GRA 6298 Financial Statement Analysis and Valuation

GRA 6298 Financial Statement Analysis and Valuation

Course code: 
GRA 6298
Department: 
Accounting and Operations Management
Credits: 
6
Course coordinator: 
Ignacio Garcia de Olalla Lopez
Course name in Norwegian: 
Financial Statement Analysis and Valuation
Product category: 
Master
Portfolio: 
Master of Accounting and Auditing
Semester: 
2024 Autumn
Active status: 
Active
Level of study: 
Master
Teaching language: 
English
Course type: 
One semester
Introduction

Auditors must have knowledge of financial statement analysis and valuation. The course exposes students to these topics.

Learning outcomes - Knowledge

At the end of the course, students will have knowledge about:

  • Strategic financial and non-financial goals of different types of organizations.
  • Accounting quality analysis and reformulation of financial statements.
  • Cost of capital estimation, payout policy, and different capital structure theories.
  • Strategy analysis and construction of pro forma statements taking into account sustainability issues that affect the firm.
  • Different valuation methods and tools for assessing their accuracy.
Learning outcomes - Skills

At the end of this course, students should be able to:

  • Identify and evaluate strategic and non-financial objectives of organizations.
  • Analyze the accounting quality of the financial statements.
  • Adjust the financial statements to correct for distortions.
  • Reformulate the income statement and the balance sheet, and calculate FCFF and FCFE.
  • Perform a strategy analysis and use it to make consistent pro forma statements.
  • Estimate the cost of equity, WACC and the required rate of return on operating asset, and assess how capital structure affects the cost of capital.
  • Choose a proper valuation method given the characteristics of the firm and estimate the value of the firm given the chosen method.
General Competence

By the end of the course the student will have acquired the capacity to critically use the financial statements for valuation purposes and make the proper adjustments when the situation requires it. The student will also be in a position to identify which valuation method is most appropriate in every situation. Furthermore, the students will be aware of how the way that firms handle sustainability issues has an impact on future cash flows and, therefore, on the value of the firm.

Course content
  • Strategic Financial and non-financial objectives of different types of organizations.
  • Accounting quality analysis.
  • Accounting quality: adjustments.
  • Financial statement analysis.
  • Reformulation of the financial statements. Calculation of FCFF and FCFE.
  • Cost of capital, return on operating assets and the impact of capital structure or payout policy
  • Strategy analysis.
  • Construction of pro-forma statements.
  • Different valuation methods.
Teaching and learning activities

There is a consistent and continuous integration of computer-based tools across all course topical areas. Students can expect to perform most, if not all, coursework online, using various computer tools.

Software tools
No specified computer-based tools are required.
Additional information

Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class.

All exams must be passed to get a grade in this course.

Qualifications

All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

Disclaimer

Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.

Assessments
Assessments
Exam category: 
Submission
Form of assessment: 
Submission PDF
Exam/hand-in semester: 
First Semester
Weight: 
30
Grouping: 
Group/Individual (1 - 3)
Duration: 
2 Week(s)
Exam code: 
GRA 62981
Grading scale: 
ECTS
Resit: 
Examination when next scheduled course
Exam category: 
School Exam
Form of assessment: 
Written School Exam - pen and paper
Exam/hand-in semester: 
First Semester
Weight: 
70
Grouping: 
Individual
Support materials: 
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Duration: 
3 Hour(s)
Exam code: 
GRA 62982
Grading scale: 
ECTS
Resit: 
Examination when next scheduled course
Type of Assessment: 
Ordinary examination
All exams must be passed to get a grade in this course.
Total weight: 
100
Student workload
ActivityDurationComment
Teaching
24 Hour(s)
Lectures consist of several activities: explanations, cases, discussions, and so on.
Digital resources
  • Interactive video
12 Hour(s)
Asynchronous activities such as: videos, cases, articles, discussions, group work, etc.
Examination
36 Hour(s)
Work on the mid-term assignment
Prepare for teaching
36 Hour(s)
Preparation of lectures, for example, working with proposed cases to be discussed and/or solved in the next lecture.
Examination
52 Hour(s)
Preparation for final exam.
Sum workload: 
160

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.