30526 - FINANCIAL ANALYSIS AND PERFORMANCE MEASUREMENT
Department of Accounting
Course taught in English
Go to class group/s: 31
CLEAM (6 credits - I sem. - OP | SECS-P/07) - CLEF (6 credits - I sem. - OP | SECS-P/07) - CLEACC (6 credits - I sem. - OP | SECS-P/07) - BESS-CLES (6 credits - I sem. - OP | SECS-P/07) - WBB (6 credits - I sem. - OP | SECS-P/07) - BIEF (6 credits - I sem. - OP | SECS-P/07) - BIEM (6 credits - I sem. - OP | SECS-P/07) - BIG (6 credits - I sem. - OP | SECS-P/07) - BEMACS (6 credits - I sem. - OP | SECS-P/07) - BAI (6 credits - I sem. - OP | SECS-P/07)
Course Director:
FRANCO FLAVIO MIROGLIO
FRANCO FLAVIO MIROGLIO
Suggested background knowledge
The first sessions of the course will be devoted to refresh contents and structures of fundamental financial reports (income statement, balance sheet, statement of cash flow) in order to create a common language and put in evidence pieces of information that will be used to carry out financial statement analysis. This will allow students without previous knowledge on topic to align to the rest of the class
Mission & Content Summary
MISSION
The Course intends first to develop students’ skills in understanding, analyzing, and interpreting financial statements. Conceptually, the course emphasizes that producers and users of financial statements have different objectives and informational needs. At the same time, the course is applied in that it teaches students how to analyze actual financial statements data to make informed business decisions and assessments. The course assumes a good command of basic financial accounting topics, but the first sessions will be devote to create a common language on financial reports and financial measures (accounting based, market based, ESG based).
Second this course is designed to broaden and deepen students’ conceptual and technical understanding of accounting as it is used for management purposes. The emphasis in the course is on financial controls, which provides the dominant form of control in the vast majority of decentralized organizations. This module provides support in business decisions, evaluation of organizational performance, or in evaluation of others (and/or be evaluated) using financial and non-financial information
CONTENT SUMMARY
The course is made up by two parts. Macro content items follow.
Part 1:
- Undrstanding financial statements
- Fundamental analysis
- Growth strategy and financial tensions: the logic behind target setting
- Market based measures, ESG and integrated reporting
Part 2:
- Management and control
- Financial responsibility
- Incentive systems
- Remedy to the miopia problem
- Uncontrollable factors
Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
Understand balance sheets, income statements and statement of cash flow.
Undestand the fundamental financial performance measures used at company level
Understand models that link corporate strategy to financial performance targets
Understand some metrics Market based, and ESG based
Understand Financial responsibility structures
Understand Performance measures used in managerial evaluations
Undestand the structure of Incentive systems
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
Be able to read financial reports
Be able to carry out a fundamental analysis that include financial and non financial elements
Be able to link different performance dimensions
Be able to connect performance targets to strategy
Be able to evaluate the adeguacy of the performance measurement system in practice
Be able to suggest improvements in accounting systems
Teaching methods
- Lectures
- Practical Exercises
- Individual works / Assignments
- Collaborative Works / Assignments
DETAILS
The course alternate traditional lectures to case and exercices, to get practice with topics covered. For attending students, it includes on-line individual assignments and two group works.
Assessment methods
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ATTENDING STUDENTS
The evaluation of APT (Active partecipation track) students will be based on:
· 2 Group assignments (GA) (one for each part of the course) receiving a maximum of 10 points in total (6 points for the first assignment + 4 points for the second one); groups will be created at the beginning of the course. Group assignments consist in a case study to be prepared with your classmates and delivered within the due date. Only the second GA will be presented at the end of the course. The participation to both GA is necessary to stay in the APT. Detailed information will be uploaded on blackboard.
· 4 Individual assignments (IA) delivered during the course (2 for part1 and 2 for part2). Each IA will consist of 8 multiple choice questions to be solved in 12 minutes and will be delivered on-line through blackboard platform. No registration is required, and you can do the test at home. Each IA allows a max of 8 points. At the end of the course, students that have collected from 18 to 25 points) will receive 1 bonus point on the final grade; students that have collected more than 25 points will receive 2 bonus points. To keep the APT status, you need to participate to 3 out of 4 IAs.
· The Final Exam. Time allowed: 75 minutes. Max points collectable with final exam for APT Students: 20.
APT students will have the following advantages:
- Better learning
- Better support in workload management
- Less questions in the final exam, more time available to answer each question
- A higher possible final grade (10+2+20= 32)
The final exam will be in class and on paper. Bring a calculator for quantitative exercises.
NOT ATTENDING STUDENTS
The evaluation of NPT students will be based, only, on the final exam. Time allowed: 75 minutes. All questions need to be answered and will be graded a maximum of 31 points.
NPT students will be allowed to test their preparation participating to Individual Assignments, but the points gained will not be considered for the final grade.
The final exam will be in class and on paper. Bring a calculator for quantitative exercises.
Teaching materials
ATTENDING AND NOT ATTENDING STUDENTS
Teaching materials (slides and readings) both for in class activities than home activities will be uploaded on Blackboard Platform
Check Blackboard daily for class announcements and lecture notes/homework assignments.
Last change 21/05/2024 09:42