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By the end of the course, students should be able to:
- assess the different roles of financial statement information;
- understand doing business analysis using financial statements;
- identify and assess alternative firm performance measures;
- identify and understand cash flow valuation theory; and
- apply valuation concepts on security and credit analysis.
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Aim The course aims to build a bridge between accounting and finance disciplines by providing students advanced level knowledge and insights on a few important decision areas like financial analysis, company valuation, security and credit analysis.
Course description The course helps students to learn how to use financial statement information to assess a firm's financial performance and value. It familiarizes students in evaluating the degree to which the accounting principles followed by a firm captures its underlying business reality. In this course, students are also required to work in a team to prepare a report on a company based on its financial statements and other publicly available information.
Key words Accounting information, Financial analysis, Valuation, Security analysis, Credit analysis.
Assessment Group assignments (40%); written examination (60%); with a minimum mark of 5.5 in both components.
Contribution to the program learning outcomes The course provides in-depth knowledge of a few key areas of accounting and finance. It allows students to assess the underlying assumptions and limitations of accounting information, and apply theories related to the use of financial statement information to issues such as financial analysis and company valuation. The course also requires students to collect and scientifically analyze both financial & non-financial information and submit a written report.
Knowledge integration with other courses The course builds upon fundamental knowledge of accounting and finance acquired by students in their bachelor study. It also prepares students for elective courses on the financial management area.
Recommended prior knowledge Basic knowledge on Finance and Accounting is necessary; students are expected to have knowledge of materials covered in the following books: Hillier, D., Clacher, I., Ross, S., Westerfield, R. and Jordan, B., Fundamentals of Corporate Finance, 1st European Edition, 2011, McGraw-Hill. Atrill, P. and McLaney, E., Accounting and Finance: An Introduction, 7th Edition, 2014, Pearson. ISBN: 9781292012650.
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| Basic knowledge on Finance and Accounting is necessary; students are expected to have knowledge of materials covered in the following books: Hillier, D., Clacher, I., Ross, S., Westerfield,R. and Jordan, B., Fundamentals of Corporate Finance, 1st European Edition, 2011, McGraw-Hill. Berry, A. & Jarvis, R., Accounting in a Business Context, Cengage Learning, 5th ed., 2011. |
| | Required materialsBook| Palepu, K., Healy, P. and Peek, E., Business Analysis and Valuation (IFRS edition), Cengage Learning, 3rd ed., 2013. ISBN: 978-1-4080-5642-4 |
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Recommended materialsArticles| (to be made available on Blackboard). |
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Instructional modesAssignment| Presence duty | | Yes |
| Lecture| Presence duty | | Yes |
| Self study| Presence duty | | Yes |
| Tutorial| Presence duty | | Yes |
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TestsExam & group assignment
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