BSc Management with Industrial/Professional Experience

Year of entry: 2024

Course unit details:
Financial Statement Analysis

Course unit fact file
Unit code BMAN20081
Credit rating 10
Unit level Level 2
Teaching period(s) Semester 1
Available as a free choice unit? No

Overview

The course is concerned with various aspects of the analysis and interpretation of financial statements in the broad context of sustainable business. In addition to examining the basic techniques of financial analysis, the course places the interpretation and understanding of financial statements into a broader context by:

  • Considering the information needs of different stakeholders;
  • Linking the interpretation of financial statements to an organization's core strategies, risks and opportunities;
  • Examining the role and importance of narrative reporting;
  • Providing perspectives on the quality and reliability of accounting information;
  • Understanding how to use and critique the output of generative AI tools (for example Google Bard https://bard.google.com/) 
  • We organise guest speaker session(s) to provide the opportunity for students to understand how their learning is translated into practical experience.

Pre/co-requisites

Unit title Unit code Requirement type Description
Financial Reporting BMAN10501 Pre-Requisite Compulsory
Financial Decision Making BMAN10522 Pre-Requisite Compulsory
Fundamentals of Finance BMAN10552 Pre-Requisite Compulsory
Financial Decision Making M BMAN10522M Pre-Requisite Compulsory
BMAN10621A Pre-Requisite Compulsory
Fundamentals of Financial Reporting BMAN10621M Pre-Requisite Compulsory
Fundamentals of Financial Reporting B BMAN10621B Pre-Requisite Compulsory
BMAN20081 has pre-requisites of: BMAN10501 AND BMAN10522 / 10522(M) or BMAN10621 AND BMAN10552 @60% or BMAN10621(M) AND BMAN10522 / 10522(M).

BMAN10501 and BMAN10522 or
BMAN10621 (A), (B) or (M); and BMAN10522 or BMAN10522(M) or
BMAN10621 (A),(B) or (M);  and BMAN10552 subject to passing the BMAN10552 examination at 60% or above.

Co-requisites: None

Dependent course units: BMAN30190 (Only available to students specialising in Finance either singly or jointly and provided all the following area pre-requisites have been passed BMAN23000 (A) or (B), BMAN20072 and BMAN20081).

Dependent course units BMAN31000 (Only available to students specialising in Accounting, including Business Accounting, either singly or jointly and provided all the following area pre-requisites have been passed BMAN21020, BMAN21040, and BMAN20081. In addition BMAN23000A or BMAN23000B must have been passed or is being taken as a co-requisite with BMAN31000).

Pre-requisite course units have to be passed by 40% or above at the first attempt unless a higher percentage is indicated within this course outline. If the pre-requisite unit is defined as a compulsory course unit within your programme of study (Maths with Finance, IBFE, Accounting, BA Econ pathways for example) then progression onto the dependent unit is permitted as long as you have gained the appropriate amount of credit to progress on to the following year of your registered undergraduate programme.

Pre-requisites: see above

Aims

The course aims to increase students' knowledge of the theory and practice of financial statement analysis and to place it in its broad societal business, accounting and financial context.

Learning outcomes

On completion of this course, successful students will be able to:
- Understand how to calculate and interpret a range of accounting ratios from the financial statements of large companies;
- Appreciate the complex nature of real life financial statement ratio calculations;
- Understand the role of, and draw upon, the strategic (competitive, ethical and sustainability) context of a business in interpreting that business's financial statements;
- Effectively interpret financial statements from the perspective of the forward-looking information needs of different stakeholders;
- Understand a range of factors that can indicate the quality and reliability of financial statement information;
- Appreciate the various sources of data that may be useful in analysing the position, performance and future prospects of a firm;

-Understand how to use and critique generative AI in the context of financial statement analysis.

 

Teaching and learning methods

Lectures and workshops:

20 lecture hours ( 2 hours per week over 10 weeks ) including one clinic session of 1 hour.

4 workshop hours (1 hour per week in 4 different weeks). 

48 hour online examination (a maximum of 6 hours to be spent on the examination)

70 private study hours

Total study hours: 100 hours split between lectures, classes, self-study and preparation for classes and examination.

Informal Contact Methods
1. Office Hours
2. Online Discussion Board

Employability skills

Other
− Problem solving – analysing a problem and identifying all options − Decision making – using data in order to predict future outcomes − Communication – using persuasion to change another’s point of view and sharing information and knowledge that helps others succeed − Consideration – demonstrating an awareness of social and environmental responsibility − Adding value – showing an understanding of stakeholder needs.

Assessment methods

Online examination (100%)

 


 

Feedback methods

Methods of Feedback to Students

• Informal advice and discussion during a lecture or workshop.

• Responses to student emails and questions from a member of staff including feedback provided to a group via an online discussion forum.

• Peer to peer feedback via workshop activities

• Generic feedback posted on Blackboard regarding overall examination performance.

Recommended reading

Palepu, K., Healy, P. and Peek, E. (2019) Business Analysis and Evaluation – IFRS Standards Edition, Cengage, Fifth edition


Deegan C & Unerman J (2011), Financial Accounting Theory, 2nd European ed, McGraw Hill
 



 

Study hours

Scheduled activity hours
Assessment written exam 6
Lectures 20
Practical classes & workshops 4
Independent study hours
Independent study 70

Teaching staff

Staff member Role
Vlad-Andrei Porumb Unit coordinator
Anne Stafford Unit coordinator

Additional notes

Programme Restrictions: There are no programme restrictions for this course providing the pre-requisites listed above are met.

BMAN20081 is available to study abroad and exchange students admitted through the University of Manchester International Programmes Office.

For Academic Year 2024/25

Updated: March 2024

Approved by: March UG Committee

 

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