FACULTY OF BUSINESS

AND LAW

M17EFA
Financial Statement Analysis

Module Guide 2016-17 (September start)

1. Module introduction

The module focuses primarily on the format and content of published financial statements by
public limited companies and its detailed aims are to:

 Enable students to develop the knowledge and skills necessary to understand the
content and format of published financial statements
 Develop the skills necessary to critically analyse and interpret financial statements and
become aware of their limitations.
 Utilise a number of techniques to establish the value of a company

If you have a disability or medical condition and need an adjustment to allow you to fully
participate in this module (e.g. different format of literature, clear communication for lip
reading, breaks for medication, etc.) please tell your lecturer so that arrangements may be
made.

2. Module tutor, contact details and office hours

Module Leader Room E-mail Telephone

Dr.Isaiah Oino WM427 ac3497@coventry.ac.uk 024 7688 3425

Other Lecturers
Mr Danny Ryan WM224 aa7829@coventry.ac.uk 024 7685 8473
Mrs Emily Jobling WM221 ac1575@coventry.ac.uk 024 7685 7894
Mr Amanze Ejiogu WM435 Ac1112@coventry.ac.uk 024 7685 8463

3. Teaching plan

This module is delivered as follows:

a) Weekly lectures and seminars

Each week you have a two hour lecture and a one hour seminar. Often the content of a
lecture builds on what was covered during the previous week. Seminar questions will

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 be handed out during each lecture and you will be required to prepare solutions to
these for discussion in seminars during the following week.

As a general rule a new topic(s) is introduced during each lecture and you test your
understanding of this and demonstrate your learning in preparing for and by attending
seminars. In order to successfully complete this module it is therefore essential that you
attempt to produce solutions to all seminar questions.

b) Personal study
In order to fully understand the various techniques and models that we study in class
you will be required to review class material, read chapters in recommended text books,
and work through practice questions in your own time. In general for each hour in class
you need to spend at least two-three hours on personal study

To complete this module successfully, attendance at all classes is advised. Students are also
expected to work independently, undertake any required background reading or practice
exercises and actively participate in seminars or other small group work.

During the module we will cover the following topics:

Week Topic Melville

commencing
03rd Oct 2016 Introduction to M17EFA Chapters 1-4
Accounting terminology / IAS1 (revised) Chapters 1-4
10th Oct 2016
Presentation of financial statements
IASB Framework / Published Financial Statements
17th Oct 2016 Chapters 1-4
(Next plc annual report)
Interpretation of financial statements – Trend
24th Oct 2016 Chapter 22
analysis and profitability ratios
Interpretation of financial statements – Profitability Chapter 22
31st Oct 2016
/ Liquidity / Efficiency ratios
Interpretation of financial statements – Capital Chapter 22
7th Nov 2016
Structure and Investor ratios
14th Nov 2016 The importance of intangible non-current assets Chapter 6
IAS 27 / IFRS 3 Preparation of consolidated financial Chapter 18
statements 1
21st Nov 2014  Goodwill
 Consolidated retained earnings
Non-controlling interest
28th Nov 2016 In class phase test. 1st December 2013. Time 16.00
IAS 27 / IFRS 3 Preparation of consolidated financial
statements 2
5th Dec 2016 Chapter 18
 More advanced adjustments
 exam briefing
Easter break
12th Dec 2016 Revision

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 TBC Exam period

Note: the teaching plan is to be taken as an indication of topics only, and may be subject to
slight variation. Students will be given sufficient notice of any significant changes.

4. Intended module learning outcomes

The intended learning outcomes are that upon completion of this module students should be
able to:

1. Understand the content and purpose of a company’s financial statements and

annual report and critically discuss whether this meets the needs of various user
groups.
2. Apply a range of accounting techniques to analyse and interpret financial
statements and use these to critically evaluate company performance.
3. Examine the problems of attaching monetary values to intangible non-current
assets and how this impacts on the usefulness of financial statements.
4. Prepare a consolidated statement of financial position for a company with one
subsidiary in accordance with the requirements of International Financial Reporting
Standards.

5. Assessment

Assessment is as follows:
Learning outcomes Weighting
assessed
In class test 1,2 30%
Two hour closed book exam 1,2,3,4 70%

Further details of the in class test will be provided during lectures.

It is likely that the examination will be in a similar format to that of previous years. If there is
any change to this, students will be notified in good time. A revision session and exam briefing
will take place during the final lecture.

6. Moodle

Students enrolled on this module will have access to lecture notes via Moodle (CU Online). The
following will be available on the M17EFA Moodle pages:
 Lecture handouts
 Seminar questions and (where available) solutions
 Coursework Assignment
 Provisional coursework grades
Notices will be posted on the Moodle page so students need to access this regularly.

Lecture material and seminar questions are available on Moodle. Solutions will be available
after all seminars on that particular topic have taken place. Note that detailed solutions to

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examples used in the lecture and seminar exercises are only available by attending the
lecture/seminar.

To save paper when printing a PowerPoint file, you are advised to print slides double sided, 3
or 6 to a page.

7. Module resources

The essential textbook(s) recommended for purchase is / are:-

Author Date/ Title Publisher Library shelf
Edition number
International Financial Reporting:
Melville, A. 2014/ 4th edition Prentice Hall 657.3MEL
A practical Guide

Other useful texts include:

Author Date/ Title Publisher Library shelf

Edition number
Alexander,
2011 / International Financial
Britton & Thomson Learning 657.3 ALE
5th edition Reporting and Analysis
Jorissen
Alexander & 2013 / Financial Accounting: An
Prentice Hall 657 ALE
Nobes 5th edition International Introduction
2007 /
Applying International
Alfredson et al enhanced Wiley 657.30218 APP
Financial Reporting Standards
edition
Atrill and 2011 / 6th Financial Accounting for FT Prentice Hall 657.48ATR
McLaney Edition decision makers
2010 / Accounting for Non-
Dyson th FT Prentice Hall 657 DYS
8 edition Accounting Students
2013 /
Financial Accounting and
Elliott & Elliott 16th Pearson Education 657.48 ELL
Reporting
edition
2011 / Business Accounting and
Gowthorpe Thomson Learning 657 GOW
3rd edition Finance for Non-Specialists
Holmes,
2008 /10th Interpreting company reports
Sugden and FT Prentice Hall 657.3 HOL
edition and accounts
Gee
The FT Guide to Using and
2010 / 4th
McKenzie Interpreting Company FT Prentice Hall 657.95 MCK
edition
Accounts
Holmes, Sugden and Gee and McKenzie are excellent texts on interpretation
Maynard 2013 Financial Accounting, Oxford University
Reporting, and Analysis Press
rd
Picker et al 2012 / 3
(replaced edition Applying International
Wiley
Alfredson et al Financial Reporting Standards
above)

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 Weetman 2013 / Financial Accounting – An FT Prentice Hall 657 WEE
th
6 edition introduction
2015 /
Wood
13th Business Accounting 1 Pearson Education 657 WOO
& Sangster
edition

2015 /
Wood
13th Business Accounting 2 Pearson Education 657 WOO
& Sangster
edition

Useful web sites include:

Site url Comments

Annual reports http://www.carol.co.uk/index.php Annual reports for companies (you
need to register in order to access
reports)
PQ magazine http://www.pqmagazine.com/ Magazine for accountancy students
CCH http://www.cch.co.uk Full text of accounting standards
username: coventry_cch and company legislation (CA
password: coventry07 1985/1989)
FAME http://www.fame.bvdep.com Company accounts, ratios, activities,
ownership and management for UK
and Irish companies
Financial Times http://fti.ar.wilink.com/asp/ Free service for investors seeking
Annual Report FTI2_search_ENG.asp stock research and financial
Service information
UK 15000 http://www.uk15000.co.uk/index.php Full business profiles and
downloadable business lists