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Establishment
Language of instruction
English
Teaching content
FINANCE
This course occurs in the following program(s)
IESEG Degree - Programme Grande École
- Crédits ECTS: 3.50
Training officer(s)
J.DESSAIN
Stakeholder(s)
J.DESSAIN
Présentation
Prerequisite
Students who sign up for this course should have basic knowledge of accounting principles and in particular the structure of the balance sheet, the income statement and the cash flow statement. It is also imperative that they are willing to prepare and read the required material on their own before each session. The ability to participate, interact and ask critical questions is essential for success in this course
Goal
At the end of the course, the student should be able to :
-illustrate why knowledge of the corporate strategy is important for financial analysis
-decode financial statements to address the informational concerns of internal and external decision-makers regarding a business' future performance and attached risks by:
(i) analysing the informational content of the balance sheet: a.o. by constructing and interpreting the statement of financial structure (i.e. working capital, working capital need and net cash)
(ii) analysing and interpreting the structure of the income statement (and the statement of intermediate balances)
(iii) analysing and interpreting the statement of cash flows: a.o. by calculating and interpreting excess cash flow, available cash flow and free cash flow, calculating and interpreting the cash conversion cycle
(iv) calculating, analysing (through decomposition) and interpreting financial ratios
(v) usefully comparing the financial statements and ratios over time and with those of other firms to help detect e.g. changes in strategy, differences in market approaches, differences in financial health, …. and generate advices for decision-making
At the end of the course, the students should have greater awareness about ESRS topics, in particular they should be able to
-describe different incentives and practices of earnings management
-illustrate why knowledge of the corporate strategy is important for financial analysis
-decode financial statements to address the informational concerns of internal and external decision-makers regarding a business' future performance and attached risks by:
(i) analysing the informational content of the balance sheet: a.o. by constructing and interpreting the statement of financial structure (i.e. working capital, working capital need and net cash)
(ii) analysing and interpreting the structure of the income statement (and the statement of intermediate balances)
(iii) analysing and interpreting the statement of cash flows: a.o. by calculating and interpreting excess cash flow, available cash flow and free cash flow, calculating and interpreting the cash conversion cycle
(iv) calculating, analysing (through decomposition) and interpreting financial ratios
(v) usefully comparing the financial statements and ratios over time and with those of other firms to help detect e.g. changes in strategy, differences in market approaches, differences in financial health, …. and generate advices for decision-making
At the end of the course, the students should have greater awareness about ESRS topics, in particular they should be able to
-describe different incentives and practices of earnings management
Presentation
1. Introduction
2. Strategy analysis
3. Balance sheet analysis
4. Income statement analysis
5. Statement of cash flows analysis
6. Earnings management
2. Strategy analysis
3. Balance sheet analysis
4. Income statement analysis
5. Statement of cash flows analysis
6. Earnings management
Modalités
Organization
| Type | Amount of time | Comment | |
|---|---|---|---|
| Présentiel | |||
| Cours interactif | 21,33 | ||
| Coaching | 2,67 | ||
| Travail personnel | |||
| Group Project | 15,00 | ||
| Charge de travail personnel indicative | 30,00 | ||
| Individual Project | 6,00 | ||
| Overall student workload | 74,00 | ||
Evaluation
A mixed approach is taken as no single assessment can be expected to assess the achievements in the range of knowledge, skills and understandings appropriate to this class
| Control type | Duration | Amount | Weighting |
|---|---|---|---|
| Examen (final) | |||
| Examen écrit | 2,00 | 1 | 40,00 |
| Autres | |||
| Projet Collectif | 0,00 | 0 | 25,00 |
| Contrôle continu | |||
| Examen partiel | 2,00 | 1 | 25,00 |
| Participation | 0,00 | 1 | 10,00 |
| TOTAL | 100,00 | ||
Ressources
Bibliography
Financial Accounting and Reporting: A Global Perspective - Stolowy, Lebas, Ding -
(Cengage Learning, 4th Edition, 2013, Chapters 15, 16, 17, 18)
Business Analysis & Valuation: IFRS edition - Palepu, Healy and Peek -(Cengage Learning, 2nd Edition, 2010, Chapter 5; 3rd Edition: Chapter 2 & 3)
Internet resources
IESEG online
All information concerning the course will be published on the course website. Please check it regularly!