Unit name | Financial Statement Analysis |
---|---|
Unit code | EFIM30025 |
Credit points | 10 |
Level of study | H/6 |
Teaching block(s) |
Teaching Block 2 (weeks 13 - 24) |
Unit director | Dr. Ruby Brownen-Trinh |
Open unit status | Not open |
Pre-requisites |
Financial Accounting EFIM20007 |
Co-requisites |
N/A |
School/department | School of Accounting and Finance - Business School |
Faculty | Faculty of Social Sciences and Law |
This unit aims to demonstrate how financial statements can be reformulated and analysed to value company securities and to evaluate company financial performance and position. It draws on theoretical and empirical research to derive and evaluate equity and firm valuation models based on financial reporting information and examines how accounting information is used to assess and manage credit risk.
On successful completion of this unit a student will be able to:
Exercise initiative, self reliance and time management skills and work independently.
10 hours of lectures; 5 hours of classes
This pattern of teaching may be changed slightly to accommodate the Easter Vacation.
Formative: Students do group presentations and hand in their answers for tutorial sets.
Summative: 100% 1.5 hour exam
All learning objectives are assessed by both summative and formative assessment.
Penman, S.H. (2012) Financial Statement Analysis and Security Valuation (5th edition), McGraw Hill.
Barker, R. (2001) Determining Value FT Prentice Hall.
Indicative journal articles:
Francis, J., Olsson, P. and Oswald, D. (2000) “Comparing the accuracy and explainability of dividends, free cash flow and abnormal earnings equity value estimates” Journal of Accounting Research 38(1), pp. 45-70.
Ohlson, J. (1980) “Financial Ratios and the Probabilistic Prediction of Bankruptcy” Journal of Accounting Research, 18(1) pp. 109-131.
Ohlson, J. (1995) “Earnings, book value and dividends in equity valuation” Contemporary Accounting Research 11(2), pp. 661-687.
Penman, S. and Sougiannis, T. (1998) “A comparison of dividend, cash flow and earnings approaches to equity valuation” Contemporary Accounting Research 15(3), pp. 343-383.