| Unit name | Financial Statement Analysis and Valuation |
|---|---|
| Unit code | ACFIM0029 |
| Credit points | 20 |
| Level of study | M/7 |
| Teaching block(s) |
Teaching Block 2 (weeks 13 - 24) |
| Unit director | Professor. Clatworthy |
| Open unit status | Not open |
| Units you must take before you take this one (pre-requisite units) |
None (only the mandatory TB 1 units) |
| Units you must take alongside this one (co-requisite units) |
None |
| Units you may not take alongside this one |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
Why is this unit important?
For students studying accounting and finance, it is important to recognise the links between the information companies produce as part of the financial reporting system and stock prices (and credit risk). As part of this unit, students become familiar with the links between key financial statements and financial market prices through studying accounting and cash flow-based valuation technologies. By studying the academic literature on the performance of some of these models, as well as understanding their practical implementation, insights from the unit may help to inform students’ career choices, targeted job profiles and/or graduate programmes.
How does this unit fit into your programme of study
This unit builds on the preparation of financial statements in the “International Financial Reporting” and the present value-based analysis of future cash flows in “Financial Management” in Teaching Block 1 (both of these are mandatory). The unit acts as a bridge between the accounting and finance aspects of the MSc AFM programme.
An overview of content
This unit aims to bridge the accounting and finance material covered in the mandatory units in TB1 by introducing them to the theory and practice of security valuation using financial statements. It builds upon the knowledge acquired in teaching block 1 and combines material from textbooks and the academic literature to understand, apply and critically evaluate different approaches to security valuation and business analysis.
How will students, personally, be different as a result of the unit
Students will appreciate how the information produced in the financial reporting process can be used to value equity and debt securities. The unit will also develop students’ transferrable skills, particularly in problem-solving, using spreadsheets and in financial data analysis, which will enhance their employability prospects.
Learning Outcomes
On completion of this unit students should be able to:
How you will learn
Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions and other online learning opportunities. Synchronous sessions will be conducted in an interactive manner. Issues and themes will be presented, and their potential merits will be open for discussion and debate.
Tasks which help you learn and prepare you for summative tasks (formative):
Feedback is provided at fortnightly tutorials and on practice questions. Apart from the discussion and feedback from the tutor and your peers in the tutorials, suggested solutions to the questions are provided after the tutorials have taken place (including Excel spreadsheets for the valuation questions). Suggested solutions will also be provided for practice exam questions.
Tasks which count towards your unit mark (summative):
This unit will be assessed by 100% closed-book exam (2 hours). This assessment will cover the intended learning outcomes described above: LO1, LO2, LO3 and LO4. It will examine your understanding of the role of financial statement information in business analysis and security valuation, including the theory and application of different valuation models and approaches. The exam will also require critical evaluation of financial statement data and various valuation models including some based on the academic literature.
When assessment does not go to plan
Any re-assessment required will be a like-for-like assessment.
If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.
If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. ACFIM0029).
How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours
of study to complete. Your total learning time is made up of contact time, directed learning tasks,
independent learning and assessment activity.
See the University Workload statement relating to this unit for more information.
Assessment
The assessment methods listed in this unit specification are designed to enable students to demonstrate the named learning outcomes (LOs). Where a disability prevents a student from undertaking a specific method of assessment, schools will make reasonable adjustments to support a student to demonstrate the LO by an alternative method or with additional resources.
The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit.
The Board considers each student's outcomes across all the units which contribute to each year's programme of study. For appropriate assessments, if you have self-certificated your absence, you will normally be required to complete it the next time it runs (for assessments at the end of TB1 and TB2 this is usually in the next re-assessment period).
The Board of Examiners will take into account any exceptional circumstances and operates
within the Regulations and Code of Practice for Taught Programmes.
