Financial Statement Analysis
Exam number: 6715
Semester: from 1st semester
Duration of the module: One semester
Form of the module (i.e. obligatory, elective etc.): Elective
Frequency of module offer: Each summer semester (for the last time in summer term 2018)
Prerequisites: Basic knowledge of accounting according to IFRS is required.
Applicability of module for other study programmes:
Obligatory or elective in other study programmes. For further information check regulations of the study programme.
Person responsible for module: Dr. Stefan Trencsik
Name of the professor: Dr. Stefan Trencsik
Language of teaching: English (im SoSe 2014 Deutsch)
ECTS-Credits (based on the workload): 6
Workload and its composition (self-study, contact time):
Contact time (Lecture, tutorial etc.) 45 h; self-study: 135 h
Contact hours (per week in semester): 3
Methods and duration of examination:
Group assignment for the case study including presentation (30%) and individual term paper (70%)
Emphasis of the grade for the final grade: Please check regulations of the study programme
Aim of the module (expected learning outcomes and competencies to be acquired):
After completing the module students are able to
- outline the substantive principles as well as the process of analysing consolidated financial statements under IFRS and under local GAAPs
- interpret various disclosures
- learn how to compare the financial situation of companies, understand cash flow, and grasp basic profitability issues and risk analysis concepts
- apply analytical tools and concepts in competitor analysis (e.g. SWOT- and BCG-analysis ect.) credit and investment decisions, and business valuation
- self-organization in groups and development of the ability to work in teams
- time management before and during presentations
- preparation of written academic pieces
- preparation of reports and speeches
- application of selected techniques for presentation
Contents of the module:
This course is designed to prepare students to interpret and analyze financial statements for tasks such as credit and security analyses, lending and investment decisions, and other decisions that rely on financial data. The course stresses the use of actual financial statements and real business examples.
Course of content
1. Basic Principles
2. Analysis of the Business Model
3. Ratios of Return and Profitability
4. Ratios of Financial Stability
5. Ratios of Working Capital Management
6. Investment Valuation Ratios
Teaching and learning methods:
Lecture, case studies, and seminar
Literature (compulsory reading, recommended literature):
Schmidlin, Nicolas (2014), The Art of Company Valuation and Financial Statement Analysis: A Value Investor's Guide with Real-Life Case Studies, West Sussex (United Kingdom), 1st edition.
Dunn, John (2010), Financial Reporting and Analysis, West Sussex (United Kingdom), 1st edition.
Registration in Moodle Viadrina required.