Financial Statements and Analysis module (BU51029)

You will learn how to interpret financial statements helping you to decide as to whether to buy, hold, or sell a particular firm’s stock. You will also learn how to set up an in-depth analysis of the firms strategic capabilities, financial and operating performance.

These skills will help you manage your own personal finances as well understanding the finances of different kinds of organisations.

What you will learn

In this module, you will:

• read and analyse financial statements
• learn how to do financial ratios derived from the income statement, balance sheet and cash flow statement
• understand accounting policies and practices and their effect on the financial statements
• evaluate the competitive strength of a company and its distinctive capabilities
• analysis of financial statements

By the end of this module, you will be able to:

• understand the elements of the financial statements
• prepare the statements of cash flows
• analyse the financial statements and understand the implications of the performed analysis
• make judgements about company performance based on financial statements analysis
• be aware of limitations associated with financial analysis
• forecast a firm's sales, profit margins, cash flows and earnings
• communicate the financial analysis effectively through written reports
• explain the relationship between legitimate variations in financial reporting practices, legal but aggressive accounting practices and outright illegal fraud

Assignments / assessment

Group Project (30%)

• 3,000 words

Final Exam (70%)

• during main exam diet

Teaching methods / timetable

You should expect weekly lectures and tutorials, a reading list will be provided for you to have prepared in advance to allow you to contribute to the class.

For this module, the exact dates of teaching and/or reading weeks are to be confirmed.