Overview

Business strategy analysis, profitability and growth analysis; inter-firm comparison and trend analysis; financial ratios; using financial statements in valuation; cash accounting versus accrual accounting; pricing book values; pricing earnings; financial forecasting; and predicting credit risk.

Assessment Strategy

-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives. -good -B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills. -excellent -A- to A+ (70%+): Outstanding Performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills. -another level-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.

Learning Outcomes

• Appraise how financial statement is linked to business activities

• Appraise how financial statement is used for the purposes of equity valuation.

• Critically analyse financial intra-firm (comparing performance year-on-year for the same company), inter-firm (comparing one company with another) and industry-average (comparing one company with its industry competitors) performance

• Critically appraise how financial information is used in capital markets.

• Critically evaluate relevant techniques used for the purposes of financial forecasting and the assessment of equity and credit risk.