82174 - Analysing and Interpreting Financial Statement Lab

Learning outcomes

The course provides students with the main techinques of analysis of financial statement, useful to understand the financial performance of an organization and for strategic decision-making. At the end of the course students are able: (a) to understand the role of profit as a source of financing; (b) to understand some of the important financing considerations that organizations face; (c) to understand how ratios can be used to help analyze an organization's financial statements and how these analyses can be used to take action.

Course contents

This course provides for 40 teaching hours (82174 - 4 credits) and it is integrated with Cost Accounting (79310 - 8 credits), held by prof. Franco Visani, as part of the Accounting for Decision Making Integrated Course (I.C. 82173 - 12 credits in total).

I recommend to study the course of Principles of Accounting (82165) before attending this one.

Course language: English.

This course teaches you how to use financial statement information in analysing a firm's performance and financial position and, ultimately, in valuing the firm's equity and debt securities.

Using real-life examples and cases, the course takes you through the four steps of business analysis and valuation, being:

(1) strategy analysis,

(2) accounting analysis,

(3) financial analysis, and

(4) prospective analysis

The course will take into consideration various contexts.

 

More in details:

- Introduction to financial statement analysis; - Business analysis and valuation framework; - Conceptual introduction to valuation approaches; - Accounting Analysis 1: Basics of accounting and accounting institutions and their implications for financial statement analysis.

Readings: Palepu, K., P. Healy, and E. Peek, Business Analysis and Valuation: IFRS Edition, Chapters 1, 2 and 3.

 

- Accounting Analysis 2: Accounting adjustments; - Financial analysis.

Readings: Palepu, K., P. Healy, and E. Peek, Business Analysis and Valuation: IFRS Edition, Chapters 4 and 5.

 

- Forecasting future financial statements; - Valuation: approaches, models and implementation.

Readings: References: Palepu, K., P. Healy, and E. Peek, Business Analysis and Valuation: IFRS Edition, Chapters 6 and 7 (partially).

 

- Valuation continued; - Cost of capital.

Readings: References: Palepu, K., P. Healy, and E. Peek, Business Analysis and Valuation: IFRS Edition, Chapter 8 (partially).

Readings/Bibliography

Palepu, K., P. Healy, and E. Peek, Business Analysis and Valuation: IFRS Edition, Cengage Learning, 4th Edition

Additional reading materials will be available on the e-learning Platform of the course: https://elearning-cds.unibo.it/

Teaching methods

Course Language: English

 

The course consists of lectures, interactive discussions and exercises and thus requires active participation. It provides:

- Traditional lectures

- Case Study Analysis

- Project e team works

- Exercises

- Readings

 

The key purpose is to provide questions and insights to students in understanding the topic of the course. In doing so, alongside the traditional lectures, will be provided opportunities for discussion and intervention for students.

 

 

Assessment methods

For ATTENDING students, the final mark will be obtained as a combination of:

- a written exam in form of exercises, case studies, open questions (70% of the marks)

- a team work with discussion - 3 students maximum (30% of the marks)

 

For NOT ATTENDING students, the final mark will be given by a long version written exam, in form of exercises, case studies, open questions.

 

This final mark of Analysing and Interpreting Financial Statement Lab will be integrated with the mark of Cost Accounting (prof. Franco Visani), with a weight of 4/12, given its 4 credits in relation to the total 12 credits of Accounting for Decision Making.

Teaching tools

Exercises, slides and further information will be available at https://elearning-cds.unibo.it/

Personal computer and video-projector

Office hours

See the website of Monica Bartolini