2023/2024
KAN-CACAO1001U Financial Statement Analysis
| English Title |
| Financial Statement
Analysis |
|
|
| Language |
English |
| Course ECTS |
15 ECTS |
| Type |
Mandatory |
| Level |
Full Degree 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 cand.merc. and CACA
(CACA)
|
| Course
coordinator |
- Ole Vagn Sørensen - Department of Accounting
(AA)
|
| Main academic
disciplines |
|
|
| Teaching
methods |
|
|
|
Last updated on
02-06-2023
|
| Learning objectives |
Aim of the course
The purpose of ’Financial Statement Analysis for Decision Makers’
is to provide the students with the rigorous tools that are needed
to carry out financial statement analysis from a decision oriented
perspective.
At the exam the students must be able to:
Describe how elements in the annual report are recognized, measured
and classified.
Analyse a firm’s profitability, growth and risks based on the
analytical profit and loss statement and balance sheet
Calculate and interpret financial ratios that describe a firm’s
economic well being.
Assess accounting quality in a firm’s financial data.
Value firms based on a variety of valuation models.
Demonstrate the ability to assess the strengths and weaknesses of
various economic decision models used for valuation, credit rating
and incentive program purposes. |
| Course prerequisites |
Students are expected to possess knowledge about
accounting including bookkeeping at least at the bachelor level.
Admission req.
Bachelor level |
| Examination |
The exam in the subject consists of two parts:
| Midterm -
Financial Statement Analysis: | | Sub exam weight | 20% | | Examination form | Written sit-in exam on CBS'
computers | | Individual or group exam | Individual exam | | Assignment type | Multiple choice | | Duration | 2 hours | | Grading scale | 7-point grading scale | | Examiner(s) | One internal examiner | | Exam period | Autumn | | Aids | Limited aids, see the list below:
The student is allowed to bring - USB key for uploading of notes, books and compendiums in a
non-executable format (no applications, application fragments, IT
tools etc.)
- An approved calculator. Only the models HP10bll+ or Texas BA ll
Plus are allowed (both models are non-programmable, financial
calculators).
- In Paper format: Books (including translation dictionaries),
compendiums and notes
The student will have access to - Access to the personal drive (S-drive) on CBS´ network
- Advanced IT application package
| | Make-up exam/re-exam | Same examination form as the ordinary exam The number of registered candidates for the make-up
examination/re-take examination may warrant that it most
appropriately be held as an oral examination. The programme office
will inform the students if the make-up examination/re-take
examination instead is held as an oral examination including a
second examiner or external examiner. | Description of the exam
procedure
All learning objectives covering chapter 1-10 are relevant for
this partial examination |
| Final -
Financial Statement Analysis: | | Sub exam weight | 80% | | 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-point grading scale | | Examiner(s) | One internal examiner | | Exam period | Winter | | Aids | Limited aids, see the list below:
The student is allowed to bring - USB key for uploading of notes, books and compendiums in a
non-executable format (no applications, application fragments, IT
tools etc.)
- An approved calculator. Only the models HP10bll+ or Texas BA ll
Plus are allowed (both models are non-programmable, financial
calculators).
- In Paper format: Books (including translation dictionaries),
compendiums and notes
The student will have access to - Access to the personal drive (S-drive) on CBS´ network
- Advanced IT application package
| | Make-up exam/re-exam | Same examination form as the ordinary exam The number of registered candidates for the make-up
examination/re-take examination may warrant that it most
appropriately be held as an oral examination. The programme office
will inform the students if the make-up examination/re-take
examination instead is held as an oral examination including a
second examiner or external examiner. | Description of the exam
procedure
Multiple Choice questions can be an integrated part of the exam
set. All learning objectives are relevant for this partial
examination |
|
| Course content, structure and pedagogical
approach |
|
Accounting information is used by decision makers as input to a
variety of decision models. The required accounting information
depends on the specific task at hand (e.g. valuation) and the
decision model applied (e.g., discounted cash flow model). For
instance, analysts within corporate finance use financial statement
analysis to determine the historical level of profitability in
order to estimate future earnings.
The course contains the following core elements:
Introduction to the elements of the annual report.
Methods for measuring profitability (the ability to create value
for shareholders), growth and operational and financial risks
Assessment of accounting quality (earnings quality)
Budgeting
Firm valuation
Accounting issues in compensation contracts and credit analysis
Learning process
Research and theory based lectures are mixed with exercises and
cases. Lectures provide the students with the necessary tools to
make financial analyses. Through cases the students learn how to
apply theory and use a variety of decision models in
practice.
|
| Description of the teaching methods |
The teaching will be a combination of:
Dialog lectures
Discussion of solutions to cases/exercises
Students are responsible for their own learning. They are
encouraged to engage in study groups. |
| Feedback during the teaching period |
| Feedback will be given in the form of Multiple
Choice questions and review questions during the course. |
| Student workload |
| Participation in lectures |
66 hours |
| Preparation for lectures |
312 hours |
| Preparation for exam |
40 hours |
| Exam |
6 hours |
|
| Expected literature |
|
Thomas Plenborg & Finn Kinserdal: “Financial Statement
Analysis: Valuation , Credit analysis and Performance
evaluation" "2nd Edition. Fagbooklaget
(2020)
|
Last updated on
02-06-2023
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