ADVANCED FINANCIAL STATEMENT ANALYSIS

About this Course

  • 25 students enrolled
  • 2 instructors

Course Description

This course requires students to carry out in-depth analysis of companies using information that are publicly available in annual reports, stock analyst reports and reports arising from regulatory and statutory requirements. Students are expected to critically analyze the information provided in the financial statements and apply relevant financial statement analysis tools in evaluating the companies performance and quality of reporting. This course also focuses on earnings management, motivations, techniques, and theories relating to the behavior of managing earnings. Students are required to use real company annual report, market and economic data and other specific industry information for the analysis of company. Journal papers related to the study of earnings management and earnings quality are to be applied for earnings management topic.

Course Learning Outcomes

1 ) Adhere to ethics and professionalism in appraising appropriate analytical evaluation procedures related to reviewing companies’ financial performance for various decision contexts (A5)
2 ) Demonstrate effective communication skills in task related to earnings management, earnings quality and fraudulent reporting for various decision contexts (A5)
3 ) Apply knowledge related to performance of a company based on the qualitative and quantitative analysis for various decision contexts (C45)

Course Details

STATUS : Open
DURATION : FLEXIBLE
EFFORT : 3 hours per week
MODE : 100% Online
COURSE LEVEL : Expert
LANGUAGE : English
CLUSTER : Business & Management ( SP )

Join this course

 Syllabus

- Objectives of financial statement analysis
- Types and components of business analysis (business, accounting and prospective analysis)
- Limitations

- Advanced quantitative analysis
- Qualitative analysis

A comprehensive company analysis using company's financial information, market data, and other publicly available data

- Motivation of earnings management
- Application of earnings management techniques
- The mechanics of earnings management
- Application of theories relevant to earnings management

- The relationship between earnings management and earnings quality
- Steps in evaluating earnings quality
- Characteristics of quality earnings
- Importance of earnings quality

- Red flags
- Discuss articles relevant to fraudulent reporting
- Discuss relevant fraud cases
- Ethical issues

Our Instructor

DR. INTAN WAHEEDAH BINTI OTHMAN

 Course Instructor
UiTM Kampus Puncak Alam

DR. MASLINAWATI BINTI MOHAMAD

 Course Instructor
UiTM Kampus Puncak Alam

 Frequently Asked Questions

A1 : (1) Managing earnings is the process of taking deliberate steps within the constraints of generally accepted accounting principles to bring about the desired level of reported earnings. (Davidson, Stickney and Weil, 1987, cited in Schipper, 1989, p.92).
(2) Managing earnings is a purposeful intervention in the external financial reporting process, with the intent of obtaining some private gain (as opposed to say, merely facilitating the neutral operation of the process).A minor extension of this definition would encompass real earnings management, accomplished by timing investment or financing decisions to alter reported earnings or some subset of it." (Schipper, 1989, p.92).
(3) Earnings management occurs when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers. (Healy and Wahlen, 1999, p.368).

A2 : It is not necessary, but having the fundamental knowledge of financial accounting would be greatly beneficial.

A3 : Learners need not be technologically literate as FAR741 MOOC is relatively simple and easy to use. Learners will be exposed to a right information management, develop critical thinking skills, and adhere to proper digital online learning behaviour.