COURSE INFORMATION

1 . Name of Course Financial Statement Analysis

2 . Course Code BAC2684
3 . Type of Course Elective
(e.g. : Core, major, elective etc.)
4 . Synopsis This course covers the accounting principles, basic information for financial
statements, quality of financial information, financial analysis, equity analysis,
cash flow analysis, measurement of company performance, credit risk analysis,
and equity risk analysis.

5 . Version Current: ADC April 2020

(State the date of theSenate’s approval - previous and the current approval date) Previous: September 2017

6 . Name(s) of Academic Staff FOB: R Rajagopal, Azizi Samsudin, Maliza Mohd Noor
FOM: Norzarina Md Yatim

7. Semester and Year Offered Trimester 2 Year 2

8. Credit Value 3
9. Pre-Requisite Nil
10 . Objective of the course in the programme:
The course is designed to present the conceptual background and analytical tools necessary for students to understand and interpret financial statements in a multi-cultural and
multinational environment. This course focuses on evaluation of financial statements, their effectiveness and practicality for decision making.

11 . Justification for including the course in the programme:

Analysis of financial statements comprises of the basics of financial statements, financial statement analysis and application of financial analysis. Analysis of financial statements
is an important part of company valuation. It also provides students a competitive advantage in the marketplace where financial statements are relevant to individuals as investors,
analysts, creditors, directors, consultants, managers, auditors, regulators, and employees. The syllabus is developed in accordance to subjects of professional accounting
program such as CPA Australia and ACCA.

12 . Course Learning Outcomes (CLO) Domain Level

CLO1: Identify the basis of financial statements analysis and the quality of financial
information Cognitive 4

CLO2: Differentiate company financial performance using financial ratios and common size
statements Affective 3

ACAD/FORM/01 Ver. 2 01.08.2017 1

 CLO3: Assess organisational performance using various financial analysis techniques
including financial ratio analysis, common-size statements, cash flow analysis, credit Cognitive 5
analysis, equity analysis, and fundamental factor models

ACAD/FORM/01 Ver. 2 01.08.2017 2

 13 . Mapping of the Course Learning Outcomes to the Programme Learning Outcomes, Teaching Methods and Assessment:

Course Learning Programme Learning Outcomes (PLO) Teaching Methods Assessment Method
Outcomes (CLO)
(Must tally with CLOs in
item 12) P
P P P P P P P P P L
L L L L L L L L L O
O O O O O O O O O 1
1 2 3 4 5 6 7 8 9 0
CLO1 ü Lectures, tutorials Test, Final Examination
CLO2 ü Lectures, Group discussion Assignment
CLO3 ü Lectures, tutorial Test, Final Examination
Indicate the relevancy between the CLO and PLO by ticking “ü” the appropriate relevant
box (This description must be read together with standards 2.1.2, 2.2.1, and 2.2.2 in Area 2
Total 1 1 1
– pages 16 & 18 of COPPA 2.0)

14 . Transferable Skills:
This course will improve students’ ability to recommend strategic and operational solutions to various accounting and business issues via the application of various financial
analysis techniques. Students will also be able to enhance their communication skills via the group discussion activities.

15 . Distribution of Student Learning Time (SLT)

Teaching and
Learning Activities
Guided Independent
Course Content Outline **CLO Guided Learning Learning Learning Total SLT
(F2F)* (NF2F)* (NF2F)*
*L *T *P *O

Introduction to Financial Statement Analysis

Definition, introduction to business analysis, financial
1 1 2 1 3 6
analysis as a whole spectrum of business and financial
analysis

Financial Statements and Reporting

Statutory financial reports, Accounting principals,
2 accrual accounting, Fair value accounting and how they 1 2 1 1 2 6
impact the statement. Also how these issues impact
(analysis) financial statement and reporting

Basis of Analysis
Ratio analysis, common-size analysis, year-to-year
3 1,2,3 4 2 2 4 12
analysis, financial statement variation by the type of
industry

ACAD/FORM/01 Ver. 2 01.08.2017 3

 Liquidity of Short term and Long term Assets
4 Focus on current asset, account receivables, inventory 2,3 4 2 1 5 12
and long-term assets

Long-term Debt Financing

5 Debt financing, accounting treatment and disclosure and 2,3 2 1 3 6
contingent liability

Cash Flow Analysis

Measures of cash flow, cash flows and the statement of
6 2,3 4 2 1 5 12
cash flows. The usefulness cash flows in financial
analysis

Prospective analysis
Prospective analysis, projection of income statement,
7 2,3 2 1 3 6
balance sheet and statement of cash flow, sensitivity
analysis

Corporate credit analysis

8 Types of credit risk, factors to consider in corporate 2,3 2 1 1 2 6
credit analysis

Profitability Analysis
Profitability measures; Return on Invested Capital
(ROIC) and its importance, Analysis of Return on assets
9 2,3 4 2 1 5 12
(ROA) and Return on Common Equity (ROCE),
Financial leverage and its effect on earnings, Trends in
profitability
Total SLT 78

SUMMATIVE ASSESSMENT
1. Continuous Assessment Percentage % Total SLT
Test 15% 7
Assignment 20% 12

Total SLT for Continuous Assessment 19

Total SLT
2. Final Assessment Percentage %
F2F ILT
Final Examination 65% 3 20
Total SLT for Final Assessment (F2F + NF2F) 23

ACAD/FORM/01 Ver. 2 01.08.2017 4

 Grand Total 100% 120
**Indicate the CLO based on the CLO’s numbering in Item 12.
*L= Lecture, *T= Tutorial, *P= Practical, *O= Others, F2F*= Face to Face, NF2F*= Non Face to Face

16 . Identify Special Requirement to Deliver the Course (e.g., software, nursery, computer lab, simulation room):
NIL
17 . Main References:
Subramanyam, K. R.,(2014). Financial Statement Analysis. 11th Edition, McGraw Hill
18 . Additional References:
1. Wahlen, J. M., Baginski, S. P., and Bradshaw, M., (2018). Financial Reporting, Financial Statement Analysis and Valuation. (9th Edition), Cengage Learning

Note:
Cells shaded light grey contain formulas / fixed values. Edit these formulas only if needed.

ACAD/FORM/01 Ver. 2 01.08.2017 5

 COURSE INFORMATION

1 . Name of Course
2 . Course Code
3 . Type of Course
(e.g. : Core, major, elective etc.)
4 . Synopsis

5 . Version
(State the date of theSenate’s approval - previous and the current approval date)

6 . Name(s) of Academic Staff

7. Semester and Year Offered

8. Credit Value
9. Pre-Requisite
10 . Objective of the course in the programme:
The course is designed to present the conceptual background and analytical tools necessary for students to unde
multinational environment. This course focuses on evaluation of financial statements, their effectiveness and prac

11 . Justification for including the course in the programme:

Analysis of financial statements comprises of the basics of financial statements, financial statement analysis and
is an important part of company valuation. It also provides students a competitive advantage in the marketplace w
analysts, creditors, directors, consultants, managers, auditors, regulators, and employees. The syllabus is develo
program such as CPA Australia and ACCA.

12 . Course Learning Outcomes (CLO)

CLO1: Identify the basis of financial statements analysis and the quality of financial
information
CLO2: Differentiate company financial performance using financial ratios and common size
statements
CLO3: Assess organisational performance using various financial analysis techniques
including financial ratio analysis, common-size statements, cash flow analysis, credit
analysis, equity analysis, and fundamental factor models

13 . Mapping of the Course Learning Outcomes to the Programme Learning Outcomes, Teaching Methods an

Course Learning Programme Learning Outcomes (PLO)

Outcomes (CLO)
(Must tally with CLOs in
item 12)
 Course Learning
Outcomes (CLO)
(Must tally with CLOs in
item 12) P
P P P P P P P P P L
L L L L L L L L L O
O O O O O O O O O 1
1 2 3 4 5 6 7 8 9 0
CLO1 ü
CLO2 ü
CLO3 ü

Total 1 1 1

14 . Transferable Skills:
This course will improve students’ ability to recommend strategic and operational solutions to various accounting
analysis techniques. Students will also be able to enhance their communication skills via the group discussion ac

15 . Distribution of Student Learning Time (SLT)

Course Content Outline **CLO

Introduction to Financial Statement Analysis

Definition, introduction to business analysis, financial
1 1
analysis as a whole spectrum of business and financial
analysis

Financial Statements and Reporting

Statutory financial reports, Accounting principals,
2 accrual accounting, Fair value accounting and how they 1
impact the statement. Also how these issues impact
(analysis) financial statement and reporting

Basis of Analysis
Ratio analysis, common-size analysis, year-to-year
3 1,2,3
analysis, financial statement variation by the type of
industry

Liquidity of Short term and Long term Assets

4 Focus on current asset, account receivables, inventory 2,3
and long-term assets

Long-term Debt Financing

5 Debt financing, accounting treatment and disclosure and 2,3
contingent liability

Cash Flow Analysis

Measures of cash flow, cash flows and the statement of
6 2,3
cash flows. The usefulness cash flows in financial
analysis
 Prospective analysis
Prospective analysis, projection of income statement,
7 2,3
balance sheet and statement of cash flow, sensitivity
analysis

Corporate credit analysis

8 Types of credit risk, factors to consider in corporate 2,3
credit analysis

Profitability Analysis
Profitability measures; Return on Invested Capital
(ROIC) and its importance, Analysis of Return on assets
9 2,3
(ROA) and Return on Common Equity (ROCE),
Financial leverage and its effect on earnings, Trends in
profitability

SUMMATIVE ASSESSMENT
1. Continuous Assessment
Test
Assignment

Total SLT for Co

2. Final Assessment
Final Examination
Total SLT for Final Ass

Grand Total
**Indicate the CLO based on the CLO’s numbering in Item 12.
*L= Lecture, *T= Tutorial, *P= Practical, *O= Others, F2F*= Face to Face, NF2F*= Non Face to Face

16 . Identify Special Requirement to Deliver the Course (e.g., software, nursery, computer lab, simulation room):
NIL
17 . Main References:
Subramanyam, K. R.,(2014). Financial Statement Analysis. 11th Edition, McGraw Hill
18 . Additional References:
1. Wahlen, J. M., Baginski, S. P., and Bradshaw, M., (2018). Financial Reporting, Financial Statement Analysis a

Note:
Cells shaded light grey contain formulas / fixed values. Edit these formulas only if needed.
FORMATION

Financial Statement Analysis

BAC2684
Elective

This course covers the accounting principles, basic information for financial
statements, quality of financial information, financial analysis, equity analysis,
cash flow analysis, measurement of company performance, credit risk analysis,
and equity risk analysis.

Current: ADC April 2020

Previous: September 2017

FOB: R Rajagopal, Azizi Samsudin, Maliza Mohd Noor

FOM: Norzarina Md Yatim

Trimester 2 Year 2
3
Nil

ecessary for students to understand and interpret financial statements in a multi-cultural and
, their effectiveness and practicality for decision making.

ncial statement analysis and application of financial analysis. Analysis of financial statements
vantage in the marketplace where financial statements are relevant to individuals as investors,
yees. The syllabus is developed in accordance to subjects of professional accounting

Domain Level

Cognitive 4

Affective 3

Cognitive 5

mes, Teaching Methods and Assessment:

Teaching Methods Assessment Method

 Teaching Methods Assessment Method

Lectures, tutorials Test, Final Examination

Lectures, Group discussion Assignment
Lectures, tutorial Test, Final Examination
Indicate the relevancy between the CLO and PLO by ticking “ü” the appropriate relevant
box (This description must be read together with standards 2.1.2, 2.2.1, and 2.2.2 in Area 2
– pages 16 & 18 of COPPA 2.0)

utions to various accounting and business issues via the application of various financial
via the group discussion activities.

Teaching and
Learning Activities
Guided Independent
Guided Learning Learning Learning Total SLT
(F2F)* (NF2F)* (NF2F)*
*L *T *P *O

2 1 3 6

2 1 1 2 6

4 2 2 4 12

4 2 1 5 12

2 1 3 6

4 2 1 5 12
 2 1 3 6

2 1 1 2 6

4 2 1 5 12

Total SLT 78

IVE ASSESSMENT
Percentage % Total SLT
20% 8
20% 9

Total SLT for Continuous Assessment 17

Total SLT
Percentage %
F2F ILT
60% 3 22
Total SLT for Final Assessment (F2F + NF2F) 25

100% 120

= Non Face to Face

ter lab, simulation room):

ancial Statement Analysis and Valuation. (9th Edition), Cengage Learning

y if needed.
 COURSE INFORMATION - ADDENDUM

1 . Name of Course Financial Statement Analysis

2 . Course Code BAC2684
3 . This Addendum is to be used for trimester Tri 1, 2020/21

ACAD/FORM/01 Ver. 2 01.08.2017 12

 4 . Mapping of the Course Learning Outcomes to the Programme Learning Outcomes, Teaching Methods and Assessment:

Course Learning Programme Learning Outcomes (PLO) Teaching Methods

Outcomes (CLO)
(Must tally with CLOs in
item 12) P
P P P P P P P P P L
L L L L L L L L L O
O O O O O O O O O 1
1 2 3 4 5 6 7 8 9 0
CLO1 ü Lectures, tutorials
CLO2 ü Lectures, Group discussion
CLO3 ü Lectures, tutorial
Indicate the relevancy between the CLO and PLO by ticking
(This description must be read together with standards 2.1.2
Total 1 1 1 pages 16 & 18 of COPPA 2.0)

SUMMATIVE ASSESSMENT
1. Continuous Assessment *Percentage %
Test 15%
Assignment 20%

*Total SLT for Continuous Assessment

2. Final Assessment *Percentage %

Online Exam 65%

*Total SLT for Final Assessment

Grand Total 100%

*Figure must be the same as the one in the Main Course Information Document

Note:
Cells shaded light grey contain formulas / fixed values. Edit these formulas only if needed.

ACAD/FORM/01 Ver. 2 01.08.2017 13

ACAD/FORM/01 Ver. 2 01.08.2017 14
 Assessment Method

Test, Online Exam

Assignment
Test, Online Exam
he CLO and PLO by ticking “ü” the appropriate relevant box
ogether with standards 2.1.2, 2.2.1, and 2.2.2 in Area 2 –

Total SLT
7
12

19

*Total SLT
23

23

42

ACAD/FORM/01 Ver. 2 01.08.2017 15