Financial Statement Analysis (ACC305)
Vietnamese title: Phân tích báo cáo tài chính
Credits: 3
Prerequisites: ACC101

Description:
The course provides a framework for interpretation, analysis and evaluation of financial statements from viewpoints of creditors, owners, investment firms and others. Thereby, the users of accounting information understand business strengths or weakness, the impact of general business and specific industry situations, behavior of financial markets, credit or lending criteria, and equity investment standards on present and future company financial conditions.
After completing the course, the student shall be able to:
- Be familiar with the organization and disclosure of reported information
- Quantitatively and qualitatively evaluate core accounting issues that are particularly relevant in the context of financial statement analysis.
- Have a framework for forecasting future earnings and financial performance.
- Evaluate the business financial performance by applying quantitative and qualitative techniques.
- Use financial statement information in a modeling environment to identify and recommend solutions to a variety of financial challenges, and to recommend investment decisions.

Learning outcomes:
Apply established techniques, including appropriate technology for analyzing financial statement information for forecasting, valuation, and risk analysis purposes
Integrate and apply the major concepts and theories of fundamental analysis and key steps involved in conducting a fundamental analysis and valuation of a company
Evaluate the impact of financial reporting choices on the quality of accounting information including reported earnings; and assess the quality of accounting information in financial statements.
Use financial statement information in a modeling environment to identify and recommend solutions to a variety of financial challenges
Analyse and synthesise a firm’s financial statement information in the context of the firm’s economic and business condition to make informed recommendations on investment decisions about the firm
Show self-reliance when working independently and collaboratively
Demonstrate ethical awareness and reflection in business context

Student tasks:
- Class attendance is strongly encouraged. Attend at least 80% of class hours in order to be accepted to the final examination
- Actively participate in class activities
- Fulfill tasks given by the instructor after class
- Use laptop in class only for learning purposes
- Read the textbook in advance
- Access the course website (http://flm.fpt.edu.vn) for up-to-date information and material on the course, for online support from teachers and other students, and for practicing and assessment.

Tools:
- Internet

Materials:
description: Financial Statement Analysis
author: K.R. Subramanyam & John J.Wild
publisher: Mc GrawHill
published_date: 2014
edition: 11th
note: Chọn một trong 2 ấn bản. Ưu tiên mua ấn bản mới nhất
description: Financial statement analysis
author: K.R. Subramanyam & John J.Wild
publisher: Mc GrawHill
published_date: 2009
edition: 10th

Assessments:
category: Class participation
type: on-going
weight: 5.0
duration: All sessions
question_type: CLO6
no_question: Discussion questions and Constructive questions
knowledge_and_skill: Depending on the time and schedule of each session.
grading_guide: All chapters and learning materials covered in each session.
note: Participation grades will be given based on students' preparation, quantity as well as quality of participation in the classroom; quality of participation is demonstrated through asking relevant questions, making statements that add to and facilitate class discussion, and building upon others’ comments.
category: Essay test
type: on-going
weight: 15.0
duration: 60 minutes
Session 41
question_type: CLO1, CLO2, CLO3
no_question: Essay: Problem solving exercises (60 minutes)
knowledge_and_skill: Essay: Problem solving of 2-3 separate questions/exercises
grading_guide: All chapters and learning materials covered, from Chapter 1-9.
note: By instructor
category: Group Assignment
type: on-going
weight: 15.0
duration: Presentation in class
question_type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6
no_question: Group problem solving
Suggestion: Examine and discuss the financial position of 2 entities in the same industry using their financial statements.
knowledge_and_skill: Problem solving of a comprehensive business event under a 1,500-2,000 word - report
grading_guide: Thinking creatively, making decisions, solving problems,
Personal qualities: Individual responsibility, self-esteem, sociability, self-management, and integrity.
note: By instructor
category: Individual Assignment
type: on-going
weight: 15.0
duration: At home
question_type: CLO1, CLO2, CLO3, CLO6, CLO7
no_question: Problem solving
Suggestion 1: Using knowledge so far, introduce an outstanding finance fraud in business and analyze its effect on the financial statements.
Suggestion 2: Pick up an article that mentions about the financial situation of any business, figure out the problem and suggest relevant solutions if needed. Suggestion 3: Case study: analyze problems related to practical problems in financial statement analysis
knowledge_and_skill: Problem solving under a 1,000-1,500 word - report
grading_guide: All chapters covered.
Thinking critically, making decisions, solving problems,
Personal qualities: Individual responsibility, self-esteem, sociability, self-management, and integrity.
note: By instructor
category: Quiz
type: on-going
weight: 5.0
duration: In class (30 minutes)Session 11
question_type: CLO1, CLO2
no_question: Multiple choice questions/exercises
knowledge_and_skill: At least 20 theory questions
grading_guide: Integration of studied knowledge and skills of chapter 1 and 2
note: As solution
category: Mid-term test
type: mid term exam
weight: 15.0
duration: In class (60 minutes)
Session 23
question_type: CLO1, CLO2, CLO3
no_question: Comprehensive exercise
knowledge_and_skill: Practice skill cover techniques producing financial statement reports
grading_guide: Integration of studied knowledge and skills of all chapters covered so far (Chapter 1-6).
note: By instructor
category: Final exam
type: Final exam
weight: 30.0
duration: 60 minutes
question_type: CLO1, CLO2, CLO3, CLO6
no_question: multiple choices
knowledge_and_skill: multiple choices (50questions)
grading_guide: Comprehensive understanding chapters so far
note: By Exam board

Schedule:
session: -Courser Overview
-Introduction to AI Integration into the Course
-Chapter 1: Overview of Financial Statement Analysis
1. Business analysis
2. Financial statement – basic of analysis
learning_outcomes: IT
materials: ACC305_Excel cases
session: Chapter 1: Overview of Financial Statement Analysis (cont)
3. Financial statement analysis – preview
4. Book organization
learning_outcomes: I
T
materials: ACC305_Slides
session: Activities Exercise: Chapter 1
learning_outcomes: T
U
session: Activities Exercise: Chapter 1 (cont)
learning_outcomes: T
U
session: Chapter 2: Financial Reporting and Analysis
1. Reporting environment
2. Nature and purpose of financial accounting
learning_outcomes: I
T
session: Chapter 2: Financial Reporting and Analysis (cont)
3. Accruals – cornerstone of accounting
learning_outcomes: I
T
session: Chapter 2: Financial Reporting and Analysis (cont)
4. Concept of income
5. Fair value accounting
learning_outcomes: I
T
session: Chapter 2: Financial Reporting and Analysis (cont)
6. Introduction to accounting
Individual Assignment Guidelines
learning_outcomes: I
T
session: Activities Exercise: Chapter 2
learning_outcomes: U
session: Activities Exercise: Chapter 2 (cont)
learning_outcomes: U
session: Quiz: Chapters 1,2
Group Assignment Guidelines
Chapter 3: Analyzing Financing Activities
1. Debt financing
learning_outcomes: I
T
session: Chapter 3: Analyzing Financing Activities
1. Debt financing (Cont)
2. Leases
3. Off – balance sheet financing
4. Shareholder's equity
learning_outcomes: I
T
session: Activities Exercise: Chapter 3
learning_outcomes: U
session: Activities Exercise: Chapter 3
learning_outcomes: U
session: Chapter 4: Analyzing Investing Activities
1. Introduction to current assets
2. Introduction to long- term asset
learning_outcomes: I
T
session: Chapter 4: Analyzing Investing Activities
3. Plant assets and natural resources
4. Intangible assets
learning_outcomes: I
T
session: Activities Exercise: Chapter 4
learning_outcomes: U
session: Activities Exercise: Chapter 4
learning_outcomes: U
session: Chapter 6: Analyzing Operating Activities
1. Income measurement
learning_outcomes: I
T
session: Chapter 6: Analyzing Operating Activities
2. Nonrecurring items
3. Revenue recognition
learning_outcomes: I
T
session: Activities Exercise: Chapter 6
learning_outcomes: I
T
session: Activities Exercise: Chapter 6
learning_outcomes: I
T
session: Midterm test (cover chapters so far)
learning_outcomes: T
U
session: Chapter 7: Cash Flow Analysis
1. Statement of cash flows
learning_outcomes: U
session: Chapter 7: Cash Flow Analysis
2. Analysis implications of cash
learning_outcomes: U
session: Chapter 7 (Cont):
3. Analysis of cash flows
learning_outcomes: I
T
session: Chapter 7 (Cont):
4. Specialized cash flow ratios
learning_outcomes: I
T
session: Activities Exercise: Chapter 7
learning_outcomes: I
T
session: Activities Exercise: Chapter 7
learning_outcomes: I
T
session: Chapter 8: Return on Invested Capital and Profitability Analysis
1. Important of return on invested capital
2. Component of return on invested capital
learning_outcomes: T
U
session: Chapter 8 (cont):
3. Analyzing return on net operating assets
learning_outcomes: I
T
session: Chapter 8 (cont):
4. Analyzing return on common equity
learning_outcomes: I
T
session: Activities Exercise: Chapter 8
learning_outcomes: U
session: Activities Exercise: Chapter 8
learning_outcomes: U
session: Chapter 9: Prospective Analysis
1. Projecting financial statement
learning_outcomes: I
T
session: Chapter 9 (cont): Prospective Analysis
2. Application of prospective analysis in the residual income valuation model
learning_outcomes: I
T
session: Chapter 9 (Cont):
3. Trends in value drivers
learning_outcomes: I
T
session: Chapter 9 (Cont):
3. Trends in value drivers
learning_outcomes: I
T
session: Activities Exercise: Chapter 9
learning_outcomes: U
session: Activities Exercise: Chapter 9
learning_outcomes: U
session: Essay Test*
learning_outcomes: T
U
session: Chapter 10: Credit Analysis
1. Liquidity
learning_outcomes: I
T
session: Chapter 10 (cont): Credit Analysis
1. Liquidity
learning_outcomes: I
T
session: Chapter 10 (cont)
2. Capital structure and solvency
learning_outcomes: I
T
session: Chapter 10 (cont)
2. Capital structure and solvency
learning_outcomes: I
T
session: Activities Exercise: Chapter 10
learning_outcomes: U
session: Activities Exercise: Chapter 10
learning_outcomes: U
session: Comprehensive Exercise: All chapter
Topic 1 : Using knowledge so far, analyze financial statement reports of public and listed company on the view of a creditors.
learning_outcomes: T
U
session: Comprehensive Exercise: All chapter
Topic 1 : cont.
learning_outcomes: T
U
session: Comprehensive Exercise: All chapter
Topic 1: Cont.
learning_outcomes: T
U
session: Comprehensive Exercise: Cover all chapter
Topic 2 : Using knowledge so far, analyze financial statement reports of public and listed company on the view of an internal manager
learning_outcomes: T
U
session: Comprehensive Exercise: Cover all chapter
Topic 2 : Cont
learning_outcomes: T
U
session: Comprehensive Exercise: All chapter
Topic 2: Cont.
learning_outcomes: T
U
session: Comprehensive Exercise: All chapter
Topic 2: Cont.
learning_outcomes: T
U
session: Individual Assignment Submission, Group Assignment Submission and Group Presentation
learning_outcomes: T
U
session: Group Presentation
learning_outcomes: U
session: Group Presentation
learning_outcomes: U
session: Group Presentation
learning_outcomes: U
session: Review for final exam
learning_outcomes: U
session: Review for final exam
learning_outcomes: U