Postgraduate Course: Financial Analysis (MBA) (CMSE11241)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 10 |
ECTS Credits | 5 |
| Summary | 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.
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| Course description |
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 strategy 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 and business strategy as it is about accounting.
Syllabus
The theory and practice of investment
The micro economics of the highly performing company
The role of the business model and corporate strategy
Directors' rhetoric and storytelling
Analysis in a strategic context
State and performance analysis
The role of cash flow analysis
Predicting corporate failure
Economic Value Added, Value Added and their uses.
The stakeholder knowledge network
The new economy: strategy as the development and leverage of intangible
The role of accounting for intangibles using residual income.
Sharing risks and rewards
Accounting for promises including pensions and derivatives
The role of precautionary cash
Student Learning Experience
There is a strong focus on student presentations. Throughout the course there are ample opportunities for practice presentations both during and outside the official course times in the presence of a member of the course teaching team.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | For Business School PG students only, or by special permission of the School. Please contact the course secretary. |
Course Delivery Information
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| Academic year 2015/16, Not available to visiting students (SS1)
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Quota: None |
| Course Start |
Semester 2 |
| Course Start Date |
11/01/2016 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
100
(
Lecture Hours 20,
Summative Assessment Hours 40,
Programme Level Learning and Teaching Hours 2,
Directed Learning and Independent Learning Hours
38 )
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| Assessment (Further Info) |
Written Exam
0 %,
Coursework
100 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
Individual Case Study 70 %, Group Presentation 30 % |
| Feedback |
All students will be given at least one formative feedback or feedforward event for every course they undertake, provided during the semester in which the course is taken and in time to be useful in the completion of summative work on the course.
Feedback on formative assessed work will be provided within 15 working days of submission, or in time to be of use in subsequent assessments within the course, whichever is sooner. Summative marks will be returned on a published timetable, which has been made clear to students at the start of the academic year.
Feedback is provided on four separate practice presentations as the course progresses.
Students will be provided with electronic written feedback for all coursework. Coursework and exam scripts cannot be taken away by students. Students who wish to view a marked piece of coursework or an exam script, should contact the programme support team to arrange a time.
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| No Exam Information |
Learning Outcomes
On completion of this course, the student will be able to:
- Critically analyse a set of financial statements in the context of the business strategy.
- Understand and critically evaluate the business performance.
- Critically assess the value of the business.
- Advise either investors or management on the financial performance and prospects for the business along with an assessment of the share price.
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Reading List
Hatherly, D. The failure and the future of accounting: strategy, stakeholders and business value, Gower, 2013 (Required).
Palepu, K. G., Healy, P.M., Bernard V.L. and E.Peek, Business analysis & valuation using financial statements, Thomson South Western, 2010 (Recommended).
Kay,J. The long and the short of it: finance and investment for normally intelligent people, The Erasmus Press, 2009. (Recommended).
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Additional Information
| Graduate Attributes and Skills |
Cognitive and Subject Specific Skills:
Knowledge and application of accounting skills, analytical skills and skills of synthesis and presentation.
Transferable Skills:
Presentation and report writing skills are developed through the experience on the course. Students work under realistic working scenarios to develop group presentations.
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| Keywords | Not entered |
Contacts
| Course organiser | Prof David Hatherly
Tel: (0131 6)50 3789
Email: |
Course secretary | Miss Kate Ainsworth
Tel: (0131 6)51 7761
Email: |
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