307978 (v.1) Accounting (Statement Analysis) 573
| Area: | School of Accounting |
| Credits: | 25.0 |
| Contact Hours: | 3.0 |
| Seminar: | 1 x 3 Hours Weekly |
| Syllabus: | Understanding the underlying concepts of financial reporting, accounting policy choice, its usefulness or otherwise for decision making and the process of adjustment for analysis purposes. Assessing sustainability and quality of earnings. Theory, application and interpretation of financial statement analysis. Analysing the effect of business combinations and international operations on the valuation process. Using financial analysis for investment decision making from the viewpoints of equity investors, acquisition and merger analysis, short and long term debt holders and employees or unions. Assessing profitability and risk. Case studies in comprehensive analysis of corporate financial information, simple forecasting and valuation procedures and an introduction to full information forecasting. This unit will be of significant practical use for students who will be intensive users (and preparers) of financial statements in their prospective careers - for example, accountants, credit analysts, securities analysts, financial consultants, and those intending a career in banking or merchant banking. |
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| Unit Outcomes: | On completion of this unit students will have - Been able to demonstrate the effect of the application of different financial accounting standards of different jurisdictions on the financial statements. Understood the essential concepts and use the tools of modern financial statement analysis. Understood tools to analyse the profitability and risk of business organisations (Australian and International). Produce forecast financial statements using simple forecasting techniques. Demonstrate an understanding of full information forecasting. Value shares and other proprietary interest such as mergers and acquisitions as well as debt instruments. Demonstrate an understanding of some of the major differences in international accounting practice and its influence over the analysis process. Awareness of the roles of the financial statements to an efficiently functioning capital market. Able to demonstrate research skills related to gathering business data on the internet. Able to produce and present a substantial report on a company at a level and quality that could be presented to senior management. |
| 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: | Stickney, C.P. and Brown, P.R. (1999) Financial Reporting and Statement Analysis: A Strategic Perspective, (4th ed)., Texas, The Dryden Press. Palepu, K.G., Bernard,V.L. and Healy, P. (1996) Business Analysis and Valuation: Using Financial Statements, Ohio, South-Western College Publishing. White, G., Sondhi, A.C. and Fried, D. (1998) The Analysis and Use of Financial Statements, (2nd ed), New York, John Wiley and Sons. Penman, S.H. (2001) Financial Statement Analysis and Security Valuation, New York, McGraw Hill Irwin. |
| Unit Texts: | Wild, J.J., Bernstein, L.A. and Subramanyan, K.R. (2001) Financial Statement Analysis, (7ed), Singapore, McGraw Hill,. |
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| Unit Assessment Breakdown: | Case Report 50%, Presentation 25%, Research Project 25%. This is by Grade/Mark assessment. |
| Year | Location | Period | Internal | Area External | Central External | | 2004 | Bentley Campus | Semester 2 | Y | | | |
Current as of: February 2, 2004
CRICOS provider code 00301J
