Financial Statement Analysis and Reporting Course Code: FIN 315

Course Title:

Financial Statement Analysis and Reporting

Course Code:

FIN 315

Program:

BSc Finance

Department:

Finance

College:

College of Business Administration

Institution:

Prince Sultan University

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Table of Contents

A. Course Identification 3

6. Mode of Instruction (mark all that apply) 3

B. Course Objectives and Learning Outcomes 3

1. Course Description 3

2. Course Main Objective 3

3. Course Learning Outcomes 3

C. Course Content 4

D. Teaching and Assessment 4

1. Alignment of Course Learning Outcomes with Teaching Strategies and Assessment

Methods 4

2. Assessment Tasks for Students 4

E. Student Academic Counseling and Support 5

F. Learning Resources and Facilities 5

1.Learning Resources 5

2. Facilities Required 5

G. Course Quality Evaluation 5

H. Specification Approval Data 6

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A. Course Identification

1. Credit hours:

2. Course type

University

College

Department

Others

Required

Elective

3. Level/year at which this course is offered:

Year 3, Semester 2

4. Pre-requisites for this course (if any):

FIN210, ACC111

5. Co-requisites for this course (if any):

N/A

6. Mode of Instruction (mark all that apply)

Mode of Instruction

Contact Hours

Percentage

Traditional classroom

100%

Blended

E-learning

Distance learning

Other

7. Contact Hours (based on academic semester)

Activity

Contact Hours

Lecture

40-45

Laboratory/Studio

Tutorial

Others (specify)

0-5

Total

B. Course Objectives and Learning Outcomes

1. Course Description

This course aims to provide students with a comprehensive framework for analyzing and

forecasting financial statements to evaluate the performance of companies. Topics include

financial ratios, market multiples, the effect of different accounting methods on financial

analysis, financial reporting quality, and forecasting financial statements.

2. Course Main Objective

The main objective of the course is to discuss advanced questions in financial statement

analysis, including financial ratios, market multiples, the effect of different accounting

methods on financial analysis, financial reporting quality, and forecasting financial

statements.

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3. Course Learning Outcomes

CLOs

Aligned

PLOs

Knowledge and Understanding

1.1

Describe the effect of different accounting methods on financial ratios.

1.2

Explain financial reporting quality and methods for detecting manipulation of

information in financial reports.

Skills

2.1

Compute and analyze the performance of companies using financial ratios and

market multiples

2,3,5b

2.2

Apply appropriate analyst adjustments to the financial statements to account

for different accounting methods and irregular circumstances.

2,3,5b

2.3

Forecast a company’s future income and balance sheet statements

2,3,5b

2.4

Demonstrate an ability to convey ideas and concepts effectively through oral

and written communications

4a,4b

Values

3.1

Demonstrate ability to make ethical financial decisions relevant to all

stakeholders

C. Course Content

List of Topics

Contact

Hours

Overview of the Course

Introduction to Financial Statement Analysis Steps and Methods

Financial Ratios

(Including profitability, efficiency, leverage, coverage, liquidity, zakat and

taxation, and cash flow ratios)

Market Multiples and Valuation

Accounting Methods and Appropriate Analyst Adjustments

(Including revenue recognition methods, inventory valuation methods,

depreciation and amortization methods, valuation allowance for deferred tax

assets, and capitalizing versus expensing costs)

7.5

Forecasting Financial Statements and DCF Valuation

7.5

Financial Analysis Application in Credit Analysis and Models

(Including Altman’s Z models for public and private corporations)

4.5

Financial Reporting Quality and Manipulation

(Including methods for detecting manipulation of information in financial

reports.)

4.5

Total

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D. Teaching and Assessment

1. Alignment of Course Learning Outcomes with Teaching Strategies and Assessment

Methods

Code

Course Learning Outcomes

Teaching Strategies

Assessment Methods

1.0

Knowledge and Understanding

1.1

Describe the effect of different

accounting methods on financial ratios.

Lectures, cases and

theoretical discussions

Discussions, quizzes,

homework and/or

exams

1.2

Explain financial reporting quality and

methods for detecting manipulation of

information in financial reports.

Lectures, cases and

theoretical discussions

Discussions, quizzes,

homework and/or

exams

2.0

Skills

2.1

Compute and analyze the performance of

companies using financial ratios and

market multiples

Lecture, cases,

discussions and

problem solving

Discussions, quizzes,

homework, project

and/or exams

2.2

Apply appropriate analyst adjustments to

the financial statements to account for

different accounting methods and

irregular circumstances.

Lecture, cases,

discussions and

problem solving

Discussions, quizzes,

homework, project

and/or exams

2.3

Forecast a company’s future income and

balance sheet statements

Lecture, cases,

discussions and

problem solving

Discussions, quizzes,

homework, project

and/or exams

2.4

Demonstrate an ability to convey ideas

and concepts effectively through oral and

written communications

Lecture, cases,

discussions and

problem solving

Discussions and

project

3.0

Values

3.1

Demonstrate ability to make ethical

financial decisions relevant to all

stakeholders

Lecture, cases,

discussions and

problem solving

Discussions, quizzes,

homework and/or

exams

2. Assessment Tasks for Students

Assessment task*

Week Due

Percentage of Total

Assessment Score

Quizzes

Throughout the semester

0-10%

Homework & Participation

Throughout the semester

0-10%

Major 1

5-7

15-20%

Major 2

10-12

15-20%

Project/Presentation

10-20%

Final Examination

16-17

40%

*Assessment task (i.e., written test, oral test, oral presentation, group project, essay, etc.)

E. Student Academic Counseling and Support

Arrangements for availability of faculty and teaching staff for individual student

consultations and academic advice:

3-4 hours of academic advising.

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F. Learning Resources and Facilities

1.Learning Resources

Required Textbooks

Financial Statement Analysis & Valuation, 6e

by Easton, McAnally, Sommers

ISBN: 978-1-61853-360-9

Essential References

Materials

International Financial Statement Analysis (CFA Institute Investment

Series) 4th Edition

ISBN-13: 978-1119628057

Electronic Materials

Any appropriate electronic material such as Moodle, Google Finance,

Argaam, Arabian business, Tadawul, Investopedia, and Bloomberg.

Other Learning

Materials

Any appropriate other learning material such as Business Week,

Financial Times, and WSJ.

2. Facilities Required

Item

Resources

Accommodation

(Classrooms, laboratories, demonstration

rooms/labs, etc.)

A classroom that accommodates up to 25 students.

Technology Resources

(AV, data show, Smart Board, software,

etc.)

Bloomberg Lab.

Other Resources

(Specify, e.g. if specific laboratory

equipment is required, list requirements or

attach a list)

Smart-board or screen, whiteboard, computer, and

internet access

G. Course Quality Evaluation

Evaluation

Areas/Issues

Evaluators

Evaluation

Methods

Effectiveness of teaching and assessment

Student

Indirect

Extent of achievement of course learning outcomes

Student

Indirect

Extent of achievement of course learning outcomes

Faculty

Direct

Effectiveness of teaching and assessment

Peer Reviewer

Indirect

Evaluation areas (e.g., Effectiveness of teaching and assessment, Extent of achievement of course learning

outcomes, Quality of learning resources, etc.)

Evaluators (Students, Faculty, Program Leaders, Peer Reviewer, Others (specify)

Assessment Methods (Direct, Indirect)

H. Specification Approval Data

Council / Committee

Department Council

Reference No.

AY2022-23/3/221/3

Date

22/11/2022