Corporate Finance and Reporting
The module focuses on four specialised areas of investment analysis whose importance has accelerated significantly with the global expansion of corporates since the 1990s: inter-corporate investment, currency translation, pension accounting and capital structure. It also looks at measures of earnings quality, accruals manipulation and cash flow.
Full module specification
|Module title:||Corporate Finance and Reporting|
|Duration of module:||
Duration (weeks) - term 2: |
This module adds to the material developed in Quantitative Research Methods and Financial Statement Analysis. It aims to improve the depth to which students can analyse financial statements to identify whether and how accurately they report the company’s true financial performance and position.
ILO: Module-specific skills
- 1. explain US GAAP and IAS rules for treatment of investments, business combinations, pension & other post-retirement liabilities, overseas subsidiaries and corporate governance;
- 2. analyse and adjust financial statements to achieve true and fair statements of underlying net income, comprehensive income, sustainable cash flow and net equity value.
ILO: Discipline-specific skills
- 3. demonstrate the ability rigorously to analyse problems in finance;
- 4. demonstrate ability to interpret financial data and reach conclusions about a companys historic and likely future performance and shareholder value;
- 5. demonstrate the ability to access a wide body of empirical research literature and critically appraise it.
ILO: Personal and key skills
- 6. plan and manage his/her own study both individually and within a group;
- 7. make appropriate use of learning resources, including sophisticated computer datasets;
- 8. analyse critically problems arising in both academic and practical contexts;
- 9. present effectively results and achievements of individual and collaborative projects as developed through the mode of instruction using both individual and group assignments.
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Scheduled Learning and Teaching Activity||22||Lectures|
|Scheduled Learning and Teaching Activity||11||Tutorials|
|Guided Independent Study||117||Reading, research, reflect; Preparation for assessments|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|One piece of assessed group work,e of assessed group work,||20||3000 words||1-9||Written feedback|
|Examination||80||2 hours||1-9||Exam grade|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Assessed group work||Re-submission (3,000 words 20%)||1-9||August/September Reassessment Period|
|Examination||Examination (2 hours, 80%)||1-9||August/September Reassessment Period|
- Analysing the firm’s environment;
- Accounting: Analysis of inter-corporate investments;
- Analysis of business combinations;
- Measuring accounting exposure;
- Analysis of multinational operations;
- International Accounting Standards and US GAAP contrasted;
- Understanding retirement benefit accounting and disclosures for financial analysis;
- Assessing the quality and sustainability of a company’s reported net income
Indicative learning resources - Basic reading
Quantitative Methods for Investment Analysis, Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, and David E. Runkle (AIMR, 2001)
The Analysis and Use of Financial Statements, 2nd edition, Gerald I. White, Ashwinpaul C. Sondhi, and Dov Fried (Wiley, 1998)
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Last revision date