Overview
Financial Statement Analysis is a capstone unit within the Bachelor of Accounting course. It supports you to integrate your learning in the course and to critically examine accounting and finance concepts relevant to the analysis of financial statements. You will apply these concepts to the analysis of real firms. The focus of the unit is on analysing financial statements to better understand and interpret the economic and business realities of firms. In particular, you will learn how to use financial statements to identify what adds value. While recognising that adding value can be viewed from the perspective of a range of different stakeholders, you will focus on the interests of equity investors.
Details
Pre-requisites or Co-requisites
Pre-requisite: ACCT19061
Important note: Students enrolled in a subsequent unit who failed their pre-requisite unit, should drop the subsequent unit before the census date or within 10 working days of Fail grade notification. Students who do not drop the unit in this timeframe cannot later drop the unit without academic and financial liability. See details in the Assessment Policy and Procedure (Higher Education Coursework).
Offerings For Term 1 - 2024
Attendance Requirements
All on-campus students are expected to attend scheduled classes – in some units, these classes are identified as a mandatory (pass/fail) component and attendance is compulsory. International students, on a student visa, must maintain a full time study load and meet both attendance and academic progress requirements in each study period (satisfactory attendance for International students is defined as maintaining at least an 80% attendance record).
Recommended Student Time Commitment
Each 6-credit Undergraduate unit at CQUniversity requires an overall time commitment of an average of 12.5 hours of study per week, making a total of 150 hours for the unit.
Class Timetable
Assessment Overview
Assessment Grading
This is a graded unit: your overall grade will be calculated from the marks or grades for each assessment task, based on the relative weightings shown in the table above. You must obtain an overall mark for the unit of at least 50%, or an overall grade of 'pass' in order to pass the unit. If any 'pass/fail' tasks are shown in the table above they must also be completed successfully ('pass' grade). You must also meet any minimum mark requirements specified for a particular assessment task, as detailed in the 'assessment task' section (note that in some instances, the minimum mark for a task may be greater than 50%). Consult the University's Grades and Results Policy for more details of interim results and final grades.
All University policies are available on the CQUniversity Policy site.
You may wish to view these policies:
- Grades and Results Policy
- Assessment Policy and Procedure (Higher Education Coursework)
- Review of Grade Procedure
- Student Academic Integrity Policy and Procedure
- Monitoring Academic Progress (MAP) Policy and Procedure - Domestic Students
- Monitoring Academic Progress (MAP) Policy and Procedure - International Students
- Student Refund and Credit Balance Policy and Procedure
- Student Feedback - Compliments and Complaints Policy and Procedure
- Information and Communications Technology Acceptable Use Policy and Procedure
This list is not an exhaustive list of all University policies. The full list of University policies are available on the CQUniversity Policy site.
Feedback, Recommendations and Responses
Every unit is reviewed for enhancement each year. At the most recent review, the following staff and student feedback items were identified and recommendations were made.
Feedback from Student feedback
Students would prefer a stronger emphasis in the tutorials on discussion of issues with the assignments
Tutorials will focus more on discussion of issues with the assignments that students are having, and then as time allows on discussion of concepts being focused on each week in the unit.
Feedback from Student feedback
Students would prefer further support to give and receive feedback on each other's draft work
The lecturer will support students to better interact with other students in the first few weeks of term, through online forums and other interactions, to assist students to give and receive feedback on each other's draft work in both ASS#1 and ASS#2.
- Apply established techniques for analysing financial statement information for forecasting, valuation and risk analysis purposes
- Apply the major concepts and theories of fundamental analysis and the key steps involved in conducting a fundamental analysis and valuation of a company
- Use financial statement information to identify and recommend solutions to various financial challenges
- Analyse and synthesise a firm’s financial statement information in the context of the firm’s economic and business condition to make informed recommendations on investment decisions about the firm.
Alignment of Assessment Tasks to Learning Outcomes
Assessment Tasks | Learning Outcomes | |||
---|---|---|---|---|
1 | 2 | 3 | 4 | |
1 - Written Assessment - 45% | ||||
2 - Written Assessment - 50% | ||||
3 - Online Quiz(zes) - 5% |
Alignment of Graduate Attributes to Learning Outcomes
Graduate Attributes | Learning Outcomes | |||
---|---|---|---|---|
1 | 2 | 3 | 4 | |
1 - Communication | ||||
2 - Problem Solving | ||||
3 - Critical Thinking | ||||
4 - Information Literacy | ||||
5 - Team Work | ||||
6 - Information Technology Competence | ||||
7 - Cross Cultural Competence | ||||
8 - Ethical practice | ||||
9 - Social Innovation | ||||
10 - Aboriginal and Torres Strait Islander Cultures |
Alignment of Assessment Tasks to Graduate Attributes
Assessment Tasks | Graduate Attributes | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
1 - Written Assessment - 45% | ||||||||||
2 - Written Assessment - 50% | ||||||||||
3 - Online Quiz(zes) - 5% |
Textbooks
There are no required textbooks.
IT Resources
- CQUniversity Student Email
- Internet
- Unit Website (Moodle)
- Microsoft Excel
- Microsoft Word
All submissions for this unit must use the referencing style: American Psychological Association 7th Edition (APA 7th edition)
For further information, see the Assessment Tasks.
m.turner@cqu.edu.au
Module/Topic
Introduction: Focus on Reality
Chapter
Preface, 1
Events and Submissions/Topic
Start PeerWise: register and start writing, answering, rating and commenting on questions on the Preface and Chapter 1.
Work on ASS#1 Steps 1 & 2
ASS#1 Step 1 Due: Week 1 Thursday 11:00 am AEST
Find your Company: Friday Week 1, 5:00 PM AEST
Module/Topic
How a Firm Adds Value
Chapter
2, Appendix 1
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapter 2
Work on ASS#1 Steps 2 & 3
ASS#1 Step 2 Due: Week 2 Friday 11:00 am AEST
Module/Topic
Many Ways to Assess Value
Chapter
3
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapter 3
Work on ASS#1 Steps 3 & 4
Module/Topic
Understanding the Past
Chapter
4, Appendix 2
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapter 4 & Appendix 2
Work on ASS#1 Steps 4, 5 & 6
ASS#1 Step 6 Due: Week 4 Monday 11:00 am AEST
Module/Topic
Understanding the Past
Chapter
4, Appendix 2
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapter 4 & Appendix 2
Work on ASS#1 Steps 6, 7 & 8
Module/Topic
Vacation Week
Chapter
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapter 4 & Appendix 2
Work on ASS#1 Steps 6, 7 & 8
Module/Topic
Understanding the Past
Chapter
4, Appendix 2
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapter 4 & Appendix 2
Work on ASS#1 Steps 6, 7 & 8
Module/Topic
Predicting the Future
Chapter
5
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapter 5
Work on ASS#2 Step 1
ASS#1 Due: Week 7 Monday (22 Apr 2024) 11:00 am AEST
Module/Topic
Predicting the Future
Chapter
5
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapter 5
Work on ASS#2 Steps 1 & 3
ASS#2 Step 1 Due: Week 8 Saturday 11:00am AEST
Module/Topic
Focus on the Enterprise
Chapter
6
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapter 6
Work on ASS#2 Steps 3 & 4
Module/Topic
Focus on the Enterprise
Chapter
6
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapter 6
Work on ASS#2 Steps 2, 4 & 5
Module/Topic
How to Predict the Future to Eternity
Chapter
7
Events and Submissions/Topic
PeerWise: write, answer, rate and comment on questions on Chapters 7 & 8
PeerWise Closes Thursday Week 11, 5.00PM AEST
Work on ASS#2 Steps 2, 5 & 6
PEERWISE Due: Week 11 Thursday (23 May 2024) 5:00 pm AEST
Module/Topic
Going Forward
Chapter
8
Events and Submissions/Topic
Work on ASS#2 Steps 5 & 6
ASS#2 Step 2 Due: Week 12 Monday 11:00am AEST
Module/Topic
Chapter
Events and Submissions/Topic
Module/Topic
Chapter
Events and Submissions/Topic
1 Written Assessment
ASS#1 is the first part of your major assignment for this unit. It is made up of eight steps.
Step 1 is due at 11.00am Thursday Week 1. Step 2 is due 11:00am Friday Week 2. Step 6 is due 11:00am Monday Week 4.
You will be given your company at the end of Week 1.
This assignment will give you the opportunity to explore what your own company does and what your firm’s financial statements may have to tell you about your firm. You can also review your Excel skills (entering data, linking cells between worksheets, using formulas and formatting cells). You will also have the opportunity to reflect on the extent to which this task is easier at the end of your degree than at the beginning; and to begin to reflect on the quality of your learning about accounting at university.
The key things to achieve in your ASS#1 is to find your company’s latest annual report and to have a look at it; to get a feel for what your firm does and what you are able to understand about your firm from your first look at its financial statements.
You will also input your company’s last four years of financial statements into your spreadsheet; and then restate your firm's financial statements, carefully separating your firm's operating and financial activities. You will calculate key ratios (as well as economic profit) for your firm.
This assignment provides an opportunity for you to review aspects of your previous accounting knowledge and to provide a foundation for your next assignment.
As well, you will have the opportunity to experience how interacting with others in the unit may be able to help you to better understand your firm.
Week 7 Monday (22 Apr 2024) 11:00 am AEST
Your ASS#1 will be marked promptly; and within 2 weeks. You will receive a mark, individual feedback, general feedback and exemplars.
Mark | |
Step 1 | |
KCQs | 3 |
Step 2 | |
KCQs | 3 |
Step 3 | |
Background information on company | 3 |
Comments/KCQs | 3 |
Comments on other’s blogs | 1 |
Step 4 | |
Input company’s financial statements | 5 |
Step 5 | |
Restated Income statement | 6 |
Restated Balance sheet | 4 |
Commentary & discussion with others | 3 |
Step 6 | |
KCQs | 3 |
Step 7 | |
Calculation of ratios | 8 |
Step 8 | |
Individual feedback with other students | 3 |
TOTAL | 45 |
- Problem Solving
- Critical Thinking
- Information Technology Competence
- Apply established techniques for analysing financial statement information for forecasting, valuation and risk analysis purposes
- Apply the major concepts and theories of fundamental analysis and the key steps involved in conducting a fundamental analysis and valuation of a company
2 Written Assessment
ASS#2 is the second part of your major assignment for this unit. It is made up of six steps.
Step 1 is due at 11.00am Saturday Week 8. Step 2 is due 11:00am Monday Week 12.
In your ASS#2 you will assess your firm's business performance based on the ratios for your firm that you calculated in ASS#1. You will identify and comment on your firm's key accounting drivers. You will also identify your firm's key economic and business drivers.
For your firm, you will then forecast for the next five years the key accounting drivers of Sales growth, Profit margin, Asset turnover and Return on net operating assets and include these figures in the Key Value Drivers worksheet in your spreadsheet. You will complete a valuation of your firm using both the Discounted cash flow and Economic profit frameworks.
Review/Exam Week Wednesday (5 June 2024) 11:00 am AEST
Your ASS#2 will be marked promptly - and within 2 weeks. You will receive a mark, individual feedback, general feedback and exemplars.
Mark | ||
Step 1 | ||
KCQs – Chapters 5 & 6 | 5 | |
Step 2 | ||
KCQs – Chapters 7 & 8 | 5 | |
Step 3 | ||
Ratios - commentary | 4 | |
Accounting drivers - commentary | 5 | 9 |
Step 4 | ||
Economic & business drivers | 10 | |
Step 5 | ||
Forecasting & valuation - spreadsheet | 4 | |
Forecasting & valuation – analysis & report | 10 | |
Reflections on your experience of learning | 4 | 18 |
Step 6 | ||
Individual feedback with other students | 3 | |
TOTAL | 50 |
- Communication
- Critical Thinking
- Apply established techniques for analysing financial statement information for forecasting, valuation and risk analysis purposes
- Apply the major concepts and theories of fundamental analysis and the key steps involved in conducting a fundamental analysis and valuation of a company
- Use financial statement information to identify and recommend solutions to various financial challenges
- Analyse and synthesise a firm’s financial statement information in the context of the firm’s economic and business condition to make informed recommendations on investment decisions about the firm.
3 Online Quiz(zes)
We will be using PeerWise as a place for you to create, share and evaluate questions with others in the unit.
PeerWise is designed to be used each week throughout the unit. Each week, PeerWise will support you to read the Study Guide (that's right, each week), write multiple choice questions from your reading (including solutions with explanations), answer others questions and rate others questions. You can also comment on people’s questions, and people can then comment on your comments and so on.
You should aim to write at least 2-3 questions each week and answer (and rate) 20 – 30 questions each week.
It is a big advantage in PeerWise to start early in the unit; and to write high quality questions (and solutions with explanations). Typically, on average, people will write about 25-30 questions during the unit and answer/rate about 250-300 questions. Some people will do much more; and others less.
Start by looking at the video "Tips on Using PeerWise": https://www.youtube.com/watch?v=MOlYsHgXrqA&t=1s. And you can visit PeerWise here: http://peerwise.cs.auckland.ac.nz/at/?cqu_au. If you have not used PeerWise before, please click on the "Registration" link and follow the prompts. All you need to do is choose a user name and a password for your PeerWise account. If you have used PeerWise before, simply log in and then select "Join a course" from the Home menu.
IMPORTANT: You will need to follow the information provided on PeerWise in the Assessment tile in Moodle in order to access our Peerwise unit this term (there is a PeerWise 'Course ID' for our unit, which is detailed in Moodle).
Week 11 Thursday (23 May 2024) 5:00 pm AEST
Peerwise closes at 5pm AEST on Thursday in Week 11. There is no need to submit anything concerning PeerWise in Moodle.
Your scores from Peerwise will be transferred to Moodle before the end of term by the Unit Coordinator.
As you contribute to PeerWise, you will accumulate a Reputation score calculated in the software which is composed of three parts: writing questions (Questioning); answering questions (Answering); and rating questions you have answered (Rating).
To achieve a high score it is much better to have good scores for each of the three components than a very high score in just one (or two) components. It is particularly important not to have a zero (or near zero) score for any of the three components. Answering and Rating scores at a similar level and your Questioning score at about one-tenth of your Answering and Rating scores can be a good balance. For example, a score of Questioning: 175; Answering: 1,750; and Rating: 1,750.
You can see your score in the top right-hand corner of PeerWise. We use the Reputation score (not the Questioning, Answering or Rating scores) to determine your mark for PeerWise.
You will gain a mark out of 5 for your PeerWise contribution. This will be calculated according to the Peerwise grading guidelines available on Moodle.
The Unit Co-ordinator reserves the right to adjust the mark of any student if they engage in inappropriate behaviour on PeerWise. Inappropriate behaviour might include: Bullying, harassing or being rude to any other student; Contributing questions flagged as being easy, for example as ‘Easy’ or ‘Questions for Dummies’; Marking correct answers in bold or with other marks; Copying other student’s questions and contributing them onto PeerWise as your own (although it is understood that different students may independently contribute similar or even identical questions at times, and this is perfectly alright).
Please report to the Unit Co-ordinator any inappropriate behaviour on PeerWise.
No submission method provided.
- Problem Solving
- Apply established techniques for analysing financial statement information for forecasting, valuation and risk analysis purposes
- Apply the major concepts and theories of fundamental analysis and the key steps involved in conducting a fundamental analysis and valuation of a company
As a CQUniversity student you are expected to act honestly in all aspects of your academic work.
Any assessable work undertaken or submitted for review or assessment must be your own work. Assessable work is any type of work you do to meet the assessment requirements in the unit, including draft work submitted for review and feedback and final work to be assessed.
When you use the ideas, words or data of others in your assessment, you must thoroughly and clearly acknowledge the source of this information by using the correct referencing style for your unit. Using others’ work without proper acknowledgement may be considered a form of intellectual dishonesty.
Participating honestly, respectfully, responsibly, and fairly in your university study ensures the CQUniversity qualification you earn will be valued as a true indication of your individual academic achievement and will continue to receive the respect and recognition it deserves.
As a student, you are responsible for reading and following CQUniversity’s policies, including the Student Academic Integrity Policy and Procedure. This policy sets out CQUniversity’s expectations of you to act with integrity, examples of academic integrity breaches to avoid, the processes used to address alleged breaches of academic integrity, and potential penalties.
What is a breach of academic integrity?
A breach of academic integrity includes but is not limited to plagiarism, self-plagiarism, collusion, cheating, contract cheating, and academic misconduct. The Student Academic Integrity Policy and Procedure defines what these terms mean and gives examples.
Why is academic integrity important?
A breach of academic integrity may result in one or more penalties, including suspension or even expulsion from the University. It can also have negative implications for student visas and future enrolment at CQUniversity or elsewhere. Students who engage in contract cheating also risk being blackmailed by contract cheating services.
Where can I get assistance?
For academic advice and guidance, the Academic Learning Centre (ALC) can support you in becoming confident in completing assessments with integrity and of high standard.
What can you do to act with integrity?
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