Students

ACCG3050 – Financial Statement Analysis

2022 – Session 1, In person-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Jengfang Chen
accg3050@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
130cp at 1000 level or above including AFIN250 or AFIN2050 or AFIN252 or AFIN253 or AFIN2053
Corequisites Corequisites
Co-badged status Co-badged status
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

Unless a Special Consideration request has been submitted and approved, no extensions will be granted. There will be a deduction of 10% of the total available assessment-task marks made from the total awarded mark for each 24-hour period or part thereof that the submission is late. Late submissions will only be accepted up to 96 hours after the due date and time. No late submissions will be accepted for timed assessments – e.g., quizzes, online tests

Assessment Tasks

Name Weighting Hurdle Due
Assessed Coursework 10% No Before the start of tutorial class
Assignment 30% No Week 8 & Week 12
Online Final Examination 60% No University Examination Period

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.

Assignment

Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 25 hours
Due: Week 8 & Week 12
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.

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.

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 Coulton, Business Analysis & Valuation: Using Financial Statements, 3rd Asia Pacific Edition, Cengage Learning, 2020.

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, an appointment 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. (2020))

Assessment Tasks Due

1

21 Feb

 A framework for business analysis and valuation

Chapter 1

 

2

28 Feb

Strategy Analysis

Chapter 2

Week 2 Homework (HW)

3

7 Mar

Accounting Analysis

Chapter 3 and 4

Week 3 HW

4

14 Mar

Financial Analysis

Chapter 5

Week 4 HW

5

21 Mar

Financial Analysis (Contd.)

Chapter 5

Week 5 HW

6

28 Mar

Credit Analysis

Chapter 10

Week 6 HW

7

4 Apr

Forecasting Income Statement

Chapter 6 and 8

Week 7 HW

 

 

Mid-Session Break

 

 

8

25 Apr

Forecasting Balance Sheet

Review of Cost of Capital

Chapter 6 and 8

Week 8 HW

Group Report (25 Apr)

9

2 May

Equity Valuation

Chapter 7 and 8

Week 9 HW

10

9 May

Equity Valuation (Contd.)

Chapter 7 and 8

Week 10 HW

11

16 May

Price Multiples and Market Efficiency

Chapter 7 and 9

Week 11 HW

12

23 May

Self-study for individual report

 

Individual Report (27 May)

13

30 May

Revision

 

 

Note: This unit schedule is subject to change at the discretion of Unit Convenor.

 

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:

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

Academic Integrity

At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

The Writing Centre

The Writing Centre provides resources to develop your English language proficiency, academic writing, and communication skills.

The Library provides online and face to face support to help you find and use relevant information resources. 

Student Services and Support

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Student Enquiries

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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 2022.04 of the Handbook