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2020/2021  MA-MMBAO1102U  Accounting

English Title

Course information

Language English
Course ECTS 3 ECTS
Type Mandatory
Level Part Time Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for Master of Business Administration
Course coordinator
  • Jesper Rangvid - Department of Finance (FI)
Main academic disciplines
  • Managerial economics
  • Accounting
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 24-06-2020

Relevant links

Learning objectives
At the end of the course, the participant should be able to:
• Read and understand financial statements including notes in the annual report
  • Apply financial statements for decision making including profitability analysis, credit analysis and firm valuation
  • Detect pitfalls when using the financial statement for analytical purposes
  • conduct a profitability analysis and a risk analysis. These analyses include the calculation and interpretation of financial ratios measuring profitability and risk, respectively
  • prepare pro forma statements (budgets) which articulate (i.e. debit and credit match). This also includes identification of key value drivers as well as construction of pro forma statements.
Exam ECTS 3
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 10 pages
Assignment type Project
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Autumn
Make-up exam/re-exam
Same examination form as the ordinary exam
A written case assignment based on a case or a subject chosen by the teacher. The assignment must be formulated and given to the student at least 9 days prior to the expiration of the deadline. It should be 15 pages long and submitted to CBS Digital Exam. The exam is held internally, and the assignment is put forward and assessed by the relevant faculty.
The make-up/re-examination will be held as an oral examination if the number of registered candidates for the make-up/re-examination warrants that it may most appropriately be held as an oral examination.
Course content, structure and pedagogical approach

Financial statement analysis / Accounting is the process of reviewing and analyzing a company's financial statements to make better economic decisions. Financial statement analysis consists of four main sections. First, we introduce the components of the financial statements including the income statement, balance sheet, statement of changes in owners’ equity and cash flow statement, show how transactions are recorded (basic debit-credit entries), and how these transactions enter into the financial statements. We also address the conceptual differences between accrual and cash flow based accounting. Second, we show how profitability and liquidity risk can be measured. Key financial ratios are defined and analyzed and we discuss why it is crucial that accounting data are measured consistently across time and firms. Third, forecasting is essential as it serves as the foundation for many business decisions including whether to extend loans to firms or estimating the value of a corporation. Thus, we address how to develop prom forma statements (i.e. income statement, balance sheet and cash flow statement), which articulate. We also address how to add realism in the projected earnings and cash flow measures. Finally, we discuss the different valuation approaches and their strengths and weaknesses. The concept of cost of capital is also introduced and different techniques to estimating cost of capital are discussed.

Description of the teaching methods
The course has diverse teaching methods using lectures, cases, reading and discussions. The class meetings are interactive and require ongoing engagement of the students.
Feedback during the teaching period
The Feedback: Feedback is given to the student together with the grade when the exam has been assessed.
The Evaluation: At the evaluation unit at CBS’s Economics & Analysis department, we ask you to evaluate the overall course. In other words, if there has been exercise classes and lectures, the evaluation should include both. We evaluate every course and faculty to secure and strengthen the professional level of the offered course.
Student workload
Lectures 32 hours
Preparation + exam 50,5 hours
Last updated on 24-06-2020