Course coordinator
Dr Mark Wallis
Course overview
- Study period
- Semester 2, 2024 (22/07/2024 - 18/11/2024)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
This course provides an introduction to business analysis, financial statement analysis and valuation using financial statement data. It is designed to expose you to the 'state of the art' approach to valuing the shares of a company. Valuation is a highly speculative undertaking. As such, this course introduces a systematic approach to valuation that reduces the input of pure speculation by emphasising the importance of knowing the business, the business environment, and the appropriate data and valuation model to use for the type of company you are trying to value.
In this course, you will develop an understanding of how financial accounting information can be used to value a company's shares. This is crucial for making sensible investment decisions in the share market. It is also important for future accountants and auditors to appreciate how a company's financial accounting information, which they help to produce, will be used by investors. The course will also explore issues with financial accounting quality and how financial accounting information can be manipulated to potentially fool investors or to achieve contractual outcomes based on accounting numbers.
Course requirements
Assumed background
Substantial prior knowledge of financial accounting is required for this course. ACCT3103 is a prerequisite or corequisite, i.e. you must have completed ACCT3103 or be completing it in the same semester as ACCT3106. It will also be assumed that students have completed ACCT2110, which is a prerequisite for ACCT3103.
Before attempting this course, students are advised that it is important to complete the appropriate prerequisite course(s) listed on the front of this course profile. No responsibility will be accepted by the School of Business, the Faculty of Business, Economics and Law or The University of Queensland for poor student performance occurring in courses where the appropriate prerequisite(s) has/have not been completed, for any reason whatsoever.
Prerequisites
You'll need to complete the following courses before enrolling in this one:
ACCT3103
Incompatible
You can't enrol in this course if you've already completed the following:
ACCT7106 or FINM4412
Course contact
Course staff
Lecturer
Dr Mark Wallis
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Please note: Teaching staff do not have access to the timetabling system to help with class allocation. Therefore, should you need help with your timetable and/or allocation of classes, please ensure you email business.mytimetable@uq.edu.au from your UQ student email account with the following details:
- Full name,
- Student ID, and
- the Course Code
Aims and outcomes
This course has two main aims. First, to provide an introduction to financial statement analysis and valuation using financial statement information. Second, to discuss how to evaluate the quality of financial statements and the possibilities of earnings management.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Understand why and how to reformulate financial statements to facilitate equity valuation and financial statement analysis
LO2.
Understand how to apply and evaluate accounting-based valuation models, including forecasting of financial statements.
LO3.
Analyse financial ratios to determine the drivers of profitability and growth, and to assist with forecasting
LO4.
Assess accounting quality, understand the motivations for earnings management, and understand common techniques used to manage earnings
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Paper/ Report/ Annotation, Project |
Financial analysis and valuation project part 1
|
20% |
6/09/2024 2:00 pm |
| Project |
Financial analysis and valuation project part 2
|
20% |
25/10/2024 2:00 pm |
| Examination |
Final Examination
|
60% |
End of Semester Exam Period 2/11/2024 - 16/11/2024 |
Assessment details
Financial analysis and valuation project part 1
- Mode
- Written
- Category
- Paper/ Report/ Annotation, Project
- Weight
- 20%
- Due date
6/09/2024 2:00 pm
- Other conditions
- Longitudinal.
- Learning outcomes
- L01
Task description
The project requires students to complete a detailed financial statement analysis and valuation of a publicly listed company, applying the concepts from the first eight lectures/tutorials.
The project will be completed in two parts. Part 1 will focus on applying concepts taught in the first four lectures/tutorials.
Full details will be provided by the end of week one of semester through the Course Information Document which will be posted on Learn.UQ.
AI Statement:
This project is to be completed individually. The use of generative AI tools, such as ChatGPT, is prohibited. Note that all assignments will be checked by Turnitin for similarity and for evidence of AI-generated text.
Note that because this is part 1 of a two-part assignment, extensions may be limited to allow for timely feedback to be distributed to the class in preparation for the second part of the assessment.
Submission guidelines
Please submit your written answers through the Turnitin link on Learn.UQ.
Please submit your Excel workings through the Blackboard submission link on Learn.UQ.
Deferral or extension
You may be able to apply for an extension.
The maximum extension allowed is 7 days. Extensions are given in multiples of 24 hours.
Note that because this is part 1 of a two-part assignment, extensions may be limited to allow for timely feedback to be distributed to the class in preparation for the second part of the assessment.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Financial analysis and valuation project part 2
- Mode
- Written
- Category
- Project
- Weight
- 20%
- Due date
25/10/2024 2:00 pm
- Other conditions
- Longitudinal.
- Learning outcomes
- L02, L03
Task description
The project requires students to complete a detailed financial statement analysis and valuation of a publicly listed company, applying the concepts from the first eight lectures/tutorials.
The project will be completed in two parts. Part 2 will focus on applying the concepts taught in lectures/tutorials five-eight, although it may also build on content covered in earlier weeks.
Because Part 2 of the assignment builds on Part 1 of the assignment, suggested solutions for important components of Part 1 will be provided through Learn.UQ after all students have submitted Part 1. Students must build on these solutions in answering Part 2 of the assignment. This is to ensure that all students begin Part 2 of the assignment on the right track.
Full details will be provided by the end of week one of semester through the Course Information Document which will be posted on Learn.UQ.
AI Statement:
This project is to be completed individually. The use of generative AI tools, such as ChatGPT, is prohibited. Note that all assignments will be checked by Turnitin for similarity and for evidence of AI-generated text.
Submission guidelines
Please submit your written answers through the Turnitin link on Learn.UQ.
Please submit your Excel workings through the Blackboard submission link on Learn.UQ.
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Final Examination
- Identity Verified
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 60%
- Due date
End of Semester Exam Period
2/11/2024 - 16/11/2024
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02, L03, L04
Task description
Exam questions will address practical and conceptual issues covered over the full course.
This exam is a closed book, invigilated exam as required by UQ and Professional Accounting organisations.
AI Statement:
This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) or Machine Translation (MT) tools will not be permitted. Any attempted use of AI or MT may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 120 minutes |
| Calculator options | (In person) Casio FX82 series or UQ approved , labelled calculator only |
| Open/closed book | Closed Book examination - no written materials permitted |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0 - 29 |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30 - 46 |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 474 - 49 |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50 - 64 |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65 - 74 |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75 - 84 |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85 - 100 |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Supplementary assessment
Supplementary assessment is available for this course.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Find the required and recommended resources for this course on the UQ Library website.
Additional learning resources information
See the Blackboard/Learn.UQ site for the course to access:
- Detailed Course Information document
- Class powerpoint presentation slides
- Additional readings
- Additional learning materials on Blackboard
- Instructor notes and solutions from time to time
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 |
Lecture |
Introduction and Overview Learning outcomes: L01 |
Week 2 |
Tutorial |
Tutorial 1: Introduction and Overview Learning outcomes: L01 |
Lecture |
Financial Statement Reformulation Part 1 Learning outcomes: L01 |
|
Week 3 |
Tutorial |
Tutorial 2: Financial Statement Reformulation Part 1 Learning outcomes: L01 |
Lecture |
Financial Statement Reformulation Part 2 Learning outcomes: L01 |
|
Week 4 |
Tutorial |
Tutorial 3: Financial Statement Reformulation Part 2 Wednesday 14th Public Holiday. - Affected students please attend an alternate tutorial for this week only. Learning outcomes: L01 |
Lecture |
Financial Statement Reformulation Part 3 Learning outcomes: L01 |
|
Week 5 |
Tutorial |
Tutorial 4: Financial Statement Reformulation Part 3 Learning outcomes: L01 |
Lecture |
Unlevered Valuation/Reverse Engineering Learning outcomes: L02 |
|
Week 6 |
Tutorial |
Tutorial 5: Unlevered Valuation/Reverse Engineering Learning outcomes: L02 |
Lecture |
Financial Ratio Analysis Learning outcomes: L03 |
|
Week 7 |
Tutorial |
Tutorial 6: Financial Ratio Analysis Learning outcomes: L03 |
Lecture |
Financial Forecasting Learning outcomes: L02, L03 |
|
Week 8 |
Tutorial |
Tutorial 7: Financial Forecasting Learning outcomes: L02, L03 |
Lecture |
Accounting Properties and Multiples Valuation Learning outcomes: L02, L03 |
|
Week 9 |
Tutorial |
Tutorial 8: Accounting Properties and Multiples Valuation Learning outcomes: L02, L03 |
Lecture |
Accounting Quality Analysis Part 1 Learning outcomes: L04 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester Break No classes this week due to mid-semester break |
Week 10 |
Tutorial |
Tutorial 9: Accounting Quality Analysis Part 1 Learning outcomes: L04 |
Lecture |
Accounting Quality Analysis Part 2 Learning outcomes: L04 |
|
Week 11 |
Tutorial |
Tutorial 10: Accounting Quality Analysis Part 2 King's Birthday public holiday - No tutorial held Monday 07 October 2024. Please attend an alternative tutorial this week only. Learning outcomes: L04 |
Lecture |
Accounting Quality Analysis Part 3 This lecture clashes with a public holiday. A recording of this lecture will be uploaded to Learn.UQ to replace the live lecture Learning outcomes: L04 |
|
Week 12 |
Tutorial |
Tutorial 11: Accounting Quality Analysis Part 3 Learning outcomes: L04 |
Lecture |
Accounting Quality Analysis Part 4 Learning outcomes: L04 |
|
Week 13 |
Tutorial |
Tutorial 12: Accounting Quality Analysis Part 4 Learning outcomes: L04 |
Lecture |
Course Review Learning outcomes: L01, L02, L03, L04 |
Additional learning activity information
Please refer to the Course Information Document on Learn.UQ for additional course information, including: how to ask questions/contact the lecturer; details of homework questions; full instructions for the assignment.
Please ensure that you read the Course Information Document, all course announcements posted on Learn.UQ, any emails related to the course, and all materials posted on Learn.UQ throughout the semester. A failure to read information provided through these channels will not be accepted as a valid reason for failing to heed the information.
Students who do not attend classes (lectures and tutorials) may experience difficulties in the course.
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments - Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.