BUS424 Strategic Financial Statement Analysis
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)
Upon the completion of the course, the students are expected to excel in the following aspects:
- 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
- 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
- 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.
Lectures, group project, cases
Students with background knowledge in financial accounting and corporate finance will find it easier to follow the lectures
Requirements for course approval
Written and individual school-based exam, 4 hours.
Wahlen, J. M., S. P. Baginski, and M. Bradshaw. 2015. Financial Reporting, Financial Statement Analysis and Valuation: A Strategic Perspective. 8th Edition: Cengage Learning.
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.
- ECTS Credits
- Teaching language
Autumn. Not offered Autumn 2018.
Wei Shi, RRR