Overview:
- Credits:
- 5.0
- Level:
- 3
- Semester:
- Spring
- Subject:
- Accountancy
- School:
- Business
- Coordinator:
- Dr John McCallig
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Curricular information is subject to change
Part 1 Introduction to Financial Statement Analysis
After completing this part of the module a student should be able to:
- understand the role of financial statements analysis within business analysis.
- navigate the income statement, balance sheet and cash flow statement.
- explain how the financial statements are connected by the accounting equation.
- describe the impact of accrual accounting on the financial statements.
- identify and source information about business organisations using Bloomberg and other sources.
Part 2 Accounting analysis
After completing this part of the module a student should be able to:
- identify the critical accounting policies and assumptions that are applied in preparing a business organisation’s financial statements.
- understand the implications of different accounting policies for the organisation’s financial statements.
- describe earnings management and identify when and how it occurs in practice.
- review a set of financial statements and identify issues that may impact on the analysis of the information in those statements.
Part 3 Financial analysis and modelling
After completing this part of the module, a student should be able to:
- evaluate economic relationships in the financial statements to better understand the performance and prospects of the firm.
- analyse the operational and Environmental, Social, and Corporate Governance (ESG) information provided by the firm
- decompose financial performance and identify performance issues and possible improvements.
- forecast firm performance and resource needs using Excel.
- evaluate the research findings on analysts’ forecasts.
Part 4 Valuation
After completing this part of the module, a student should be able to:
- value a business using the method of multiples.
- explain how investor expectations about future returns can be derived from the Capital Asset Pricing Model (CAPM).
- calculate an appropriate discount rate for a firm.
- value a business using the dividend valuation model and the discounted cash flow (DCF) model.
- value a business using the residual income valuation model.
- explain how the valuation models differ from each other in terms of their theoretical grounding, the assumptions they require and their effectiveness in valuing different types of firms.
- access the strengths and limitations of various valuation models in the context of the valuation of a particular firm.
Student Effort Type | Hours |
---|---|
Lectures | 24 |
Specified Learning Activities | 40 |
Autonomous Student Learning | 44 |
Total | 108 |
ACC 10040 Financial Accounting 1
ACC 20010 Financial Accounting 2
FIN20010 Principles of Finance
(or equivalent at another university)
This module is taught at intermediate financial analysis level. Students should have a strong background in accounting having taken at least 2 financial accounting modules. Students should also have taken an introductory finance module.
Description | Timing | Component Scale | % of Final Grade | ||
---|---|---|---|---|---|
Group Project: Prepare an equity valuation for an assigned company | Throughout the Trimester | n/a | Graded | No | 40 |
Examination: End of semester examination | 1 hour End of Trimester Exam | No | Standard conversion grade scale 40% | No | 30 |
Class Test: Class Test on Accounting Analysis | Unspecified | n/a | Standard conversion grade scale 40% | No | 30 |
Resit In | Terminal Exam |
---|---|
Autumn | Yes - 2 Hour |
• Group/class feedback, post-assessment
• Online automated feedback
Not yet recorded.