SUKKUR INSTITUTE OF BUSINESS ADMINISTRATION

SUKKUR

Faculty of Business Administration

Financial Reporting & Analysis
Programs & Class: BBA Specialization Semester: VII
Credit Hours: 4 Instructor: M.Asim
Pre-requisite Courses: Financial Accounting Post-requisite Courses: None
Co-requisite Courses: None e-mail: asim.shaikh@iba-suk.edu.pk
Office Hours: 9:00 am to 5:00 pm Consulting Hours: Monday, Friday and Saturday
Office Location: 202 Academic Block II Fall 2015

ASSESSMENT / EVALUATION %Age

1. Analysis Report 5
2. Assignments 5
3. Written case solution 5
4. Quizzes 5
5. First Term 20
6. Second Term 20
7. Final Examination 40

RECOMMENDED BOOKS:
Publisher Name & Edition
S.No Book Name Author/s Name

Financial Reporting and

1. Analysis, CFA Course CFA Institute CFA Institute Learning Solutions
Book

REFERENCE BOOKS:

1. Analysis and Use of Financial Statements Gerald, White et 3rd Edition

Financial Reporting, Financial Statement

2. James A Wahlen 7th Edition
and Valuation (Strategic Prospective)

DIGITAL & WEB RESOURCES:

www.brigham.swlearning.com

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 http://finance.yahoo.com;
www.morningstar.com;
www.vanguard.com;
http://digitallibrary.edu.pk/ibasukkur.html;
www.kse.com.pk

COURSE DESCRIPTION:

This course focuses on the analysis of managers' financial reporting and disclosure
strategies, and the effects of such strategies on firms' equity values and contracts. We will
examine various institutional settings and economic contexts in which managers make
financial reporting and disclosure choices, paying
close attention to the quality and credibility of the information disclosed. The course should
help you continue developing hands-on financial statement analysis skills in a variety of
business decision contexts.

CIRCULUM MAPPING:
Number Objectives Focus Coverage

1 7.8 Students should demonstrate basic understanding of Analysis of TT,AA,PP

concepts and principles of financial accounting, procedures of Financial
record keeping and making financial statement, analysis of Reports
financial statement and taking good business decisions based
upon financial information.
2 7.5 Students should demonstrate basic understanding of Financial T,A,P
concepts, numerical procedures, theories, models, researches Accounting
and practices of financial decision making in the organizations practices and
in different financial markets across the globe and should be effects on
able to properly apply them in business situations. Firm Value
3 1.2 Students should demonstrate the ability to present well Understand T,AA
organized and relevant information with written proficiency in and formulate
English language in various business settings. audit reports

4 3.2 Students should be able to critically evaluate assumptions, Understand A,P

reasoning and conclusions; and differentiate between facts and Window
conjecture relative to a given business situation. Dressing
Techniques
5 2.1 Given real or simulated business situation; students should Case Studies AA,P
be able to identify relevant issues, rigorously analyze those on Financial

Financial Reporting & Analysis Page 2 of 8

 issues, generate viable solutions to the issues and implement the Reporting
solutions.

INTENDED LEARNING OUTCOMES OF COURSE

ILO Covering Level of learning

MBA
Number Objectives
1 Understand Financial reporting mechanism and 7.8,7.5 Understanding
standards
2 Analyze the basic financial statements (Income 7.8,7.5,2.1 Applying
Statement. Balance Sheet and Cash flow statement)
3 Understand and apply different Financial Statement 7.5,1.2 Applying
Analysis techniques using MS Excel
4 Compare different accounting reporting system 7.8,3.2,1.2 Analysis
5 Understand accounting procedures for long lived assets, 7.8,1.2,3.2 Understanding
taxes, employee benefits and Corporate accounting
according to IFRS
6 Understand different types of performance measurement Applying
in accounting and commonly used financial control
systems.

7 Read, understand, interpret and analyze general purpose 7.5,2.1 Analysis

financial reports;

PROJECTS & ASSIGNMENTS:

Quarterly reports of listed companies is available in Trade lab each group can utilize
that data for their analysis and assignments.
 Excel assignment on Financial Statement Analysis
 Written Case Solution on financial reporting.

Financial Reporting & Analysis Page 3 of 8

  Project Report on analyzing Financial Report of Company:
Each group will submit a report on analysis of financial statements of any
particular public listed company at KSE. Quarterly reports of listed companies is
available in Trade lab each group can utilize that data for their analysis The
detailed analysis will guide investor and creditor to take his/her decision for that
company. The report will cover the topics covered in course. The report is the
detailed analysis of financial health of company.

IMPORTANT POLICIES (subject to the course instructor)

 Students must bring text book along with calculator in class
 Students must strictly follow the entire deadline for assignment and project.
 Students will come with prior preparation on topic in class according to outline
 Class participation:
Participation is important because it enhances everyone’s learning experience.
You should strive to be a contributing and valuable. Feel free to ask questions
about issues that you or your peers are unclear, contribute your ideas and
insights, offer examples, challenge my and your peers’ assumptions and
analyses, and raise interesting directions for class discussion. The
participation marks will be based on the quality of your contribution, not on
the duration of your “air time”.

SESSION / WEEK WISE DETAILS

Assignments/
Session Date / Suggested
Topics Quizzes / Trade
No. Week Readings
Lab work
 Financial Statement Analysis: An
Introduction
 Introduction
 Scope of Financial Statement
Analysis

01-02 HBR Article CH 01

 Major Financial Statements and
Other Information Sources

 Financial Statement Analysis

Framework

03-10 Financial Reporting Mechanics Case Study Ch02

Financial Reporting & Analysis Page 4 of 8

  The Classification of Business
Activities

 Accounts and Financial

Statements

 The Accounting Process

 Accruals and Valuation

Adjustments

 Accounting Systems

 Using Financial Statements in

Security Analysis

 Financial Reporting Standards

 The Objective of Financial

Reporting

 Standard-Setting Bodies and

Regulatory Authorities

 Convergence of Global Financial

Reporting Standards

11-15 Audit Report CH03

 The International Financial
Reporting Standards Framework

 Effective Financial Reporting

 Comparison of IFRS with

Alternative Reporting Systems

 Monitoring Developments in
Financial Reporting Standards

16-18 Understanding Income Statements Lab Exercise CH04

 Components and Format of the

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 Income Statement

 Revenue Recognition

 Expense Recognition

 Non-Recurring Items and Non-

Operating Items

 Earnings per Share

 Analysis of the Income Statement

 Comprehensive Income
 Understanding Balance Sheets
 Components and Format of the
Balance Sheet
 Current Assets and Current
19-25 Liabilities Assignment CH05
 Non-Current Assets
 Non-Current Liabilities
 Equity
 Analysis of the Balance Sheet
Understanding Cash Flow Statements

 Components and Format of the

Cash Flow Statement

26-30 Short Case CH06

 The Cash Flow Statement:
Linkages and Preparation

 Cash Flow Statement Analysis

31-41 Financial Analysis Techniques Case Study CH07

 The Financial Analysis Process

 Analytical Tools and Techniques

 Common Ratios Used in Financial

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 Analysis

 Equity Analysis

 Credit Analysis

 Business and Geographic

Segments

 Model Building and Forecasting

Long-Lived Assets

 Acquisition of Long-Lived Assets

 Depreciation and Amortization of

Long-Lived Assets

 The Revaluation Model

42-47
 Impairment of Assets Ch10

 De-recognition

 Presentation and Disclosures

 Investment Property

 Leasing

48-57 Income Taxes Problems CH11

 Differences between Accounting

Profit and Taxable Income

 Determining the Tax Base of

Assets and Liabilities

 Temporary and Permanent

Differences between Taxable and
Accounting Profit

Financial Reporting & Analysis Page 7 of 8

  Unused Tax Losses and Tax
Credits

 Recognition and Measurement of

Current and Deferred Tax

 Presentation and Disclosure

 Comparison of IFRS and U.S.

GAAP

Student Project
58-60 Report Presentation
Reports

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