Course Title: Financial Statement Analysis

Part A: Course Overview

Course Title: Financial Statement Analysis

Credit Points: 12

Course Code	Campus	Career	School	Learning Mode	Teaching Period(s)
BAFI1070	City Campus	Postgraduate	625H Economics, Finance & Marketing	Face-to-Face	Sem 1 2006, Sem 2 2006, Sem 1 2007, Sem 2 2007, Sem 1 2008, Sem 2 2008, Sem 1 2009, Sem 2 2009, Sem 1 2010

Course Coordinator: Larry Li (QIANG LI)

Course Coordinator Phone: +61 3 9925 5638

Course Coordinator Email:larry.li@rmit.edu.au

Pre-requisite Courses and Assumed Knowledge and Capabilities

There is no pre-requisite for this course.   The course discussed financial statement reports with emphasis on strategic analysis.  Basic knowledge of accounting terms and business activities are assumed.

Course Description

Financial analysis is an integral part of the business analysis of the firm, it requires examination of the prevalent economic situation, industry analysis, and the firm’s strategic analysis. The financial variables should be interpreted within those context and constraints.   This course covers the basics of both qualitative and quantitative analysis of the firm’s reports and then looks further into risk analysis, forecasting and valuation techniques. The aim is to provide basic understanding of the role of financial reports in overall firm valuation, with emphasis on strategic analysis. This course adopts a practical approach where possible using data from real life cases.

Objectives/Learning Outcomes/Capability Development

At the conclusion of this course, you should be able to:
• understand the qualitative analysis of firm and its relationship to financial analysis
• understand the nature of financial reporting and concepts behind financial reports.
• analyse financial statement reports for a variety of decision contexts
• understand and apply the techniques forecasting financial statement variables
• appreciate and apply different equity valuation techniques
• understand risk analysis, including financial reporting manipulation risk.
• understand both the usefulness and limitations of financial statement reports.

Overview of Learning Activities

To achieve the objectives listed above this course requires you to participate in various learning activities. These activities comprise the following:

• attendance at and participation in scheduled lectures
• reading of, and note taking on lecture notes
• reading and preparation of problems and  case studies
• completion of assessment tasks

Overview of Learning Resources

References, Lecture notes and online resources via RMIT DLS

Overview of Assessment

Assessment may include:

- group assignment
- mid-semester test/s
- final examination