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SYLLABUS
COURSE TITLE: FINANCIAL STATEMENT ANALYSIS

I. INSTRUCTOR
- Lecturer:
- Email:
II. GENERAL INFORMATION
1. Course Title: Financial Statement Analysis.
2. Course Aims & Learning Objectives:
This course aims at providing basic knowledge and skills about financial statement analysis.
After completing this course, students are able to:
 Identify the relationship between financial statement analysis and business analysis.
 Identify the relationship between strategic analysis and financial statement analysis.
 Identify the importance and steps of accounting analysis.
 Use financial statement analysis methods in a particular company.
 Understand to analyze a company's prospects.
3. Number of credits: 4
4. Pre-requisites: Financial Accounting
5. Teaching time allocation: Lecture.
6. Required textbooks:
 Management Devision, Accounting and Auditing Faculty, University of Economics
Ho Chi Minh City; Business analysis; UEH publishing house; 2015.
 K.R.Subramanyam; Financial Statement Analysis (11th Edition); Mc Graw-Hill
Irwin; 2014.
 Krishna G. Palepu and Paul M. Healy; Business Analysis & Valuation:
UsingFinancial Statements (5th Edition); South-Western, Cengage Learning;
2013.
 Summary of lectures and exercises.

III. COURSE DESCRIPTION:

Chapter 1: Overview of financial statement analysis
 Teaching units: 5
 Chapter Aims:
- Explain business analysis and its relation to financial statement analysis.
- Identify and discuss different types of business analysis.
- Describe component analyses that constitute business analysis.
- Explain business activities and their relation to financial statements.
- Describe the purpose of each financial statement and linkages between them.
- Identify the relevant analysis information beyond financial statements.
- Analyze and interpret financial statements as a preview to more detailed analyse.
- Apply some basic financial statement analysis techniques.
- Define and build some basic pricing models.
- Explain the purpose of financial statement analysis in an efficient market.
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 Sections of the chapter:
- Business analysis.
- Financial statements - basis of analysis.
- Overview of financial statement analysis
 References
K.R.Subramanyam; Financial Statement Analysis (11th Edition); Mc Graw-Hill Irwin;
2014. (Chapter 1).

Chapter 2: Competitive strategy analysis of the firm

 Teaching units: 5
 Chapter Aims:
- Understand industry-level analysis.
- Understand competitive strategy analysis.
- Understand corporate strategy analysis.
 Sections of the chapter:
- Industry-level analysis.
- Competitive strategy analysis.
- Corporate strategy analysis.
 References
Krishna G. Palepu and Paul M. Healy; Business Analysis & Valuation: UsingFinancial
Statements (5th Edition); South-Western, Cengage Learning; 2013. (Chapter 2).

Chapter 3: Overview of accounting analysis

 Teaching units: 5
 Chapter Aims:
 Understand the institutional framework for financial reporting.
 Understand factors influencing accounting quality.
 Understand steps in performing accounting analysis.
 Understand Accounting Analysis Misconceptions.
 Sections of the chapter
- The institutional framework for financial reporting.
- Factors influencing accounting quality.
- Steps in performing accounting analysis.
- Accounting Analysis Misconceptions.
 References
Krishna G. Palepu and Paul M. Healy; Business Analysis & Valuation: UsingFinancial
Statements (5th Edition); South-Western, Cengage Learning; 2013. (Chapter 3).

Chapter 4: Financial analysis

 Teaching units: 25
 Chapter Aims:
- Define the objectives of financial statement analysis.
- Define standards for analyzing financial statements.
- Clarifying data sources for financial statement analysis.
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- Realize the influence of accounting on financial statements
- Apply horizontal analysis, trend analysis, vertical analysis.
- Apply short-term solvency, long-term solvency, profitability analysis, market analysis.
 Sections of the chapter
- Objectives of financial statement analysis.
- Standards for analyzing financial statements
- Data sources for financial statement analysis
- Influence of accounting on financial statements
- Financial statement analysis methods
 Horizontal Analysis
 Trend Analysis
 Vertical Analysis
 Ratio Aanalysis
- Apply ratio analysis
 Evaluating short-term solvency
 Evaluating long-term solvency
 Evaluting operational efficiency
 Evaluting profitability
 Evaluting cash flows
 Market test ratio
 References:
Management Devision, Accounting and Auditing Faculty, University of Economics Ho
Chi Minh City; Business analysis; UEH publishing house; 2015. (Chapter 5).

Chapter 5: Prospective analysis

 Teaching units: 20
 Chapter Aims:
- Describe the importance of prospective analysis.
- Explain the process of projecting the income statement, the balance sheet, and the
statement of cash flows.
- Discuss and illustrate the importance of sensitivity analysis.
- Describe the implementation of the projection process for valuation of equity securities.
- Discuss the concept of value drivers and their reversion to long-run equilibrium levels.
 Sections of the chapter
- Projecting financial statements.
- Application of prospective analysis in the residual income valuation mode.
- Trends in value drivers.
 References:
K.R.Subramanyam; Financial Statement Analysis (11th Edition); Mc Graw-Hill Irwin;
2014. (Chapter 9)

IV. EVALUATION:
- Learning process evaluation: 50%.
Mid-term exam for individual or group
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Group discussion in class
Attendance
- Final exam: 50%.

V. LEARNING SCHEDULE:

Week Topic
1 Chapter 1: Overview of financial statement analysis
2 Chapter 2: Competitive strategy analysis of the firm
3 Chapter 3: Overview of accounting analysis
4 Chapter 4: Financial analysis – Part 1
5 Chapter 4: Financial analysis – Part 2
6 Chapter 4: Financial analysis – Part 3
7 Chapter 4: Financial analysis – Part 4
8 Chapter 4: Financial analysis – Part 5
Mid-term exam
9 Chapter 5: Prospective analysis – part 1
10 Chapter 5: Prospective analysis – part 2
11 Chapter 5: Prospective analysis – part 3
12 Chapter 5: Prospective analysis – part 4