Financial Statement Analysis
| Module title | Financial Statement Analysis |
|---|---|
| Module code | BEFM011 |
| Academic year | 2019/0 |
| Credits | 15 |
| Module staff | Dr Christina Dargenidou (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 12 |
| Number students taking module (anticipated) | 87 |
|---|
Module description
Summary:
The principal function of this module is to ensure that you become able to review critically the tools available for financial statement analysis and evaluate the usefulness of relevant financial reporting information.
Additional Information:
Internationalisation
This module uses International Financial Reporting Standards (IFRS) which apply to more than 100 countries around the world, as well as U.S. GAAP, and, therefore, prepares students for an international career.
Sustainability
Presentations, PowerPoint slides and tutorial notes are all made available on the ELE (Exeter Learning Environment).
External Engagement
This course is accredited by the CFA (Chartered Financial Analysts).
Employability
In this module, students acquire skills which will be directly applicable to roles such as Equity Analysts. Students lead to synthesize information from multiple sources, and make decisions based on their analysis of information and its context.
Module aims - intentions of the module
This is the first module of two in the area of investment analysis and equity valuation. Its principal function is to ensure that students review critically the tools available for financial statement analysis and synthesise the empirical research literature in order to evaluate the usefulness of financial statement information. Particular attention will be paid to the extension of these tools for the comparison of companies in an international setting.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. demonstrate the ability to assess the financial position and performance of a company under different accounting systems;
- 2. demonstrate the ability to critically appraise the usefulness of corporate financial statements in light of both accounting and research;
- 3. demonstrate appraisals of different aspects of accounting procedures and their relevance to the measurement of key dimensions of company operations and performance;
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 4. demonstrate the ability to develop rigorous conclusions based on financial reporting information and a variety of other data sources;
- 5. demonstrate the ability to access a wide body of empirical research literature and critically appraise it;
- 6. demonstrate the ability to use relevant databases, existing research literature and techniques to conduct a detailed investigation of problems;
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 7. demonstrate the ability to plan and manage his/her own study both individually and within a group;
- 8. demonstrate the ability to make appropriate use of learning resources, including sophisticated computer datasets and the financial press;
- 9. demonstrate the ability to analyse critically problems arising in both academic and practical contexts;
- 10. demonstrate the ability to present effectively results and achievements of collaborative projects as developed through the mode of instruction using group assignments.
Syllabus plan
• Financial reporting standards; international standards convergence.
• Financial ratios and financial statement analysis’ techniques and applications.
• Special issues in FSA: Long-term assets.
• Special issues in FSA: Inventories.
• Special issues in FSA: Deferred taxes.
• Special issues in FSA: Financial liabilities, leases and off-balance sheet debt.
• Special issues in FSA: Financial reporting quality.
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 33 | 117 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Contact Hours | 22 | Lectures |
| Contact Hours | 11 | Tutorials |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Practice exam | 2 hours | 1-5 | Correct answers |
| Tutorial exercises | 11 hours | 1-6,8,9 | Correct answers |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 20 | 80 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Group assignment | 20 | 3000 words | 1-10 | Written feedback |
| Examination | 80 | 2 hours | 1-6,9 | Correct answers |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| 2 hours written examination | 2 hours written examination (80%) | 1-6,9 | August/ September |
| Group Assignment | Individual Assignment (20%) 1000 words | 1-6,8,9 | August/ September |
Indicative learning resources - Basic reading
Financial Reporting & Analysis, CFA PROGRAM CURRICULUM Level I Volume 3 (2015).
Supplementary reading: Assigned research papers and articles (these will be made available through the ELE)
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | None |
| Module co-requisites | None |
| NQF level (module) | 7 |
| Available as distance learning? | No |
| Origin date | 17/07/2014 |
| Last revision date | 08/09/2015 |