The focus of the course is about on the use of the financial statements, particularly for analysis and valuation. Students will see the accounting “come to life” as they apply it in the world of financial analysts and for valuation issues. In this course, we learn how to use accounting and financial information for the analysis of corporate financial performance and for equity valuation. The course will be taught with a view to designing techniques to be used in analyzing financial statements with financial analysis and evaluation purposes for acquisitions, restructurings and other investments, and for calculating the value generated by strategic scenarios. By the end of the course, the student will be able to conduct a financial analysis, evaluate equity investments using the firm’s fundamentals and write a thorough, credible equity research report or investment analysis.

The course is designed to provide students with conceptual background and analytical tools necessary to evaluate financial statements issued by private and public companies. It focuses on understanding the uses and the limitation of both the financial statements and the traditional and non-traditional methods used in analysing them. We will discuss the financial statements, the differential effects of alternative accounting principles and their effects on reported performance, and the interpretation of financial information. The course compasses lectures, working and analysing case studies, presentations and class discussions. Every participant of the course is supposed to contribute actively to an interactive dialogue and a positive learning environment. We will have traditional lectures (50%) and cases studies and/or practical work (50%). Students will be better able to make judgements about the firm’s financial position, analyse cash flows and earnings quality, discover hidden assets and liabilities, and assess the overall performance of a firm. In each module you are provided with the technical and practical knowledge to apply methods and methodologies for financial statement analysis using excel. By working in groups, you will create and develop an excel file to Reformulate Financial Statements and calculate financial ratios. Upon completion of this course, you will be able to complete the following key tasks: Analyse financial statements; Calculate Financial Ratios; Interpret Financial Statements; Prepare a Financial Report; Set up a presentation.

The course is designed to provide students with the conceptual background and analytical tools necessary to conduct a financial statements analysis and write a financial analyst report. The first part focuses on financial statement analysis. We will deal with financial statements analysis looking at the differential effects of alternative accounting principles and their effects on reported performance. This part is designed to provide students with the conceptual background and analytical tools necessary to evaluate financial statements. In the second part of the course, we present the main limitation of traditional financial performance. We introduce the main non-accounting based performance measures like the economic profit (Economic Value Added) and how these measures are used in the real word to valuate firms starting from accounting data.

(PHP) Palepu, K.G., Healy P.M., Peek, E. (2022), Business Analysis and Valuation: IFRS Edition, Cengage Learning – Chapter 1 (P) Penman, S.H. (2013), Financial Statement Analysis and Security Valuation, McGraw-Hill (5th Edition – International Edition) - Chapters 1, 3, 5 and 14 (HW) Hawawini, G., Viallet, C. (2022), Finance for Executives, Cengage Learning - Chapters 4, 5, 6

On line sessions focus on the main concepts and elements on financial statement analysis and non-accounting performance measures. The aim of these sessions is to present concepts and approaches. On campus sessions. During the on campus sessions, we emphasize the practical activity by the students through exercises and case studies. On line sessions are usually set in a way that permits students have time to study the theory used in the session that has been presented in the previous classes. Students are encouraged to engage in discussions with peers and professors, using the “on campus sessions” as applications of theory.

Students are required to prepare and discuss a project work. Students are evaluated on the basis of 33 points: Written examination that lasts 1½ hours weights 30% (counting 10/33 points) Project Work weights 70%. (counting 23/33 points). Peer evaluation of the teams will be also conducted and it will count for the individual project work evaluation. More detail information will be available at the beginning of the course.

Evaluation of the applications will take place. Who can apply? - Students who have passed the exam without a grade rejection Students have to prepare a thesis proposal based on a short presentation (maximum 3,000 words in .doc) which must include: - Object (research question, business scope/market or industry/product or service) - Research objective - Short literature review - Main contribution of the research (in relation to the above mentioned literature) - Research Method/Data Collection In addition, students must present a list indicating the exams passed to date (please indicate CFU and relative grades). In case the project has not been selected, the student can be assigned to another thesis (if there are slots still available) identified with the assistance of the supervisor. The rule “first come first serve” is not applicable. The student/research project selection will be made based on the thesis project.