Course coordinator
Dr Mark Wallis
Course overview
- Study period
- Semester 2, 2025 (28/07/2025 - 22/11/2025)
- Study level
- Postgraduate Coursework
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
Financial statement analysis, traditional procedures and current developments. Use of accounting data for valuation of firms.
This course 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. Some students are impatient with the upfront, fundamental 'business and accounting' analysis requirements, but beware the valuation failures of the financial analyst who does not thoroughly understand the company's fundamentals.
Students who routinely do not attend class may experience difficulties in this course.
Course requirements
Prerequisites
You'll need to complete the following courses before enrolling in this one:
(ACCT7101 + FINM7401)
Incompatible
You can't enrol in this course if you've already completed the following:
ACCT3106
Restrictions
Quota: Minimum of 15 enrolments
Course contact
Course staff
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
- Course Code
Lectures and tutorials are sometimes affected by public holidays. Replacement classes will be announced on Learn.UQ whenever classes are cancelled because of public holidays
Aims and outcomes
This course aims to provide an introduction to business analysis, financial statement analysis and valuation using financial statement data. It introduces a systematic, state of the art 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.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Undertake industry and competitive strategy analysis.
LO2.
Understand why and how to reformulate financial statements to facilitate equity valuation and financial statement analysis.
LO3.
Undertake financial ratio analysis to determine the drivers of profitability and growth and to assess accounting quality.
LO4.
Prepare pro forma forecasts of the financial statements based on sales forecasts, growth rates, and ratios.
LO5.
Provide an intrinsic price estimate for a stock using the appropriate valuation model and formulate a buy-sell recommendation.
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Paper/ Report/ Annotation, Project | Financial Statement Analysis Project | 40% |
8/09/2025 1:00 pm |
| Examination |
Final Examination
|
60% |
End of Semester Exam Period 8/11/2025 - 22/11/2025 |
Assessment details
Financial Statement Analysis Project
- Mode
- Written
- Category
- Paper/ Report/ Annotation, Project
- Weight
- 40%
- Due date
8/09/2025 1:00 pm
- Learning outcomes
- L02, L03
Task description
This project requires students to complete a detailed financial statement analysis of an Australian listed company.
In broad terms, the required analysis follows the content of the first five classes:
- Reformulation of the four financial statements
- Analysis of financial ratios
Note also:
- Detailed instructions will be provided on Learn.UQ (Blackboard).
- Students will be randomly assigned a company to analyse.
- This is an individual assessment.
- You must prepare a written report and provide your supporting workings in Excel. Excel work must reflect correct financial modelling conventions, which will be discussed in the class.
- Forecasting, valuation and accounting quality analysis will not be required for this project.
AI Statement:
Artificial Intelligence (AI) and Machine Translation (MT) are emerging tools that may support students in completing this assessment task. Students may appropriately use AI and/or MT in completing this assessment task. Students must clearly reference any use of AI or MT in each instance.
A failure to reference generative AI or MT use may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Please submit your write-up and Excel workings through Learn.UQ (Blackboard). See the Project Document on Learn.UQ (Blackboard).
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
8/11/2025 - 22/11/2025
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
Exam questions will address practical and conceptual issues covered over the full course.
The exam is an on-campus, closed book, and paper-based exam invigilated by UQ appointed invigilators.
AI Statement:
This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) tools will not be permitted. Any attempted use of Generative AI 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 only or UQ approved and labelled calculator |
| 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) | 47 - 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. |
Additional course grading information
Grades will be allocated according to University-wide standards of criterion-based assessment.
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.
Own copy required
You'll need to have your own copy of the following reading resources. We've indicated below if you need a personal copy of the reading materials or your own item.
| Item | Description |
|---|---|
| Book |
Financial statement analysis and security valuation
by Penman; Stephen H. - 2013 Edition: 5th ed Publisher: McGraw-Hill Irwin ISBN: 9780078025310; 9780077769505 |
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 |
Lecture 1 - Introduction Course introduction, motivation and accounting recap Learning outcomes: L02 |
Week 2 |
Workshop |
Workshop 1 - Introduction Learning outcomes: L02 |
Lecture |
Lecture 2 - Accounting Reformulation I Reformulation of the Balance Sheet Learning outcomes: L02 |
|
Week 3 |
Workshop |
Workshop 2 - Accounting Reformulation I EKKA Public Holiday - Wednesday 13 August 2025 - Check Blackboard for announcements about affected classes. Learning outcomes: L02 |
Lecture |
Lecture 3 - Accounting Reformulation II Reformulation of the Income Statement/Statement of Comprehensive Income Learning outcomes: L02 |
|
Week 4 |
Workshop |
Workshop 3 - Accounting Reformulation II Learning outcomes: L02 |
Lecture |
Lecture 4 - Accounting Reformulation III Reformulation of the Cash Flow statement and reformulated financial statement relations Learning outcomes: L02 |
|
Week 5 |
Workshop |
Workshop 4 - Accounting Reformulation III Learning outcomes: L02 |
Lecture |
Lecture 5 - Ratio Analysis DuPont analysis of financial ratios Learning outcomes: L03 |
|
Week 6 |
Workshop |
Workshop 5 - Ratio Analysis Learning outcomes: L03 |
Lecture |
Lecture 6 - Valuation & Forecasting I Introduction to fundamental valuation and strategy analysis Learning outcomes: L01, L04, L05 |
|
Week 7 |
Workshop |
Workshop 6 - Valuation & Forecasting I Learning outcomes: L01, L04, L05 |
Lecture |
Lecture 7 - Valuation & Forecasting II Levered valuation models and reverse engineering Learning outcomes: L04, L05 |
|
Week 8 |
Workshop |
Workshop 7 - Valuation & Forecasting II Learning outcomes: L04, L05 |
Lecture |
Lecture 8 - Valuation & Forecasting III Unlevered valuation models - DCF and Residual Operating Income Learning outcomes: L04, L05 |
|
Week 9 |
Workshop |
Workshop 8 - Valuation & Forecasting III Learning outcomes: L04, L05 |
Lecture |
Lecture 9 - Valuation & Forecasting IV Forecasting the financial statements and valuation based on our own forecasts Learning outcomes: L01, L04, L05 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester Break |
Week 10 |
Workshop |
Workshop 9 - Valuation & Forecasting IV Kings Birthday Public Holiday - Monday 6 October 2025 - Check Blackboard for announcements about affected classes. Learning outcomes: L03 |
Lecture |
Lecture 10 - Accounting Quality I Introduction to earnings management, manipulation of accruals and fair values Learning outcomes: L03 |
|
Week 11 |
Workshop |
Workshop 10 - Accounting Quality I Learning outcomes: L01, L04, L05 |
Lecture |
Lecture 11 - Accounting Quality II Manipulation of revenue and diagnostic ratios Learning outcomes: L03 |
|
Week 12 |
Workshop |
Workshop 11 - Accounting Quality II Learning outcomes: L03 |
Lecture |
Lecture 12 - Accounting Quality III Earnings management case study Learning outcomes: L03 |
|
Week 13 |
Lecture |
Lecture 13 - Summary and Revision Course review and exam information Learning outcomes: L01, L02, L03, L04, L05 |
Additional learning activity information
WORKSHOPS/TUTORIALS
In addition to the weekly lectures, two-hour workshop classes will be held each week. Attendance at these workshops is not compulsory. Instead, the aim of the workshops is to provide additional support on specific topics as and when required. If planning to attend these extra workshops, it is strongly recommended that you attempt the weekly workshop questions prior to the workshop.
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 for Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.