72920 - Financial Statement Analysis

Learning outcomes

By the end of this course students are able to: - understand corporate external reporting practices - learn how to use financial statement information in analysing a firms performance and financial position - learn how to carry out business analysis to evaluate the equity and debt securities of a firm

Course contents

This course offers a comprehensive overview of how financial information shapes corporate reporting and impacts firm performance analysis. Students will develop the ability to interpret financial statements, assess a firm’s financial position, and conduct business evaluations to value equity and debt securities. The course introduces core concepts linking information and capital markets, then guides students through a structured framework of strategy, accounting, and financial analysis. Emphasis is placed on the quality of financial disclosures as a key driver of effective analysis and valuation.

 

Structure of the course:

1 The relevance and impact of financial information

2 Overview of accounting analysis

3 Recasting of Financial Statements

4 Financial Statements Analysis using ratios

5 Financial Statements Analysis using ratios

6 Financial Statements Analysis: a case study

7 Non-Financial Disclosure: ESG performance

8 Prospective analysis: theory and a case study

9 Group presentation

10 Group presentation

Readings/Bibliography

• Palepu K., P.Healy V. Bernard and E. Peek. Business Analysis and Valuation: IFRS Edition – Text and Cases, 6rd Edition, 2019. Chapters to read: 1,2,3,4,5,6,7.
• Slides and any other material posted on VIRTUALE.

Optional textbooks (to deepen most of the topics used):

• Subramanyam K. R., Financial Statement Analysis, McGrawHill, 11^th Edition,2014.
• Whalen J.M., Baginski, S.P., Bradshaw M., Financial Reporting, Financial Statement Analysis and Valuation, 9^th Edition, Cengage
  
• Please note that the cost may be slightly higher than standard photocopies, as the materials are protected by copyright. This approach reflects a commitment to the legal and ethical distribution of course content

Teaching methods

The main instructional approaches used in the course are:

- Lectures

- Case Studies

- Guest Speakers

- Group Work

Assessment methods

Course evaluation will be different depending on the non-compulsory participation in team-work assignment, as detailed in the following:

Students participating in team-work assignments:

Component Weight (%)

Group project 40

Final Exam 60

Students who do not participate in team-work assignments:

Component Weight (%)

Group project -

Final Exam 100

- Partial/final exams structure:

The exam is a written exam that includes multiple-choice questions (16 multiple-choice questions, each worth 2 points with no penalization for wrong choice, 45 minutes) based on theory and exercises. The Exam is a closed-book exam. Students cannot bring notes/books/slides during the examination.

In the written exams, the evaluation depends on the correctness, completeness, and rigor of the answers.

-Group project

The group project aims to produce a report detailing an analysis of the strategy, the accounting policies choices, and financial analysis for the latest fiscal year. The group project is mandatory and spans two academic years. Students must independently form groups of five members. Each group is required to prepare an analyst report on a selected firm, including:

a) business strategy analysis,
b) accounting analysis,
c) financial analysis, and
d) prospective analysis,
using the firm’s financial data from the past three years.

The project is evaluated on a 32-point scale and counts for 40% of the final course grade. More information are reported in the syllabus published on Virtuale.

- Exam policy:

Registration on AlmaEsami is mandatory for written exam sessions. Those who show up at this session will be able to review the corrections. Those who do not show up will have the grade of the written exam recorded.

Fractionary final grades obtained in the written exam will be approximated to the superior unit above 0.5 included, and to the inferior unit otherwise.

The (rounded) final grade can be refused only once.

Grading scale:

< 18: failed

18-23: sufficient

24-27: good

28-30: very good

30 e lode: outstanding

Students with disability or specific learning disabilities (DSA) are required to make their condition known to find the best possibile accommodation to their needs.

Any grade above or equal (≥) to 18 is accepted. Nonetheless, students can decline a valid grade only one time.

To pass the INTERNATIONAL STRATEGIC ACCOUNTING – 72919 (12CFU) course, you need a minimum of 18/32 in both INTERNATIONAL ACCOUNTING – 30380 and FINANCIAL STATEMENT ANALYSIS – 72920.

 

Teaching tools

Tools, platforms, or resources used during the course:

- Learning platform: Virtuale (virtuale.unibo.it) contains the slides and the team-work assignments

- Presentation software: PowerPoint

- Communication tools: Email; Teams; Forum on Virtuale

Office hours

See the website of Eleonora Monaco