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FMGT 3130 - Financial Statement Analysis 1

Financial Management Part-time Studies Course

School of Business

Course Details

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 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.

Prerequisite(s)

65% in FMGT 2105 or 70% in FMGT 2100

Credits

4.0

This course isn't currently offered through BCIT Part-time Studies. Please check back next term or subscribe to receive email updates.

Learning Outcomes

Upon successful completion of FMGT 3130, 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.
  • Justify the reasons that financial statements cannot be accepted at face value; and why they must be they must be critically evaluated in light of the accounting methods used in their preparation.
  • Outline how the accounting process measures values of various items that appear on financial statements, including how these valuations relate to economic reality.
  • Reformulate, where necessary, the accounting data to make them more meaningful 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.
  • Combine and evaluate the 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 2009

Related Programs

FMGT 3130 is offered as a part of the following programs:

School of Business

  1. Financial Planning
    Full-time   Diploma

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