Module

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 follows the CFA (Chartered Financial Analysts) institute curriculum.


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:2020/1
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:

9

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

ILO: Discipline-specific skills

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

ILO: Personal and key skills

  • 7. plan and manage his/her own study both individually and within a group;
  • 8. make appropriate use of learning resources, including sophisticated computer datasets and the financial press;
  • 9. analyse critically problems arising in both academic and practical contexts;
  • 10. 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
Scheduled Learning and Teaching Activity22Lectures
Scheduled Learning and Teaching Activity11Tutorials
Guided Independent Study117Reading, preparation for classes and assessments

Formative assessment

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

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 examination (80%)2 hours written examination (80%)1-5,9August/September Reassessment Period
Group Assignment (20%)Individual Assignment (20%) 1000 words1-6,8,9August/September Reassessment Period

Syllabus plan

  • Introduction to financial analysis
  • Estimates in the income statement
  • Cash flow statement
  • Debt/Leases/Pensions
  • Financial & Intangible assets
  • Tangible assets
  • Inventories
  • Deferred tax
  • Financial reporting quality
  • Accounting standards

Indicative learning resources - Basic reading

Financial Reporting & Analysis, CFA PROGRAM CURRICULUM Level I Volume 3 (2020).

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

Module has an active ELE page?

Yes

Origin date

17/07/2014

Last revision date

18/09/2020