Handbook

This course introduces the analytics tools used in the analysis of financial statements. It extends beyond the accounting process to enable students to identify and understand the economic reality behind the accounting numbers used in financial statements. Focusing on real world examples, the quality of financial statement information is comprehensively examined to detect and correct any distortions necessary to improve the economic content of the financial statements, including their comparability.

Quantitative analytical tools are then used to conduct detailed financial analysis of corporate profitability and risk. The accounting and financial analysis skills acquired in the course are essential in making successful decisions in numerous business contexts, including the evaluation of financial performance, the identification of sources of value creation, risk and credit assessment, and in assessing the achievement of financial targets and strategic goals. Relevant topics include: the national and international framework for financial accounting; the accrual concept and financial reporting and earnings quality; long-lived assets, income taxes, and off-balance sheet activities, stock compensations, pensions and other employee benefits, financial assets and derivatives, inter-corporate investments, business combinations and multinational operations.