Financial Statement Analysis

Module code: MN7241
Module co-ordinator: Dr Silvia Pazzi

Module Outline

You will study reporting; balance sheets; profit and loss; cash-flow statements management; financial forecasting and budgeting.

Upon completion of the module, students will be able to:

  • Explain the nature and purpose of financial accounting and reporting
  • Describe business activities and how they are recorded in financial statements
  • Discuss the financial reporting environment in UK and in the international context
  • Explain and analyse the accounting measurement and reporting practices underlying financial statement items (equity, liabilities, assets and income)
  • Evaluate accounting quality and identify earnings management practices
  • Explain value relevance of accounting
  • Compute and interpret relevant financial ratios for equity and credit analysis
  • Use accounting information for developing a prospective analysis and valuation 

Learning

  • 20 hours of lectures
  • 10 hours of seminars
  • 120 hours of guided independent study

Assessment

  • Exam, 1½ hours (70%) 
  • Coursework (30%)