FACULTY OF BUSINESS

Department of Business Administration

ACC 402 | Course Introduction and Application Information

Course Name
Essentials of Financial Statement Analysis
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
ACC 402
Fall/Spring
3
0
3
6

Prerequisites
  BA 251 To succeed (To get a grade of at least DD)
Course Language
English
Course Type
Elective
Course Level
First Cycle
Mode of Delivery -
Teaching Methods and Techniques of the Course Discussion
Problem Solving
Case Study
Q&A
Course Coordinator -
Course Lecturer(s) -
Assistant(s)
Course Objectives The objective of this course is to prepare students to interpret and analyze financial statements. The viewpoint is that of various users of financial statements. The main focus is the use of financial statements in business analysis, strategic decision making, developing business strategies and evaluating performance. This course will also help students in revisiting their accounting and finance knowledge, and will improve their analytical skills as well.
Learning Outcomes The students who succeeded in this course;
  • Understand financial statements (comprehensive income statement, balance sheet, statement of cash flow, statement of changes in equity and notes to accounts) from various users’ perspectives.
  • Explain the importance of business and industrial analysis as the basis of financial statement analysis.
  • Apply different tools and techniques for assessing a company's performance, such as financial ratios, cash flow analysis and forecasting techniques.
  • Undertstand financing, investing and operating strategies of a company.
  • Improve their analytical skills.
  • Apply different tools and techniques for assessing intrinsic value of company.
Course Description This course introduces the methods of financial statement analysis to the students. The topics covered are ratio analysis, common size analysis, comparative analysis, reporting environment, accounting analysis, analyzing financing, investing and operating activities, cash flow, profitability, prospective and credit analysis.

 



Course Category

Core Courses
Major Area Courses
X
Supportive Courses
Media and Management Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Related Preparation
1 Overview of the Financial Statement Analysis - Introduction to business analysis and analysis tools - ratio analysis, common size analysis, comparative analysis Chapter 1
2 Overview of the Financial Statement Analysis - Introduction to business analysis and analysis tools - ratio analysis, common size analysis, comparative analysis Chapter 1
3 Financial Reporting and Analysis - Reporting environment, accounting analysis Chapter 2
4 Financial Reporting and Analysis - Reporting environment, accounting analysis Chapter 2
5 Analyzing Financing Activities - Analysis of liabilities, leases contingent liabilities, off-balance sheet financing and analysis of shareholders' equity Chapter 3
6 Analyzing Financing Activities - Analysis of liabilities, leases contingent liabilities, off-balance sheet financing and analysis of shareholders' equity Chapter 3
7 Analyzing Investing Activities - Analysis of current, long-term, plant and intangible assets Chapter 4
8 Analyzing Investing Activities - Analysis of intercorporate investments Chapter 5
9 Midterm Exam / Analyzing Operating Activities - Analysis of Income, revenue and expenses Chapter 6
10 Cash Flow Analysis Chapter 7
11 Return on Invested Capital and Profitability Analysis Chapter 8
12 Prospective Analysis Chapter 9
13 Credit Analysis - Liquidity and solvency analysis Chapter 10
14 Equity Analysis and Valuation Chapter 11
15 Review of the semester
16 Final Exam

 

Course Notes/Textbooks

Available as e-book at the Library:

Financial statement analysis: a practitioner’s guide, Martin S. Fridson and Fernando Alvarez. – 4th ed.

Suggested Readings/Materials

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
1
20
Presentation / Jury
Project
Seminar / Workshop
Oral Exams
Midterm
1
40
Final Exam
1
40
Total

Weighting of Semester Activities on the Final Grade
2
50
Weighting of End-of-Semester Activities on the Final Grade
1
50
Total

ECTS / WORKLOAD TABLE

Semester Activities Number Duration (Hours) Workload
Theoretical Course Hours
(Including exam week: 16 x total hours)
16
3
48
Laboratory / Application Hours
(Including exam week: '.16.' x total hours)
16
0
Study Hours Out of Class
15
3
45
Field Work
0
Quizzes / Studio Critiques
0
Portfolio
0
Homework / Assignments
1
20
20
Presentation / Jury
0
Project
0
Seminar / Workshop
0
Oral Exam
0
Midterms
1
25
25
Final Exam
1
30
30
    Total
168

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1

To be able to solve problems with an analytical and holistic viewpoint in the field of business administration.

X
2

To be able to present the findings and solutions to the business problems in written and oral formats.

X
3

To be able to interpret the application of business and economic concepts, and philosophies at the national and international levels.

X
4

To be able to use innovative and creative approach for real-life business situations.

5

To be able to demonstrate leadership skills in different business situations.

6

To be able to interpret the reflections of new technologies and softwares to business dynamics.   

7

To be able to integrate knowledge gained in the five areas of business administration (marketing, production, management, accounting, and finance) through a strategic perspective.

8

To be able to act in accordance with the scientific and ethical values in studies related to business administration.

9

To be able to work efficiently and effectively as a team member.

X
10

To be able to have an ethical perspective and social responsiveness when making and evaluating business decisions.

11

To be able to collect data in the area of business administration and communicate with colleagues in a foreign language ("European Language Portfolio Global Scale", Level B1).

12

To be able to speak a second foreign at a medium level of fluency efficiently.

13

To be able to relate the knowledge accumulated throughout the human history to their field of expertise.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest

 


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