Course description

Financial Reporting and Analysis - RESIT EXAMINATION

Introduction

Financial statement analysis has proven to be useful in a wide range of business decisions. Equity analysts use it as a foundation for their projections of the earnings potential of a company. Credit analysts use it as a tool to determine whether loans should be granted or extended.

The corporate annual report is the primary document in financial statement analysis. However, corporate annual reports are only useful to those who can understand and interpret the messages conveyed. It is generally written for shareholders and other investors, although they are also required reading for lenders, banks and potential employees. 

Course content

  • The Financial Statement Analysis Process
  • The Corporate Annual Report
  • The Financial Statement Analysis Report
  • Some Important Financial Statement Analysis Issues
  • Understanding the Income Statement, the Balance Sheet and the Cash Flow Statement
  • Financial Reporting Quality Analysis
  • Adjusting and Reorganizing Financial Statements
  • Financial Statement Analysis of Past Performance
  • Simple Forecasting

Learning outcome knowledge

The objective of this course is to enable the student to comprehend and critically evaluate the financial information included in corporate annual reports. In this course the student will learn financial statement analysis from the point of view of the primary and everyday users of financial statements: company managers, lenders and stock analysts.

Exam organisation

  • Written assignment: 30%
  • Written exam: 70%