GRA 6223 Valuation and Fair Value Accounting
GRA 6223 Valuation and Fair Value Accounting
Various categories of professionals need to carry out valuations to support business decisions. Among those are research analysts, investment bankers, auditors and accountants, corporate finance specialists, merger and acquisition analysts, venture capitalists, and individual investors. This course provides a sound theoretical framework for valuation of assets and entities and a practical guide to how valuations are actually done in the real world. It also provides a conseptual and practical introduction to fair value accounting ander IFRS.
Valuation skills are also required for understanding the concepts and procedures underlying generally accepted accounting principles used to prepare financial information.
The objective of the course is twofold. First, students shall acquire general knowledge about techniques to estimate the market value of assets and businesses (valuation methods). Second, they shall learn about the topics for which firms are required to report the fair value of balance sheet items and learn how to apply the valuation methods for that purpose.
After completing the course, students will be able to:
- Carry out valuation of assets and businesses using the most common valuation methods, discounted dividend valuation, free cash flow valuation and market-based valuation.
- Prepare correctly the financial reporting that involves fair value measurement.
The course will help the students to evaluate the market prices of stocks and other assets, and to extract the assumptions the market is implicitly making given those prices. The student will be in a position to critically evaluate those assumptions and analyse to what extent changes in these affect the stock price. The students will also learn to judge critically the usefulness of fair value information in the financial statements.
- Fundamental analysis – the process
- The reformulation of the income statement and balance sheet
- Forecasting.
- Introduction to industry and company analysis.
- Cost of capital
- Valuation techniques
- Discounted dividend valuation
- DCF valuation
- Relative valuation
- Acquisition analysis
- Fair value accounting in IFRS, e.g.
- Fair value measurement – IFRS 13
- Purchase price allocation - IFRS 3
- Revaluation of PP&E – IAS 16
- Measurement of recoverable amounts – IAS 36
- Financial instruments - IFRS 9 and IAS 32
- Fair value for non-financial assets - IAS 40 & 41
Last retake of this course is spring 2024.
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 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 |
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Exam category: Submission Form of assessment: Written submission Weight: 50 Grouping: Group (1 - 3) Duration: 1 Week(s) Comment: There will be a retake for GRA 6223 in autumn 2023, with the last retake spring 2024. Exam code: GRA 62233 Grading scale: ECTS Resit: Examination every semester |
Exam category: Submission Form of assessment: Written submission Weight: 50 Grouping: Individual Duration: 3 Hour(s) Comment: There will be a retake for GRA 6223 in autumn 2023, with the last retake spring 2024. 25/01/2023 The form of the exam has changed from individual school exam to individual home exam in spring 2023. Exam code: GRA 62234 Grading scale: ECTS Resit: Examination every semester |
All exams must be passed to get a grade in this course.
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.