Pre-requisites: Corporate Finance
The primary goal of this subject is to learn how to create managers’ “inside information” from analysing publicly available financial statement data. The subject is designed to equip the students with the skills of effective financial statement analysis to meet the challenge of the competitive business world. The subject is aimed at students with broad business career interests as well as those specializing in the accounting and finance field. The subject will commence with the introduction of the framework for financial statement analysis involving discussions on the roles of accounting information and intermediaries in the economy, and how financial analysis can create value in well-functioning markets. Afterwards, the subject topics will mainly cover the areas of how those business analyses and valuation frameworks can be applied to a variety of decisions. Cases and problems will be introduced gradually, and will provoke analytical and creative thinking of the subject participants.