Differently from a traditional Financial Accounting course that mainly focuses on the preparation of financial statements, this course emphasizes the use of financial and non-financial information for performance analysis, business valuation and strategic decision-making. Students will learn how accounting information “come to life” in the world of financial analysts, investors and corporate managers. The course provides conceptual and practical tools to analyse financial statements, interpret ESG indicators, evaluate corporate performance and assess investment opportunities through both traditional and sustainability-oriented perspectives. By the end of the course, students will be able to conduct financial and ESG analysis, critically evaluate equity investments using firms’ fundamentals and sustainability performance, and prepare a thorough and credible financial and sustainability-oriented investment report.

By the end of the course, students will be able to analyse financial statements, interpret financial and ESG performance indicators, evaluate corporate performance and conduct basic business valuation activities. Students will also develop the ability to critically assess investment opportunities and prepare financial analysis reports integrating both financial and non-financial information.

The course provides students with the conceptual background and analytical tools necessary to analyse financial statements, evaluate corporate performance and conduct business valuation activities. Particular attention is devoted to the integration between financial reporting and ESG/sustainability reporting, focusing on how financial and non-financial information contribute to performance measurement, risk assessment and long-term value creation. The course covers financial statement analysis, profitability and liquidity analysis, cash flow analysis, financial ratio interpretation, business valuation models and ESG performance indicators.

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

Sessions focus on the main concepts and elements on financial reporting, performance and non-financial measures. We emphasize the practical activity by the students through exercises and case studies. Students are encouraged to engage in discussions with peers and professors.

ATTENDING STUDENTS are evaluated on the basis of 30 points: 1.CONTINUOUS ASSESSMENT: PROJECT WORK Oral Presentation (1/3 weights) 2.FINAL EXAMINATION: WRITTEN EXAMINATION (2/3 weights) that lasts 90 minutes Notice that the “cum laude” will be attributed only in case a student gets an overall grade of 30 without any rounding. Attendance is mandatory for at least the 70% of the classes. Students who do not reach this threshold will be considered and assessed as not compliant (see «Practical Guide for Luiss Graduate School Faculty») NON-ATTENDING STUDENTS are evaluated through a Written examination that lasts 120 minutes

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).