ACCT3302 Financial Statement Analysis
- 6 points
|Semester 2||UWA (Perth)||Face to face|
|Semester 2||Albany||Face to face|
- Details for undergraduate courses
- Level 3 option in the Accounting major sequence
- The area of knowledge for this unit is Management and Commerce
- Category B broadening unit for students
- Level 3 elective
- This unit focuses on the fundamental analysis of four financial statements: the income statement; the balance sheet; statement of change in equity; and the cash flow statement. The financial analysis primarily involves the use of ratios to analyse a firm's performance against appropriate benchmarks. The prospective analysis involves the development of forecast financial statement information which can then be used to estimate a firm's value.
- Students are able to (1) demonstrate an understanding of the difference between cash accounting and accrual accounting in business valuations; (2) evaluate the importance of ratios in financial statement analysis, including, liquidity ratios, debt ratios, asset ratios and price-earnings ratio
; (3) assess the current and future performance of firms using ratios; (4) analyse cash performance of firms via the cash flow statement and the various activities of a firm; (5) critically analyse the profitability and growth performance of firms; (6) demonstrate an understanding of how accounting for current and non-current assets, such as receivables, inventories, and non-current assets, impact firm performance ; and (7) develop evaluation strategies as a team to produce a convincing, coherent and consistent argument of firm performance in a report format.
- Indicative assessments in this unit are as follows: (1) in-class case studies; (2) group 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 Coordinator(s)
- Dr Thanes Subraamanniam
- 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.