For information on winter intensives that are being delivered partially or fully on campus, please refer to the COVID-19 page.
|Fees||Look up fees|
Financial Statement Analysis seeks to introduce students to the analysis and use of financial information for decision-making purposes. The subject considers how the information disclosed can be best utilised by creditors and investors in making their lending and investing decisions. Students consider the environment in which financial reporting exists, including the incentives faced by preparers of financial reports. From their assessment, students learn to adjust reported data as is typically done by analysts.
Intended learning outcomes
On successful completion of this subject, students should be able to:
- Describe the impact of the institutional framework and regulatory forces that shape financial statements;
- Describe the impact that choices among permissible accounting methods may have on the figures reported in financial statements;
- Identify and discuss the incentives facing those who prepare financial statements within companies and explain how these incentives may influence financial disclosures;
- Amend reported accounting data according to the purpose of the analysis;
- Analyse financial statement information to assess the performance of management and profitability;
- Analyse financial statement information to assess the financial position (solvency and liquidity) and to make predictions about corporate survival;
- Use financial statements and other data to conduct in-depth analyses of public companies for valuation and risk assessments by creditors and investors;
- Describe the impact of financial statements as shown by capital market research.
On successful completion of this subject, students should have improved the following generic skills:
- Critical evaluation of financial reporting and disclosure problems
- Evaluation, adjustment, analysis and interpretation of relevant accounting information
- The ability to access data and research information form a variety of sources
- Problem solving
- Oral and written communication
- Collaborative learning
Last updated: 1 June 2020