Undergraduate Course: Financial Statement Analysis and Valuation (ACCN10031)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 10 (Year 4 Undergraduate) |
Availability | Available to all students |
| SCQF Credits | 20 |
ECTS Credits | 10 |
| Summary | The course aims to prepare students to analyse the financial performance of firms, to assess their prospects and to estimate their valuation. The course is structured primarily from the point of view of investors and analysts, rather than from a company perspective. |
| Course description |
The course will allow students to develop an understanding of the conduct of financial statement analysis and valuation, the application of theory in financial statement analysis valuation and finally will focus on current and formative issues in financial statement analysis and valuation. 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.
Course Outline:
1. Income Statement, Statement of Financial Position and Cash Flow Statement.
2. Historical Performance Analysis
3. Strategy analysis and forecasting
4. Risk and Valuation
5. Valuation Cash Flows
6. Valuation Growth Rates
7. Valuation Multiples
Student Learning Experience:
Emphasis is placed on discussing examples and solving exercises in class.
|
Information for Visiting Students
| Pre-requisites | Visiting 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
|
| Academic year 2024/25, Available to all students (SV1)
|
Quota: 120 |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
200
(
Lecture Hours 20,
Seminar/Tutorial Hours 4,
Programme Level Learning and Teaching Hours 4,
Directed Learning and Independent Learning Hours
172 )
|
| Assessment (Further Info) |
Written Exam
50 %,
Coursework
50 %,
Practical Exam
0 %
|
| Additional Information (Assessment) |
50% Project (Individual) - 2,500 words - Assesses course Learning Outcomes 2,3,4,5
50% Exam (Individual) - Assesses course Learning Outcomes 1,2,3,4 |
| Feedback |
Formative: Feedback will be provided throughout the course.
Summative: Feedback will be provided on the assessments within agreed deadlines. |
| No Exam Information |
Learning Outcomes
On completion of this course, the student will be able to:
- Understand and critically discuss the concepts and the relationship between financial analysis, strategy and valuation.
- Understand and critically evaluate the construction of corporate financial accounting statements.
- Understand and apply skills associated with financial analysis, forecasting, and valuation models.
- Understand and discuss the articulation of the forms of information required and the development of appropriate novel metrics.
- Understand and apply financial analysis to advanced topics of analysing debt, corporate restructuring, capital structure and analysing governance.
|
Reading List
Palepu K., P. Healy, and E. Peek, Business Analysis & Valuation: IFRS Standards edition, 6th edition. Publisher: Cengage Learning, ISBN: 9781473779099.
A.Damodaran, Investment Valuation, 3rd edition , NYU
Supplementary reading:
S. Penman, Financial Statement Analysis and Security Valuation, 5th edition. Publisher: McGraw-Hill, ISBN: 9780071326407. |
Additional Information
| Graduate Attributes and Skills |
Communication, ICT, and Numeracy Skills
After completing this course, students should be able to:
Critically evaluate and present digital and other sources, research methods, data and information; discern their limitations, accuracy, validity, reliability and suitability; and apply responsibly in a wide variety of organisational contexts.
Cognitive Skills
After completing this course, students should be able to:
Be self-motivated; curious; show initiative; set, achieve and surpass goals; as well as demonstrating adaptability, capable of handling complexity and ambiguity, with a willingness to learn; as well as being able to demonstrate the use digital and other tools to carry out tasks effectively, productively, and with attention to quality.
Knowledge and Understanding
After completing this course, students should be able to:
Demonstrate a thorough knowledge and understanding of contemporary organisational disciplines; comprehend the role of business within the contemporary world; and critically evaluate and synthesise primary and secondary research and sources of evidence in order to make, and present, well informed and transparent organisation-related decisions, which have a positive global impact.
Identify, define and analyse theoretical and applied business and management problems, and develop approaches, informed by an understanding of appropriate quantitative and/or qualitative techniques, to explore and solve them responsibly. |
| Keywords | FSA |
Contacts
| Course organiser | Dr Maria Michou
Tel: (0131 6)50 8341
Email: Maria.Michou@ed.ac.uk |
Course secretary | |
|
|
University Homepage