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ACCT5910 Business Analysis and Valuation
Course Details & Outcomes
Course Description
This course focuses on the analysis of financial information arising primarily from the financial reports of firms. Fundamental analysis techniques are examined in detail with particular emphasis on the application of these techniques in equity (share) valuation decisions. The techniques are applied both in class exercises and group projects; all involving listed companies. Topics considered include fundamental ratio analysis using reported and 'off-balance sheet' information, and analysis of accrual accounting and cash flows, the analysis of profitability, growth and valuation generation in a firm, determining the quality of financial reports, forecasting earnings and cash flows, use of pro-forma analysis for strategy and planning, analysis of risk, and a comparison of alternative valuation models. There is a specific focus on data analytics throughout the course.
Course Aims
Business Analysis and Valuation is a capstone course that brings together areas of financial accounting, finance and strategic management. This course is offered by the School of Accounting and is generally taken as an elective or Disciplinary Specialisation course in the Master of Commerce or Master of Professional Accounting degrees.
Because of the interdisciplinary nature of the course, this course aims to synthesize and apply what you learnt in previous courses, to further develop the graduate attributes, and to prepare you for the professional career. This course is a very useful preparatory course for the CPA, CA and CFA programs. Also due to the applied nature of the course, it is helpful to those contemplating careers in investment banking (particularly in equity research), security analysis, funds management, financial planning, business consulting, corporate finance and public accounting. The course also has wide application in personal investment activities.
Relationship to Other Courses
Business Analysis and Valuation is a capstone course that brings together areas of financial accounting, finance and strategic management. This course is offered by the School of Accounting and is generally taken as an elective or Disciplinary Specialisation course in the Master of Commerce or Master of Professional Accounting degrees.
Because of the interdisciplinary nature of the course, this course aims to synthesize and apply what you learnt in previous courses, to further develop the graduate attributes, and to prepare you for the professional career. This course is a very useful preparatory course for the CPA, CA and CFA programs. Also due to the applied nature of the course, it is helpful to those contemplating careers in investment banking (particularly in equity research), security analysis, funds management, financial planning, business consulting, corporate finance and public accounting. The course also has wide application in personal investment activities.
Course Learning Outcomes
Course Learning Outcomes | Program learning outcomes |
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CLO1 : Explain the linkage between strategic business analysis, accounting analysis and financial analysis. Identify and utilize relevant information contained in financial statements. |
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CLO2 : Identify and analyse issues relating to accounting quality. Prepare and substantiate a valuation that incorporates the strategic, accounting and financial activities of a business entry. |
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CLO3 : Construct written work which is logically and professionally presented. |
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CLO4 : Communicate ideas in a succinct and clear manner. |
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CLO5 : Work collaboratively to complete tasks. |
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CLO6 : Identify and assess environmental and sustainability considerations in valuation and portfolio construction. |
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Course Learning Outcomes | Assessment Item |
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CLO1 : Explain the linkage between strategic business analysis, accounting analysis and financial analysis. Identify and utilize relevant information contained in financial statements. |
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CLO2 : Identify and analyse issues relating to accounting quality. Prepare and substantiate a valuation that incorporates the strategic, accounting and financial activities of a business entry. |
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CLO3 : Construct written work which is logically and professionally presented. |
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CLO4 : Communicate ideas in a succinct and clear manner. |
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CLO5 : Work collaboratively to complete tasks. |
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CLO6 : Identify and assess environmental and sustainability considerations in valuation and portfolio construction. |
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Learning and Teaching Technologies
Moodle - Learning Management System | Zoom
Learning and Teaching in this course
This course helps you to apply the accounting knowledge and skills you acquired in previous courses to analyse and determine the value of a company in the real business world. We will explain basic techniques and principles of financial statement analysis in pre-recorded videos and in the live-streamed seminars. We will use case studies extensively to illustrate how to analyse and value a business. To gain most from this course, you are encouraged to think critically and participate actively in the class discussion. You also need to develop an appreciation of the link between qualitative and quantitative analysis. To achieve this, preparations before classes are essential. You also have a chance to analyse and value a real company, which requires you to take initiatives and work effectively in a group environment.
Assessments
Assessment Structure
Assessment Item | Weight | Relevant Dates |
---|---|---|
Assessment 1: Weekly hand-ins
Assessment FormatIndividual
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15% | |
Assessment 2: Class participation
Assessment FormatIndividual
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10% | |
Assessment 3: Major Report
Assessment FormatGroup
Short ExtensionYes (5 days)
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40% | |
Assessment 4: Final Exam
Assessment FormatIndividual
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35% |
Assessment Details
Assessment Overview
This task requires students to demonstrate their understanding of course content to current business events.
Assesses: PLO1, PLO2, PLO3, PLO4
Course Learning Outcomes
- CLO1 : Explain the linkage between strategic business analysis, accounting analysis and financial analysis. Identify and utilize relevant information contained in financial statements.
- CLO2 : Identify and analyse issues relating to accounting quality. Prepare and substantiate a valuation that incorporates the strategic, accounting and financial activities of a business entry.
- CLO4 : Communicate ideas in a succinct and clear manner.
Detailed Assessment Description
The course will be taught in a discussion mode to facilitate thoughtful discussion of the cases. To get the most out of the course, you must be prepared for discussion every week. You should come to class with a list of questions on everything you do not understand, and you should be prepared to discuss your opinions on professional issues. In other words, you do not have to have a specific question in order to participate; I am very interested in your opinions.
Participation marks will be awarded based on your weekly hand-ins. There will be questions assigned for each class. You should submit your response through the Turnitin link provided on the Course Moodle page. Feedback will be provided from attending class and participating in the discussion surrounding these weekly questions.
Assessment Overview
This task requires students to attend class and demonstrate their participation in discussion surrounding weekly questions.
Assesses: PLO1, PLO2, PLO3, PLO4
Course Learning Outcomes
- CLO1 : Explain the linkage between strategic business analysis, accounting analysis and financial analysis. Identify and utilize relevant information contained in financial statements.
- CLO2 : Identify and analyse issues relating to accounting quality. Prepare and substantiate a valuation that incorporates the strategic, accounting and financial activities of a business entry.
- CLO4 : Communicate ideas in a succinct and clear manner.
Detailed Assessment Description
The weekly quiz question are assigned work that you need to complete during each seminar, You will be given the quiz questions by your instructor during your assigned seminar. You will have a maximum of 10 minutes to complete each quiz. Late submissions will not be accepted - you must be attending your assigned seminar to be eligible for your quiz grade in any week. You will get zero mark for any piece of work you fail to submit on time.
Assessment Overview
This assessment has two components as follow:
Individual component = 10%
Group component = 30%
This task is designed to enhance teamwork, analytical and communication skills to progressively analyse a real-world company using up-to-date financial data and financial analysis tools identified in the course.
Assesses: PLO1, PLO2, PLO3, PLO4, PLO5
Course Learning Outcomes
- CLO1 : Explain the linkage between strategic business analysis, accounting analysis and financial analysis. Identify and utilize relevant information contained in financial statements.
- CLO2 : Identify and analyse issues relating to accounting quality. Prepare and substantiate a valuation that incorporates the strategic, accounting and financial activities of a business entry.
- CLO3 : Construct written work which is logically and professionally presented.
- CLO5 : Work collaboratively to complete tasks.
- CLO6 : Identify and assess environmental and sustainability considerations in valuation and portfolio construction.
Detailed Assessment Description
The major project is aimed at developing your understanding of, and practical skills in financial analysis and valuation. It is also designed to enhance teamwork, analytical and communication skills.
To complete this project, you are will be placed into syndicates of 4 or 5 members within your assigned seminar stream. You will then be required to progressively analyse a real-world company using up-to-date financial data and financial analysis tools identified in the course.
Note that the project is inherently complicated and requires progressive efforts. This means that you need to constantly interact with your peers every week throughout the course. You will need to add new analysis incrementally as you acquire new tools and skills each week. Do not leave all the work to the last few days prior to the deadlines — you will not have enough time.
This assessment involves both an individual report and group report. Specific requirements for these two submissions will be posted on course Moodle site and detailed in Week 1 seminar. Please note the following applicable deadlines:
- The individual report is due by the end of Week 5. You will submit the project reports through Turnitin via the course Moodle site.
- The group report is due by the end of Week 9. You will submit the project reports through Turnitin via the course Moodle site.
- Your group will prepare a short video presentations describing your main results that is due by Monday of Week 10 on Moodle
The project is worth 40% of the course assessment. The individual report is worth 10% and the group report 25%, and the video presentation 5%.
Assessment Overview
The aim of the final exam is to assess if you have achieved an adequate level of technical competency in financial statement analysis and the capacity to apply the technical competency analytically and critically in a business environment.
Assesses: PLO1, PLO2, PLO5
Course Learning Outcomes
- CLO1 : Explain the linkage between strategic business analysis, accounting analysis and financial analysis. Identify and utilize relevant information contained in financial statements.
- CLO2 : Identify and analyse issues relating to accounting quality. Prepare and substantiate a valuation that incorporates the strategic, accounting and financial activities of a business entry.
- CLO6 : Identify and assess environmental and sustainability considerations in valuation and portfolio construction.
Detailed Assessment Description
The final assessment will be a 2-hour online exam based on an actual company. The aim of the final assessment is to assess whether you have achieved an adequate level of technical competency in financial statement analysis and the ability to draw meaningful inferences from a complex set of information.
The exam will be in the scheduled exam period.
Late submissions will not be accepted. You will get zero mark for any piece of work you fail to submit on time. It is your responsibility to make sure you meet the deadlines at various stages.
You may draw on any resources to complete the exam, but you must not discuss the questions or share your answers with your peers (in which case a plagiarism case may be raised). All concepts and tools covered in the course are examinable. You will need to show your detailed workings.
General Assessment Information
As a student at UNSW you are expected to display academic integrity in your work and interactions. Where a student breaches the UNSW Student Code with respect to academic integrity, the University may take disciplinary action under the Student Misconduct Procedure. To assure academic integrity, you may be required to demonstrate reasoning, research and the process of constructing work submitted for assessment.
To assist you in understanding what academic integrity means, and how to ensure that you do comply with the UNSW Student Code, it is strongly recommended that you complete the Working with Academic Integrity module before submitting your first assessment task. It is a free, online self-paced Moodle module that should take about one hour to complete.
You are expected to complete all assessment tasks for your courses in the School of Accounting, Auditing & Taxation. In some courses, there will be a minimum pass mark required on the final exam due to the need to assure individual mastery of specific course learning outcomes for accounting accreditation requirements. Where applicable this is explained in the assessment section of this course outline.
Further instructions on how to prepare for this exam will be provided to you during the term.
Grading Basis
Standard
Requirements to pass course
In order to pass this course, you must:
- achieve a composite mark of at least 50 out of 100;
- meet any additional requirements described in the Assessment Summary section.
You are expected to attempt all assessment requirements in the course.
Course Schedule
Teaching Week/Module | Activity Type | Content |
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Week 1 : 27 May - 2 June | Seminar |
Introduction Chapter 1 Class participation.
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Week 2 : 3 June - 9 June | Seminar |
Excel Workshop |
Week 3 : 10 June - 16 June | Seminar |
Strategic Analysis Chapter 2 Weekly quiz Class participation
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Week 4 : 17 June - 23 June | Seminar |
Accounting Analysis & Earnings Quality Chapters 3 and 4 Weekly quiz Class participation Major project individual submission due at end of week.
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Week 5 : 24 June - 30 June | Seminar |
Financial Analysis Chapter 5 Weekly quiz Class participation
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Week 6 : 1 July - 7 July | Seminar |
Forecasting Chapter 6 Weekly quiz Class participation
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Week 7 : 8 July - 14 July | Seminar |
Valuation I Chapter 7 Weekly quiz Class participation
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Week 8 : 15 July - 21 July | Seminar |
Valuation II Chapter 8 Weekly quiz Class participation
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Week 9 : 22 July - 28 July | Seminar |
Equity Security Analysis Chapter 9 Weekly quiz Class participation Major Project Group submission due at end of week.
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Week 10 : 29 July - 4 August | Seminar |
Credit Analysis & Mergers and Acquisitions Chapters 10 and 11 Weekly quiz Class participation Video Presentation due at start of week. Release of Examination guideline with associated material if necessary.
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Attendance Requirements
Students are strongly encouraged to attend all classes and review lecture recordings.
Course Resources
Prescribed Resources
The website for this course is on Moodle.
You are required to be enrolled in the course to access this website. The Moodle site is where announcements, copies of lecture notes, seminar questions, and other material will be posted.
Prescribed Textbook
Palepu, K. G., P. M. Healy, S. Wright, M. Bradbury, J. Coulton, Business Analysis and Valuation Using Financial Statements: Text and Cases, Asia Pacific 3rd Edition, Cengage Learning, 2021.
There is an ebook version of this text that you can download from the UNSW Library website for free (you will only be able to download a limited number of chapters at a time). See Moodle for detailed instructions on how to access the text from the Library. You can also obtain a full e-book from
the publisher (Cengage). If you use the code "TAKE10OFF" you will receive a 10% discount.
Course Evaluation and Development
Feedback is regularly sought from students and continual improvements are made based on this feedback. At the end of this course, you will be asked to complete the myExperience survey, which provides a key source of student evaluative feedback. Your input into this quality enhancement process is extremely valuable in assisting us to meet the needs of our students and provide an effective and enriching learning experience. The results of all surveys are carefully considered and do lead to action towards enhancing educational quality.
As a result of this feedback, we are increasing the focus on you undertaking practical applications of the course material during the weekly seminar times. This will involve extensive use of databases and excel to improve data analytic skills. Week 2 of the course will feature an externally facilitated workshop on developing excel competencies.