AC31010 - FINANCIAL STATEMENT ANALYSIS

Module Identifier	AC31010
Module Title	FINANCIAL STATEMENT ANALYSIS
Academic Year	2001/2002
Co-ordinator	Mr Huw Rhys
Semester	Semester 2
Other staff	Mr Huw Rhys
Pre-Requisite	AC30820
Co-Requisite	AC30920
Course delivery	Lecture	15 Hours /Seminars and Tutorials
Assessment	Course work		40%
	Exam	2 Hours	60%

Aims

Corporate financial statements can represent genuine managerial performance or they can represent an illusion of performance. Companies have choice in how they report their financial condition and results of operations. Despite progress in eliminating undesirable reporting practices, areas remain in which alternative practices are equally acceptable for reporting essentially identical business transactions. The module aims to equip students with the knowledge and skill to analyse the use of publicly available financial information to assess the financial performance and future prospects of a firm.

Learning outcomes

After completing this module students should be able to:

discuss the implications of corporate governance developments for financial reporting and corporate performance,
examine the use of financial information data for evaluating corporate performance,
understand the factors that help to explain a firm's choice of accounting policies and discuss their implications for earnings management,
evaluate the techniques and limitations of cross-sectional and time series analysis and discuss their application for evaluating corporate performance including the prediction of corporate failure,
understand the relationship between accounting information and share prices.

Reading Lists

Books
** Recommended Text
R W Scott. (1999) Financial Accounting Theory. Prentice-Hall
G Foster. (1985) Financial Statement Analysis. Prentice-Hall
** Should Be Purchased
K G Palepu, P M Healy and V L Bernard. (2000) Business Analysis and Valuation: Text and Cases. Thomson Learning
** Recommended Text
B Rees. (1996) Financial Analysis. 2nd. Prentice-Hall