ACCTG 371 : Financial Statement Analysis

Business and Economics

2022 Semester One (1223) (15 POINTS)

Course Prescription

How is financial statement information used to evaluate a firm's performance, risk and value? An opportunity to examine this question and to gain experience in evaluating performance, assessing risk and estimating value.

Course Overview

This is a financial statement analysis and valuation course in which profitability analysis and security valuation are emphasised. It is applications oriented and teaches students how to read, analyse, and interpret financial statement data to make informed business decisions. 

Course Requirements

Prerequisite: FINANCE 251 or 261, and ACCTG 211 or 292

Capabilities Developed in this Course

Capability 1: Disciplinary Knowledge and Practice
Capability 2: Critical Thinking
Capability 3: Solution Seeking
Graduate Profile: Bachelor of Commerce

Learning Outcomes

By the end of this course, students will be able to:
  1. Distinguish the business strategies adopted by different businesses to create value for their shareholders (Capability 1 and 2)
  2. Apply financial statement analysis to assess a business's financial performance (Capability 1, 2 and 3)
  3. Apply financial models for predicting business failure and recognise the limitations of these models (Capability 1, 2 and 3)
  4. Develop forecasting assumptions and prepare a forecast of future performance for business valuations. (Capability 1, 2 and 3)
  5. Apply the free cash flow and residual income valuation models to business valuations (Capability 1 and 3)
  6. Formulate a framework for valuation using the multiples method and illustrate its relation to the free cash flow and residual income models for valuation (Capability 1, 2 and 3)

Assessments

Assessment Type Percentage Classification
Coursework 30% Individual Coursework
Mid-semester Assessment 20% Individual Coursework
Final Exam 50% Individual Examination
Assessment Type Learning Outcome Addressed
1 2 3 4 5 6
Coursework
Mid-semester Assessment
Final Exam

Workload Expectations

This course is a standard 15 point course and students are expected to spend 10 hours per week involved in each 15 point course that they are enrolled in. 

Delivery Mode

Campus Experience or Online

This course is delivered through a “flipped classroom” teaching and learning model:
  • Pre-recorded lectures and learning materials of each module will be released in advance for students’ preparation. Lecturers discuss and apply theory and techniques with examples for each module in the pre-recorded lectures.
  • Live workshops will be run on campus* to work through additional examples, problems and/or cases. Attending the workshop is important to practice applying the theory and techniques to solve problems and provides opportunities for group work, which many students find to be a valuable learning experience.
*Workshops may be combined with pre-recorded lectures or delivered online at short notice in response to the University's change of teaching mode due to the COVID-19 restrictions. Students are reminded to check Canvas announcements regularly for updates.

Learning Resources

Course materials are made available in a learning and collaboration tool called Canvas which also includes reading lists and lecture recordings (where available).

Please remember that the recording of any class on a personal device requires the permission of the instructor.

The prescribed textbook for this course is Financial Statement Analysis and Valuation 4th ed., by Peter D. Easton, Mary Lea McAnally, Gregory A. Sommers, and Xiao-Jun Zhang (Cambridge Business Publishers, 2015).

Student Feedback

At the end of every semester students will be invited to give feedback on the course and teaching through a tool called SET or Qualtrics. The lecturers and course co-ordinators will consider all feedback and respond with summaries and actions.

Your feedback helps teachers to improve the course and its delivery for future students.

Class Representatives in each class can take feedback to the department and faculty staff-student consultative committees.

Academic Integrity

The University of Auckland will not tolerate cheating, or assisting others to cheat, and views cheating in coursework as a serious academic offence. The work that a student submits for grading must be the student's own work, reflecting their learning. Where work from other sources is used, it must be properly acknowledged and referenced. This requirement also applies to sources on the internet. A student's assessed work may be reviewed against online source material using computerised detection mechanisms.

Class Representatives

Class representatives are students tasked with representing student issues to departments, faculties, and the wider university. If you have a complaint about this course, please contact your class rep who will know how to raise it in the right channels. See your departmental noticeboard for contact details for your class reps.

Inclusive Learning

All students are asked to discuss any impairment related requirements privately, face to face and/or in written form with the course coordinator, lecturer or tutor.

Student Disability Services also provides support for students with a wide range of impairments, both visible and invisible, to succeed and excel at the University. For more information and contact details, please visit the Student Disability Services’ website http://disability.auckland.ac.nz

Special Circumstances

If your ability to complete assessed coursework is affected by illness or other personal circumstances outside of your control, contact a member of teaching staff as soon as possible before the assessment is due.

If your personal circumstances significantly affect your performance, or preparation, for an exam or eligible written test, refer to the University’s aegrotat or compassionate consideration page https://www.auckland.ac.nz/en/students/academic-information/exams-and-final-results/during-exams/aegrotat-and-compassionate-consideration.html.

This should be done as soon as possible and no later than seven days after the affected test or exam date.

Learning Continuity

In the event of an unexpected disruption, we undertake to maintain the continuity and standard of teaching and learning in all your courses throughout the year. If there are unexpected disruptions the University has contingency plans to ensure that access to your course continues and course assessment continues to meet the principles of the University’s assessment policy. Some adjustments may need to be made in emergencies. You will be kept fully informed by your course co-ordinator/director, and if disruption occurs you should refer to the university website for information about how to proceed.

Student Charter and Responsibilities

The Student Charter assumes and acknowledges that students are active participants in the learning process and that they have responsibilities to the institution and the international community of scholars. The University expects that students will act at all times in a way that demonstrates respect for the rights of other students and staff so that the learning environment is both safe and productive. For further information visit Student Charter https://www.auckland.ac.nz/en/students/forms-policies-and-guidelines/student-policies-and-guidelines/student-charter.html.

Disclaimer

Elements of this outline may be subject to change. The latest information about the course will be available for enrolled students in Canvas.

In this course students may be asked to submit coursework assessments digitally. The University reserves the right to conduct scheduled tests and examinations for this course online or through the use of computers or other electronic devices. Where tests or examinations are conducted online remote invigilation arrangements may be used. In exceptional circumstances changes to elements of this course may be necessary at short notice. Students enrolled in this course will be informed of any such changes and the reasons for them, as soon as possible, through Canvas.

Published on 22/02/2022 02:16 p.m.