| 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. |
