Financial Analysis and Reporting (CF30001)

General information

Type:	OB	Curs:	1	Period:	S semester
ECTS Credits:	4 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Sec: A	Petya Platikanova	Economía, Finanzas y Contabilidad	ENG

Group	Teacher	Department	Language
Sec: B	Petya Platikanova	Economía, Finanzas y Contabilidad	ENG

Group	Teacher	Department	Language
Sec: C	Petya Platikanova	Economía, Finanzas y Contabilidad	ENG

All financial decisions in both the private and public sector use accounting information as the basis for action. Good control of financial accounting, or more broadly, financial reporting, permits not only to explain past financial decisions but also to initiate strategic actions, grounded on financial information, and lead the business into new directions. Financial reporting has its own language and may take a variety of presentations. Accounting systems, including the authoritative guidance for financial reporting, are not identical across firms and countries. All this may confuse you in the process of learning, but should not discourage you from taking the challenge. To understand financial reporting, you need to learn the underlying concepts which will make you able to interpret financial information and forecast future developments. Equipped with accounting concepts, you would be able to discover the wonderland of financial reporting and analysis, with its variety of applications as shaped by the interaction of policy makers, management, investors, and employees.

Financial reporting and analysis is a course that will prepare you to understand the business strategy and its financial implications. In the end of the course, students will:
1. Familiarly use accounting terminology and understand to some extent accounting regulation;
2. Understand the economic context of the financial reporting and the interplay between different interested parties in this process;
3. Interpret trends and encounter red flags in the four financial statements (balance sheet, income statement, cash flow statement and the statement of shareholder¿s equity);
4. Distinguish the interrelation between those statements and understand their limitations;
5. Understand and interpret all types of ratios related to the company¿s financial position and profitability;
6. Be able to predict the impact that a change in internal (i.e, a change in an accounting method) and external factors (i.e., economic conditions) should have on the financial results of a company;
7. Estimate the quality of financial reporting, identify possible management practices and prepare rough adjustments;
8. Prepare the forecasted financial statements of the company, which are used in valuation.

1. Knowledge acquisition, comprehension and structuring (CB6)

2. Application of knowledge to achieve results (CB7)

1. SESSION 1: INTRODUCTION TO FINANCIAL ANALYSIS.

2. SESSION 2: ANALYSIS OF FINANCIAL DECISIONS.

3. SESSION 3: ANALYSIS OF INVESTMENT DECISIONS.

4. SESSION 4: ADVANCED TOPICS (1) ACCOUNTING FOR MARKETABLE SECURITIES.

5. SESSION 5: ADVANCED TOPICS (2) PENSION ACCOUNTING. TAX ACCOUNTING.

6. SESSION 6: INTRODUCTION TO RATIO ANALYSIS

7. SESSION 7: RATIO ANALYSIS

8. SESSION 8: INTEGRATION. FINANCIAL REPORTING FROM A STRATEGIC PERSPECTIVE

The course require class discussion and student involvement. Pre-class preparation is demanded. Harvard Business School cases are used for class discussion to practice the application of financial analysis tools to a real case.

ASSESSMENT BREAKDOWN

Bibliography:

- Financial Statement Analysis by K. R. Subramanyam and John Wild (last edition)
- Financial Statement Analysis and Security Valuation by Stephen Penman (last edition)


Additional Bibliography or Materials:

Cases and additional bibliography will be given in the moodle.

Group	Teacher	Department
Sec: A	Petya Platikanova	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Sec: B	Petya Platikanova	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Sec: C	Petya Platikanova	Economía, Finanzas y Contabilidad