ACCT08042 2022 Financial analysis and interpretation (online)
Full Title
Financial analysis and interpretation (online)
Transcript Title
Financial analysis & interpret
Code
ACCT08042
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)
John Gaynor, Aileen Brennan, Maria Scanlon
Programme Membership
SG_BBUSS_K08 202200 Bachelor of Business (Honours) in 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 and accounts of Public Limited Companies. Students will gain knowledge and understanding of how companies are financed, the cost of finance, the different 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;
1.
Describe the contents of the annual report of a public company.
2.
Evaluate the sources of finance available and appraise the suitability of the different sources in the context of an organisation's size and financial requirements.
3.
Analyse and interpret corporate financial statements.
4.
Calculate the financial gearing for an organisation and demonstrate a clear understanding of the elements contributing to the capital structure decision.
5.
Appraise the financial performance, financial position and investment potential of a selected public limited company
Teaching and Learning Strategies
This module will be delivered through a combination of lectures 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 individually and as part of a group, through the use of case studies and the annual reports of plc's.
Module Assessment Strategies
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.
Repeat Assessments
The unsuccessful candidate will be required to repeat the failed element of their assessed work.
Indicative Syllabus
LO1: Describe the content and structure of the annual report of a public company
- Management commentary, strategic focus, and business environment
- Risk management
- Corporate governance
- Sustainability reports
- Financial statements and accompanying notes
LO2: Evaluate the sources of finance available and appraise the suitability of the different sources in the context of an organisation's size and financial requirements.
- Short-term, medium-term, and long-term finance
- Internal and external finance
- Sustainable finance
- Stock market listing
LO3: 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
LO4: Calculate the financial gearing for an organisation and demonstrate a clear understanding of the elements contributing to the capital structure decision.
- Debt and equity
- Weighted average cost of capital
- Capital structure
- Level of financial gearing and attitudes of owners, managers, and lenders
LO5: Appraise the financial performance, financial position, environmental, social and governance aspects 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 a competing organisation
- Assess the current financial and economic environment
- Assess the prospects, and challenges facing the chosen organisation
- Assess environmental, social and governance aspects of chosen organisation
Coursework & Assessment Breakdown
Coursework & Continuous Assessment
100 %
Coursework Assessment
| Title | Type | Form | Percent | Week | Learning Outcomes Assessed | |
|---|---|---|---|---|---|---|
| 1 | Coursework & continuous assessment | Coursework Assessment | Group Project | 50 % | OnGoing | 1,2,3,4,5 |
| 2 | Coursework & continuous assessment | Coursework Assessment | Individual Project | 50 % | OnGoing | 1,2,3,4,5 |
Online Learning Mode Workload
| Type | Location | Description | Hours | Frequency | Avg Workload |
|---|---|---|---|---|---|
| Lecture | Distance Learning Suite | Lecture | 1 | Weekly | 1.00 |
| Group Learning | Online | Group project | 2 | Weekly | 2.00 |
Total Online Learning Average Weekly Learner Contact Time 3.00 Hours
Required & Recommended Book List
Required Reading
2015-10-19 Financial Information Analysis
ISBN 0415695848 ISBN-13 9780415695848
2015-10-19 Financial Information Analysis
ISBN 0415695848 ISBN-13 9780415695848
The global recession, bank collapses and subsequent market volatility of recent years has changed the accounting landscape forever. The global environment is now all too painfully aware of the significance of accounting information and its impact upon a large range of stakeholders. This new edition has been updated to reflect the increased emphasis upon corporate governance as a critical control and mediating influence. The subsequent shifts in the regulatory frameworks and new forms of IFRS form the core of the text and allow the book to shed light on the growing emphasis placed on the role of accounting information in formulating financial strategy. This third edition of Financial Information Analysiscontains a wide-range of pedagogical features, including insightful end of chapter case studies, drawn from a range of companies and events as well as questions for review. Supplemented by a comprehensive companion website, the book will be essential reading for both undergraduate and Masters students taking courses in finance and accounting.
Required Reading
2019-10-28 Financial Management for Decision Makers 9th Edition
ISBN 1292311436 ISBN-13 9781292311432
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.
Module Resources
Non ISBN Literary Resources
Journal Resources
URL Resources
www.irishtimes.com/business
Other Resources
Additional Information