HANOI UNIVERSITY

FACULTY OF MANAGEMENT AND TOURISM

COURSE OUTLINE

FINANCIAL STATEMENT ANALYSIS

HANOI 08 - 2024

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SUBJECT DETAILS
Subject name Financial Statement Analysis
Subject code 61FIN4FSA
Units of credit 3
Study length 60 hours in 13 weeks (including assessments)
Pre-requisite / Core-requisite Principles of Accounting (61ACC2POA)
Year Semester 1, 2024-2025

Ms. Do Van Anh

Subject Coordinator/ Lecturer Ms. Le Thanh Binh
Ms. Phan Thu Huong

Tel: (04) 35533560

[email protected]
Contact details [email protected]
[email protected]

SUBJECT AIM/RATIONALE

The purpose of Financial Analysis is to provide students with skills in analyzing a firm’s performance
and future prospect by integrating what you have learned in Accounting, Finance and Economics.
The course will equip the students with tools necessary in using a firm’s financial statements to
assess and value the business. The techniques covered are essential for many purposes of financial
statement analyses such as for lending, credit rating, investing, financial management and takeover.

SUBJECT OBJECTIVES
MT1: Understand the process of financial statement analysis.
MT2: Understand and analyse accounting and reporting practices in business.
MT3: Demonstrate the skills, of a financial analyst, to source, deconstruct, and analyse, utilising
appropriate analytical tools, a company's financial statements to extract meaningful information to
guide relevant decisions
MT4: Effectively use knowledge in economics, management, and finance to perform financial
statement analysis and valuation
MT5: Demonstrate independent study and teamwork, analytical skills, explain professional and
empirical conclusions as to the implications of financial statement analysis.

LEARNING OUTCOMES
Knowledge
KT1: Describe and explain the process of financial statement analysis and link to corporate
governance;
KT2: Present and apply knowledge of financial statement analysis in real businesses;
KT3: Differentiate methods for accounting analysis and explain the impact of accounting policies on
financial statements;
KT4: Apply analysis tools and extract meaningful implications of financial performance, position and
future prospects;
KT5: Apply different valuation methods and compare advantanges and disadvantages of each
method;

Skills:

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KN1: Collect information of businesses including annual reports, financial statements, other sources
of information related to business activities;
KN2: Determine objectives for financial statement analysis and develop the process to perform the
analysis;
KN3: Apply analytical tools and draw useful analytical results and conclusions;
KN4: Perform steps in financial statement analysis, present the result of financial analysis in
professional report format;
.KN5: Implement independent study, team work skills, task manageent and time management.

Attitude:
TĐ1: Proactive in learning and searching information relating to financial analysis
TĐ2: Demonstrate willingness to learn and apply theory in practical situtations.
TĐ3: Demonstrate skepticism, integrity, responsibility.
TĐ4: Respect ethics and professional code of conduct in accounting and finance profession.

SUBJECT MATERIALS
Lecture notes will be available before each lecture and the lectures are based on these notes.
Besides, practical examples and case studies may be discussed and further handouts distributed.
Students are advised to spend remarkable amount of time on reading the text thoroughly and
attempt the questions, problems and cases and other suggested readings before the tutorial classes.
The students are also encouraged to read financial newspapers and journals and update themselves
with Vietnamese and International financial information.

SUBJECT STRUCTURE
The structure of this subject for on-campus students comprises:
·One 2-period lecture per week
·One 2-period tutorial per week

PRESCRIBED TEXTBOOKS
You must purchase these textbooks or have access to them.
Wahlen, J.M., Baginski, S.P., Bradshaw, M., Financial Reporting, Financial Statement Analysis, and
Valuation, 9th Ed., 2018, Cengage Learning

ASSESSMENT

Details:
Assessment(s) Required or not Contribution
(a) Class Attendance Compulsory 10%
(b) Midterm Exam Compulsory 15%
(c) Team Project Compulsory 25%
(d) Final Exam Compulsory 50%

Assessments Format:
1. Class Attendance (10%): students are required to attend at least 80% of all classes. Failing to
satisfy this requirement will result in your INELIGILIBITY to attend the final exam. Maximum
score will be awarded to students who attend all classes.
2. Midterm Exam (15%): the midterm exam will cover knowledge from topic 02 to topic 05. The
exam format will be discussed in the lecture before the exam.
3. Team project (25%): Students will work in groups of maximum 6 for the team project. The

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 project requires students to perform a comprehensive financial analysis of a listed company
from recommended list (will be announced later). Project guideline will also be provided to
students.
4. Final exam (50%): will be held in the exam week. The exam will cover the material in all
topics. It will be a two-hour written examination. Final exam format will be discussed during
revision in the last week of the semester.

CODE OF ETHICS & POLICIES

1. Students are required to follow the code of ethics & policies of Hanoi University and the
Faculty of Management & Tourism.
2. Students are required to register for both lecture and tutorial classes. In addition, the online
enrolment in this subject via Microsoft Teams is compulsory. Students are not allowed to
continue in any of the subject’s activities if failing to complete these administrative
requirements.
3. Student who commits in an act of plagiarism or academic dishonesty or fraudulent activities
will be penalized, ranging from grade penalty up to a fail grade in this subject.

WEEKLY SCHEDULE

# Topic Chapter(s) Learning Objectives Tutorial

Exercises
1 Overview of financial 1 • Overview of Financial Statement Analysis Problems
analysis • Role of Financial Statement Analysis in an 1-11; 1-13
Efficient Capital Market
• Accounting Quality
• Earnings Management
• Asset Recognition and Measurement
• Specific Events and Conditions that affect
earnings persistence
2 Quality of accounting 6 • Accounting Quality Problems
information and • Earnings Management 6-18; 6-19
adjustments • Specific Events and Conditions that affect
earnings persistence
3 Asset and liability valuation, 2&9 • Asset and Liability Valuation Problems
revenue recognition, • Income Recognition 9-14; 9-18;
operating activities • Revenue Recognition 2-12; 2-13
• Expense Recognition

4 Financing activities 7&8 • Equity Financing Problems

• Debt Financing 7-2; 7-3; 7-
• Hybid securities 5; 7-10
(USGAAP
only);

5 Investing activities • Accounting for Investments in Long-lived Problems

Assets 8-15
• Cost Allocation Methods (a,b,f,g); 8-
• Market value vs Book value 16; 8-17; 8-
• Investment in Securities 18

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6 Cash flow analysis 3 • Purpose of Statement of Cash Flows Problems
• Cash flow activities 3-21; 3-28
• Relation between Net Income, Balance (b, c); 3-29
Sheets and Cash flows (b, c)
• Preparing the SOCF
7 Profitability analysis 4 • Various measures of Income Problems
• ROA and ROCE 4-24; 4-25
• Interpretation of ratios
8 Risk analysis - liquidity and 5 • Analyzing Financial Flexibility Problems
solvency • Analyzing Short-term liquidity risk 5-13; 5.16
• Analyzing Long-term liquidity risk
• Credit Risk and Bankruptcy Risk

9 Forecasting Financial 10 • Preparing Financial Statement Forecasts Case 10-1

Statements Walmart

10 Valuation – Dividend 11 & 12 • Risk-Adjusted Expected Rates Problems

Approach and Cashflow – • Dividends Valuation Approach 11-12; 12-
based approach • Cash-flow Based Valuation Approach 10; 12-12
11 Industry engagement
12 Valuation – Earnings based 13 • Residual Income Model: Measurement and Problems
approach Valuation 13-14; 13-
16; 13-17
13 Revision for final exam
Final Examination