Course Title: Financial Statement Analysis

Part A: Course Overview

Course Title: Financial Statement Analysis

Credit Points: 12


Terms

Course Code

Campus

Career

School

Learning Mode

Teaching Period(s)

BAFI1070

City Campus

Postgraduate

625H Economics, Finance and 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,
Sem 2 2010,
Sem 1 2011,
Sem 2 2011,
Sem 1 2012,
Sem 2 2012,
Sem 1 2013,
Sem 1 2014,
Sem 2 2014,
Sem 1 2015,
Sem 2 2015,
Sem 1 2016,
Sem 2 2016,
Sem 1 2017,
Sem 2 2017

Course Coordinator: Dr Larry Li

Course Coordinator Phone: +61 3 9925 5638

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


Pre-requisite Courses and Assumed Knowledge and Capabilities

Assumed Knowledge
 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 position. The financial information contained in a firm’s financial statements should be interpreted within those contexts 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 a working knowledge of the role of financial reports in the overall firm valuation, with emphasis on strategic analysis. This course adopts a practical approach where possible using data from real life cases. You will gain an appreciation of the usefulness and importance of financial statement information and the tools used to evaluate such information.


Objectives/Learning Outcomes/Capability Development

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On successful completion of this course you will be able to:

  1. Apply established techniques for analysing financial statement information for forecasting, valuation and risk analysis purposes
  2. Apply the major concepts and theories of fundamental analysis and key steps involved in conducting a fundamental analysis and valuation of a company.
  3. Use financial statement information in a modelling environment to identify and recommend solutions to variety of financial challenges.
  4. Analyse and synthesise a firm’s financial statement information in the context of the firm’s economic and business condition to make informed recommendations on investment decisions about the firm.


Overview of Learning Activities

In this course you will be encouraged to be an active learner. Your learning will be supported through various in-class and online activities comprising individual and group work. These may include quizzes; assignments; prescribed readings; sourcing, researching and analysing specific information; solving problems; conducting presentations; producing written work and collaborating with peers on set tasks or projects.


Overview of Learning Resources

Various learning resources are available online through myRMIT Studies\Blackboard. In addition to topic notes; assessment details and a study schedule you may also be provided with links to relevant online information; readings; audio and video clips and communication tools to facilitate collaboration with your peers and to share information.
Resources are also available online through RMIT Library databases and other facilities. If you require assistance with the RMIT library facilities contact the Business Liaison Librarian for your school. Contact details for Business Liaison Librarians are located online on the RMIT Library website.
Additional resources and/or sources to assist your learning will be identified by your course coordinator will be made available to you as required during the teaching period.


Overview of Assessment

The assessment alignment list below shows the assessment tasks against the learning outcomes they develop.

Assessment Task 1:
20%
Linked CLOs: 1, 2
Assessment Task 2: 30%
Linked CLOs: 2, 3, 4
Final Examination: 50%
Linked CLOs: 1, 2, 3, 4

Feedback will be provided throughout the semester in class and/or in online forums through individual and group feedback on practical exercises and by individual consultation.