Differently from a Financial Accounting course that provides an understanding of the principles and methods for the preparation of financial statements, this course focuses 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 brings accounting and finance together for business valuation. Students should have a good understanding of financial accounting principles (the balance sheet, income statement, and cash flow statement, the difference between cash accounting and accrual accounting, revenue recognition)

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 program of the course is in two main parts. 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 business evaluation methods

Slides (PHP) Palepu, K.G., Healy P.M., Peek, E. (2015), Business Analysis and Valuation: IFRS Edition, Cengage Learning (4th Edition) – 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. (2015), Finance for Executives, Cengage Learning (5th Edition) - 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

Attending students are evaluated on the basis of 30 points: - MID-TERM Examination (30% weights) (counting 9/30 points) - PROJECT WORK Oral Presentation (30% weights) (counting 9/30 points) - Final Written examination (30% weights) that lasts 1 hour (60 minutes) (counting 9/30 points) - Active Participation in-class (10% weights) (counting 3/30 points) Notice that (1) the “cum laude” will be attributed only in case a student gets an overall grade of 30 without any rounding RULES OF ATTENDING STUDENTS: Attending students are required to be physically present at the mid-term examination Students who are not physically present in class at the mid-term become automatically Non-Attending. Attending students can not reject the mid-term grade Students must be physically present at the final written examination. Attending students can reject the final examination grade keeping the status of “attending” until September 2024 session (included) NON ATTENDING STUDENTS are evaluated through a Written examination that lasts 1 ½ hours (90 minutes) More detail information will be available at the beginning of the course.

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). In addition, students must present a list indicating the exams passed to date (please indicate CFU and relative grades). The rule “first come first serve” is not applicable. The student/research project selection will be made based on the thesis project and only after the above mentioned deadline.