Accounting Analysis And Equity Valuation

AY2016/2017 Semester 1

This course provides students with the conceptual background and analytical skills that are necessary to identify, assess and apply information for the purposes of analysing and valuing business activities and entities. The course employs the agency framework within a capital market context to help students develop the necessary analysis and valuation skills. Emphasis is placed on integrating the use of financial and non-financial information in business valuation and analysis, involving strategy analysis, accounting analysis, financial analysis, prospective analysis and valuation. The course allows students to understand the critical issue of determining the specific types of information that are relevant in ex ante valuation and ex post analysis of business entities and their activities. Students are also expected to be aware of the benefits and costs of acquiring and using such information. Cases and projects are used to develop and integrate the business analysis and valuation concepts. Healthy scepticism is emphasized, as students are encouraged to challenge the assumptions and facts related to each issue. After the completion of this course, students should understand and appreciate some of the rationales and characteristics that underlie business practices and financial reporting. Students should also appreciate the myriad interactions among the process of business analysis and valuation, the use of information sets (accounting and non-accounting), and the workings of the capital markets. Students are expected to develop important knowledge, skills and attitudes in AA301. The main objectives are to develop students? (1) social and interpersonal skills, (2) technical knowledge of specific accounting standards, (3) technical knowledge of business valuation, (4) creative and critical thinking, (5) tolerance for ambiguity in a dynamic environment, and (6) strategic thinking and leadership capabilities in a vibrant environment.