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
Dr.Isaiah Oino
Other Lecturers
Mr Danny Ryan
Mrs Emily Jobling
Mr Amanze Ejiogu

Room
WM427

E-mail
ac3497@coventry.a
c.uk

WM224 aa7829@coventry.a
c.uk
WM221 ac1575@coventry.a
c.uk
WM435 Ac1112@coventry.a
c.uk

3. Teaching plan
This module is delivered as follows:
a) Weekly lectures and seminars
1

Telephone
024 7688 3425

024 7685 8473

024 7685 7894
024 7685 8463

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 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
commencing
03rd Oct 2016
10th Oct 2016
17th Oct 2016
24th Oct 2016
31st Oct 2016

7th Nov 2016

14th Nov
2016
21st Nov
2014
28th Nov
2016
5th Dec 2016

Topic

Melville

Introduction to M17EFA
Accounting terminology / IAS1 (revised)
Presentation of financial statements
IASB Framework / Published Financial
Statements (Next plc annual report)
Interpretation of financial statements
Trend analysis and profitability ratios
Interpretation of financial statements
Profitability / Liquidity / Efficiency ratios
Interpretation of financial statements
Capital Structure and Investor ratios
The importance of intangible non-current
assets
IAS 27 / IFRS 3 Preparation of consolidated
financial statements 1
Goodwill
Consolidated retained earnings
Non-controlling interest

Chapters 1-4
Chapters 1-4
Chapters 1-4
Chapter 22
Chapter 22
Chapter 22

Chapter 6
Chapter 18

In class phase test. Details will be

communicated during the lecture.
IAS 27 / IFRS 3 Preparation of consolidated

Chapter 18

financial statements 2
More advanced adjustments
exam briefing
Easter break
12th Dec 2016

Revision

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.
2.
3.

4.

Understand the content and purpose of a companys financial statements and

annual report and critically discuss whether this meets the needs of various user
groups.
Apply a range of accounting techniques to analyse and interpret financial
statements and use these to critically evaluate company performance.
Examine the problems of attaching monetary values to intangible non-current
assets and how this impacts on the usefulness of financial statements.
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:

In class test
Two hour closed book exam

Learning
outcomes
assessed
1,2
1,2,3,4

Weighting
30%
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
3

 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 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
Edition
Melville, A.

International Financial
Reporting: A practical
Guide

2014/ 4th
edition

Prentice Hall

Library
shelf
number
657.3MEL

Other useful texts include:

Author
Alexander,
Britton &
Jorissen

Date/
Edition

2011 /
5th
edition
2013 /
Alexander &
5th
Nobes
edition
2007 /
Alfredson et al enhance
d edition
Atrill and
2011 /
McLaney
6th
Edition
2010 /
Dyson
8th
edition
2013 /
Elliott & Elliott 16th
edition
2011 /
Gowthorpe
3rd
edition
Holmes,
2008 /

Title

International Financial
Reporting and Analysis

Publisher

Thomson
Learning

Financial Accounting: An
Prentice Hall
International Introduction
Applying International
Financial Reporting
Standards
Financial Accounting for
decision makers

Library
shelf
number
657.3 ALE
657 ALE

Wiley

657.30218 APP

FT Prentice Hall

657.48ATR

Accounting for NonAccounting Students

FT Prentice Hall

657 DYS

Financial Accounting and

Reporting

Pearson
Education

657.48 ELL

Thomson
Learning

657 GOW

Business Accounting and

Finance for NonSpecialists
Interpreting company

FT Prentice

657.3 HOL

10th
reports and accounts
Hall
edition
2010 / The FT Guide to Using
FT Prentice
McKenzie
4th
and Interpreting
657.95 MCK
Hall
edition
Company Accounts
Holmes, Sugden and Gee and McKenzie are excellent texts on
interpretation
Maynard
2013
Financial Accounting,
Oxford
Reporting, and Analysis
University
Press
Picker et al
2012 /
Applying International
(replaced
3rd
Financial Reporting
Wiley
Alfredson et
edition
Standards
al above)
Weetman
2013 /
Financial Accounting
FT Prentice Hall 657 WEE
6th
An introduction
edition
2015 /
Wood
Pearson
13th
Business Accounting 1
657 WOO
& Sangster
Education
edition
Sugden
and Gee

Wood
& Sangster

2015 /
13th
edition

Business Accounting 2

Pearson
Education

657 WOO

Useful web sites include:

Site
Annual
reports

url
http://www.carol.co.uk/index.php

PQ magazine

http://www.pqmagazine.com/

CCH

http://www.cch.co.uk
username: coventry_cch
password: coventry07
http://www.fame.bvdep.com

FAME

Financial
Times Annual
Report
Service
UK 15000

http://fti.ar.wilink.com/asp/FTI2_se
arch_ENG.asp
http://www.uk15000.co.uk/index.p
hp

Comments
Annual reports for companies
(you need to register in
order to access reports)
Magazine for accountancy
students
Full text of accounting
standards and company
legislation (CA 1985/1989)
Company accounts, ratios,
activities, ownership and
management for UK and
Irish companies
Free service for investors
seeking stock research and
financial information
Full business profiles and
downloadable business lists