Course 2017-2018 a.y.

Classes: 31 (I sem.)

Instructors:
Class 31: GIANFRANCO SICILIANO

The goal of the course is to advance your understanding of how financial statements are analyzed and used in various decision-making and investment settings. In particular, the course provides a framework and the tools necessary to analyze IFRS-based financial statements. This goal is accomplished through four individual steps:.

• Business strategy analysis.
• Accounting analysis.
• Financial analysis.
• Prospective analysis.

Briefly, the course is structured as follows.

• A framework for business analysis and valuation using financial statements.
• Business analysis and valuation tools.
• Accounting analysis: the basics and accounting adjustments.
• Financial analysis: ratio analysis and cash flow analysis.
• Prospective analysis: structure of the forecast; performance behavior, forecasting assumptions.
• Prospective analysis: valuation theory and concepts.

Conceptually, the course emphasizes that producers and users of financial statements have different objectives and informational needs. At the same time, the course is applied in that it teaches students how to analyze actual financial statements data to make informed business decisions and assessments. The course assumes a good command of basic financial accounting topics (e.e., assets, liabilities, present value calculations and discounting).

Your course grade reflects how you perform relative to your peers on one in-class test, homework/case assignments, and class participation.
The weights of the test, assignments and class participation are as follows:

• Test: 50% .
• Homework assignments: 25%.
• Case assignments: 20%.
• Class participation: 5% .

The test is in-class. It may include multiple choice questions, short problems, and open-ended questions.

• P.M. HEALY, K. PALEPU, E. PEEK, Business Analysis and Valuation, IFRS Edition, 2016, 4th edition, ISBN-13: 9781473722651.