This is an intermediate course which examines the analysis of financial information presented in firms’ financial reports. The course comprises three related sections: fundamental analysis; valuation; and, the application of fundamental analysis and valuation techniques to a variety of specific decisions. Fundamental analysis involves answering questions such as: how is the firm performing? how might the firm perform in the future? what risks does the firm face? In addressing these issues particular attention is paid to the impact of financial reporting choices on the relation between reported earnings and firms’ underlying economic performance. Valuation describes the methods by which our expectations of firms’ future performance may be converted to a present day value of the firm’s assets, and the various financial claims on those assets. The final section of the course provides an introductory coverage to issues such as equity security analysis and credit analysis, with a strong emphasis on the use of financial statement data for these purposes.
Learning Outcomes
Upon successful completion, students will have the knowledge and skills to:
On successful completion of the course you should be able to:
- Describe and apply the basic techniques of financial statement analysis;
- Explain the relationship between strategic business analysis, accounting analysis and financial analysis;
- Identify and utilise value-relevant information contained within financial statements;
- Recognise and explain the fundamental role of accounting numbers in the valuation of entities and the key financial claims on these entities assets (equity and debt securities);
- Understand the impact of financial reporting choices on the usefulness of reported earnings to predict future performance;
- Prepare a written analysis of a listed company, which incorporates and synthesises the strategic, accounting and financing techniques covered in the course;
- Conduct applied business research (including locating, critically interpreting and evaluating firm-specific financial information);
- Work effectively in a team environment.
Indicative Assessment
The proposed assessment components are:
- Written assignment - 20%
- Company analysis report - 30% and
- Final exam - 50%
The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.
Workload
At least three contact hours per week (a two hour lecture and a one hour tutorial) plus 6 hours per week private study time.
Requisite and Incompatibility
Prescribed Texts
Palepu, K. G., P. M. Healy, V. Bernard, S. Wright, M. Bradbury, P. Lee, Business Analysis and Valuation Using Financial Statements: Text and Cases, Asia Pacific Edition, Cengage Learning, 2010.
Majors
Fees
Tuition fees are for the academic year indicated at the top of the page.
If you are a domestic graduate coursework or international student you will be required to pay tuition fees. Tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.
- Student Contribution Band:
- 3
- Unit value:
- 6 units
If you are an undergraduate student and have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). You can find your student contribution amount for each course at Fees. Where there is a unit range displayed for this course, not all unit options below may be available.
| Units | EFTSL |
|---|---|
| 6.00 | 0.12500 |
Course fees
- Domestic fee paying students
| Year | Fee |
|---|---|
| 2015 | $3414 |
- International fee paying students
| Year | Fee |
|---|---|
| 2015 | $4146 |
Offerings, Dates and Class Summary Links
ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.
First Semester
| Class number | Class start date | Last day to enrol | Census date | Class end date | Mode Of Delivery | Class Summary |
|---|---|---|---|---|---|---|
| 2905 | 16 Feb 2015 | 06 Mar 2015 | 31 Mar 2015 | 29 May 2015 | In Person | N/A |
