Financial Statement Analysis

Description

After completing this course, the student can: - Develop and analyse a comprehensive financial plan - Define the basic concepts of financial statements (e.g., its purpose, structure, etc.). - Apply the mechanics of financial reporting (e.g., assets, liabilities, revenues, expenses, the accounting equation, etc.). - Interpret the balance sheet and solve special issue regarding current and non-current assets and liabilities. - Interpret the income statement and solve special issues regarding revenue and expense recognition. - Interpret a cashflow statement and assess a firm’s cash position. - Calculate financial ratios and interpret them. - Analyze profitability, growth, and liquidity of firms - Analyze sustainability ratios of firms - Interpret and analyse the consequences of events occurring within the life cycle of a company. - Understand the purpose of valuation - Understand and use accounting-based valuation techniques All these elements will be covered using the International Financial Reporting Standards (IFRS) framework. Within the broad goals of the study programme, following this course, the student will come closer to: - Acquiring thorough knowledge in business studies and developing a great business sensitivity which he is able to use in a targeted way when analysing and solving organisational and management problems. - Gaining knowledge of and understanding the theories and models of economic sciences and usings them to analyze organisational and management problems, also in an international context. - Gaining knowledge and insight into the supporting sciences (mathematics, statistics ...) and their applications. In particular, the student is able to use quantitative models to analyse and solve organisational and management problems in a defined context. - Displaying an inquisitive attitude: accuracy, critical reflection, scientific curiousness, justification of choices made - Recognising the social and ethical aspects of management and can reflect critically on them. - Gaining insight into his or her own competencies and motives, taking a pro-active attitude towards his or her own development and reflecting critically on their own behaviour. --- 2.a Understands basic theories, basic terms, and basic concepts of each management domain, in particular with respect to the financial, operational, commercial and organisational activities, and can apply them when solving business problems. 2.a.6  Students are able to describe and apply the main financial concepts and theories within corporate finance 2.c  Understands and substantiates the critical importance of each management domain for a successful organisation and the coherence with other management domains. 2.c.1  Students are able to position the role of the financial manager and the goals of corporate finance within a broader corporate perspective 2.i  Masters the basic concepts and the overall functioning of banking, the stock market and the insurance business as well as the characteristics and functioning of the most important financial products and financial markets. 2.i.2  Students are able to determine the financial value of the main financial instruments used in corporate finance i.e. stocks and bonds 2.j  Using the principles of time value of money, interprets information from financial reporting and news coverage, and uses all this as input in financial issues. 2.j.2  Students are able to apply the principles of time value of money to several valuation exercises 2.k  Makes a reasoned assessment of the impact of uncertainty on the financial decisions of individuals and organisations. 2.k.1  Students are able to financing and investment decisions with a risk-return  framework 8.a  Identifies (business) economic challenges with practical relevance and relates them to insights developed in the field. 8.a.1  Students are able to analyse investment and financing decisions using science-based theoretical frameworks 8.g  Shows interest in current affairs and broadens his background knowledge. 8.g.3  Students are able to critically reflect on the financial news and are able to assess the implications of the financial news on corporate finance decision 12.d  Integrates sustainability values in the analysis of topical (business) economic problems and proposes solutions that take into account these values. 12.d.1 Students are able to critically reflect on the sustainability of financial decisions ERS intended learning goals: Can collect and assess information regarding societal challenges from an appropriate theoretical framework. Can handle uncertainty when making decisions. Can assess the long-term consequences of decisions within an organization. Can handle change in an economic and business context.