ACCG32008D
Financial Statement Analysis
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 
Section I: Administrative Information
  Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2021
Prerequisites: ACCG32004D
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: 45 credits including ACCG32004D

Program(s): Bach Bus Admin Market Manage, Bach Business Admin Accounting, Bach Business Admin Finance, Bach Human Resources, BachBus Admin Spply Chain Mgmt
Program Coordinator(s): Lorraine Alyea, Sathy Sritharakumar, Carol Bureau, Maryam Hafezi, Mark Weaver
Course Leader or Contact: N/A
Version: 20210118_00
Status: Approved (APPR)

Section I Notes: This course will be delivered in hybrid format.

 
 
Section II: Course Details

Detailed Description
This course is an elective course in Bachelor of BusinessAdministration (BBA) Accounting program as well as BBA Finance, BBAHuman Resources, BBA Marketing and BBA Supply Chain Management. Thiscourse focuses on practical application of the accounting knowledgegained in the core financial accounting courses. The core accountingcourses focuses on preparing financial statements, while this coursefocuses on reading and interpreting the financial statements. Theoutcomes and learning experiences of these course components willcontribute to the students' Creative Learning Portfolio. This courseis designed to meet the requirements for the professional accountingprograms of study.

Program Context

 
Bach Bus Admin Market Manage Program Coordinator(s): Carol Bureau
This course is an elective course in Bachelor of Business Administration (BBA) Accounting program as well as BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. This course focuses on practical application of the accounting knowledge gained in the core financial accounting courses. The core accounting courses focuses on preparing financial statements, while this course focuses on reading and interpreting the financial statements. This course is designed to meet the requirements for the professional accounting programs of study.

Bach Business Admin Accounting Program Coordinator(s): Lorraine Alyea
This course is an elective course in Bachelor of Business Administration (BBA) Accounting program as well as BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. This course focuses on practical application of the accounting knowledge gained in the core financial accounting courses. The core accounting courses focuses on preparing financial statements, while this course focuses on reading and interpreting the financial statements. This course is designed to meet the requirements for the professional accounting programs of study.

Bach Business Admin Finance Program Coordinator(s): Mark Weaver
This course is an elective course in Bachelor of Business Administration (BBA) Accounting program as well as BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. This course focuses on practical application of the accounting knowledge gained in the core financial accounting courses. The core accounting courses focuses on preparing financial statements, while this course focuses on reading and interpreting the financial statements. This course is designed to meet the requirements for the professional accounting programs of study.

Bach Human Resources Program Coordinator(s): Sathy Sritharakumar
This course is an elective course in Bachelor of Business Administration (BBA) Accounting program as well as BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. This course focuses on practical application of the accounting knowledge gained in the core financial accounting courses. The core accounting courses focuses on preparing financial statements, while this course focuses on reading and interpreting the financial statements. This course is designed to meet the requirements for the professional accounting programs of study.

BachBus Admin Spply Chain Mgmt Program Coordinator(s): Maryam Hafezi
This course is an elective course in Bachelor of Business Administration (BBA) Accounting program as well as BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. This course focuses on practical application of the accounting knowledge gained in the core financial accounting courses. The core accounting courses focuses on preparing financial statements, while this course focuses on reading and interpreting the financial statements. This course is designed to meet the requirements for the professional accounting programs of study.


Course Critical Performance and Learning Outcomes

  Critical Performance:
By the end of this course, students will have demonstrated the ability to use financial statement information to identify opportunities and solve business problems.
 
Learning Outcomes:

To achieve the critical performance, students will have demonstrated the ability to:

  1. Interpret financial ratios using financial information.
  2. Identify the key financial ratios that measure value drivers.
  3. Apply a framework that links value drivers to shareholder value.
  4. Explain how business strategy and management actions affect key value drivers.
  5. Identify accounting choices, earnings management and off-balance sheet risks/obligations affecting the quality of accounting information.
  6. Analyze business strategy and competitive advantage as inputs to predicting sustainability of growth and profitability.
  7. Analyze the cash needs of a business.
  8. Assess how economic fundamentals impact accounting choices.
  9. Explain shareholder value creation by comparing public company data.
  10. Formulate a strategic plan while considering the organization's capabilities and environmental context.
  11. Apply a systematic approach to evaluating opportunities and challenges facing a business, using various financial analysis techniques.
  12. Link financial statement analysis to valuation models.
  13. Demonstrate professional behaviours including: a. work effectively in a team environment b. meet due dates c. produce professional quality assignments d. use reference materials responsibly

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 In-Class Activities (5 @ 2%)10.0%
 Group Assignment30.0%
 Midterm Exam30.0%
 Final Exam30.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:
In addition to achieving a minimum 50% overall grade, a student must have a combined average of at least 50% on the non-group components of the evaluation plan in order to receive credit for this course.

Provincial Context
The course meets the following Ministry of Colleges and Universities requirements:


 

Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) - Office of the Registrar

  • Not Eligible for PLAR

 
 
Section III: Topical Outline
Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Instruction Mode: In-class & Online Instruction
Professor: Multiple Professors
Resource(s):
 TypeDescription
RequiredOtherCourse pack compiled by professor containing required articles from multiple sources.
RequiredTextbookFinancial Reporting and Statement Analysis: A Strategic Perspective, Wahlen, J., Baginski, S., Bradsaw, M., Nelson Education, 7th edition
OptionalTextbookFinancial Statement Analysis, Subramanyam, K.R., Wild, John J., McGraw Hill, 10th Edition
OptionalTextbookFinancial Reporting and Analysis, Gibson, Charles, H., Cengage Learning, 11th Edition, 2008

Applicable student group(s): Bachelor of Business Administration
Course Details:

Description:

Module 1: Ratio Analysis
- Profitability analysis
- Risk analysis
- Cash flow projections
- Earnings qualify
Learning Outcomes: 1, 2, 5, 9
In-class Activity: 2%

Module 2: Financial Instruments and Derivatives
- Risk Assessment
- Impairment
- Writedowns
Learning Outcomes: 3, 4, 5, 8
In-class Activity: 2%

Module 3: Earnings sustainability
- Forecasting Financial Statements
- Linkage to future cash flow
- Limitations of financial data
Learning Outcomes: 1, 4, 6, 7, 9
In-class Activity: 2%

Midterm Exam: 30%

Module 4:  Company Valuation and Risk Assessment
- Dividends valuation approach
- Cash-flow based approaches
- Earnings-based approaches
- Market-based approaches
Learning Outcomes: 2, 3, 4, 7, 8, 10, 12
In-class Activity: 2%

Module 5: Earnings management
- Detecting earnings management
- Bankruptcy detection
- Off Balance Sheet Activities
- Deconstructing Enron fraud
Learning Outcomes: 4, 5, 8, 11
In-class Activity: 2%
Group Assignment: 30%

Final Exam: 30%



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