• 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

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.

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.

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.