Students
ACCG3050 – Financial Statement Analysis
2021 – Session 1, Special circumstances
Notice
As part of Phase 3 of our return to campus plan, most units will now run tutorials, seminars and other small group activities on campus, and most will keep an online version available to those students unable to return or those who choose to continue their studies online.
To check the availability of face-to-face and online activities for your unit, please go to timetable viewer. To check detailed information on unit assessments visit your unit's iLearn space or consult your unit convenor.
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Charlene Chen
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|---|---|
| Credit points |
Credit points
10
|
| Prerequisites |
Prerequisites
130cp at 1000 level or above including AFIN250 or AFIN2050 or AFIN252 or AFIN253 or AFIN2053
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| Corequisites |
Corequisites
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| Co-badged status |
Co-badged status
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| Unit description |
Unit description
The unit aims to equip students to undertake financial analysis and the valuation of listed companies. Students are taught the following steps in financial analysis and valuation: (i) evaluating the state of the economy, the industry and a company, (ii) analysing the company's accounting policies, evaluating its financial position using financial ratios and other analytical tools, (iii) forecasting the company's financial statements, and (iv) using a variety of techniques to value the company so that an investment decision can be made. Students will develop graduate capabilities in a range of areas, including: analytical skills in information management and analysis; problem-solving skills in sourcing and identifying relevant information and interpreting output; and communication skills through the presentation of group reports. |
Important Academic Dates
Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
Learning Outcomes
On successful completion of this unit, you will be able to:
- ULO1: Undertake group work to perform a financial analysis and business valuation using a structured approach.
- ULO2: Interpret annual reports and other related public disclosures and evaluate a listed company's strategic decisions, accounting policies, financial position and growth potential.
- ULO3: Explain linkages between economic environment, industry, strategy and the company valuation.
- ULO4: Examine how financial statements are used in the valuation process.
- ULO5: Compare different valuation models and investigate the sensitivity of the valuation to changes in the key input parameters.
General Assessment Information
Late submission
Late assessment must also be submitted through Turnitin. No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission incurs a 20% penalty). Late submissions will not be accepted after solutions have been discussed and/or made available. This penalty does not apply for cases in which an application for Special Consideration is made and approved. Note: applications for Special Consideration Policy must be made within 5 (five) business days of the due date and time.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Assessed Coursework | 10% | No | Before the start of tutorial class |
| Online Final Examination | 60% | No | University Examination Period |
| Assignment | 30% | No | Week 8 and Week 13 |
Assessed Coursework
Assessment Type 1: Participatory task
Indicative Time on Task 2: 20 hours
Due: Before the start of tutorial class
Weighting: 10%
Students must submit homework to the Turnitin available on iLearn before the start of tutorial class at which the student is enrolled. Tutor will randomly select six weeks to mark homework. The best five marks will be recorded. Each homework will be awarded a mark out of 2. To receive 2 marks, student must have made a genuine attempt to homework questions. Where student has made a moderate attempt, 1 mark will be awarded. A mark of 0 will be awarded for a non-satisfactory attempt or a non-submission.
On successful completion you will be able to:
- Interpret annual reports and other related public disclosures and evaluate a listed company's strategic decisions, accounting policies, financial position and growth potential.
- Explain linkages between economic environment, industry, strategy and the company valuation.
- Examine how financial statements are used in the valuation process.
- Compare different valuation models and investigate the sensitivity of the valuation to changes in the key input parameters.
Online Final Examination
Assessment Type 1: Examination
Indicative Time on Task 2: 45 hours
Due: University Examination Period
Weighting: 60%
A two hour open book online exam will be held during the University Examination Period. The final exam is designed to allow you to demonstrate knowledge and skills attained in the previous assessments.
On successful completion you will be able to:
- Interpret annual reports and other related public disclosures and evaluate a listed company's strategic decisions, accounting policies, financial position and growth potential.
- Explain linkages between economic environment, industry, strategy and the company valuation.
- Examine how financial statements are used in the valuation process.
- Compare different valuation models and investigate the sensitivity of the valuation to changes in the key input parameters.
Assignment
Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 25 hours
Due: Week 8 and Week 13
Weighting: 30%
This Assignment comprises of a group report and an individual report. Student will be advised of the content, format and assessment criteria.
On successful completion you will be able to:
- Undertake group work to perform a financial analysis and business valuation using a structured approach.
- Interpret annual reports and other related public disclosures and evaluate a listed company's strategic decisions, accounting policies, financial position and growth potential.
- Explain linkages between economic environment, industry, strategy and the company valuation.
- Examine how financial statements are used in the valuation process.
- Compare different valuation models and investigate the sensitivity of the valuation to changes in the key input parameters.
1 If you need help with your assignment, please contact:
- the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
- the Writing Centre for academic skills support.
2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation
Delivery and Resources
Classes
There are 3 hours of teaching per week consisting of one 1.5-hour online lecture and one 1.5-hour face-to-face/online tutorial.
The timetable for classes can be found on the University web site at: http://www.timetables.mq.edu.au/
Changes to tutorial times are managed by e-student. It is not necessary to contact members of staff about tutorial changes. On-line enrolment changes to tutorials will be closed at the end of Week 2 so all changes must be made by then.
Required Texts
Palepu, Healy, Wright, Bradbury and Lee, Business Analysis & Valuation: Using Financial Statements, Second Asia Pacific Edition, Cengage Learning, 2015.
The prescribed textbook can be purchased can be purchased online from Booktopia https://www.booktopia.com.au/coop
Copies are also available in the Macquarie University Library.
Consultation Times
The consultation timetable will be made available on iLearn at the beginning of the session.
Consultation will start from Week 3. You are encouraged to seek help at a time that is convenient to you from a staff member teaching on this unit during their regular consultation hours. In special circumstances, anappointment may be made outside regular consultation hours. Students experiencing significant difficulties with any topic in the unit must seek assistance immediately.
Unit Web Page
Course material is available on the learning management system (iLearn). The web page for this unit can be found at: https://ilearn.mq.edu.au/ from where you need to login to iLearn.
Unit Schedule
|
Week |
Monday |
Lecture Topic |
Readings (from Palepu et al. (2015)) |
Assessment Tasks Due |
|
1 |
22 Feb |
Introduction to Business Analysis and Valuation |
Chapter 1 |
|
|
2 |
1 Mar |
Strategy Analysis |
Chapter 2 |
Week 2 Homework (HW) |
|
3 |
8 Mar |
Accounting Analysis |
Chapter 3 and 4 |
Week 3 HW |
|
4 |
15 Mar |
Financial Analysis |
Chapter 5 |
Week 4 HW |
|
5 |
22 Mar |
Financial Analysis (Contd.) |
Chapter 5 |
Week 5 HW |
|
6 |
29 Mar |
Credit Analysis |
Chapter 10 |
Week 6 HW |
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|
|
Mid-Session Break |
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|
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7 |
19 Apr |
Forecasting Income Statement |
Chapter 6 and 8 |
Week 7 HW |
|
8 |
26 Apr |
Forecasting Balance Sheet Review of Cost of Capital |
Chapter 6 and 8 |
Week 8 HW Group Report (26 Apr) |
|
9 |
3 May |
Equity Valuation |
Chapter 7 and 8 |
Week 9 HW |
|
10 |
10 May |
Equity Valuation (Contd.) |
Chapter 7 and 8 |
Week 10 HW |
|
11 |
17 May |
Price Multiples and Market Efficiency |
Chapter 7 and 9 |
Week 11 HW |
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12 |
24 May |
Self-study for individual report |
|
Week 12 HW |
|
13 |
31 May |
Revision |
|
Individual Report (4 Jun) |
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy
Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct
Results
Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au
Student Support
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to help you improve your marks and take control of your study.
The Library provides online and face to face support to help you find and use relevant information resources.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
For all student enquiries, visit Student Connect at ask.mq.edu.au
If you are a Global MBA student contact globalmba.support@mq.edu.au
IT Help
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Unit information based on version 2021.02 of the Handbook