06230107 - Accounting & Financial Analysis

Credit hour 3
Total number of hours 21
Number of hours for lectures 21

Goals

The lectures have a strong focus on coporate finance and aim to provide students with theory and practice. The course studies the use and presentation of fiancial statements in an international context through lectures, real world case studies and excercises. Group work and discussion are encouraged.

The module has the aim of giving students the confidence to apply and develop their financial understanding of published accounts and the skills and abilities required to interpret financial information in an international context.

TARGETED KNOWLEDGE 
- Analyse financial statements and accounting principles
- Know how a company is linked to investors and financial markets
- Identify and contrast major asset classes
- Conduct a financial analysis

TARGETED SKILLS
- Interpret value creation of a company (margin structure)
- Calculate and interpret margin risks
- Calculate and interpret investments of a company
- Calculate and interpret financing of a company Calculate an interpret return of a company

CSR DIMENSION
As part of the lectures we look into recent trends in company reports: -integrated reporting and extra financial resporting (ESG or sustainable reporting)

Content

1. The fianancial manager
2. Fundamental concepts in Financial accounting
2.1 Cash flows
2.2 Earnings
2.3 Capital employed and invested capital
2.4 From earnings to cash flow
2.4 Consolidation
3. Financial analysis and forecasting
3.1 Preliminary tasks: business and accounting practices
3.2 Wealth creation: margin structure and risk
3.3 Capital expenditure and working capital
3.4 Financing a firm
3.5 Return on capital employed and return on equity
4. Conclusion

Bibliography

BOOKS USED AS REFERENCE:
  • Vernimmen, Pierre, et al. Corporate finance: theory and practice. John Wiley & Sons, 2014.
  • Arnold G Corporate Financial Management, London, Financial Times Prentice Hall 5th Edition (2013)
  • Damodaran, Aswath. Corporate finance. Wiley, 1996.
  • Berk, Jonathan B., and Peter M. DeMarzo. Corporate finance. Pearson Education, 2007.

ADDITIONAL READINGS:
  • Watson, D & Head, A (2013), Corporate Finance, 6th Edition, FT/Prentice Hall
  • Fraser L.M. and Ormiston A. Understanding Financial Statements Pearson 2010
  • Hopper T, Northcott D and Scapens R (2007) Issues in Management Accounting, London, Financial Times Prentice Hall
  • Martin J and Titman S (2008) Valuation: the Art & Science of Corporate Investment Decisions, Boston, Pearson Addison Wesley
  • Copeland T, Koller T and Murrin J (2000) Valuation: Measuring and Managing the Value of Companies, New York,John Wiley
  • Collier, PM Accounting for Managers; Wiley (2012)
  • Rutterford, J , Upton, M and Kodwani, D (2006) (Eds) Financial Strategy, London: John Wiley

JOURNALS:
  • Management Accounting Research
  • Management Accounting
  • Journal of International Financial Management and Accounting
  • Financial Times
  • The Economist


EMBLEMATIC BOOKS OR RESEARCH PAPERS REGARDING THE SUBJECT OF THE COURSE
  • Tirole, Jean. The theory of corporate finance. Princeton University Press, 2010. (Only for those students who want to deepen their knowledege and strengthen financial theory)

PUBLICATIONS OF THE iaelyon FACULTY REGARDING THE SUBJECT OF THE COURSE
  • Alain Marion, (2015) Analyse Financière: Concepts et méthodes. Dunod.

Tests

Final Exam
Written 3h
Exercises and Case study

Continuing Examination
Written exam
In class examination
Company presentation and analyst report

Additional Information

TEACHING METHODS
A mixture of lectures and seminars are used to introduce the topics and techniques. These topics and techniques are then explored further through the use of numerical examples and discussion. All relevant module information, required reading, lecture overheads, seminar questions etc are made available to the students.

PRE-REQUISITE
There are no prerequisites for this course. However, a general interest in the world of accounting and finance is very useful

ADDITIONAL READINGS:
Financial pages of daily newspapers; FT.Com; WSJ.com; economist.com; Yahoo Finance.