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2010/2011  BA-BLC_3AFA  Accounting and Financial Analysis

English Title
Accounting and Financial Analysis

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Mandatory
Level Bachelor
Course Period
Time Table Please see course schedule at e-Campus
Study Board
Study Board for BSc og MSc in Business, Language and Culture, BSc
Course Coordinator
  • Søren Jeppesen - Department of Intercultural Communication and Management
Main Category of the Course
  • Financial and management accounting
Last updated on 29 maj 2012
Learning Objectives
At the end of the course the students will be able to:
  • describe how accounting is carried out and the principles involved, including the double ledger system
  • describe the basics of management accounting and approaches to budgeting as well as the Balanced Scorecard
  • standardize financial statements (horizontally and vertically)
  • select relevant key ratios (2-3 ratios in three categories) and calculate these
  • present a summary of the financial statement analysis in a short and concise manner
  • make an assessment of presented case information, e.g. vis-à-vis other firms, the industry and market trends and outline the limitations of the financial statement analysis
Examination
Accounting and Financial Analysis
Exam Period May/June
Written five-hour open-book examination based on one or more questions in relation to the course literature. For detailed information, please read the available BLC Programme Regulations or contact the BLC secretariat. Note that the students must have passed the two compulsory assignments in order to be eligible for the exam. The examination will be graded on the 7-point grading scale by the examiner and an external examiner.
Examination
The course is integrated with the BLC courses in Organisation, Finance and Micro-economics, as well as the other courses on 1st, 2nd and 3rd year.
Prerequisites for Attending the Exam
Course Content

The course provides the students knowledge about the company’s business administration. It introduces the fields of accounting and financial statement analysis and provides the students with a set of tool and methods suitable for analyses of a company’s financial performance.

The course focuses on accounting and financial statement analysis. Accounting is introduced in terms of the common accounting practices, the income statement, the balance sheet and the statement of cash flows and the double ledger system. Elements regarding management accounting, including the use of budget and budgeting are investigated and the Balanced Scorecard introduced.

The financial statement analysis element investigates the publicly available accounting information, which companies disseminate. The annual report and the financial statements (the income statement, the balance sheet, the statement of cash flow, statement of stockholders equity and the accompanying notes) are taken as a point of departure for various types of analyses and discussion of the financial performance of the company. Focus is on horizontal, vertical and key financial ratios analyses, their use and limitations. A number of cases (real and constructed) are used to illustrate the differences between companies in different situations, sectors and settings.

Teaching Methods
Mix of lectures, exercises, casework, and student presentations (in groups).
Literature
  • Accounting input (textbook or other)
  • Fraser, Lyn M. and Ormiston, Aileen, 2009 ‘Understanding Financial Statements.’ Ninth Edition. Pearson Education International (Pearson/Prentice Hall), UK. (Abbreviated FLOA). Price approx DKK400.
  • Case compendium (CC), Pearson Education (packed with the Fraser & Ormiston book)?

Handouts and downloads (exercises, compulsory assignments, articles, documents on Learn, etc). (Abbreviated H&D).