ACCT3302 Financial Statement Analysis

Credit
6 points
Offering
(see Timetable)
AvailabilityLocationMode
Semester 2UWA (Perth)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
Content
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.
Outcomes
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.
Assessment
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
Prerequisites:
ACCT2201 Corporate Accounting
Advisable prior study:
FINA1221/FINA2221 Introduction to Finance
Incompatibility:
FINA2207 Business Analysis and Valuation
Contact hours
lectures/tutorials/seminars/workshops: up to 3 hours per week
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