COMSATS Institute of Information Technology

Course Outline
Semester: Program: Course Title: Credit Hours: Course Instructor: Email: COURSE DESCRIPTION
This is a foundation course in finance, designed to develop the ability to use basic tools of analysis required by financial managers. Topics include cash flow analysis, ratio and performance analysis, and management of working capital and valuation techniques. Course objectives include: To develop analytical approach to financial statements. To equip students with adequate knowledge on business finances To develop skills in

Fall 2012 BBA - 7th & 8th

Financial Statement Analysis

Three [3] shahab u din shahab@ciitwah.edu.pk

TEACHING STRATEGIES
The course will be presented in 2 x 1.30 hour lectures per week for the duration of the semester. The lecture will involve the presentation of material by the lecturer, throughout which student participation and involvement is encouraged. Depending on the nature of the topic, students will also be given the opportunity in class to work through selected problems and cases both individually and in groups

STUDENTS RESPONSIBILITIES
1. 2. 3. 4. 5. student must go through the assigned readings before coming to the class Students are required to attend all the classes; minimum attendance requirement is 80%. They are fully responsible for the information missed in the class due to absence the class participation in the class Quizzes will be surprise in class quizzes and there will be no make-up for missed quizzes Students are required to write a project report on the working and impact of various International Financial Institutions on Pakistans economy

TEXT BOOK & SUPPORTING MATERIALS Prescribed Text:

Financial Statement Analysis By Gibson (latest edition)

Reference Texts:
James C. Van Horne (2002) Financial Management & Policy, Twelfth Edition, Prentice Hall, New Jersey USA Financial Statement Analysis By Jhon . J Waild.

Web pages http://www.oup.com/uk/orc/bin/9780199587414/01student/questions/

http://www.accountingcoach.com/online-accounting-course/04Xpg01.html http://faculty.cbpp.uaa.alaska.edu/afrfb/acct201/PracExams.htm http://brainmass.com/business/accounting-business-analysis-financial-reporting/401202 http://www.accountingformanagement.com/liquid_ratio.htm http://www.studyfinance.com/lessons/leverage/ IASplus.com CONTENT SUMMARY

TOPICS Introduction/ Overview CONTENTS Introduction to Financial Report Introduction to Business Analysis, Types of Analysis, Component of Analysis, Basic Concepts of GAAP, Financial Accounting Financial Reporting and Analysis Standards. Form of Business Entities, The Financial statements, Balance sheet (Statement of Financial Position),Income statement, Cash flow statement Ratio analysis, Common Size Analysis ( Horizontal and Vertical ), Year to Year Change Analysis ,Review and Analysis of Liquidity of ShortTerm Assets Debt Ratio Management Descriptive Information ,Questions and Problem Current Assets, current Liabilities and the Operating Cycle, Current Assets compared with Current liabilities, Chapter Week 6 ,Questions and Problem Income Statement Consideration when Determining Long term Debt paying Ability, Balance sheet Consideration when Determining Long term Debt paying Ability, Special Items that Influence a Firms Profitability Analysis and Leverage Analysis Market Analysis (Investors Analysis) long-term Debt-Paying Ability, Chapter Week 7 ,Questions and Problem Profitability Measures, Trends in Profitability, Comprehensive Income, Pro Forma Financial Information, and Leverage Analysis Operating leverage, Financial Leverage. Leverage and its Effects on Earnings, Earnings per Common Share, Price /Earnings Ratio, Percentage of Earnings Retained Market/Book Ratio, Dividend payout Ratio, Book Value per share Stock Options ( Stock Based Compensation), Restricted Stocks Statement of Cash Flow Analysis Chapter end ,Questions and Problem Basic Elements of the statement of Cash of cash Flows, Procedure for the development of the statement of cash Flows, Financial Ratios and the Statement of Cash Flows , Chapter end ,Questions Expanded Analysis and Problem Financial Ratios as Perceived by Commercial banks, Corporate Controllers, Certified Public Accountants and Earnings ,Forecasting by Charted Financial Analysis, Degree of Conservatism and Quality of Financial Failure, Analytical Review Week 12 Week 10-11 Week 8-9 Week 5 Week 4 Week 2-3 SESSIONS Week-1

Basic Analysis

Procedures,

Graphing

Financial

Information,

Chapter

end

,Questions and Problem Case study Research Article and

Performance; Technology in

Commercial Banking; Regulators; Global Issues. Nike, Inc. case study: Analysis includes 2007 Financial statements to 2010. Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy Edward I. Altman The Journal of Finance, Vol. 23, No. 4. (Sep., 1968), pp. 589609

Week 13

Personal Statements Accounting

Financial and for and

Personal Financial Statements, Accounting for Government Accounting Governments for Non-Profitable Organizations other than

Week 14

Governments Not-for-Profit

Organization Financial Ratios for Special Industries

Banks, Regulated Utilities, Oil and Gas Transportations, Insurance Real Estate Companies, Chapter end ,Questions and Problem

Week 15-16

SUMMARY OF ASSESSMENT
Item 1. 2 3. 4. 5. Assessment Task Quizzes Project/Assignmen t 1st sessional 2nd sessional Final Examination 2 hours Length 5 x 15 mins 200 400 words 1 hour 30 mins Weighting 10% 15% 10% 15% 50% Due Day and Time Various Weeks in Class In Week 12 Date announced University Date announced University by by

During formal examination period

SUBMISSION AND PROCESSING OF ASSIGNMENTS

All submissions for assessment (unless otherwise directed by the Course Convenor) must be word processed with Times New Roman font 12 pt, 1.5 or double line spacing. Leave a margin of 3 cm on the left for marker comments. All students are required to keep a copy of their assessment item until it is marked and returned to them. Where this is not possible students should, at the very least, keep rough notes used in the preparation of the assignment. Marked assignments should be kept until the final grade has been awarded.

ATTENDANCE POLICY

COMSATS attendance policy will be follow.