3rd edn. IFRS Edition, Text and Cases, London: Thompson

White, G.I., Sondhi, A.C and Fried, D. (2003) The Analysis and Use of Financial Statements, 3rd edn, International edition, New Jersey: Wiley

See the library reading list for this module (Canterbury)

Learning outcomes

The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
- Understand and use different valuation models to value companies.
- Analyse the annual reports and accounts of companies.
- Make critical comment on the role and usefulness of financial statements in company valuation.
- Extract, analyse and interpret corporate accounting and financial data from multiple sources.
- Understand the impact of credit analysis/debt rating in corporate financing.
- Value companies at the time of mergers/acquisitions
- Understand the implications of market-based accounting research for financial statement analysis.

The intended generic learning outcomes.
On successfully completing the module students will be able to:
- Develop practical skill on the use of financial information for the valuation of a company.
- Develop ability to compute and interpret different financial ratios.
- Develop a framework to assess the usefulness of financial information in making a decision.
- Develop ability to plan, work and study independently.
- Develop ability to critically evaluate the usefulness of annual reports and accounts for the analysis of a company.
- Write a research report from the analysis of financial information reported by the companies in their annual reports and accounts.
- Develop ability to analyse and evaluate financial statements reported by the companies.
- Develop ability to work in a group environment through group assignment

Notes

  1. ECTS credits are recognised throughout the EU and allow you to transfer credit easily from one university to another.
  2. The named convenor is the convenor for the current academic session.
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