AC323: Financial Statement Analysis

Module code: AC323

Module provider: Business Informatics, Systems and Accounting; Henley Business School

Credits: 20

Level: Level 3 (Honours)

When you'll be taught: Semester 2

Module convenor: Dr Ekililu Salifu, email: e.salifu@henley.ac.uk

Pre-requisite module(s): BEFORE TAKING THIS MODULE YOU MUST TAKE AC216 (Compulsory)

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded: IN TAKING THIS MODULE YOU CANNOT TAKE AC312 OR TAKE AC305 (Compulsory)

Placement information: NA

Academic year: 2024/5

Available to visiting students: Yes

Talis reading list: Yes

Last updated: 28 May 2024

Overview

Module aims and purpose

This modules aims to develop financial acumen through encouraging students to read, evaluate and analyse real companies published financial statements.

Module learning outcomes

By the end of the module it is expected that students will be able to:

1. Develop a working knowledge of key financial ratios to allow analysis of company financial statement and apply these to real companies.
2. To be able to compare and contrast financial performance of companies based on reasoned analysis and argument.
3. To have awareness and understanding of contemporary issues facing financial reporting.
4. To be able to present verbally analysis in a clear concise manner with appropriate visual aids.
5. Identify ways in which companies can misrepresent or window dress their performance and explain the limitations of financial analysis.

Module content

1. Financial ratio analysis using statements of financial position, statements of financial performance, cashflow statements.
2. Exploration of content and purpose of other reports produced by listed companies in their financial statements, such as segmental reporting, interim financial reporting, value added statements and corporate sustainability reporting.
3. Evaluation of strengths and weaknesses of published financial statements.
4. Understand and evaluate contemporary issues in financial reporting.

The module also aims to encourage the development of oral communication skills, and the students’ effectiveness in group situations. Oral presentation work will help students integrate their knowledge across modules and topics and to apply ideas creatively.

Structure

Teaching and learning methods

Lectures will be used for the exposition of the main concepts, principles and techniques associated with the discipline.

Workshops will be used for student-led presentations and or discussions.

Study hours

At least 40 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

Students need to achieve an overall module mark of 40% to pass this module.

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Opportunities for informal feedback are available throughout the course in lectures and seminars and may take the form of response to questions and activities and feedback from marked independent study. Exam style questions will be practised in seminars and additional material made available on Blackboard for independent study. Marking guides and feedback are provided where appropriate so that students can assess their own performance.

Reassessment

Additional costs