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 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 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 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. (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.

Students are required to attend classes. Students are required to prepare and discuss a project work. The Professor will randomly choose the Students to form the groups (of 7-9 members each) and assign to each group a company for the project work. Students are evaluated on the basis of 32 points: Written examination that weights 65% (counting 21/32 points) Project Work weights 35%. (counting 11/32 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.

THe main criteria is "attitude towards research" Who can apply? - Students who have passed the exam without a grade rejection - Students that present a structured proposal of their thesis project

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