20221 - FINANCIAL STATEMENTS ANALYSIS (ADVANCED COURSE)
CLMG - M - IM - MM - AFC - CLEFIN-FINANCE - CLELI - ACME - DES-ESS - EMIT - GIO
Course taught in English
Go to class group/s: 31
Successful completion of this course enable students to use financial analysis formats and ratios in the perspective of: industry and competitor analysis perspective, credit analysis, equity analysis, (fraud) audit analysis.
Particular relevance is given to analysis and discussion of problems, incidents and case studies for real-world companies, in order to develop students' skills in identifying critical financial statement areas.
- Introduction to Financial Statements Analysis.
- Analysis of Income Statement: overall reformulation choices.
- Unusual items.
- Focus on operating income.
- Analysis of Balance Sheet: liquidity format and managerial format.
- Managerial format.
- The ratio system: analysis of ROI (return on investment).
- The ratios system: analysis of ROE (return on equity).
- Analysis of the Cash Flow Statement: IAS 7.
- Analysis of the Cash Flow Statement.
- Empirical Research and Case Study.
- The influence of Accounting Principles (IFRS vs Local GAAP) on FSA.
- Strategic analysis and FSA: linkage between financials and KPIs; sensitivity analysis.
- FSA for a listed group of companies: Case Study.
- FSA and financial forecasts in the perspective of credit and equity analysis; preparation and evaluation of the reasonableness of financial forecasts; sensitivity analysis; Case Study.
- Fraud Analysis: how to identify the "red flags" through FSA; Case Study.
- A final written exam. Duration: 1.45 or 2.00 hours.
- Format of questions: multiple choice (answers: numbers or sentences); true/false, numerical exercises (ex. reformulation of cash flow statement, calculation of some ratios etc.).
- No: questions about case studies (discussed in classroom) and optional readings.
- Teachers provide all the examples of exercises, multiple choice and true/false.
- Available on the course website: slides, short readings, exercises and questions grouped by topic; supplemental readings (optional).
- For some topics (ex. cash flow statement preparation): basic materials (slide + exercises), students have to study these basic materials before lectures.
Recommended: IFRS (International Financial Reporting Standards).