12463 (v.4) Finance (Statement Analysis) 566

Area:

School of Economics and Finance

Credits:

50.0

Contact Hours:

3.0

Lecture:

1 x 3 Hours Weekly

Syllabus:

Advanced techniques in analysing financial statements, reports and other publicly available information. Topics include - cross sectional and time series analysis, valuations, debt securities, corporate restructuring and distress analysis. A share valuation of a listed public company is performed in which students must obtain sufficient information to advise whether to buy or sell its ordinary shares.

Unit Outcomes:

On successful completion of this unit students will have-Described and explained the demand and supply forces underlying the provision of financial statement data.Understood the properties of numbers derived from financial statements and gone "behind thenumbers" and beyond. Understood how complex accounting transactions are commonly used in financial statements to obscure the economic substance of the firm. Critically analysed the key aspects of decisions that use financial statement information. Understood the features of the environment in which these decisions are made.

Text and references listed above are for your information only and current as of September 30, 2003. Please check with the unit coordinator for up-to-date information.

Unit References:

Bernstein, L.A., (1993), Financial Statement Analysis Theory, Application and Interpretation, 5th ed, Irwin. Foster, G. (1986). Financial Statement Analysis, 2nd ed, Englewood Cliffs, Prentice-Hall. Lonergan, W., (1994), The Valuation of Business, Shares and Other Equity, 2nd ed, Business and Professional Publishing. White, G.I., Sondhi, A.C. and Fried, D., (1997), The Analysis and Use of Financial Statements, 2nd ed, New York, John Wiley and Sons. Soffer, L.C., Robin J.S and R.J., (2002), FinancialStatement Analysis: A Valuation Approach, 1st ed, New Jersey, Prentice-Hall.

Unit Texts:

Stickney, C.P. and Brown, P.R. (1999), Financial Reporting and Statement Analysis, A Strategic Perspective, 4th ed., Florida, Dryden (Harcourt Brace).

Unit Assessment Breakdown:

Assignment 30%, Examination 50%, Topic Presentation 20%. This is by grade/mark assessment.

Year	Location	Period	Internal	Area External	Central External
2004	Bentley Campus	Semester 1	Y