ACCT3302 Financial Statement Analysis

Credit
6 points
Offering
(see Timetable)

If this unit does not have an online alternative, then students who are presently unable to enter Western Australia and whose studies would be delayed by an inability to complete this unit, should contact the unit coordinator (details given on this page) to ascertain, on an individual case-by-case basis, if alternate arrangements can be made to support their study in this unit.

AvailabilityLocationMode
Semester 2UWA (Perth)Face to face Predominantly face-to-face. On campus attendance required to complete this unit. May have accompanying resources online.
Semester 2UWA (Perth)Online timetabled 100% Online Unit. NO campus face-to-face attendance is required to complete this unit. All study requirements are online only. Unit includes some synchronous components, with a requirement for students to participate online at specific times.
Semester 2AlbanyFace to face Predominantly face-to-face. On campus attendance required to complete this unit. May have accompanying resources online.
Details for undergraduate courses
  • Level 3 option in the Accounting major sequence
  • 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) tutorial participation; (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)
Mr Nishant Agarwal
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
  • 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.
  • Unit readings, including any essential textbooks, are listed in the unit outline for each unit, one week prior the commencement of study. The unit outline will be available via the LMS and the UWA Handbook one week prior the commencement of study. Reading lists and essential textbooks are subject to change each semester. Information on essential textbooks will also be made available on the Essential Textbooks. This website is updated regularly in the lead up to semester so content may change. It is recommended that students purchase essential textbooks for convenience due to the frequency with which they will be required during the unit. A limited number of textbooks will be made available from the Library in print and will also be made available online wherever possible. Essential textbooks can be purchased from the commercial vendors to secure the best deal. The Student Guild can provide assistance on where to purchase books if required. Books can be purchased second hand at the Guild Secondhand bookshop (second floor, Guild Village), which is located on campus.