Registry

Module Specifications

Current Academic Year 2012 - 2013
Please note that this information is subject to change.

Module Title	Financial Statement Analysis
Module Code	AC302
School	DCUBS
Online Module Resources
Module Teacher	Ruth Mattimoe
NFQ level	8	Credit Rating	5
Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

Description

This module aims to give students confidence in analysing financial information found in the published Annual Reports of plc companies and other sources.The teaching methodology uses lectures (including occasional invited guest lecturers )and tutorials to:(a) develop students' ability to understand, analyse and critically evaluate financial statements(b) provide students with an awareness of the economic, social and regulatory context within which companies operate and financial statements are prepared(c) to develop students' appreciation of the factors affecting operational and financial decision making in business and the related consequences.

Learning Outcomes

1. Explain the regulatory framework of financial reporting and discuss how various aspects differ across Europe and the US.
2. Assess the financial position, performance and cash flow of companies using financial statements prepared in accordance with International Financial Reporting Standard (IFRS) as adopted in the EU.
3. Based on the analysis of financial statements recommend alternative appropriate courses of action to remedy operating and financial problems.
4. Critique the narrative information presented in the annual reports of Irish Listed Companies.
5. Discuss the motives for and types of mergers and acquisitions with respect to current economic trends.
6. Present and rank a range of valuations for a company using company valuation techniques.
7. Evaluate traditional theories of dividend policy with respect to recent empirical evidence.
8. Review commercial trends in the current economic environment, for example issues surrounding the credit crunch, company insolvency and sources of finance.

Workload	Full-time hours per semester
*Type*	*Hours*	*Description*
Tutorial	9	Tutorials of 1 hour per week from Week 4 to Week 12.
Lecture	24	2 hours of lectures for 11 weeks including private study in reading week
Independent learning time	20	Preparation of lecture questions from course pack
Directed learning	12	Reading for lectures
Independent learning time	20	Preparation of tutorial questions before tutorial and audit of recommended solution afterwards
Examination	40	Direct preparation for and completion of end of semester examination.
Total Workload: 125

All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml

Indicative Content and Learning Activities

Introduction to Financial Statements and Annual Reports.
Nature, purpose and scope of financial statement analysis; factors affecting the supply and demand of financial statement information; information needs of user groups; review of the nature, purpose and content of basic financial statements and annual reports; shortcomings of historical cost accounting and brief introduction to alternative accounting models; revision of financial statement preparation (income statement, balance sheet and statement of cash flows) and fundamental accounting concepts;.

The regulatory framework of financial reporting and corporate governance.
Statutory requirements to prepare financial statements; the role of the accounting profession; stock exchange regulations; the role and development of corporate governance; international influences on corporate governance from Europe and the US;.

Working Capital Management.
Review the issues surrounding working capital management; determine the strengths or weakness of a companys working capital management policy through review of financial statements; examine possible courses of actions to address problems associated with poor working capital management..

Financial Statement ratio analysis.
Purpose of ratio analysis; calculation and interpretation of commonly used ratios, including profitability, liquidity, investment and capital structure ratios; limitations of ratio analysis; issues arising in cross sectional and time series analysis;.

Company Valuation.
Using financial and non financial information present a range of company valuations using income, asset and value based techniques;.

Mergers and acquisitions.
Types of mergers and acquisitions; motives for mergers and acquisitions; use of financial statements in company valuations; review of recent merger and acquisition activity;.

Dividend Policy.
Types of dividend; dividend theories; effects of taxation; recent empirical evidence;.

Assessment Breakdown
Continuous Assessment	0%	Examination Weight	100%

Course Work Breakdown
Type	Description	% of total	Assessment Date

Reassessment Requirement
Resit arrangements are explained by the following categories; 1 = A resit is available for all components of the module 2 = No resit is available for 100% continuous assessment module 3 = No resit is available for the continuous assessment component
This module is category 1

Indicative Reading List

O'Regan, P.: 2006, Financial Information Analysis, 2nd Edition, John Wiley & Sons,, 0470865725
Arnold, Glen: 2008, Corporate financial management, 4th Edition, Pearson Financial Times/Prentice Hall, 9780273710417
0:

Other Resources

None

Array

Programme or List of Programmes

BA in Accounting & Finance

Bachelor of Business Studies

BSI

Business Studies ( with INTRA )

BSSA

Study Abroad (DCU Business School)

BSSAO

Study Abroad (DCU Business School)