Financial Statement Analysis 2400-ZEWW508
Class 1: Discussion of the organisation of the course. Familising students with the topic of the course and assessment criteria. General presentation of fundamental analysis of a company.
Class 2: Financial statement: Balance sheet – description of structure according to polish and international standards and its functions.
Class 3: Financial statement: Income statement/ Profit and Loss statement – description of the structure according to polish and international standards and its functions.
Class 4: Financial statement: Cash flow statement – description of the structure according to polish and international standards and its functions.
Class 5: Financial ratio analysis: Presentation of methods for assessing liquidity, sddet turnover, financial leverage, profitability and market value. Du Ponta analysis.
Class 6: Financial statement: Additional information/ Notes to Financial statements – description of the structure according to polish and international standards and its functions. Presentation of English language terminology refering to categories included in the financial statements and ratio analysis.
Class 7: Accounting standards: Discussion of the main differences between accounting standards of various parts of the world (MSR, US GAAP).
Classes 8-14 Student’s presentations
Possible topics:
- Financial statement analysis of the polish company.
- Financial statement analysis of a global company operating in FMCG sector.
- Financial statement analysis of an american company dominating on a home market.
- Comparative financial analysis of an american and european companies utilising different financial accounting standards.
- Comparative analysis of asian and european companies utilising various accounting standards and operating in IT or motor vehicle sector.
- Comparative analysis of companies which prepare financial statements in different currencies.
- Comparative analysis of companies from various markets (developed vs. developing market).
Class 15: Course conclusion. Consequences of using different accounting standards on financial analysis of enterprises.
Type of course
Prerequisites (description)
Course coordinators
Learning outcomes
After completing the seminar, the student will be able to analyze the financial situation of an enterprise based on commonly available sources (that is balance sheet, P/L statement, cash flow statement, notes to financial statements). Moreover, students will be able to assess which information are significant in analyzing an enterprise taking into account its market environments (among others, sector, type of market, type of product).
The student has knowledge of the financial reporting and differences between Polish and international financial reporting standards. The student has knowledge of basic categories on financial statements (balance sheet, profit and loss account, cash flow statement, account of changes in equity and notes to financial statements), which may have a significant impact on the information presented in the reports and therefore decisions made by stakeholders on the basis of these reports. The student has knowledge of the preparation of financial statement analysis using indicators of profitability, efficiency, debt, market value and liquidity.
1. The student knows and understands the method of preparation of financial statements (balance sheet, income statement, cash flow statement, account of changes in equity and notes to financial statements). (S1A_W07)
2. The student knows and understands the accounting policies and accounting rules which are used for financial reporting. (S1A_W07)
3. The student has knowledge of the analysis of financial statements using the indicator method. (S1A_W06)
4. The student knows the five groups of indicators (profitability, efficiency, debt, market value and liquidity). (S1A_W06)
5. The student has knowledge of Du Pont analysis of and pyramid relationships between individual indicators. (S1A_W06)
The student has the ability to independently conduct financial statement analysis and evaluate the company in terms of profitability, efficiency, debt, market value and liquidity.
1. The student is able to carry out financial statement analysis using ratiosand Du Pont method. (S1A_U01), (S1A_U02), (S1A_U03), (S1A_U04)
2. The student is able to interpret the results of preliminary analysis (amount, vertical and horizontal) and ratio analysis. (S1A_U01), (S1A_U02), (S1A_U03), (S1A_U04)
3. The student is able to provide basic recommendations to improve performance indicators. (S1A_U01), (S1A_U02), (S1A_U03), (S1A_U04)
The student is aware of the impact of policies and accounting rules on the information presented in the financial statements of companies. Student knows how to make decisions regarding the investment in the analyzed company.
1. The student is aware of how the choice of policies and accounting rules affects the information presented in the financial statements of companies and understands how companies can influence their assessment. (S2A_K04), (S2A_K05), (S2A_K07)
2. The student is able to work in the institutions involved in the analysis of companies and provide recommendations on investment in the analyzed company. (S2A_K04), (S2A_K05), (S2A_K07)
Assessment criteria
A mandatory participation in class, although one unexcused absence is permitted. Preparation of a presentation in 2-3 person team, and next its presentation using a MS Power Point software. Moreover, based on the presentation, preparation of a detailed raport which should include information about the company, its market environment, sector, as well as assessment of risks involved in its operation and financial statement analysis along with ratio analysis.
Bibliography
Mandatory literature
- Wędzki D., „Analiza wskaźnikowa sprawozdania finansowego”, Oficyna Ekonomiczna Wolters Kluwer, Krakόw, 2006.
- Case studies made available by the lecturer.
Additional literature:
- Jajuga K. i Jajuga T., „Inwestycje”, Wydawnictwo Naukowe PWN, Warszawa, 2008.
- White G. I., Sondhi A. C. i Fried D., „The analysis and use of financial statements”, John Wiley & Sons, Inc., 2002.
- Fridson M. i Alvarez F., „Financial statement analysis: A practitioner’s guide”, John Wiley & Sons, Inc., 2003. .
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: