ACCT3302 Financial Statement Analysis
- 6 points
|Semester 2||UWA (Perth)||Face to face|
- Details for undergraduate courses
- Level 3 option in the Accounting major sequence
- Category B broadening unit for students
- Level 3 elective
- This unit focuses on five key components of effective financial statement analysis: (1) business strategy analysis is the starting point and provides the foundation for the subsequent analysis; (2) accounting analysis involves examining how accounting rules and conventions represent (or do not represent) the economic reality of a firm in its financial statements; (3) financial analysis primarily involves the use of ratios to analyse a firm's performance against appropriate benchmarks; (4) prospective analysis involves the development of forecast financial statement information which can then be used to estimate a firm's value; and (5) the application of the abovementioned techniques to perform equity security analysis, credit analysis and distress prediction, and an understanding of the important elements of merger and acquisition activities.
- Students are able to (1) evaluate the appropriateness of a firm's business strategy given the industry in which it operates and likely future developments for that industry; (2) evaluate the appropriateness of a firm's accounting policy choices and the likely impact of any inappropriate accounting policies on the firm's income statement and balance sheet; (3) forecast a firm's likely future performance (profitability), having regard to its business strategy, accounting policies and current performance; (4) value the firm based on the forecast of its likely future performance; (5) perform equity security analysis, credit analysis and distress prediction, and evaluate merger and acquisition activity; and (6) identify and use the appropriate elements of current corporate communication techniques to facilitate the business analysis and valuation process.
- Typically this unit is assessed in the following ways: (1) in-class case studies; (2) individual research assignment; and (3) final examination. Further information is available in the unit outline.
Supplementary assessment is not available in this unit except in the case of a bachelor's pass degree student who has obtained a mark of 45 to 49 overall and is currently enrolled in this unit, and it is the only remaining unit that the student must pass in order to complete their course.
- Unit rules
- ACCT2201 Corporate Accounting
- Advisable prior study:
- FINA1221/FINA2221 Introduction to Finance
- FINA2207 Business Analysis and Valuation
- Contact hours
- lectures/tutorials/seminars/workshops: up to 3 hours per week
- The availability of units in Semester 1, 2, etc. was correct at the time of publication but may be subject to change.
- All students are responsible for identifying when they need assistance to improve their academic learning, research, English language and numeracy skills; seeking out the services and resources available to help them; and applying what they learn. Students are encouraged to register for free online support through GETSmart; to help themselves to the extensive range of resources on UWA's STUDYSmarter website; and to participate in WRITESmart and (ma+hs)Smart drop-ins and workshops.
- Books and other material wherever listed may be subject to change. Book lists relating to 'Preliminary reading', 'Recommended reading' and 'Textbooks' are, in most cases, available at the University Co-operative Bookshop (from early January) and appropriate administrative offices for students to consult. Where texts are listed in the unit description above, an asterisk (*) indicates that the book is available in paperback.