Undergraduate Course: Financial Statement Analysis (ACCN10023)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Credit level (Normal year taken) | SCQF Level 10 (Year 3 Undergraduate) |
Availability | Available to all students |
| SCQF Credits | 20 |
ECTS Credits | 10 |
| Summary | The course will allow students to develop an understanding of the conduct of financial statement analysis, the application of theory in financial statement analysis and current and formative issues in financial statement analysis. |
| Course description |
The course adopts the view of an investor who not only wants to 'return to fundamentals' but to earn returns from fundamentals. Consequently, the course has both a theoretical and a practical emphasis. On completion of this course students should be able to conduct useful financial analysis and to design a comprehensive equity research report.
Syllabus
Foundations of Value
Historical Performance Analysis
Forecasting
Cost of Capital
Other Valuation Approaches
Value Creation: Mergers and Acquisitions, Divestitures
Capital Structure
Student Learning Experience
In lectures emphasis is placed on discussing examples and solving exercises in class. Students develop a project which involves equity analysis and is presented as an equity research report, as they proceed through the course. Group presentations take the form of a 20-minute PPT presentation, with 10 minutes for questions.
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Information for Visiting Students
| Pre-requisites | Students must have passed Principles of Finance (BUST08003) AND Accountancy 2A (ACCN08009) AND Accountancy 2B (ACCN08010) equivalents.
Visiting students should have at least 3 Business/Accountancy related courses at grade B or above (or be predicted to obtain this). We will only consider University/College level courses.
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| High Demand Course? |
Yes |
Course Delivery Information
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| Academic year 2018/19, Available to all students (SV1)
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Quota: None |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
200
(
Lecture Hours 20,
Programme Level Learning and Teaching Hours 4,
Directed Learning and Independent Learning Hours
176 )
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| Assessment (Further Info) |
Written Exam
60 %,
Coursework
25 %,
Practical Exam
15 %
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| Additional Information (Assessment) |
The course will be assessed by means of a group presentation of a group-work analysis case counting for 40% of the overall marks awarded. For the final examination (60%) students will be examined on an individual basis (based on a case study). |
| Feedback |
Generic feedback on your coursework, together with individual marks, will be available on Learn 15 working days from the submission date. You can also look at your group feedback at the Business School Undergraduate Reception (outside Room 1.11, Business School, 29 Buccleuch Place) and take away a copy of the feedback form, but you will not be able to take away the original piece of coursework, as it may be required by the Board of Examiners.
Your examination marks will be posted on Learn (together with generic feedback and examination statistics) as soon as possible after the Boards of Examiners' meeting (normally early-mid June). During the summer months (i.e. mid/end June - end August), you may come to the Business School Undergraduate Reception (outside Room 1.11, Business School, 29 Buccleuch Place) to look at your examination scripts. Note that you will not be able to remove any examination scripts from the UG Office as they may be required by the Board of Examiners. |
| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
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| Main Exam Diet S1 (December) | | 2:00 | |
Learning Outcomes
On completion of this course, the student will be able to:
- Apply a critical approach to the consumption of financial accounting and to the construction of financial statement analyses.
- Understand and discuss the application of rhetorical techniques by corporate management in their presentation of financial accounting.
- Use of a variety of model types in equity analysis and discuss the further development of models.
- Understand and discuss the articulation of the forms of information required and the development of appropriate novel metrics.
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Reading List
VALUATION: MEASURING AND MANAGING THE VALUE OF COMPANIES, 5th edition, by Tim Koller, Marc Goedhart, and David Wessels, published by J. Wiley, copyright 2010.
Students will also be required to undertake additional readings during the course.
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Additional Information
| Graduate Attributes and Skills |
Cognitive Skills: students will develop critical and reflective understanding of the analysis of accounting narrative and will also develop skills in model design. Students will also be required to assimilate the, sometimes paradoxical, theories of different theoretical schools.
Key skills: critical analysis, model development, rhetorical analysis, an understanding of the impact of strategic decision making on financial accounting outcomes, the role of novel information in the investment/disinvestment decision. |
| Keywords | FSA |
Contacts
| Course organiser | Dr Tom Brown
Tel: (0131 6)50 8333
Email: T.Brown@ed.ac.uk |
Course secretary | Miss Jen Wood
Tel: (0131 6)50 8335
Email: J.Wood@ed.ac.uk |
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