MN50440: Financial statement analysis and company valuation
[Page last updated: 05 February 2021]
 Academic Year: | 2020/1 |
| Owning Department/School: | School of Management |
| Credits: | 6 [equivalent to 12 CATS credits] |
| Notional Study Hours: | 120 |
| Level: | Masters UG & PG (FHEQ level 7) |
| Period: |
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| Assessment Summary: | CW 100% |
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| Description: | Aims: The unit aims to increase students' knowledge of the theory and practice of financial statement analysis and to place it in its broad business, accounting and financial context. Learning Outcomes: By the end of this unit, the student should be able to: * understand the principles and terminologies of financial reporting such as accrual accounting, recognition and matching concepts, income measurement and asset valuation principles, cash flow and ratio analysis, * understand fundamental concepts in finance such as equity valuation, informational efficiencies and the relation between risk and return, * appreciate that the quality of financial statements is closely associated with accounting policy choices, * appreciate the various sources of data that may be useful in analysing the position, performance and future prospects of a firm, * use communication and information technology in acquiring, analysing and communicating information (including spreadsheets and word processing). Skills: Intellectual Skills * the facility to apply subject-specific knowledge into a range of complex situations; TFA * a critical awareness of current issues and frameworks in finance; F * the ability to acquire and analyse data, information and situations; to evaluate relevance and validity, and to synthesise it in the context of finance problems; FA * an understanding of appropriate research and methodological techniques that allow detailed investigation of problems and ability to use these skills to produce professional and critical reports. A Professional Practical Skills * evaluate the current standing of theories and empirical evidence and suggest improvements to them; TFA * operate effectively both independently as well as within teams and assume leadership roles where appropriate; FA * be self-directed and able to act autonomously in planning and implementing. F Transferable/Key Skills * ability to conduct in-depth research into finance problems. FA Personal/Interpersonal * the facility to communicate including presenting and marketing themselves and their ideas. FA Content: 1. A Framework for Business Analysis and Valuation Using Financial Statements * Decision Context of Financial Statement Analysis * The Role of Financial Statements in Capital Markets * From Business Activities to Financial Statements * A Comprehensive Framework for Financial Statement Analysis 2. Business Strategy Analysis * Industry Analysis * Competitive Strategy Analysis * Corporate Strategy Analysis 3. Accounting Analysis * Noise in Financial Statement Data * Undertaking Accounting Analysis * Individual Account Types 4. Financial Analysis * A Framework for Ratio Analysis * Cash Flow Analysis * ROE * Operating Management * Investment Management * Financial Management * Cash Flow Analysis * Prediction of Distress 5. Forecasting * Comprehensive Financial Statement Forecast * Earnings Forecasting * Statistical Models Used in Forecasting 6 Valuation using alternative valuation models * Discounted Cash Flow Analysis * Calculation of Future Cash Flows * Abnormal Earnings Valuation Relation * Computing a Discount Rate * Terminal Value Calculation, Other Practical Implementation Issues 7 Abnormal Earnings Valuation and the Ohlson (1995) model * Ohlson's (1995) Model * Extensions of Ohlson Models and Value Relevance Studies * Practical Implications for Valuation 8 Market Anomalies and deviations from fundamentals. |
| Programme availability: |
MN50440 is Optional on the following programmes:School of Management
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