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2021/2022  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
  • Bjørn N. Jørgensen - Department of Accounting (AA)
For academic questions related to the course, please contact course responsible Bjørn N. Jørgensen (bnj.acc@cbs.dk).
Main academic disciplines
  • Finance
  • Accounting
Teaching methods
  • Face-to-face teaching
Last updated on 03/06/2022

Relevant links
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Understand the accounting mechanics behind financial reporting
  • Discover the differences between financial reporting from around the world
  • Understand the basic techniques of financial statement analysis and business valuation
  • Differentiate between different valuation models
  • Understand the benefits and limitations of those models
  • Be able to implement valuation of a company using techniques and tools covered during the course
Course prerequisites
BSc in Business and Economics or equivalent, previous classes in Accounting and/or Finance at the bachelor level is a plus
Examination
Financial Statement Analysis:
Exam ECTS 7.5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Please see text below
Max. 15 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 Summer, Ordinary exam: Home Assignment: Please note that exam will start on the first teaching day and will run in parallel with the course.

Retake exam: Home Assignment: 72-hour home assignment max. 10 pages
3rd attempt (2nd retake) exam: 72-hour home assignment max. 10 pages

Exam schedules available on https:/​/​www.cbs.dk/​uddannelse/​international-summer-university-programme-isup/​courses-and-exams
Make-up exam/re-exam
Same examination form as the ordinary exam
Retake exam: 72-hour home assignment, max. 10 pages, new exam question
Exam form for 3rd attempt (2nd retake): 72-hour home assignment, max. 10 pages, new exam question
Course content, structure and pedagogical approach
Course content:
This course will provide students with the skills to successfully evaluate firm's financial health and determine its value. Students will learn about various aspects of constructing and analyzing financial statements. The aim is to provide students with fundamentals of effective financial analysis and firm valuation.
 
Course structure:
Preliminary assignment:  The preliminary assignment will feature a reading package, incl. readings from the CFA institute and academic papers, designed to refresh the students' basic understanding of financial statements. 
 
Class 1:Financial Statement Analysis: Introduction 
Class 2: Financial Reporting Mechanics & Financial Reporting Standards 
Class 3: Understanding Income Statements & Understanding Balance Sheets 
Class 4: Understanding Cash Flow Statements 
Class 5: Financial Analysis Techniques  
Class 6: Mock exam and discussion of answers (feedback activity) 
Class 7: Financial Statement Analysis and Valuation 
Class 8: Valuation with Discounted Cash Flow Models  
Class 9: Cost of Capital
Class 10: Relative Valuation (Multiples)  
Class 11: Valuation Issues 
 
Description of the teaching methods
Teaching is done as a blend of lectures and exercises. Part of the lectures will be characterized as active dialogue with students.
Feedback during the teaching period
Mock exam and discussion of answers
Student workload
Preliminary assignment 20 hours
Classroom attendance 33 hours
Preparation 126 hours
Feedback activity 7 hours
Examination 20 hours
Further Information

Short 3 weeks course that cannot be combined with any other course.

 

Preliminary Assignment:

The course coordinator uploads Preliminary Assignment on Canvas at the end of May. It is expected that students participate as it will be included in the final exam, but the assignment is without independent assessment & grading.

 

Course and exam timetable:

Is/will be 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 in start March.

 
Expected literature

Readings may include material such as:

 

(Chapters 1-7, 9, 18) Robinson, T. R., Henry, E., Pirie, W. L., & Broihahn, M. A. (2020). International financial statement analysis, 4th edition. John Wiley & Sons. ISBN 978-1-119-62805-7


(Chapters 1-8) Damodaran, A. (2018). The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses. FT Press

 

Thomas Plenborg and Finn Kinsedal. 2021. Financial Statement Analysis. 2nd edition. Fagbokforlaget.

 

 
Last updated on 03/06/2022