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2017/2018  KAN-CCMVI2008U  Financial Statement Analysis

English Title
Financial Statement Analysis

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Course instructor - Dr. Shai Levi, Tel Aviv University, sle.acc@cbs.dk
    Sven Bislev - Department of Management, Society and Communication (MSC)
In case of any academic questions related to the course, please contact the course instructor or the academic director, Sven Bislev at sb.msc@cbs.dk
Main academic disciplines
  • Finance
  • Accounting
Last updated on 25/04/2018

Relevant links
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Describe the impact that choices from among permissible accounting methods may have on the figures reported in financial statements
  • Identify and discuss the incentives facing preparers within companies that may influence financial disclosures
  • Make appropriate adjustments to reported accounting data depending on the purpose of the analysis
  • Analyze financial statement information to assess the performance of management and profitability
  • Analyze financial statement information to assess solvency, and predict corporate survival
  • Use financial statement and market data to assess the valuation of firms.
Course prerequisites
Introduction to Financial Accounting; completed Bachelor degree or equivalent
Examination
Financial Statement Analysis:
Exam ECTS 7.5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Summer, 4 hour written exams: 31 July - 3 August 2018

Retake exam: September - October 2018

3rd attempt (2nd retake) exam: November - December 2018

Exam schedule is available on https:/​/​www.cbs.dk/​uddannelse/​international-summer-university-programme-isup/​courses-and-exams.
Aids Limited aids, see the list below:
The student is allowed to bring
  • Any calculator
  • Language dictionaries in paper format
The student will have access to
  • Advanced IT application package
At all written sit-in exams the student has access to the basic IT application package (Microsoft Office (minus Excel), digital pen and paper, 7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows Media Player). PLEASE NOTE: Students are not allowed to communicate with others during the exam : Read more about exam aids and IT application packages here
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
4 hour written sit-in exam, new exam question

Exam form for 3rd attempt (2nd retake): home project assignment, max. 15 pages.
Course content and structure

This course provides students with frameworks and practical tools for analyzing financial statements and assessing the business standing and valuation of firms. At the end of the course, you will be able to critically review the information in financial disclosures and use it to gauge firms’ performance and equity value. In class, we will discuss concepts from accounting and finance that are useful for financial statement analysis and valuation, and apply them in case studies and on market data. 
The course will be useful for students planning a career in finance, whether it is investment banking, portfolio management, securities analysis or venture capital. The course will also benefit students who aspire to be consultants or business analysts.

 

Preliminary assignment: Students will complete this assignment before the semester, and we will discuss it in the first class. Students will be required to read chapters of textbook, review financial statements of a public firm, and answer questions that will be provided on the course website.

Class 1: Understanding the Business 

Class 2: Ratio Analysis 

Class 3: Basics of Valuation

Class 4: Valuation Multiples

Class 5: Accounting Analysis

Class 6: Student Presentations

feedback activity: Valuation of a firm

Class 7: Cash Flow Analysis 

Class 8: Unconsolidated Entities 

Class 9: Forecasting

Class 10: Credit Analysis 

Class 11: Contingent Equity Claims
Teaching methods
Lectures, cases, exercises
Feedback during the teaching period
Valuation exercise in class 6
Student workload
Preliminary assignment 20 hours
Classroom attendance 33 hours
Preparation 126 hours
Feedback activity 7 hours
Examination 20 hours
Further Information

Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 1 in order to 'jump-start' the learning process.

 

Course timetable is available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams.

 

We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams end February 2018 at the latest.
Expected literature

Mandatory readings:

 

Equity Valuation and Analysis with eVal, by Lundholm, R. and R. Sloan, Third Edition, McGraw-Hill/Irwin.

 

Additional relevant readings:

 

Damodaran, A., Investment Valuation, Wiley, Second Edition.
Last updated on 25/04/2018