Financial Statement Analysis

Module description

Summary:

The principal function of this module is to ensure that you become able to review critically the tools available for financial statement analysis and evaluate the usefulness of relevant financial reporting information.

Additional Information:

Internationalisation
This module uses International Financial Reporting Standards (IFRS) which apply to more than 100 countries around the world, as well as U.S. GAAP, and, therefore, prepares students for an international career.

Sustainability
Presentations, PowerPoint slides and tutorial notes are all made available on the ELE (Exeter Learning Environment).
External Engagement
This course is accredited by the CFA (Chartered Financial Analysts).
Employability
In this module, students acquire skills which will be directly applicable to roles such as Equity Analysts. Students lead to synthesize information from multiple sources, and make decisions based on their analysis of information and its context.

Full module specification

Module title:Financial Statement Analysis
Module code:BEFM011
Module level:M
Academic year:2016/7
Module lecturers:
  • Dr Christina Dargenidou - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

None

Co-requisites:

None

Duration of module: Duration (weeks) - term 1:

12

Module aims

This is the first module of two in the area of investment analysis and equity valuation. Its principal function is to ensure that students review critically the tools available for financial statement analysis and synthesise the empirical research literature in order to evaluate the usefulness of financial statement information. Particular attention will be paid to the extension of these tools for the comparison of companies in an international setting.

ILO: Module-specific skills

  • 1. demonstrate the ability to assess the financial position and performance of a company under different accounting systems;
  • 2. demonstrate the ability to critically appraise the usefulness of corporate financial statements in light of both accounting and research;
  • 3. demonstrate appraisals of different aspects of accounting procedures and their relevance to the measurement of key dimensions of company operations and performance;

ILO: Discipline-specific skills

  • 4. demonstrate the ability to develop rigorous conclusions based on financial reporting information and a variety of other data sources;
  • 5. demonstrate the ability to access a wide body of empirical research literature and critically appraise it;
  • 6. demonstrate the ability to use relevant databases, existing research literature and techniques to conduct a detailed investigation of problems;

ILO: Personal and key skills

  • 7. demonstrate the ability to plan and manage his/her own study both individually and within a group;
  • 8. demonstrate the ability to make appropriate use of learning resources, including sophisticated computer datasets and the financial press;
  • 9. demonstrate the ability to analyse critically problems arising in both academic and practical contexts;
  • 10. demonstrate the ability to present effectively results and achievements of collaborative projects as developed through the mode of instruction using group assignments.

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
331170

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Contact Hours22Lectures
Contact Hours11Tutorials

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Practice exam2 hours1-5Correct answers
Tutorial exercises11 hours1-6,8,9Correct answers

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
20800

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Group assignment203000 words1-10Written feedback
Examination802 hours1-6,9Correct answers
0
0
0
0

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
2 hours written examination2 hours written examination (80%)1-6,9August/ September
Group Assignment Individual Assignment (20%) 1000 words1-6,8,9August/ September

Syllabus plan

• Financial reporting standards; international standards convergence.
• Financial ratios and financial statement analysis’ techniques and applications.
• Special issues in FSA: Long-term assets.
• Special issues in FSA: Inventories.
• Special issues in FSA: Deferred taxes.
• Special issues in FSA: Financial liabilities, leases and off-balance sheet debt.
• Special issues in FSA: Financial reporting quality.

Indicative learning resources - Basic reading

Financial Reporting & Analysis, CFA PROGRAM CURRICULUM Level I Volume 3 (2015).

Supplementary reading: Assigned research papers and articles (these will be made available through the ELE)

Module has an active ELE page?

Yes

Origin date

17/07/2014

Last revision date

08/09/2015