H9FSA: Financial Statement
Analysis
Title: Financial Statement Analysis APPROVED
Long Title: Financial Statement Analysis
Language of Instruction: English
Module Code: H9FSA
Credits: 10
NFQ Level: LEVEL 9
Field of Study: Finance, banking, insurance
Module Delivered in 1 programme(s)
Module Coordinator: Deirdre Bane
Module editor: Deirdre Bane
Teaching and Learning This module will be delivered by lectures and class discussion on the analysis and interpretation of financial
Strategy: statements. 2 This module involves the development of competence in both theory and practical skills.
Learning Environment: Learning will take place in a classroom environment with access IT resources. Learners will have access to
library resources, both physical & electronic and to faculty outside of the classroom where required. Module
materials will be placed on Moodle, the College’s virtual learning environment.
Module Description: The aim of this module is to provide the students with a full understanding of the accounting concept and
principles on which financial statements are prepared. To provide students with the knowledge to be able to
interpret and analyse a published set of financial statements of a single company over a period of time or by
comparison with other companies.
Learning Outcomes
On successful completion of this module the learner will be able to:
LO1 Evaluate the basis on which the financial statements have been prepared and appraise the effect of alternative accounting
methods and assumptions on financial statements in dynamic international environments
LO2 Validate and defend the accounting treatment of items and assess the appropriateness of the approach taken to key
accounting policies and estimates in the preparation of financial statements.
LO3 Critically assess the financial performance and financial position of an entity and demonstrate an insightful understanding of
financial statements and disclosures within the investment valuation process.
LO4 To evaluate financial statements for companies operating within the same industry and identify where adjustments to financial
statement figures may be required to make comparison more effective
LO5 To critically assess the capital structure of the entity and demonstrate an insightful understanding of the impact of the capital
structure, appropriateness and make recommendations where appropriate
LO6 Demonstrate an awareness of the diversity and complexity of international accounting standards and compare and contrast
these differences among U.S., country-specific, and international accounting standards and incorporate the findings into
financial and valuation analyses.
Pre-requisite learning
Module Recommendations
This is prior learning (or a practical skill) that is required before enrolment on this module. While the prior learning is expressed as named
NCI module(s) it also allows for learning (in another module or modules) which is equivalent to the learning specified in the named
module(s).
No recommendations listed
Requirements
This is prior learning (or a practical skill) that is mandatory before enrolment in this module is allowed. You may not enrol on this module if
you have not acquired the learning specified in this section.
No requirements listed
H9FSA: Financial Statement
Analysis
Module Content & Assessment
Indicative Content
Introduction (Week 1)
• Framework for the Preparation and Presentation of Financial Statements • Role of Financial Statements and Financial Statement Analysis
• Accounting Estimates and Accounting Policy • Audit Reports • Contents of a set of Published Financial Statements and how it helps users
to make decisions
International Accounting Standards (Week 2-4)
• IAS 1 Presentation of Financial Statements, • IAS 2 Inventories, • IAS 8 Accounting Policy, Changes in Accounting Estimates and Errors, •
IAS 10 Events after the Reporting Date, • IAS 11 Construction Contracts, • IAS 12 Income Taxes, • IAS 16 Property, Plant and Equipment, •
IAS 17 Leases, • IAS 18 Revenue, • IAS 19 Employee Benefits, • IAS 20 Accounting for Government Grants and Disclosure of Government
Assistance, • IAS 23 Borrowing Costs, • IAS 24 Related Party, • IAS 27 Consolidated and Separate Financial Statements, • IAS 28
Investments in Associates, • IAS 32 Financial Instruments : Presentation, • IAS 33 Earnings Per Share • IAS 36 Impairment of Assets, • IAS
37 Provisions, Contingent Liabilities and Contingent Assets, • IAS 38 Intangible Assets, • IAS 39 Financial Instruments: Recognition and
Measurement, • IAS 40 Investment Property, • IFRS 2 Share Based Payments, • IFRS 3 Business Combinations, • IFRS 4 Insurance
Contracts, • IFRS 5 Non Current Assets held for Sale and Discontinued Operations, • IFRS 7 Financial Instruments : Disclosure, • IFRS 8
Operating Segments, • IFRS 9 Financial Instruments,
Statement of Cash Flow (IAS 7) (Week 5-6)
• Preparation of Statement of Cash flow using both the Direct and Indirect Method • Understand the significance of the elements of the
Statement of Cash Flow so that you can analyse and interpret appropriately • Be able to calculate free cash flows and other Cash Flow
Ratios
Financial Statement Analysis (Week 7-10)
• Key Business Analysis o Analysis of Inventories o Analysis of Long-Lived Assets o Analysis of Taxes o Analysis of Debt o Analysis of Off-
Balance-Sheet Assets and Liabilities o Analysis of Pensions, Stock Compensation, and Other Employee Benefits o Analysis of Inter-
Corporate Investments o Analysis of Business Combinations o Analysis of Global Operations • Uses and limitations of Ratio Analysis, •
Calculation and interpretation of key ratios in the area of liquidity, profitability, efficiency, activity and valuation, • Inter-relationship of ratios, •
Use of ratios to forecast future earnings.
Risk Factors that lead to Fraudulent Accounting (Week 11-12)
• Financial Reporting Quality • Review of factors that have lead to Fraudulent Accounting within organisations and the lessons learnt.
Differences in accounting between US GAAP and International Financial Statements (Week 12 & 13)
n/a
Assessment Breakdown %
Coursework 30.00%
End of Module Assessment 70.00%
Full Time
Coursework
Assessment Assessment Description Outcome % of Assessment
Type addressed total Date
Project A two hour case study which will focus on the following areas: 1,2,3 30.00 n/a
Introductory Material, Accounting Standards and Statements of Cash
Flow.
End of Module Assessment
Assessment Assessment Description Outcome % of Assessment
Type addressed total Date
Terminal An end of semester examination paper, three hours in duration and 1,2,3,4,5,6 70.00 End-of-
Exam containing a case study. Marks will be awarded on the following basis: Semester
Clarity of solutions presented, Appropriate structure of solution, Identifying
relevant examples, Depth of topic knowledge, Ability to rank issues in terms
of importance where appropriate and Evidence of outside core text reading.
No Workplace Assessment
Reassessment Requirement
Repeat examination
Reassessment of this module will consist of a repeat examination. It is possible that there will also be a requirement to be reassessed in a
coursework element.
Reassessment Description
Learners will be afforded an opportunity to repeat the examination at specified times throughout the year and all learning outcomes will be
assessed in the repeat exam.
NCIRL reserves the right to alter the nature and timings of assessment
H9FSA: Financial Statement
Analysis
Module Workload
Workload: Full Time
Workload Type Workload Description Hours Frequency Average
Weekly
Learner
Workload
Lecture No Description 3 Every 3.00
Week
Assignment per week 6 Once per 0.50
semester
Independent Learning Time per week 12 Once per 1.00
semester
Total Hours 21.00
Total Weekly Learner Workload 4.50
Total Weekly Contact Hours 3.00
Workload: Part Time
Workload Type Workload Description Hours Frequency Average
Weekly
Learner
Workload
Lecture No Description 3 Every 3.00
Week
Assignment per week 6 Once per 0.50
semester
Independent Learning Time per week 12 Once per 1.00
semester
Total Hours 21.00
Total Weekly Learner Workload 4.50
Total Weekly Contact Hours 3.00
Module Resources
Recommended Book Resources
Clare Finch 2012, A Student's Guide to International Financial Reporting Standards, 3rd Ed., Kaplan Publishing [ISBN: 978-1-
85732-7]
Young and Cohen 2013, Corporate Financial Reporting and Analysis [ISBN: 9781118470558]
Supplementary Book Resources
Connolly, C 2013, International Financial Accounting and Reporting, 4th Ed., Chartered Accountants Ireland Dublin
This module does not have any article/paper resources
This module does not have any other resources
Module Delivered in
Programme Code Programme Semester Delivery
MSCFIND MSc in Finance 1 Core Subject
