Postgraduate Course: Analysis of Corporate Financial Information (CMSE11084)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Available to all students |
| SCQF Credits | 15 |
ECTS Credits | 7.5 |
| Summary | The course aims to allow participants to analyse financial statements of corporation from around the world and to show the links between accounting statements, valuation methods and investment analysis. |
| Course description |
Participants will be comfortable reading financial statements, calculating and understanding accounting ratios, extracting information to make forecasts and valuations. Participants will also gain understanding of the limitations of financial statements and methods for evaluating the quality of these statements
Syllabus
Financial Statements
Income Statement
Balance Sheet
Cash flow Statement
Other Statements
Constructing the financial statements
Basic accounting concepts
Ratio Analysis
The Financial Accounting Environment: Rationale, drivers and perspectives for financial accounting
International financial accounting
Current Topics in International Accounting Standards
Student Learning Experience
Learning will primarily be through reading, thinking, reflection, class discussions, attending the lectures, and working as groups on presentation material. Accounting concepts can take time to absorb and students should expect to have to invest time prior to lectures (and prior to the beginning of lectures for those with no 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. |
Information for Visiting Students
| Pre-requisites | Business School postgraduate students only. |
| High Demand Course? |
Yes |
Course Delivery Information
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| Academic year 2019/20, 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:
150
(
Lecture Hours 20,
Seminar/Tutorial Hours 4,
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
85 )
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| Assessment (Further Info) |
Written Exam
70 %,
Coursework
15 %,
Practical Exam
15 %
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| Additional Information (Assessment) |
The group coursework elements - a significant and current practical analysis presentation (which includes an oral defence) based on an existing company with an accompanying written report - covers Learning Outcomes (LOs) 1 and 2 in depth. In particular circumstances (e.g. the company being analysed has material intangible assets, has been involved in takeover activity , has implemented a new IFRS etc then LOs 3 and 4 may also be covered. These circumstances are quite frequent in reality.
The written examination is in two parts, a mandatory analysis case study which requires students to have a strong level of performance of both LOs I and 2 for successful completion, and a choice of essay questions which are designed so that students can exhibit their knowledge of LOs 3 and 4 as well as providing additional evidence of success in achieving LOs 1 and 2.
There is one group assignment which counts for 30% of the total mark (group presentation and written report) and a final two hour exam which counts for 70% of the total mark.
For the group assignment total of 30%, 15% is awarded for the group written report, 10% is awarded for the group presentation and 5% is awarded on the basis of the individual student's own presentation within the group presentation. |
| Feedback |
Students will get written feedback on the the assignment and in class feedback on the readings. Students 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) | Analysis of Corporate Financial Information | 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
Background Reading
Business Analysis and Valuation: IFRS Edition, 4th edition 2016, Krishna Palepu, Paul Healy & Erik Peek, Cengage Publishing
The Long and the Short of It: A Guide to Finance and Investment for Normally Intelligent People Who Aren't in the Industry, 2nd Edition, John Kay, 2016, Profile Publishing
Required Reading
An additional list of academic readings will be provided in class.
Resource List:
https://eu01.alma.exlibrisgroup.com/leganto/public/44UOE_INST/lists/18387467210002466?auth=SAML
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Additional Information
| Graduate Attributes and Skills |
Cognitive Skills:
The course will develop analytical, numerical and problem-solving skills.
Subject Specific Skill
Understand a set of financial statements
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| Additional Class Delivery Information |
The course consists of ten two hour lectures in the first semester. The lectures will combine lecturing and it is hoped, discussion.
Additionally, there are group practice presentation sessions. These are mandatory and details of timing and location will be given in class. |
| Keywords | Not entered |
Contacts
| Course organiser | Dr Tom Brown
Tel: (0131 6)50 8333
Email: T.Brown@ed.ac.uk |
Course secretary | Mrs Kelly-Ann De Wet
Tel: (0131 6)50 8071
Email: K.deWet@ed.ac.uk |
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