FINANCIAL STATEMENT ANALYSIS

FIN5FSA

2015

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

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsInternational financial statement analysisPrescribedRobinson, T.R., van Gruening, H., Henry, E., Broihahn M.A.,NJ, JOHN WILEY, 2009
ReadingsInternational financial statement analysis: WorkbookPrescribedRobinson, T.R., van Gruening, H., Henry, E., Broihahn M.A.,NJ, JOHN WILEY, 2009
ReadingsThe Analysis and Use of Financial Statements. 3rd Edition.RecommendedWhite, G. I. Sondhi A.C., Fried D, 2003WILEY, 2003.

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

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Start date between: and    Key dates

Melbourne, 2015, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorDarren Henry

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 1-hour mid-semester test10 01, 02, 03, 04
one 3-hour final examinationHurdle 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.60 01, 02, 03, 04
one 4,000-word project30 01, 02, 03, 04