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Unit of study_

ACCT3013: Financial Statement Analysis

Semester 1, 2024 [Normal day] - Camperdown/Darlington, Sydney

Although the appropriate 'form' of financial analysis depends largely on the specific context (e.g. equity investment, credit extension, analysis of supplier/customer health, competitor analysis, regulatory overview or intervention, valuation for takeover/restructuring), many of the techniques of financial analysis are common to each. A primary purpose of this course is to develop an understanding of these techniques, as well as the inherent difficulties in their application. Specific issues addressed include the analysis of business performance and disclosure, the analysis of earnings quality, cash flow assessment, credit worthiness and accounting-based valuation methods.

Unit details and rules

Unit code ACCT3013
Academic unit Accounting
Credit points 6
Prohibitions
? 
None
Prerequisites
? 
ACCT2011
Corequisites
? 
None
Assumed knowledge
? 

None

Available to study abroad and exchange students

Yes

Teaching staff

Coordinator Mark Waddington, mark.waddington@sydney.edu.au
Lecturer(s) Nurul Alam, nurul.alam@sydney.edu.au
Mark Waddington, mark.waddington@sydney.edu.au
Type Description Weight Due Length
Supervised exam
? 
hurdle task
Final exam
Written exam
55% Formal exam period 2 hours
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6
Supervised test
? 
Mid-semester exam
Written exam
20% Week 07
Due date: 10 Apr 2024 at 11:40
1 hour
Outcomes assessed: LO1 LO2 LO3
Small test Online quiz
MCQ
10% Week 09
Due date: 24 Apr 2024 at 11:00
30 minutes
Outcomes assessed: LO1 LO3 LO2
Assignment Individual assignment
Written task
15% Week 13
Due date: 20 May 2024 at 23:59
800 words
Outcomes assessed: LO2 LO3 LO4 LO5
hurdle task = hurdle task ?

Assessment summary

  • Online quiz: The quiz will be conducted in week 9.
  • Individual assignment: This assessment will be due in week 13.
  • Mid-semester exam: The mid-semester exam will be conducted in week 7. The exam will cover material from weeks 1-5 (lectures) inclusive.
  • Final exam: The exam will contain direct questions on material from weeks 6-13, although this will require background knowledge and skills from weeks 1-13. The purpose of the exam is to test your personal learning in financial statement analysis. The exams will contain theoretical, discussion and application questions, allowing students to demonstrate their knowledge and skills to answer questions and solve problems, consistent with the learning goals of this unit. The final exam is listed as having a HURDLE TASK.
    An assessment that is listed as HURDLE TASK means you must undertake the assessment and achieve a mark above a minimum standard. Students who fail to achieve this minimum standard in this assessment, even when their aggregate mark for the entire unit is above 50%, will be given a Fail grade for the unit. As a result the student's academic transcript will show a fail grade and the actual mark achieved if between 0-49 and a fail grade and a capped moderated mark of 49 for all other marks. The hurdle mark for this assessment is 45%.

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range

Description

High distinction

85 - 100

Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 

Distinction

75 - 84

Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Credit

65 - 74

Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Pass

50 - 64

Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 

Fail

0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see sydney.edu.au/students/guide-to-grades.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

Standard penalties apply in accordance to the University of Sydney Business School Late submission policy

Academic integrity

The Current Student website  provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.  

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Support for students

The Support for Students Policy 2023 reflects the University’s commitment to supporting students in their academic journey and making the University safe for students. It is important that you read and understand this policy so that you are familiar with the range of support services available to you and understand how to engage with them.

The University uses email as its primary source of communication with students who need support under the Support for Students Policy 2023. Make sure you check your University email regularly and respond to any communications received from the University.

Learning resources and detailed information about weekly assessment and learning activities can be accessed via Canvas. It is essential that you visit your unit of study Canvas site to ensure you are up to date with all of your tasks.

If you are having difficulties completing your studies, or are feeling unsure about your progress, we are here to help. You can access the support services offered by the University at any time:

Support and Services (including health and wellbeing services, financial support and learning support)
Course planning and administration
Meet with an Academic Adviser

WK Topic Learning activity Learning outcomes
Week 01 Introduction to FSA and business strategy analysis Lecture (2 hr)  
Week 02 Accounting analysis and earnings management Lecture (2 hr)  
Week 2 tutorial Tutorial (1 hr)  
Week 03 Quality of accounting information, measurement and adjustments Lecture (2 hr)  
Week 3 tutorial Tutorial (1 hr)  
Week 04 Financial analysis Lecture (2 hr)  
Week 4 tutorial Tutorial (1 hr)  
Week 05 Ratio analysis Lecture (2 hr)  
Week 5 tutorial Tutorial (1 hr)  
Week 06 Prospective analysis Lecture (2 hr) LO2 LO5 LO6
Week 6 tutorial Tutorial (1 hr)  
Week 07 Mid-semester exam week Lecture (2 hr)  
Week 7 tutorial Tutorial (1 hr)  
Week 08 Equity valuation/security analysis Lecture (2 hr)  
Week 8 tutorial Tutorial (1 hr)  
Week 09 Credit analysis and distress prediction Lecture (2 hr)  
Week 9 tutorial Tutorial (1 hr)  
Week 10 Financial policy and cost of capital Lecture (2 hr)  
Week 10 tutorial Tutorial (1 hr)  
Week 11 1. Mergers and acquisition (M&A); 2. Initial public offerings (IPOs) Lecture (2 hr)  
Week 11 tutorial Tutorial (1 hr)  
Week 12 Communication and governance Lecture (2 hr)  
Week 12 tutorial Tutorial (1 hr)  
Week 13 Revision Lecture (2 hr)  
Week 13 tutorial Tutorial (1 hr)  

Attendance and class requirements

Lecture recordings: All lectures are recorded and will be available on Canvas for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

Palepu, K. G., Healy, P. M., and Peek, E. (2022). Business analysis and valuation: IFRS edition. 6th Edition, Cengage learning.

The purchase of the textbook is required. Class work and assessments will be drawn from the textbook, lecture material, tutorial material and supportive Canvas material.

All readings for this unit can be accessed on the Library eReserve link available on Canvas.

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. understand the conceptual framework within which financial statements are analysed and interpreted
  • LO2. analyse the key drivers of value creation within a business
  • LO3. evaluate the quality of financial statement information as produced by accounting
  • LO4. apply financial analysis to analyse creditworthiness
  • LO5. perform equity investment valuation
  • LO6. appreciate the impact of key behavioural biases when analysing financial information.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9

This section outlines changes made to this unit following staff and student reviews.

No changes have been made since this unit was last offered.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.