THE UNIVERSITY of EDINBURGH

DEGREE REGULATIONS & PROGRAMMES OF STUDY 2022/2023

Timetable information in the Course Catalogue may be subject to change.

University Homepage
DRPS Homepage
DRPS Search
DRPS Contact
DRPS : Course Catalogue : Business School : Accounting

Undergraduate Course: Financial Statement Analysis (ACCN10023)

Course Outline
SchoolBusiness School CollegeCollege of Arts, Humanities and Social Sciences
Credit level (Normal year taken)SCQF Level 10 (Year 3 Undergraduate) AvailabilityAvailable to all students
SCQF Credits20 ECTS Credits10
SummaryThe 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
Emphasis is placed on discussing examples and solving exercises in class.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Students MUST have passed: Principles of Finance (BUST08003) OR Introduction to Corporate Finance (BUST08030) AND ( Accountancy 2A (ACCN08009) AND Accountancy 2B (ACCN08010))
Co-requisites
Prohibited Combinations Other requirements None
Information for Visiting Students
Pre-requisitesVisiting students must have at least 4 Accountancy courses at grade B or above. This MUST INCLUDE at least one Finance course at intermediate level. This course cannot be taken alongside BUST08003 Principles of Finance; BUST08030 Introduction to Corporate Finance; 'Accountancy 2A'; 'Accountancy 2B'; 'Accountancy 1A' or 'Accountancy 1B'. We will only consider University/College level courses.
High Demand Course? Yes
Course Delivery Information
Not being delivered
Learning Outcomes
On completion of this course, the student will be able to:
  1. Apply a critical approach to the consumption of financial accounting and to the construction of financial statement analyses.
  2. Understand and discuss the application of rhetorical techniques by corporate management in their presentation of financial accounting.
  3. Use of a variety of model types in equity analysis and discuss the further development of models.
  4. Understand and discuss the articulation of the forms of information required and the development of appropriate novel metrics.
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.
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.
KeywordsFSA
Contacts
Course organiserDr Tom Brown
Tel: (0131 6)50 8333
Email: T.Brown@ed.ac.uk
Course secretaryMiss Jen Wood
Tel: (0131 6)50 8335
Email: J.Wood@ed.ac.uk
Navigation
Help & Information
Home
Introduction
Glossary
Search DPTs and Courses
Regulations
Regulations
Degree Programmes
Introduction
Browse DPTs
Courses
Introduction
Humanities and Social Science
Science and Engineering
Medicine and Veterinary Medicine
Other Information
Combined Course Timetable
Prospectuses
Important Information