English   Danish

2018/2019  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 Maria Italia, Lecture in Accounting, RMIT University, Melbourne, Australia, maria.italia@rmit.edu.au
    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 ISUP academic director, Sven Bislev at sb.msc@cbs.dk
Main academic disciplines
  • Finance
  • Accounting
Teaching methods
  • Face-to-face teaching
Last updated on 05/12/2018

Relevant links

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Identify and discuss the incentives facing account preparers that may influence financial statement figures and disclosures
  • Describe the impact that choices from among permissible international accounting methods may have on the figures reported in the financial statements
  • Apply established techniques for analysing financial statement information for forecasting, valuation and risk analysis purposes
  • Analyse and synthesise a firm's financial statement information in the context of the firm's economic and business condition to make informed recommendations on investment decisions about the firm
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, Ordinary exam: 4 hour written exam in the period of 30 July - 2 August 2019
Retake exam: 4 hour written exams in the period of 1-7 October 2019
3rd attempt (2nd retake) exam: 72-hour home assignment- 25-28 November 2019 – for all ISUP courses simultaneously

Exam schedules 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
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.
Retake exam: 4 hour written sit-in exam, new exam question
Exam form for 3rd attempt (2nd retake): 72-hour home project assignment, max. 10 pages.
Course content and structure

This course provides students with the framework and practical tools for analysing financial statements and assessing the business profitability, liquidity, solvency and valuation. The information contained in a firm's financial statements will be analysed from both a qualitative and quantitative perspective and the firm's risk analysis, forecasting and valuation techniques will be examined. The role of international accounting standards in the preparation of financial statements and financial disclosures is key to this analysis. The aim is to provide a working knowledge of the role of financial reports in the overall firm valuation, with emphasis on strategic analysis. The course adopts a practical approach using case studies and on market data.


The course will be useful for students planning a career in accounting or 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 from the textbook, review financial statements of a publicly listed company and answer questions that will be provided on the course website.

Class 1: Financial reporting and financial statement analysis; an introduction.

Class 2: The role of international financial reporting standards in financial statements and disclosures.

Class 3: Financial analysis of the income statements and balance sheets.

Class 4: Cash flow statement analysis.

Class 5: Financial analysis techniques.

Class 6: Student presentations.

Feedback activity: Analysis of financial techniques with an emphasis on profitability, liquidity and solvency.

Class 7:  The recognition, depreciation/amortization, revaluation and disclosure of long lived assets.

Class 8: Long term liabilities, with emphasis on bonds, leases and post employment benefits.

Class 9: Financial reporting quality and forecasting techniques.

Class 10: Inter corporate investments multi national operations.

Class 11: Evaluating the quality of financial reports and the integration of financial statement analysis techniques.

 

Description of the teaching methods
Lectures, student centered tutorials, case studies and use of on market data.
Feedback during the teaching period
Student presentations on financial analysis techniques in class six, will be provided feedback by both fellow students and the instructor.
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 2019 at the latest.

 

Expected literature

Mandatory readings:

 

International Financial Statement Analysis, 3rd Edition. Thomas R. Robinson, Elaine Henry, Wendy L Pirie, Michael A Broihahn, and Anthony T Cope. CFA Institute. Wiley. 2015. ISBN 978-1-118-99947-9       

 

Additional relevant readings:

 

Journal articles will be provided on line.

Last updated on 05/12/2018