82174 - Analysing and Interpreting Financial Statement Lab

Course Unit Page

  • Teacher Monica Bartolini

  • Credits 4

  • SSD SECS-P/07

  • Teaching Mode Traditional lectures

  • Language English

  • Campus of Forli

  • Degree Programme First cycle degree programme (L) in Economics and business (cod. 9202)

  • Course Timetable from Sep 23, 2021 to Dec 21, 2021

SDGs

This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.

Quality education Industry, innovation and infrastructure

Academic Year 2021/2022

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 and eventually review the contents of Principles of Accounting (82165) before attending this course.

Course language: English.

This course teaches you how to use financial statement information in analysing a firm's performance and financial position.

Using real-life examples and cases, the course takes you through the main steps of a business performance analysis process:

(1) 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, Chapter 1.

2) Strategy analysis, Competitive strategies and Corporate strategy analysis

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

(3) Recasting financial statements

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

 

Additional mandatory reading materials and slides will be available on the e-learning Platform of the course on virtuale.unibo.it. To have access, ask the password by email to the professor.

 

MID TERM OPTIONAL EXAM on parts 1, 2, and 3.

 

(4) Accounting analysis for adjusting accounting distortion and steps in Performing Accounting analysis - Accounting distortions and accounting adjustments for performance analysis

Readings: Palepu, K., P. Healy, and E. Peek, Business Analysis and Valuation: IFRS Edition, Chapters 3 and 4 (only “Recognition of assets” and “Asset distortions”, Leased assets, and Accelerated recognition of revenues excluded).

(5) Financial analysis by ratios for performance assessment in a benchmarking context: profitability, liquidity, solvency ratios.

Readings: Palepu, K., P. Healy, and E. Peek, Business Analysis and Valuation: IFRS Edition, Chapter 5 (“Cash flow analysis” excluded).

 

Additional mandatory reading materials and slides will be available on the e-learning Platform of the course on virtuale.unibo.it. To have access, ask the password by email to the professor.

 

II PARTIAL EXAM on parts 4 and 5, ONLY FOR STUDENTS WHO PASSED THE MID TERM EXAM.

Readings/Bibliography

Palepu, K., P. Healy, and E. Peek, Business Analysis and Valuation: IFRS Edition, Cengage Learning, 4th Edition, 2016, ISBN 9781473722651, chapters from 1 to 5 only (please, carefully read the Course content for parts of them to exclude).

Additional mandatory reading materials, slides and exercises/assignments useful to pass the exam will be available on the e-learning platform of the course on virtuale.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

- Team works

- Exercises and on-line tests in class

- Assignments

- Readings

 

The key purposes are to provide students with a discriminating approach towards theatrical concepts and to strengthen students’ ability to implement theoretical knowledge to real cases and problems.

In doing so, alongside traditional lectures, the course will create opportunities for students to actively participate and discuss questions, problems and case studies.

Assessment methods

STANDARD ASSESSMENT

The final mark will be obtained by passing:

- a final written exam* (2 hours), in the form of exercises, case studies, open questions or, alternatively,

- the mid-term and second partial written exams* (weighting 15 points each and lasting 1 hour), in the form of exercises, case studies, open questions. To undergo the second partial exam a passing grade in the mid-term exam is required.

 

ATTENDING STUDENT ASSESSMENT (OPTIONAL)

ATTENDING students (i.e. attending at least 70% of teaching hours) have the option to choose an alternative assessing method. According to it, the final mark will be obtained as a combination of:

a) IN CASE OF PARTIAL EXAMS

  • a written mid term exam* (in November, 15 points maximum), the same as the standard assessment;
  • instead of the 2nd standard partial exam:
    • a team work** (3 students maximum) including the financial analysis of a real case, with discussion during the last 2 lessons (9 points maximum);
    • a shorter second partial written exam (6 points maximum). 

b) IN CASE OF TOTAL EXAM

  • a team work** (3 students maximum) including the financial analysis of a real case, with discussion during the last 2 lessons (9 points maximum);
  • a written shorter final exam (21 points maximum).

Furthermore, attending students can obtain up to 2 additional points on the final mark, based on class participation (not just attendance) and assignments' correction during classes.

Examples of previous exams (with suggested solutions and detailed graduation grid) are available on Virtuale.

The mark of Analysing and Interpreting Financial Statement Lab will be integrated with the mark of Cost Accounting (prof. Franco Visani), weighting 4/12, given its 4 credits, relative to the total 12 credits of Accounting for Decision Making.

The passing grade of the single disciplines (AIFS or Cost Accounting) will be valid to be integrated with the other one until February of the following a.y.

* Bring your calculator.

** TEAM WORK INSTRUCTIONS, if attending student assessment:

  • The team work concerns the financial analysis of a firm
  • Your will form the groups (max 3 members) and will choose the business case to study
  • This part of the assessment involves your soft skills (team working/building and public speaking). All team members have to take part in the presentation
  • Presentation is due on the last two classes
  • The class presentation should be undertaken in PowerPoint format; a hard copy of your slides and the related report (see Roadmap for TW on the course Platform) should be submitted to the lecturer for assessment purposes, as well as an electronic copy (excel spreadsheets included), by the same dates and by uploading it to Virtuale
  • The presentation should take 20 minutes
  • You will be assessed on the quality of both your report and presentation, that should include a list of key issues highlighted by your case (evaluation criteria: completeness, accuracy, effectiveness)
  • The other students/groups and the teacher might pose you questions during the presentation

 

ATTENTION: The assessment method is confirmed also in case of blended and on line teaching due to the Covid-19 emergency, however in these cases the written exam will be submitted in presence and/or on line, using EOL and Zoom, in the same form as in presence (short case studies and exercises). Look regularly for new announcements on this topic on Virtuale.

 

Graduation grid of marks:

- 18-23: sufficient preparation and ability to analyze but relating to a limited number of topics covered in the course, use of an overall correct language;
- 24-27: technically adequate preparation but with some limits with respect to the topics covered, good operational skills, even if not particularly articulated, expressed in correct language;
- 28-30: very good knowledge of a large number of topics covered in the course, good operational and critical skills, high-level usage of specific terminology;
- 30L: excellent and very in-depth and exhaustive knowledge of the topics covered in the course, critical analysis and connection skills, very high-level usage of specific terminology.

Teaching tools

Exercises, cases, assignments, on-line tests, previous exam papers, slides, additional mandatory reading materials and slides, and curse information will be available on virtuale.unibo.it.

Tests will be submitted by Wooclap and lessons by Teams.

Office hours

See the website of Monica Bartolini