Portale di Ateneo - En.Unibs.it

Basic information
Module Title: Financial Statement Analysis
Credit Points: 9
Duration: 1 term
School: University of Brescia
Campus: tbd
Date: September 2020

Pre-requisites
Good knowledge of financial statements (Basic Accounting)

Level: Intermediate
Core/Option: Core
Programme Title: Business course

Overview and Aims
The overall aim is to provide students with a set of key concepts, models and cases that will help students to gain a deep understanding of the complex issues of the published financial statements and the role of financial analysis and analysts in a dynamic business environment. Through a series of well-designed themes and topics the module will engage the following:
a) To explore the ways in which companies formulate and implement their financial communication strategies;
b) To explore and evaluate the reliability of accounting statements;
c) To undertake critical evaluation of the accounting information for decision making;
d) To critically analyse the financial statement developing financial ratios in cross sectional and time series analysis and producing cash flow analysis, in order to provide pertinent recommendations for improving company financial performance.

The specific aim is to develop an understanding of the published financial statements and the role of financial analysis and analysts. Students will gain a balanced view regarding the relevance of accounting information for decision-making and the reliability of accounting statements. They will gain the intermediate skills of financial analysis and benchmark analysis. The focus is on a detailed methodology for the analysis of financial statements. This methodology is divided into five steps: qualitative reading of financial statements; construction of the reclassified statement of financial position and statement of profit or loss; building and understanding of the usual financial ratios in cross sectional and time series analysis; cash flows analysis; assessment of the financial performance of firms. The financial analysis will be placed in the context of the financial communication evolution considering the impact of international standards IFRS.

In short:
1. Financial communication (meaning, functions, tools);
2. Features of financial statements and financial analysis;
3. Reclassified statement of financial position and statement of profit or loss;
4. Financial ratios in cross sectional and time series analysis;
5. Cash flows analysis;
6. Benchmark analysis;
7. Impact of IAS/IFRS (outline).

1. Knowledge and understanding
The overall aim of this module is to provide them with a set of key concepts, models and cases that will help students to gain a deep understanding of the complex issues of the published financial statements and the role of financial analysis and analysts in a dynamic business environment.
The above knowledge and comprehension skills are achieved through: lectures, tutorial, seminars, case study analysis through individual or group work; independent study. The verification of the achievement of learning outcomes is through written examinations.

2. Applying knowledge and understanding
Through a series of well-designed themes and topics the module will engage the following:
a) To explore the ways in which companies formulate and implement their financial communication strategies;
b) To explore and evaluate the reliability of accounting statements;
c) To undertake critical evaluation of the accounting information for decision making;
d) To critically analyse the financial statement developing financial ratios in cross sectional and time series analysis and producing cash flow analysis, in order to provide pertinent recommendations for improving company financial performance.

3. Making judgements and communication skills
After studying this module you should be able to:
a) Explore and assess the reliability of accounting statement pointing out the most critical area of financial statements considering the national and international legislation in accounting;
b) Critically analyse the role of the accounting information for decision making to develop sustainable competitive advantage;
c) Critically evaluate the evolution of company financial performance in comparison with the major competitors;
d) Synthesis the ways in which companies’ managers could improve the financial performance and acquire new market shares.
Communication skills are developed particularly during voluntary activities involving the preparation and presentation of a written report.

4. Learning skills
After studying this module you should be able to:
a) Collect, select, examine and assess, with methodological rigour, data and information useful for critically analyse the company financial performance (by financial statements);
b) Exhibit active reflective learning on their contribution in generating strategic understanding within a team and complex assignment.

Teaching and Learning
Lectures and seminars
Tutorial sets
Individual or team work (voluntary activity)
Total contact hours: 80 (60 + 20)

Assessment methods
This indicates the type and weighting of assessment elements in the module
Written test (100%)
Assessment is by written examination. The final test consists of three questions and two exercises. The exam is only in Italian language.

Indicative Reading
Every English textbooks (published by McGraw-Hill, John Wiley & Sons, Pearson, Elsevier and other international publishers) about financial statement analysis are suitable for the course.
Before choosing the book please contact the academic staff for examining the table of contents.

Other information
Students’ services in English
Tutorship is available in English (during office hours).

Email address:
Prof. Claudio Teodori
claudio.teodori@unibs.it