Analysis of Financial Statements

Rustom Kavasji

Class 1

Agenda for Class 1

Introduction & Course Objectives Grading Course Material

Class Attendance, Discipline and Punctuality

Review Course Outline, Select CR, Fill out Contact Information Forms Overview of Financial Statements

Course Objectives
By the end of this course you should be able to:

Explain the role of GAAP and IFRS in accounting Prepare financial statements Interpret financial information Understand limitations of financial information Develop a forensic approach to financial analysis Be familiar with an Annual Report Understand and use financial ratios Apply Advanced Financial Analysis Techniques Make business decisions based on financial data Build a business case for prospective investors
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Grading
Class Participation / Assignments (20%) Qualitative Interactive Term Project (30%) Class Presentation (15%) Written Term Report (15%) Mid Term (20%) Combination of case analysis and short questions Final Exam (30%) Combination of case analysis and short questions Comprehensive

Grading for this course will be absolute not relative

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Class Participation & Term Project

The Presenter / Group
1 2
3
Corporate Executive seeking funding Investment Advisor approaching Client

Class Investors Or Clients

Equity Financial Analyst working for agency

Class Participation & Term Project

C L A S S P A R T I C I P A T I O N I N V E S T O R S

Attack Them!
1.
2.

3.

4. 5.

Select Annual Report of any public (i.e. shares traded on KSE) company during FYs 2010 2011 Prepare a detailed analysis of the company for presentation in class. You must pick a company that you would invest in and prepare an overall analysis of why you would invest in that corporation for a minimum of 3 5 years. Multidimensional Analysis Industry Analysis Potential for future growth and success Liquidity Risk & Reward Competitor Analysis If possible interview top management or executives of that corporation (optional but likely to enhance your score) Present & defend conclusions in class + written term report
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Class Participation & Term Project

Company Selection Presentations Written Report
First Come First Serve. Initial proposal to be submitted by the 5th session of the course.
The class and myself must be provided a photocopy of the annual report of your selected company, at least one session before your presentation

All written reports to be submitted by the 25th session of the semester

All written submissions relating to term project must be printed not hand written

Course Material
PowerPoint Presentations Prescribed Text and handouts Class Exercises Class Discussions
TA: Mahmood Hussain Email: mehmud.hussain@gmail.com Cell: 0333-388-7662

Class Discipline, Attendance & Punctuality

Maximum of four absences allowed for this course (four for
morning students) Attendance is required for the full session. Late arrival is treated as an absence

No talking

in class, except during class participation

Cell phones are to be switched

off during class

Preparation for class and completion of all designated assignments is required. Late assignments will be penalized.
All students MUST check email every day

Class Attendance, Discipline and Punctuality (Continued)

Rustom Kavasji Email: rkavasji@iba.edu.pk
Cell number:

(0307) 276-2606

Classes are rescheduled by me only in special circumstances. If you do not hear from me by email, you should assume that classes are being held as per schedule.
Sickness Important IBA Meeting requiring my participation Family emergency Trouble in the city

Course Outline, CR and Contact Information

Course Outline Selection of CR Contact Information of all Students

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Overview of Financial Statements

What are financial statements? Objectives of financial statements Who prepares them Who are the users Understanding financial statements with its basic assumptions and concepts

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