This course on financial statement analysis provides students with a fundamental understanding of how to interpret accounting data presented in financial statements issued by corporations. The course introduces and analyses the relationship between business activities (planning, financing, investing and operating) and financial statements. It demonstrates popular tools and techniques in analyzing and interpreting financial statements with an emphasis on the need for users’ of financial statements. The basic concepts and conventions applied to the construction of financial statements is briefly viewed, Emphasis is placed on the interpretation of financial data by means of comparative statements, trend percentages, detailed analysis of working capital and extensive use of various generally accepted ratios.
Upon successful completion of this class, you are expected to:
1) Understand the financial statements;
2) Develop skills in the analysis of financial statements;
3) Test your skills in communicating analysis, conclusions, and recommendations.