fin5fsa financial statement analysis
FINANCIAL STATEMENT ANALYSIS
FIN5FSA
2016
Credit points: 15
Subject outline
This subject aims to present financial statement analysis from the point of view of the primary users: equity and credit analysts. The subject provides students with an understanding of how financial statements are constructed in order to separate the economic process that generates the numbers from the accounting process that at times obfuscates them. Each topic is focussed on a specific area of analysis and the effect of differences in accounting methods and estimates on reported financial conditions, results of operations and financial ratios is highlighted. International accounting differences are discussed and relevant empirical research findings are considered.
SchoolLa Trobe Business School
Credit points15
Subject Co-ordinatorDarren Henry
Available to Study Abroad StudentsNo
Subject year levelYear Level 5 - Masters
Exchange StudentsNo
Subject particulars
Subject rules
PrerequisitesN/A
Co-requisitesN/A
Incompatible subjectsN/A
Equivalent subjectsN/A
Special conditionsN/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | International financial statement analysis | Recommended | Robinson, T.R., van Gruening, H., Henry, E., Broihahn M.A., | NJ, JOHN WILEY, 2009 |
| Readings | The Analysis and Use of Financial Statements. 3rd Edition. | Recommended | White, G. I. Sondhi A.C., Fried D, 2003 | WILEY, 2003. |
| Readings | Customised text combinnig relevant chapters from the White et al (2003) and Robinson et al (2009) textbooks | Prescribed | Robinson, T.R. and White, G.I., 2015 | Wiley |
Graduate capabilities & intended learning outcomes
01. To analyse the differences which exist between accounting standards and their application in different countries, in particular the difference between US GAAP and IASB GAAP;
- Activities:
- Lectures, tutorials and library workshop
- Related graduate capabilities and elements:
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
02. To develop an understanding of the accounting, financial and economic theory on which the practice of financial analysis is founded;
- Activities:
- Lectures, tutorials and library workshop
- Related graduate capabilities and elements:
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
03. To develop the practical skills required to deconstruct a company's financial statements so as to restate the accounts on a comparable basis with the accounts of other companies;
- Activities:
- Lectures, tutorials and library workshop
- Related graduate capabilities and elements:
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
04. To develop the analytical thinking required to apply accounting theory and forensic skills to determining the actual financial state of a company on the one hand and to analysing empirical and theoretical problems in a scholarly manner on the other
- Activities:
- Lectures, tutorials and library workshop
- Related graduate capabilities and elements:
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
Subject options
Select to view your study options…
Melbourne, 2016, Semester 1, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorDarren Henry
Class requirements
LectureWeek: 10 - 22
One 2.0 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.
TutorialWeek: 11 - 22
One 1.0 hours tutorial per week on weekdays during the day from week 11 to week 22 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| one 1-hour mid-semester test | 10 | 01, 02, 03, 04 | |
| one 3-hour final examination | Hurdle requirement: Students must achieve at least 50% in the final examination as well as a total of 50% in the sum of the marks for all assessment tasks to pass the unit. | 50 | 01, 02, 03, 04 |
| one 4,000-word maximum major research-based project | 30 | 01, 02, 03, 04 | |
| five 100-word on-line tutorial quizzes | 10 | 01, 03, 04 |