72920 - Financial Statement Analysis

Learning outcomes

"At the end of this course, the students are capable of: - generally understand corporate external reporting practices; - how to use financial statement information in analysing a firms performance and financial position; - how to carry out business analysis and evaluation through a comprehensive approach in order to evaluate the equity and debt securities of a firm. "

Course contents

This course analyses different topics that link information and firm performance.The course starts with an introduction to fundamental concepts on how information affects capital markets and to the features of the accounting system affecting the financial reporting. Based on these fundamentals, the course provides a framework for financial analysis, which includes three steps: strategy analysis, accounting analysis and financial analysis. The course then focuses on the impact of the quality of financial information a crucial determinant of the quality of the analysis. The last section of the course focuses on some basic management accounting and control concepts, critical to understand the foundations of firm performance. The objective of this course is provide students with the necessary knowledge to assess and evaluate firm disclosures to market participants. Emphasis is given to the quality and effects of the information disclosed as well as to its use in firm valuation and sustainable value creation.

Readings/Bibliography

Palepu K., P.Healy V. Bernard and E. Peek. 2022. Business Analysis and Valuation: IFRS Edition – Text and Cases, 6rd Edition.

Sessions and case studies will be based on the book, so students are advised to have a copy of this text.

Teaching methods

Lectures, cases and workshops

This course consists of 10 sessions during the 3rd and 4th subcycle of the academic year (total of 30h).

Assessment methods

This is the assessment grid: (a) <18 insufficient; (b) 18-23 sufficient; (c) 24-27 average/good; (d) 28-30 very good; (e) 30 cum laude excellent/outstanding.

The assessent is based on both a written exam grade and a group project.

Teaching tools

Slides, Virtuale, Qualtrics and access to databases.

Office hours

See the website of Eleonora Monaco