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Basic information
Module Title: Financial Statement Analysis
Credit Points: 9
Duration: 1 term
School: University of Brescia
Campus: Santa Chiara
Date: September 2016

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

Programmes containing the module
Level: Intermediate
Core/Option: Core
Programme Title: Business course

Overview and Aims
The overall aim of this module 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.

Module Content
The aim of this course 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 basic skills of financial analysis and benchmark analysis. The focus is on a detailed methodology for the analysis of financial statement. This methodology is divided into 5 steps: qualitative reading of financial statement; construction of the reclassified balance sheet and income statement; building and understanding of the usual financial ratios in cross sectional and time series analysis; cash flow analysis; assessment of the financial performance of firms. The financial analysis will be placed in the context of the financial communication evolution (meaning, functions, tools) considering the impact of international standards IFRS too. Interim reports, presentations to analysts and analysts’ reports, as tools of financial communication other than financial statement, will also be object of the course.
In short:
1. The financial communication (meaning, functions, tools);
2. Features of financial statement;
3. Reclassified balance sheet and income statement;
4. Financial ratios in cross sectional and time series analysis;
5. Cash flow analysis;
6. Benchmark analysis.

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. For example:
- Karen Schoenebeck, Mark Holtzman (2012), Interpreting and Analyzing Financial Statements, 6th Edition, Pearson Ed.
- Thomas Plenborg, Christian Petersen (2011), Financial Statement Analysis, Pearson Ed.
Before choosing the book please contact the academic staff for examining the table of contents.

Learning outcomes
Learning outcomes describe what you should know and be able to do by the end of the module
Knowledge and understanding. After studying this module you should be able to:
a) Demonstrate a critical understanding of how companies implement their financial communication strategies in the light of a dynamic business environment;
b) Explore and assess the reliability of accounting statement pointing out the most critical area of financial statement considering the national and international legislation in accounting;
c) Critically analyse the role of the accounting information for decision making to develop sustainable competitive advantage;
d) Critically evaluate the evolution of company financial performance in comparison with the major competitors;
e) Synthesise the ways in which companies’ managers could improve the financial performance and acquire new market shares.

Skills, qualities and attributes. 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 statement);
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: 75

Assessment methods
This indicates the type and weighting of assessment elements in the module
Written test
Assessment is by written examination. The final test consists of three questions and one case study. Students are left with 120 minutes to answer.

Other information
Students’ services in English
Tutorship is available in English (during office hours).
Email address:
- Prof Claudio Teodori: claudio.teodori@unibs.it