Advanced Financial Statement Analysis

Description

This course evaluates the following outcomes: The student 1.1 (ACC) analyses accounting-related operational problems and issues, with special attention to the business context. 1.4 (ACC) formulates, based on scientific insights in external financial reporting, a well-motivated solution for accounting-related operational problems and issues in a specific business context. 2.1 (ACC) analyses accounting-related problems and issues taking into consideration relevant stakeholders (managers, shareholders, creditors, legislators, etc.) and environmental factors. 2.2 (ACC) formulates, based on scientific insights in internal and external financial reporting, a well-motivated solution for accounting-related operational problems and issues, taking into consideration relevant stakeholders and environmental factors. 2.4 (ACC) formulates, based on scientific insights in internal and external financial reporting, a well-motivated argument regarding current accounting-related problems and issues. 5.4 assesses the consequences of a selected methodology for the reliability and validity of the results, and takes these into account when drawing conclusions and proposing solutions. 7.5 is critical and not afraid to question himself/herself and his/her environment. 8.1 formulates, as a member of a team, the interdisciplinary problem that is at the basis of the project, analyses the content of the project, the circumstances surrounding the project and factors that will influence the course of the project, and uses this information to formulate the (general) goals of the project. 8.2 organises, as a member of a team, the project and sets up a detailed and realistic plan, taking into account the context of the question, the scope of the project, the conditions, the limitations, the expected quality and the means available. 8.3 follows, both individually and as a member of a team, the arranged plans and applies time management techniques. 8.4 takes responsibility for his/her role in the team and carries out his/her part of the project on time. 8.5 assesses, as a member of a team, the project, monitors the progress of the project, deals with uncertainty, gives feedback and formulates points of action and points of improvement throughout the project. 8.6 participates constructively in meetings with the team and with others who are involved in the project. 8.7 assesses his/her own input critically and evaluates, as a member of a team, the course and the result of the project. 10.1 (ACC) keeps up with recent trends in accounting-related themes, considering practitioner-oriented, policy-oriented, legal and scientific datasources. 10.2 (ACC) integrates practitioner-oriented, policy-oriented, legal and scientific information on specific accounting-related themes and formulates a well-motivated argument regarding the relevance of a specific theme for the organisation. 10.3 (ACC) reflects critically upon the implementation of important evolutions and innovations in internal and external financial reporting within the organisation, taking into consideration regulation and the specific business context. In particular, this course evaluates the following outcomes: With regards to the lectures on accounting topics, the student should be able: * to understand the concepts of earnings quality and audit quality * to approach accounting from a research perspective * to have a general knowledge of the proxies, determinants and consequences of earnings quality * to understand the economic framework around auditing With regards to the lectures on firm valuation, after completing these lectures, the student should be able: * to make a qualitative and quantitative assessment of a firm within its industry * to understand the form and measurement in financial statements * to critically evaluate the quality of financial statements * to understand and being able to critically evaluate various valuation techniques * to understand how business activities (operations, investing, financing) are depicted through stocks and flows in the financial statements * being able to infer profitability and growth from (reformulated) financial statements * to use (reformulated) financial statements to develop forecasts of future payoffs * to convert forecasts into a valua​tion * to keep up with recent trends and research in accounting- and valuation related themes, considering practitioner-oriented, policy-oriented, legal and scientific sources * “Investment Valuation, third (university) edition” by Aswath Damodaran (2012) ​is highly recommended but not mandatory Determination of the final result Combination of (i) continuous assessment during lectures (based on preparation, presentations and participation in the discussion) and (ii) written exam. The student should pass both parts of the course, i.e., the student should obtain a score of at least 10/20 for the lectures on audit quality and earnings quality as well as for the lectures on firm valuation. The final exam resul