a. Introduction to the Course

This course on financial statement analysis provides students with a fundamental understanding of how to interpret accounting data presented in financial statements issued by corporations. The course introduces and analyses the relationship between business activities (planning, financing, investing, and operating) and financial statements. It demonstrates popular tools and techniques in analyzing and interpreting financial statements with an emphasis on the need of users of financial statements.

b. Course Pre-Requisite

Specifically, there are no pre-requisites for this course, however, basic knowledge of finance and accounting concepts will be very helpful.

c. Learning Outcomes

1. To list and differentiate between the important components of basic financial statements.
2. To explain financial statements' ratios and design Excel sheets and graphs for financial statements analysis.
3. To assess the quality of financial reports and evaluate the quality of the reported earnings and cash flows.

d. Textbooks:

• Gibson, C. H., & Frishkoff, P. A. (2004). Financial statement analysis: using financial accounting information. (13th ed). London: John Wiley & Sons
• Robinson, T. R. (2020). International financial statement analysis. London: John Wiley & Sons.

e. PPT/Handouts

The PPTs/Handouts will be provided for every lecture where it will be necessary. Further, the PPTs/Handouts can be found in relevant lesson section of the LMS.

f. System of Evaluation

Midterm = 25%

Final = 50%

Sessional (Class assignment + Final Project) = 25%

g. Lesson Plan

1. Introduction to accounting & accounting principles,
2. Generally accepted accounting principles (GAAP) & Accounting cycle
3. Balance sheet
4. Income statement, Expenditures Vs. Expenses
5. Basis of Analysis
6. Vertical & horizontal analysis
7. Liquidity, Short term Assets related Ratios
8. Analysis of Long-Term Debt Paying Ability
9. Profitability Ratios
10. Ratios for Investors
11. Expanded Analysis
12. Statement of Cash flows, Parts of cash flow statement
13. Notes to financial statements
14. Accounting policies & inventory accounting policies
15. Special Industries, Banks, Insurance
16. Transportation, Utilities, Real Estate

h. Date and Time of Class

Monday 2:00 - 3:30 PM

Tuesday 2:00 - 3:30 PM