Financial Analysis (AC0023)

? Credit Points : 10 ? SCQF Level : 11 ? Acronym : SBE-P-AC0023

Financial Analysis is an important skill for all those in management positions who deal with financial statements as part of their understanding of a business. This includes those outside the business such as investment analysts and those responsible within the business for financial analysis and for relations with outside stakeholders including investors and banks. Financial statements do not exist in a vacuum but are a reflection of business activity. To understand financial statements it is necessary to understand business activity and vice versa. The course therefore is as much about business as it is about accounting.

The course contrasts traditional accounting ratio techniques rooted in old economy perspectives of fixed asset utilisation and cost control, with financial analysis as a tool for assessing the performance and development of intangibles. This new economy perspective is particularly appropriate for knowledge companies in areas such as pharmaceuticals, consultancies, and software. Case studies are drawn from these industries and the Enron case is also covered as company which transformed from the old to the new economy.

Entry Requirements

? Pre-requisites : PGs Only

Subject Areas

Home subject area

Business Studies, (School of Business and Economics, Schedule H)

Delivery Information

? Normal year taken : Postgraduate

? Delivery Period : Semester 2 (Blocks 3-4)

? Contact Teaching Time : 2 hour(s) per week for 10 weeks

Summary of Intended Learning Outcomes

At the end of this course, the student should be able to analyse a set of financial statements in conjunction with an annual report, identifying the key business issues so as to advise either investors or management on the financial performance and prospects for the business.