Financial Statement Analysis
|Unit level:||Level 2|
|Teaching period(s):||Semester 1|
|Offered by||Alliance Manchester Business School|
|Available as a free choice unit?:||N
Additional RequirementsBMAN20081 has pre-requisites of: BMAN10501 AND BMAN10522 / 10522(M) or BMAN10621 AND BMAN10552 @60% or BMAN10621(M) AND BMAN10522 / 10522(M).
Pre-requisite course units have to be passed by 40% or above at the first attempt unless a higher percentage is indicated within this course outline. If the pre-requisite unit is defined as a compulsory course unit within your programme of study (Maths with Finance, IBFE, Accounting, BA Econ pathways for example) then progression onto the dependent unit is permitted as long as you have gained the appropriate amount of credit to progress on to the following year of your registered undergraduate programme.
BMAN10501 and BMAN10522 or
BMAN10621 (A) or (M) and BMAN10522 or BMAN10522(M) or
BMAN10621 (A) or (B) and BMAN10552 subject to passing the BMAN10552 examination at 60% or above.
Dependent course units: BMAN30190 (Only available to students specialising in Finance either singly or jointly and provided all the following area pre-requisites have been passed BMAN23000 (A) or (B), BMAN20072 and BMAN20081).
Dependant course units BMAN31000 (Only available to students specialising in Accounting either singly or jointly and provided all the following area pre-requisites have been passed BMAN21020, BMAN21040, BMAN21061 and BMAN20081. In addition BMAN23000A or BMAN23000B must have been passed or is being taken as a co-requisite with BMAN31000).
The course aims to increase students' knowledge of the theory and practice of financial statement analysis and to place it in its broad societal business, accounting and financial context.
Information needs of different stakeholders;
Linking the interpretation of financial statements to an organization's core competitive and sustainability strategies, risks and opportunities;
Role and importance of narrative reporting;
Perspectives on the quality and reliability of accounting information;
Accounting and financial ratio calculation and interpretation.
Teaching and learning methods
Lectures and workshops:
20 lecture hours ( 2 hours per week over 10 weeks ) including one clinic session of 1 hour.
8 workshop hours (1 hour per week in 8 different weeks)
72 private study hours
Total study hours: 100 hours split between lectures, classes, self-study and preparation for classes, coursework and examinations.
Attendance and punctuality for workshops
In accordance with The University of Manchester Student Charter, you are expected to attend ‘all scheduled teaching sessions’.
Workshop tutors will keep a register of attendance.
If a student is unable to attend a workshop due to illness or another valid mitigating circumstance, then s/he should provide suitable evidence (such as a signed and dated doctor’s note).
Any student whose reason for absence/ lateness is not deemed valid by the course co-ordinators, or who does not wish to explain their absence to the course co-ordinators, may submit their case to the School’s Mitigating Circumstances panel for consideration. Details of how to submit a case to the mitigating circumstances panel are available in the Student Handbook.
Students must not sign the register for anyone other than themselves. Any student found to have signed the register for another student will be reported and may face disciplinary action.
Informal Contact Methods
1. Office Hours
2. Online Learning Activities (blogs, discussions, self assessment questions)
On completion of this course, successful students will be able to:
- Calculate and interpret a range of accounting ratios from the financial statements of large companies;
- Appreciate the complex nature of real life financial statement ratio calculations;
- Understand the role of, and draw upon, the strategic (competitive and sustainability) context of a business in interpreting that business's financial statements;
- Effectively interpret financial statements from the perspective of the forward-looking information needs of different stakeholders;
- Understand a range of factors that can indicate the quality and reliability of financial statement information;
- Appreciate the various sources of data that may be useful in analysing the position, performance and future prospects of a firm;
Assessment Further Information
Group presentation (10%)2 hour examination (90%)
For semester 1 only exchange students admitted via the Alliance Manchester Business School International Office that take this course as BMAN20611 the assessment will be group presentation (10%) and a financial statement analysis exercise to be written up in a typed report of up to 8 sides of A4 paper (with specified minimum font and margin sizes) (90%).
Custom textbook (ed. Anne Stafford & Jenni Rose, 2016, replacing ed. Anne Stafford and Penny Clarke, 2013) Financial Statement Analysis, McGraw Hill
Deegan C & Unerman J (2011), Financial Accounting Theory, 2nd European ed, McGraw Hill
Collins & McKeith (2013), Financial Accounting & Reporting, McGraw Hill
Methods of Feedback to Students
- Informal advice and discussion during a lecture, seminar, workshop or lab.
- Online exercises and quizzes delivered through the Blackboard course space.
- Responses to student emails and questions from a member of staff including feedback provided to a group via an online discussion forum.
- Specific course related feedback documents and sessions.
- Written computerised comments on non-assessed coursework.
- Group feedback sheet plus generic feedback for group presentation
- Generic feedback posted on Blackboard regarding overall examination performance.
- Assessment written exam - 2 hours
- Lectures - 20 hours
- Practical classes & workshops - 8 hours
- Independent study hours - 70 hours