Module ASB-3208:
Financial Statement Analysis

Module Facts

Run by Bangor Business School

10 Credits or 5 ECTS Credits

Semester 2

Organiser: Prof Aziz Jaafar

Overall aims and purpose

To provide an overview of techniques used in analysing a company's financial position and performance, and the problems involved.

Course content

Financial ratio analysis and interfirm comparison; Trend analysis and financial forecasting; Dividends, earnings and share valuation; Valuation techniques; Investment analysis; Distress prediction and company acquisitions.

Assessment Criteria

threshold

Awareness of main issues in financial analysis and investment analysis.

good

As above combined with ability to demonstrate implications of interfirm comparison, trend analysis and valuation models.

excellent

As above with application in practice, reflecting on the literature discussed.

Learning outcomes

  1. Demonstrate an understanding of interfirm comparisons (comparing one company with another) and trend analysis (comparing performance year-on-year for the same company).

  2. Appreciate how financial information is used in capital markets.

Assessment Methods

Type Name Description Weight
Assignment 25
Exam S2 2hrs 75

Teaching and Learning Strategy

Hours
Workshop

Computing workshop on Thomson One Banker

1
Lecture

Two hours lecture per week x 10 weeks

20
Private study

Preparing for lectures, workshops, coursework and final exam

79

Transferable skills

  • Literacy - Proficiency in reading and writing through a variety of media
  • Numeracy - Proficiency in using numbers at appropriate levels of accuracy
  • Computer Literacy - Proficiency in using a varied range of computer software
  • Self-Management - Able to work unsupervised in an efficient, punctual and structured manner. To examine the outcomes of tasks and events, and judge levels of quality and importance
  • Exploring - Able to investigate, research and consider alternatives
  • Information retrieval - Able to access different and multiple sources of information
  • Inter-personal - Able to question, actively listen, examine given answers and interact sensitevely with others
  • Critical analysis & Problem Solving - Able to deconstruct and analyse problems or complex situations. To find solutions to problems through analyses and exploration of all possibilities using appropriate methods, rescources and creativity.
  • Teamwork - Able to constructively cooperate with others on a common task, and/or be part of a day-to-day working team
  • Argument - Able to put forward, debate and justify an opinion or a course of action, with an individual or in a wider group setting

Subject specific skills

  • knowledge of the main current technical language and practices of accounting (for example, recognition, measurement and disclosure in financial statements; managerial accounting; auditing; taxation) in a specified socio-economic domain
  • knowledge of some of the alternative technical languages and practices of accounting (for example, alternative recognition rules and valuation bases, accounting rules followed in other socio-economic domains, alternative managerial accounting approaches to control and decision-making)
  • skills in recording and summarising transactions and other economic events; preparation of financial statements; analysis of the operations of business (for example, decision analysis, performance measurement and management control); financial analysis and projections (for example, analysis of financial ratios, discounted cash flow analysis, budgeting, financial risks)
  • An ability to understand financial statements, and a basic appreciation of the limitations of financial reporting practices and procedures (eg financial statement analysis; the relation between cash flow accounting and accrual accounting; discretionary accounting practices).

Resources

Talis Reading list

http://readinglists.bangor.ac.uk/modules/asb-3208.html

Reading list

S.H. Penman, Financial Statement Analysis and Security Valuation (McGraw Hill) Fifth Edition K.G. Palepu, V.L. Bernard, P.M. Healy and E. Peek. Business Analysis and Valuation: IFRS edition (Thomson Learning)

Courses including this module

Compulsory in courses:

Optional in courses: