FINANCIAL STATEMENT ANALYSIS

FIN1FSA

2018

Credit points: 15

Subject outline

In this subject, you will examine financial statement analysis from the point of view of the primary users: managers, equity and credit analysts. You will gain 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-ordinatorKok-Boon Oh

Available to Study Abroad StudentsYes

Subject year levelYear Level 1 - UG

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites BUS1AFB

Co-requisitesN/A

Incompatible subjects FIN3FSA

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsBusiness Analysis and Valuation: Using Financial Statements, Text and CasesPrescribedPelepu & Healy (2013) 5th Ed.Cengage, ISBN 9781111972288

Graduate capabilities & intended learning outcomes

01. Develop an understanding of the accounting, financial and economic theory on which the practice of financial analysis is founded.

Activities:
The exam is designed to motivate students to learn the discipline and test their comprehension of material taught in class. Individual and group case study/article based assignments with open-ended questions will test students comprehension of the discipline.
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

02. 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:
The exam will test students' comprehension of material taught in class in this area and applying this knowledge in the assignments will reinforce their understanding of the real market.
Related graduate capabilities and elements:
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

03. Develop the practical skills to collect, manage, and deconstruct a companys financial statements so as to extract meaningful information to guide relevant decisions.

Activities:
Individual and group live case study based assignments with open-ended questions will test students resourcefulness in collecting and using data for analysis to aid decision making.
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

04. Draw professional and empirical conclusions pertaining to the actual financial health of a company and the implications for a broad range of stakeholders.

Activities:
Individual and group live case study based assignments with open-ended questions and different market/industry scenarios will test students resourcefulness in collecting and using data for analysis for insights and decision making.
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

Subject options

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Start date between: and    Key dates

Melbourne, 2018, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorKok-Boon Oh

Class requirements

Lecture Week: 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.

Tutorial Week: 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 elementComments% ILO*
One 2000-word project (individual assignment)30 01, 02, 03, 04
One 2-hour final examination (2000 word equivalent)40 01, 02, 03, 04
One group proposal (500 words) & report (2000 words)Broadly equivalent to 500 words per student30 01, 02, 03, 04