ACCT08024 2022 Financial Analysis and Interpretation

General Details

Full Title

Financial Analysis and Interpretation

Transcript Title

Fin Analysis & Interpretation

Code

ACCT08024

Attendance

N/A %

Subject Area

ACCT - Accounting

Department

BUS - Business

Level

08 - NFQ Level 8

Credit

05 - 05 Credits

Duration

Semester

Fee

€

Start Term

2022 - Full Academic Year 2022-23

End Term

9999 - The End of Time

Author(s)

Maria Scanlon, John Gaynor

Programme Membership

SG_BSPOR_H08 202200 Bachelor of Business (Honours) in Sport with Business SG_BMARK_H08 202200 Bachelor of Business (Honours) in Marketing SG_BBUSI_K08 202200 Bachelor of Business (Honours) in Business L8 (Add-on) DoMTS SG_BINTE_H08 202200 Bachelor of Business (Honours) in International Marketing and Languages SG_BBUSI_K08 202200 Bachelor of Business (Honours) in Business L8 (Add-on) DoMTS SG_BBMTS_K08 202200 Bachelor of Business (Honours) in Business with Marketing (Add on) SG_BSPOR_K08 202200 Bachelor of Business (Honours) in Sport with Business (Add-on) SG_BHRMS_K08 202200 Bachelor of Business (Honours) in Business with Human Resource Managment (Add-on) SG_BGENE_K08 202200 Bachelor of Business (Honours) in General Business (Add-on)

Description

The student will develop their ability to analyse and interpret the financial statements of varying organisations with a particular focus on the annual reports of Public Limited Companies, gaining a knowledge and understanding of how they are financed, the cost of finance, the differing capital structures, the financial objectives and the need to focus on ethics, environmental, social and good governance.

Learning Outcomes

On completion of this module the learner will/should be able to;

Describe the contents of the income statement, the statement of financial position and the cash flow statement for a limited company.

Analyse and interpret corporate financial statements.

Calculate the financial gearing for an organisation and demonstrate a clear understanding of the elements contributing to the capital structure decision.

Appraise the financial performance, financial position and investment potential of a selected public limited company

Appraise the ethical, social, environmental and governance for a selected public limited company

Teaching and Learning Strategies

This module will be delivered through a combination of lectures, computer lab work and tutorials. An essential part of the teaching and learning strategy will be to enable the students to improve their ability to interpret financial statements, both inidividually and as part of a group, through the use of case studies and the annual reports of plc's. Through the group and individual projects, the module will actively encourage independent learning.

Module Assessment Strategies

Group project:

The students will participate in a detailed group project on a large public limited company whereby they will provide a general overview of the organisation chosen, interpret the financial statements for three to five years, provide a financial performance appraisal, discuss the prospects and challenges facing the organisation, and evaluate whether the organisation would be a good investment for a potential investor.

Individual project:

Building on their learning from the group project, the students will reflect on sustainable business models, digital technologies, corporate culture and diversity, and dealing with business disruption

Repeat Assessments

The unsuccessful candidate will be required to repeat the failed element of their assessed work

Indicative Syllabus

L01. Describe the contents and structure of the annual report for a public limited company.

Management commentary, strategic focus, and business environment
Risk management
Corporate governance
Sustainability reports
Financial statements and accompanying notes

L02. Analyse and interpret corporate financial statements.

Corporate financial statements layout and terminology
Income statement, cash flow statement and statement of financial position
Calculate profitability, liquidity, efficiency, financial gearing, and investment ratios
Analyse and interpret key performance indicators and benchmark results
Present key performance indicators graphically
Limitations of ratio analysis

L03. Calculate the financial gearing for an organisation and demonstrate a clear understanding of the elements contributing to the capital structure decision.

Long term corporate
Debt and equity
Weighted average cost of capital
Capital structure
Level of financial gearing and attitudes of owners, managers, and lenders

L04. Appraise the financial performance, financial position, and investment potential of a selected public limited company

Apply appraisal techniques learned to a public limited company
Analyse the performance and position of a public limited company
Benchmark the results against of competing organisation
Assess the current financial and economic environment
Assess the prospects, and challenges facing the chosen organisation

L05. Appraise the ethical, social, environmental and governance for a selected public limited company

Assess the importance of good ethical values
Corporate governance and corporate culture
Focus on sustainability
Corporate social responsibility

Coursework & Assessment Breakdown

Coursework & Continuous Assessment

100 %

Coursework Assessment

	Title	Type	Form	Percent	Week	Learning Outcomes Assessed
1	Group Project Appraisal of the financial performance of a public limited company	Coursework Assessment	Group Project	60 %	OnGoing	1,2,3,4,5
2	Building on their learning from the group project, the students will reflect on sustainable business models, digital technologies, corporate culture and diversity, and dealing with business disruption	Coursework Assessment	Individual Project	40 %	OnGoing	1,2,3,4,5

Full Time Mode Workload

Type	Location	Description	Hours	Frequency	Avg Workload
Lecture	Flat Classroom	Lecture	4	Weekly	4.00
Independent Learning	Not Specified	Self direct learning	3	Weekly	3.00

Total Full Time Average Weekly Learner Contact Time 4.00 Hours

Required & Recommended Book List

Required Reading
2019-10-28 Financial Management for Decision Makers 9th Edition
ISBN 1292311436 ISBN-13 9781292311432

Now in its ninth edition, Financial Management for Decision Makers provides students with a unique focus on the practical application of financial management and its role in decision making. Covering topics such as financial planning, making capital investment decisions, and financing a small business, it provides an ideal introduction to the world of financial management. New to this edition: A new chapter on international aspects of financial management, which explores the benefits and problems associated with internationalisation and the management of foreign exchange risk Updated explanations throughout including greater coverage of behavioural finance and share valuation methods Increased number of activities, giving more opportunities to engage with the key concepts Updated Real World examples, which provide connections between the theory and practice of financial decision making This text is ideal for undergraduates from a non-accounting or non-finance discipline taking an introductory module in financial management. It is also suitable for postgraduate students enrolled on certificate and diploma courses in financial management, as well as those enrolled on Diploma in Management Studies and MBA programmes. The text can also be used by finance and accounting students as a foundation for further study. Visit www.pearsoned.co.uk/atrill to gain access to a suite of resources which accompany this text: For instructors: Solution's manual, and PowerPoint slides For students: Opportunities to practise and additional support given through a companion website Peter Atrill is a freelance academic who has worked with leading institutions in the UK, Europe and SE Asia. He was formerly the Head of Business and Management and Head of Accounting and Law at Plymouth Business School, Plymouth University.

Required Reading
2020 FINANCE
ISBN 191235036X ISBN-13 9781912350360

Module Resources

Non ISBN Literary Resources

URL Resources