ACC30060

Learning Outcomes:

Part 1 Introduction to Financial Statement Analysis

After completing this part of the module a student should be able to:
- understand the role of financial statements analysis within business analysis.
- navigate the income statement, balance sheet and cash flow statement.
- explain how the financial statements are connected by the accounting equation.
- describe the impact of accrual accounting on the financial statements.
- identify and source information about business organisations using Bloomberg and other sources.

Part 2 Accounting analysis

After completing this part of the module a student should be able to:

- identify the critical accounting policies and assumptions that are applied in preparing a business organisation’s financial statements.
- understand the implications of different accounting policies for the organisation’s financial statements.
- describe earnings management and identify when and how it occurs in practice.
- review a set of financial statements and identify issues that may impact on the analysis of the information in those statements.

Part 3 Financial analysis and modelling

After completing this part of the module, a student should be able to:

- evaluate economic relationships in the financial statements to better understand the performance and prospects of the firm.
- analyse the operational and Environmental, Social, and Corporate Governance (ESG) information provided by the firm
- decompose financial performance and identify performance issues and possible improvements.
- forecast firm performance and resource needs using Excel.
- evaluate the research findings on analysts’ forecasts.

Part 4 Valuation

After completing this part of the module, a student should be able to:

- value a business using the method of multiples.
- explain how investor expectations about future returns can be derived from the Capital Asset Pricing Model (CAPM).
- calculate an appropriate discount rate for a firm.
- value a business using the dividend valuation model and the discounted cash flow (DCF) model.
- value a business using the residual income valuation model.
- explain how the valuation models differ from each other in terms of their theoretical grounding, the assumptions they require and their effectiveness in valuing different types of firms.
- access the strengths and limitations of various valuation models in the context of the valuation of a particular firm.

Student Effort Hours:

Approaches to Teaching and Learning:

The module will consist of 12 x 2-hour online sessions. Sessions will incorporate lectures, workshops and practical sessions (see the Module Session and Assessment Schedule for details.) The module’s sessions will take place on Thursdays from 9.00 am to 10.50 am on zoom.

Virtual lectures and tutorials will be provided on the technical aspects of the module’s content. Students will be required to use these video tutorials to build their technical skills. Some of these tutorials are intended to be used in conjunction with Bloomberg.

The module is designed on the assumption that students will attend all the online sessions. Sessions will provide a focal point for discussing and navigating the module’s material and achieving the learning outcomes in full. Students are not required to attend online lectures, but they must take full personal responsibility for keeping up-to-date with the module progress, material and learning outcomes through alternative means.

Students must read the assigned readings and complete exercises at the time they are assigned (See the Learning Guide for each part of the module on BrightSpace.)

Students are expected to participate online in discussions, problem solving and group work at lectures and workshops.

Requirements, Exclusions and Recommendations

Learning Recommendations:

ACC 10040 Financial Accounting 1
ACC 20010 Financial Accounting 2
FIN20010 Principles of Finance
(or equivalent at another university)

This module is taught at intermediate financial analysis level. Students should have a strong background in accounting having taken at least 2 financial accounting modules. Students should also have taken an introductory finance module.

Module Requisites and Incompatibles

Not applicable to this module.
 

Assessment Strategy Invalid Option

 

Please see Student Jargon Buster for more information about remediation types and timing. 

Feedback Strategy/Strategies

• Group/class feedback, post-assessment
• Online automated feedback

How will my Feedback be Delivered?

Not yet recorded.

The following textbooks will be useful for parts of the module.

Investment Valuation ISBN: 9781280590467 Author: Damodaran, Aswat
Available as a free e-book at UCD Library http://lib.myilibrary.com/Open.aspx?id=362029

Valuation: Measuring and Managing the Value of Companies, University Edition, 6th Edition
ISBN-13: 9781118873731
Author(s): McKinsey & Company Inc.; Tim Koller; Marc Goedhart; David Wessels
Available as a free e-book at UCD Library https://library.ucd.ie/iii/encore/record/C__Rb2096533?lang=eng

Financial Statement Analysis and Security Valuation, 5th Edition ISBN-13: 9780071326407
Author(s): Penman, Stephen
https://library.ucd.ie/iii/encore/record/C__Rb2096534?lang=eng

Best Practices for Equity Research Analysts: Essentials for Buy-Side and Sell-Side Analysts by Valentine (Author) ISBN-13: 978-0071736381
https://library.ucd.ie/iii/encore/record/C__Rb2096536?lang=eng

International Financial Statement Analysis, 3rd Ed., Tobinson, Henry, Pirie and Broihahn, CFA Institute and Wiley
http://ucd.summon.serialssolutions.com/#!/search?bookMark=ePnHCXMw42LgTQStzc4rAe_hSmGGHKsEOkcMWPeAr-yzNADWwcbAqoGTQQtl3EshDXbKhAJ4Ow1ofEwhEXo4Bw8DaxowRlJ5oTQ3g4yba4izh25pcko8dKwjPsnI0NjCxMgQdPkNXmkApyQwmQ

Equity Asset Valuation, 3rd Ed., Pinto, henry, Robinson and Stowe, CFA Institute and Wiley
http://ucd.summon.serialssolutions.com/#!/search?bookMark=ePnHCXMw42LgTQStzc4rAe_hSmGGHKsEOkcM3FwH3VQMuhgFWC4accAHQ0yB7XYLA04GMdfCUmDrUwHYcEwtUYCfd83DwJoGjI1UXijNzSDj5hri7KFbmpwSDx3niE8yMjS2MAHWSEYEpAGBZCv-

Timetabling information is displayed only for guidance purposes, relates to the current Academic Year only and is subject to change.