This syllabus identifies the course objectives, method of instruction, grading policies and assignments.
Accounting is the language of business. It is also a system for reporting and analysis, providing essential information for making good business decisions. Key decision makers include insiders; company management; and outsiders, such as investors or lenders considering providing funding for a company.
The course combines theoretical concepts underlying the presentation of financial statements with practical techniques of financial analysis. Topics covered include accounting processes, different presentation methods, examination of the components of the balance sheet, income statement, and statement of cash flows, application of various quantitative techniques of financial analysis; such as ratio interpretation and quality of earnings evaluation; valuation methods, selected topics in accounting practices such as IFRS, and the meaning and significance of the auditor’s opinion. Students will do an analysis and presentation on a company of their choice to apply the principles learned in the course.
Course Objectives and Expected Learning Outcome
This course is designed for business students with prior knowledge of accounting who are seeking practical methods to enhance their ability to analyze financial information and report information for business decisions. Students will gain ability to evaluate a company’s current financial position, assess operating performance, and identify alternate courses of action.
The course will help those of you who are going to be involved with the management of a business acquire some knowledge of financial statement analysis, and financial analysts ability to effectively assess the results and prospects for a business and make practical decisions.
Upon the completion of this course, you should be able to:
Identify and summarize the essential theories and concepts of financial statement analysis
Apply the theories learned to real world financial statement analysis.
The textbook used is Financial Statement Analysis, K. R. Subramanyam, John J. Wild, 10th edition. You will need to obtain online access to the website associated with the book, http://www.eztestonline.com/, which will need to be purchased either bundled with the book or separately, from McGraw Hill. This is required for completing homework, as described below under Homework.