Course Overview
Financial Statement Analysis 1&2 evaluate the general principles of the financial reporting system, underscoring the critical role of the analysis of financial reports in the investment decision making process. FSA 1 introduces the range of information that an analyst may use in analyzing the financial performance of a company, including the principal financial statements (the income statement, balance sheet, cash flow statement, and statement of changes in owners' equity), notes to those statements, and management discussion and analysis of results. A general framework for addressing most financial statement analysis tasks is also presented. The ethical presentation of financial information to the public by a company must conform to the governing set of financial reporting standards applying in the jurisdiction in which the information is released. FSA 1 explores the role of financial reporting standard‐setting bodies worldwide and the International Financial Reporting Standards and the movement towards worldwide convergence of financial reporting standards is also introduced and new technology that impacts financial management. Learners use financial software and professional data bases to model and analyze financial statements.
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Learning Outcomes
Upon successful completion, the student will be able to:
- Demonstrate a thorough knowledge of the most important Generally Accepted Accounting Principles (GAAP) and know how they are used to determine the individual items found in financial reports.
- Evaluate how various accounting treatments affect: (1) reported net income and earnings per share, (2) stockholders' equity and book value per share, (3) cash flow, and (4) important financial ratios, such as profit margin, asset turnover, debt/equity, and return on equity.
- Apply critical thinking and professional skepticism when interpreting financial statements, consider digital ethics and ongoing industry activity to determine why statements must be critically evaluated.
- Outline how the accounting process measures values of various items that appear on financial statements, including how these valuations relate to economic reality.
- Analyze and compare industry peers and competitors to determine the company’s existing position in the marketplace for the purposes of reaching valid investment conclusions; including the evaluation of supplementary data presented in the footnotes to the financial statements, or elsewhere in company reports, as well as outside data sources.
- Evaluate critical information presented in financial reports (balance sheet, income statement, statement of cash flows, statement of stockholders' equity, footnotes, and supplementary disclosures) and assess how these relationships can be used to obtain better insights into an enterprise's prospects and risks.
- Interpret how accounting methods vary among countries and how these differences must be reconciled in order to make valid financial comparisons on a global basis.
Effective as of Fall 2024
Related Programs
Financial Statement Analysis 1 (FMGT 3130) is offered as a part of the following programs:
- Indicates programs accepting international students.
School of Business + Media
- Finance
Diploma Full-time
- Finance
Diploma Part-time
- Financial Planning
Diploma Full-time
- Financial Planning
Diploma Part-time
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