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Registration for the Fall 2019 semester begins June 25.  Watch your email for more details.

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Corporate Performance: Financial Statement Analysis

Course Code: FINC 3380
Faculty: Commerce & Business Administration
Department: Finance
Credits: 3.0
Semester: 15 Weeks X 4 Hours per Week = 60 Hours
Learning Format: Lecture, Seminar
Typically Offered: TBD. Contact Department Chair for more info.
course overview

The course will introduce methodology and analytic techniques for both the financial dimensions of corporate management and the nature and functionality of financial statements. Case-by-case analysis will introduce issues of financial analysis, revenue recognition, and risk analysis. Accounting analysis, GAAP-FASB principles of accounting treatment on business projects, the valuation of cash flow forecasts, earnings valuation, credit and banking valuation, corporate financial policies for increased shareholder wealth, corporate takeovers, and financial disclosure requirements will be explored.

Course Content

  1. Financial analysis and forecasting
    • properties of financial statements
    • cash flow and ratio analysis
    • credit analysis
    • GAAP-FASB rules of corporate disclosure
    • revenue recognition, financial risk assessment
    • financial profitability, financial position
    • annual report disclosure
  2. Capital and operating leases
    • sales and direct financing leases
    • lease accounting and disclosure requirements
  3. Earnings valuation
    • price-earnings analysis
    • earnings-based valuation models
    • mergers and acquisitions
    • accounting and business valuations
  4. Credit analysis, financial distress, and risk and bankruptcy models
    • corporate financial policies
    • equity security analysis

Upon introduction of theory, students will be exposed to practical financial applications, and case studies.  Upon completion of each case, students, in groups, will be required to prepare a management report focusing on:

  • identification of the most important problem described in the case;
  • complete financial and business analysis of quantitative reports, financial statements;
  • an evaluation of the various alternatives;
  • a recommended course of action with “predicted/forecasted” financial data, based on the recommended course of action.

Methods of Instruction

Material will be presented within a lecture format.

Means of Assessment

Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.

Learning Outcomes

At the end of the course, the successful student should be able to:

  1. apply financial analysis skills to actual and simulated financial statements;
  2. analyze corporate, divisional and consolidated financial statements and be able to compare like companies by using ratio analysis;
  3. extend, revise, or prepare pro forma financial reports;
  4. present financial findings in a management report.

course prerequisites

FINC 2345 or FINC 2340

curriculum guidelines

Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.

course schedule and availability
course transferability

Below shows how this course and its credits transfer within the BC transfer system. 

A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.

For more information on transfer visit the BC Transfer Guide and BCCAT websites.

assessments

If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.