Postgraduate Course: Financial Statement Analysis (CMSE11338)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 15 |
ECTS Credits | 7.5 |
| Summary | The course aims to allow participants to analyse financial statements of corporations from around the world and to show the links between accounting statements, valuation methods and investment analysis. |
| Course description |
Students will learn to extract information and meaning from IFRS compliant statutory financial statements. They will be able to calculate and use accounting ratios, extracting information to make forecasts and valuations. Students will be able to conduct a limited analysis of corporate strategy and link this to the company's financial performance. Students will also gain understanding of the limitations of financial statements and the methods for evaluating the quality of these statements.
Syllabus:
- The Financial Accounting Environment: Rationale, drivers and perspectives for financial accounting. Basic accounting concepts. Users of accounting information.
- Understanding the financial statements (Income Statement, Balance Sheet, Cash flow Statement, Other Statements)
- Accounting regulation environment.
- International reporting standards
- Current Topics in International Accounting Standards
- Analysis of financial statements using ratio Analysis
- Equity valuations
Student Learning Experience
Learning will primarily be through reading, thinking , class discussion, attending lectures and working as groups on presentation material. Accounting concepts can take time to absorb and student should expect to have to invest time prior to lectures (and prior to the beginning of lectures for those with no or little prior knowledge in accounting) in order to fully understand and participate in class discussions. Supplementary exercises and solutions will be also provided for some topics.
The group-work assignment provides a different type of learning experience. It is a practical project which requires teamwork. The assignment simulates the approach in investment research where teamwork and individual skill sets need to be directed and managed to achieve deadlines. As in investment research, teams are rewarded and judged based on coordinated team outputs, creativity and the manner of client interaction - in this case simulated by a class presentation and questions.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | For Business School PG students only, or by special permission of the School. Please contact the course secretary. |
Course Delivery Information
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| Academic year 2017/18, Not available to visiting students (SS1)
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Quota: None |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
150
(
Lecture Hours 20,
Seminar/Tutorial Hours 2,
Supervised Practical/Workshop/Studio Hours 30,
Feedback/Feedforward Hours 1,
Formative Assessment Hours 3,
Summative Assessment Hours 2,
Revision Session Hours 2,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
87 )
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| Assessment (Further Info) |
Written Exam
70 %,
Coursework
30 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
Coursework - 30%
Exam - 70% |
| Feedback |
Students will get feedback on the assignment and in class feedback on the presentations. They will also receive general feedback on the exam. |
| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
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| Main Exam Diet S1 (December) | Financial Statement Analysis (CMSE11338) | 2:00 | |
Learning Outcomes
On completion of this course, the student will be able to:
- Understand and critically evaluate the construction of corporate financial accounting statements.
- Undertake analysis of corporate value and evaluation of company health and opportunity.
- Explain and discuss value creation and the creation of residual income.
- Critically evaluate current capital market research into accounting.
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Reading List
Recommended Textbook:
Melville, A., (2017), International Financial Reporting: A Practical Guide, 6th edition, Pearson. ISBN: 9781292200743
Reference textbook:
Alexander, Britton, Jorissen, Hoogendoom and Van Mourik (2017), International Financial Reporting and Analysis, 7th Edition, Cengage Learning. ISBN: 9781473725454
Students should try to read the Financial Times on a regular basis.
Any additional in-course reading will be indicated during classes. |
Additional Information
| Graduate Attributes and Skills |
Cognitive Skills:
This course will develop analytical, numerical and problem-solving skills as well as communication and working with others.
Subject Specific Skills
Understand the elements of a set of financial statements and the regulatory environment in which these statements are prepared.
Students will also be able to compile a series of financial ratios in order to analyse the performance of the organisation under a number of headings.
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| Keywords | Not entered |
Contacts
| Course organiser | Ms Deirdre Ruddy
Tel:
Email: Deirdre.Ruddy@ed.ac.uk |
Course secretary | Mr Jonathan Macbride
Tel: (0131 6)51 3028
Email: Jonathan.MacBride@ed.ac.uk |
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