Strategic Financial Statement Analysis

BUS424 Strategic Financial Statement Analysis

  • Topics

    Topics

     The course will cover the following topics.

    • Framework of Financial Statement Analysis
    • Analysis of Firm Strategy
    • Overview of Asset and Liability Valuation and Income Recognition.
    • Analysis of Firm Profitability
    • Evaluation of Firm Risk
    • Understand the Accounting Rules for Financing, Investing and Operating Activities.
    • Assessment of Distortions in Accounting Number and Adjustment
    • Identification of Driving Forces of Accounting Quality
    • Application of Financial Statement Analysis (short introduction)

  • Learning outcome

    Learning outcome

    Upon the completion of the course, the students are expected to excel in the following aspects:

     

    Knowledge

    • Understand the Operating Environment and the Firm Strategy
    • Be Familiar with the Managerial Incentive Underlying the Preparation of Financial Report
    • Understand Accounting Rules that Govern the Measurement of Business Activities

     

    Skills

    • Assess the Distortions in Accounting Numbers and Make Necessary Adjustment
    • Analyze Firm Profitability, e.g., ROA and ROE
    • Evaluate Firm Risk, e.g., Credit Risk and Financial Reporting Manipulation Risk
    • Identify the Driving Forces of Accounting Quality

     

    General competence

    • Acquire the Knowledge of and the Ability to Analyze Financial Statement from Strategic Perspective.

    Be Able to Apply the Skills of Financial Statement Analysis to Some Basic Settings, e.g., Equity Valuation and Credit Analysis.

  • Teaching

    Teaching

    Lectures, group project, cases

  • Recommended prerequisites

    Recommended prerequisites

    Students with background knowledge in financial accounting and corporate finance will find it easier to follow the lectures

  • Requirements for course approval

    Requirements for course approval

    Group project.

  • Assessment

    Assessment

    Written and individual school-based exam, 4 hours.

  • Grading Scale

    Grading Scale

    A-F

  • Semester

    Semester

    Autumn

  • Literature

    Literature

    Main textbook

    Wahlen, J. M., S. P. Baginski, and M. Bradshaw. 2015. Financial Reporting, Financial Statement Analysis and Valuation: A Strategic Perspective. 8th Edition: Cengage Learning.

     

    Supplemental Readings

    Penman, S. Financial Statement Analysis and Security Valuation 5th Edition. McGraw-Hill Higher Education.

    Peek, E., K. G. Palepu, and P. Healy. 2013. Business Analysis & Valuation: Text and Cases. IFRS edition, 4th Edition. Cengage Learning.

Overview

ECTS Credits
7.5
Teaching language
 English
Semester
Autumn

Course responsible

 Wei Shi, RRR