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ACCT

BUSINESS ANALYSIS AND VALUATION

Course Outline

Semester 1, 2014

Australian School of Business

School of Accounting

Table of Contents

• PART A: COURSE-SPECIFIC INFORMATION
• 1 STAFF CONTACT DETAILS
• 2 COURSE DETAILS
• 2.1 Teaching Times and Locations
• 2.2 Units of Credit
• 2.3 Summary of Course
• 2.4 Course Aims and Relationship to Other Courses
• 3 LEARNING AND TEACHING ACTIVITIES
• 3.1 Approach to Learning and Teaching in the Course
• 3.2 Learning Activities and Teaching Strategies
• 4 ASSESSMENT
• 4.1 Formal Requirements
• 4.2 Assessment Details
• 4.3 Late Submission
• 5 COURSE RESOURCES
• 6 COURSE EVALUATION AND DEVELOPMENT
• 7 COURSE SCHEDULE
• PART B: KEY POLICIES, STUDENT RESPONSIBILITIES AND SUPPORT
• 1 PROGRAM LEARNING GOALS AND OUTCOMES
• 2 ACADEMIC HONESTY AND PLAGIARISM
• 3 STUDENT RESPONSIBILITIES AND CONDUCT
• 3.1 Workload
• 3.2 Attendance
• 3.3 General Conduct and Behaviour
• 3.4 Occupational Health and Safety
• 3.5 Keeping Informed
• 4 SPECIAL CONSIDERATION AND SUPPLEMENTARY EXAMINATIONS
• 5 STUDENT RESOURCES AND SUPPORT

very useful preparatory course for the CPA, CA and CFA programs. Also due to the applied nature of the course, it is helpful to those contemplating careers in investment banking (particularly in equity research), security analysis, funds management, financial planning, business consulting, corporate finance and public accounting. The course also has wide application in personal investment activities.

To complete the advance topics covered in the course, a certain level of prior

knowledge in both accounting and finance is assumed.The following courses (or

acceptable equivalents) are the minimum prerequisites and must be completed to

enroll in the course:

ACCT2542 and FINS

Student Learning Outcomes

The Course Learning Outcomes are what you should be able to DO by the end of this course if you participate fully in learning activities and successfully complete the assessment items.

The Learning Outcomes in this course also help you to achieve some of the overall Program Learning Goals and Outcomes for all undergraduate postgraduate coursework students in the ASB. Program Learning Goals are what we want you to BE or HAVE by the time you successfully complete your degree (e.g. ‘be an effective team player’). You demonstrate this by achieving specific Program Learning Outcomes - what you are able to DO by the end of your degree (e.g. ‘participate collaboratively and responsibly in teams’).

ASB Undergraduate Program Learning Goals and Outcomes

1. Knowledge : Our graduates will have in-depth disciplinary knowledge applicable in local and global contexts. You should be able to select and apply disciplinary knowledge to business situations in a local and global environment**.

2. Critical thinking and problem solving: Our graduates will be critical thinkers and effective problem solvers.** You should be able to identify and research issues in business situations, analyse the issues, and propose appropriate and well-justified solutions. 3. Communication: Our graduates will be effective professional communicators. You should be able to: a. Prepare written documents that are clear and concise, using appropriate style and presentation for the intended audience, purpose and context, and b. Prepare and deliver oral presentations that are clear, focused, well-structured, and delivered in a professional manner. 4. Teamwork: Our graduates will be effective team participants. You should be able to participate collaboratively and responsibly in teams, and reflect on your own teamwork, and on the team’s processes and ability to achieve outcomes. 5. Ethical, social and environmental responsibility: Our graduates will have a sound awareness of the ethical, social, cultural and environmental implications of business practice. You should be able to: a. Identify and assess ethical, environmental and/or sustainability considerations in business decision-making and practice, and b. Identify social and cultural implications of business situations.

For more information on the Undergraduate Program Learning Goals and Outcomes, see Part B of the course outline.

The following table shows how your Course Learning Outcomes relate to the overall Program Learning Goals and Outcomes, and indicates where these are assessed (they may also be developed in tutorials and other activities):

Program Learning Goals and Outcomes

Course Learning Outcomes Course Assessment Item

This course helps you to achieve the following learning goals for all ASB undergraduate students:

On successful completion of the course, you should be able to:

This learning outcome will be assessed in the following items:

1 Knowledge Describe^ and^ apply^ the^ basic techniques of financial statement analysis (FSA); Explain the linkage between strategic business analysis, accounting analysis and financial analysis;

 Project  Case Studies  Exam

2 Critical thinking and problem solving

Identify and utilise value-relevant information contained within financial statements; Recognise and explain the fundamental role of accounting numbers in the valuation of entities; Prepare and substantiate a valuation that incorporates the strategic, accounting and financing activities of a business entity.

 Project  Case Studies  Exam

3a Written communication

Construct written work which is logically and professionally presented.

 Project Report

3b Oral communication Communicate ideas in a succinct and clear manner.

 Project presentation

4 Teamwork Work collaboratively to complete a task.

Not specifically assessed.

5a. Ethical, environmental and sustainability responsibility

Identify and assess ethical considerations accounting disclosure

 Project  Case Studies  Exam

5b. Social and cultural awareness

Not specifically addressed in this course.

Assessment Task (^) Weighting Length Due Date

Weekly Case Write-up 10% 2-4 pages Class 2 – 11 Class Participation 10% Class 1 to 11 BAV Project 30% See guidelines June 6 Final Exam 50% 2-hours Exam Period

4.2.1 Weekly Case Write-Up (10%)

The case write-up is aimed at preparing yourself for the case discussion in the seminars. You should outline your solutions to the case questions. You need to submit FIVE case write-ups at your choice. The case write-ups will be collected at the END of the classes in each specific week. No email or faxed submission of assignments will be accepted, and no submissions will be accepted outside of the seminar. 1 mark will be rewarded to each submitted case write-up, and another 1 mark will be rewarded for participation in class discussion.

Formatting requirements:

Each student is required to submit a typed outline of solutions for the case studies. Please use a minimum font size of Times Roman 11 point (or equivalent), with at least 1.5 line spacing (i.e., no single spacing) and margins of at least 2cm (top, bottom, left and right). You may use bullet points.

4.2.2 Class Participation (10%)

Students are strongly encouraged to participate into class discussion, particularly the discussion of case studies. To facilitate the recording of participation, please prepare and bring to all classes a name card.

4.2.3 BAV Project (30%)

The BAV project is aimed at developing your understanding of, and practical skills in financial statement analysis and valuation. It is also designed to enhance teamwork, and analytical and communication skills. Upon successful completion of the project you will have acquired a working knowledge and practical skills in undertaking an equity valuation using ‘leading-edge’ financial statement analysis techniques. From past experience, the final report often provides excellent evidence of your analytical skills that can presented to prospective employers when applying for jobs.

The detailed guidelines of the BAV project are available on Moodle.

To complete this project, you are required to: (1) Form syndicates of 3 to 5 members from students in your seminar stream; (2) Progressively analyze your company using the strategic, accounting, financial and prospective analysis tools identified in the course.

(3) Submit your written project reports to the course coordinator by3pm, Friday

June 6.

An overall group mark (out of 30%) will be awarded to each student for the group project but the course coordinator reserves the right to provide a reduced mark where a student has provided a sub-standard contribution to group activities.

Further details on the nature and requirements of the project will be provided in class and your progress will be regularly discussed throughout the course.

4.2.4 Final Exam (50% )

The final examination will be a two hour examination at a time to be advised via the examination timetable. All material covered in the course is examinable. Further details of the exam will be provided in the Week 12 seminar.

The aim of the final exam is to assess if you have achieved an adequate level of technical competency in financial statement analysis and the capacity to apply the technical competency analytically and critically in a business environment.

4.3 Late Submission

Late submission will not be accepted. You will get zero marks for any piece of work you fail to submit on time. It is your responsibility to make sure you meet the deadlines at various stages for your group project.

5 COURSE RESOURCES

5.1 Course Resources

Prescribed Text: Palepu, K. G., P. M. Healy, V. Bernard, S. Wright, M. Bradbury,

P. Lee, Business Analysis and Valuation Using Financial Statements: Text and Cases, Asia Pacific Edition, Cengage Learning, 2010.

Course Website A course website will be maintained within the University’s Technology Enabled Learning and Teaching environment, or Blackboard. You are required to be enrolled in the course to access this website. The Blackboard site is where announcements, copies of lecture notes, seminar questions, and other material will be posted.

5.2 Other Resources, Support and Information You are encouraged to read business newspapers, magazines and websites to keep abreast with the latest developments in the financial markets. The following website may of interest to you:

www.wsj.com

www.businessweek.com

Quality Assurance

The ASB is actively monitoring student learning and quality of the student experience in all its programs. A random selection of completed assessment tasks may be used for quality assurance, such as to determine the extent to which program learning goals are being achieved. The information is required for accreditation purposes, and aggregated findings will be used to inform changes aimed at improving the quality of ASB programs. All material used for such processes will be treated as confidential and will not be related to course grades.

7 COURSE SCHEDULE

CLASS DATE TOPIC

TEXTBOOK

READING *

CASE STUDY

1 3 March Introduction PH Chap 1

2 10 March Strategic Analysis PH Chap 2 The Dot-ComCrash

3 17 March Accounting Analysis 1 PH Chap 3 Inventec

4 24 March Accounting Analysis 2 PH Chap 4 Harnischfeger

5 31 March Financial Analysis PH Chap 5 America Online

6 7 April Forecasting PH Chap 6 Home Depot

7 14 April Valuation 1 PH Chap 7 Krispy Kreme Doughnuts Mid-Semester break: 18 April – 27 April

8 28 April Valuation 2 PH Chap 8 (^) QuestionsValuation

9 5 May Equity Security Analysis PH Chap 9

Home Depot in the New Millennium 10 12 May Credit Analysis PH Chap 10 United ParcelService’s IPO

11 19 May Mergers & Acquisitions PH Chap 11 Amazon.com

12 26 May Project Presentation

• Palepu, K. G., P. M. Healy, V. Bernard, S. Wright, M. Bradbury, P. Lee, Business Analysis and Valuation Using Financial Statements: Text and Cases, Asia Pacific Edition , Cengage Learning, 2010.

PART B: KEY POLICIES, STUDENT RESPONSIBILITIES AND

SUPPORT

1 PROGRAM LEARNING GOALS AND OUTCOMES

The Australian School of Business Program Learning Goals reflect what we want all students to BE or HAVE by the time they successfully complete their degree, regardless of their individual majors or specialisations. For example, we want all our graduates to HAVE a high level of business knowledge, and a sound awareness of ethical, social, cultural and environmental implications of business. As well, we want all our graduates to BE effective problem-solvers, communicators and team participants. These are our overall learning goals for you.

You can demonstrate your achievement of these goals by the specific outcomes you achieve by the end of your degree (e.g. be able to analyse and research business problems and propose well-justified solutions). Each course contributes to your development of two or more program learning goals/outcomes by providing opportunities for you to practise these skills and to be assessed and receive feedback.

Program Learning Goals for undergraduate and postgraduate students cover the same key areas (application of business knowledge, critical thinking, communication and teamwork, ethical, social and environmental responsibility), which are key goals for all ASB students and essential for success in a globalised world. However, the specific outcomes reflect different expectations for these levels of study.

We strongly advise you to choose a range of courses which assist your development of these skills, e.g., courses assessing written and oral communication skills, and to keep a record of your achievements against the Program Learning Goals as part of your portfolio.

ASB Undergraduate Program Learning Goals and Outcomes

1. Knowledge : Our graduates will have in-depth disciplinary knowledge applicable in local and global contexts. You should be able to select and apply disciplinary knowledge to business situations in a local and global environment**.

2. Critical thinking and problem solving: Our graduates will be critical thinkers and effective problem solvers.** You should be able to identify and research issues in business situations, analyse the issues, and propose appropriate and well-justified solutions. 3. Communication: Our graduates will be effective professional communicators. You should be able to: a. Prepare written documents that are clear and concise, using appropriate style and presentation for the intended audience, purpose and context, and b. Prepare and deliver oral presentations that are clear, focused, well-structured, and delivered in a professional manner. 4. Teamwork: Our graduates will be effective team participants. You should be able to participate collaboratively and responsibly in teams, and reflect on your own teamwork, and on the team’s processes and ability to achieve outcomes. 5. Ethical, social and environmental responsibility: Our graduates will have a sound awareness of the ethical, social, cultural and environmental implications of business practice. You should be able to: a. Identify and assess ethical, environmental and/or sustainability considerations in business

3.2 Attendance

Your regular and punctual attendance at lectures and seminars is expected in this course. University regulations indicate that if students attend less than 80% of scheduled classes they may be refused final assessment.

3.3 General Conduct and Behaviour

You are expected to conduct yourself with consideration and respect for the needs of your fellow students and teaching staff. Conduct which unduly disrupts or interferes with a class, such as ringing or talking on mobile phones, is not acceptable and students may be asked to leave the class. More information on student conduct is available at: https://my.unsw.edu.au/student/atoz/BehaviourOfStudents.html

3.4 Occupational Health and Safety

UNSW Policy requires each person to work safely and responsibly, in order to avoid personal injury and to protect the safety of others. For more information, see http://www.ohs.unsw.edu.au/.

3.5 Keeping Informed

You should take note of all announcements made in lectures, tutorials or on the course web site. From time to time, the University will send important announcements to your university e-mail address without providing you with a paper copy. You will be deemed to have received this information. It is also your responsibility to keep the University informed of all changes to your contact details.

4 SPECIAL CONSIDERATION AND SUPPLEMENTARY

EXAMINATIONS

You must submit all assignments and attend all examinations scheduled for your course. You should seek assistance early if you suffer illness or misadventure which affects your course progress.

General Information on Special Consideration:

1. All applications for special consideration must be lodged online through myUNSW within 3 working days of the assessment ( Log into myUNSW and go to My Student Profile tab > My Student Services channel > Online Services

   Special Consideration). You will then need to submit the originals or certified copies of your completed Professional Authority form (pdf - download here) and other supporting documentation to Student Central. For more information, please study carefully the instructions and conditions at: https://my.unsw.edu.au/student/atoz/SpecialConsideration.html.

2. Please note that documentation may be checked for authenticity and the submission of false documentation will be treated as academic misconduct. The School may ask to see the original or certified copy.

3. Applications will not be accepted by teaching staff. The lecturer-in-charge will be automatically notified when you lodge an online application for special consideration.
4. Decisions and recommendations are only made by lecturers-in-charge (or by the Faculty Panel in the case of UG final exam special considerations), not by tutors.
5. Applying for special consideration does not automatically mean that you will be granted a supplementary exam or other concession.
6. Special consideration requests do not allow lecturers-in-charge to award students additional marks.

ASB Policy on requests for Special Consideration for Final Exams in Undergraduate Courses: You must submit all assignments and attend all examinations scheduled for your course. You should seek assistance early if you suffer illness or misadventure which affects your course progress.

General Information on Special Consideration:

1. All applications for special consideration must be lodged online through myUNSW within 3 working days of the assessment ( Log into myUNSW and go to My Student Profile tab > My Student Services channel > Online Services

   Special Consideration). You will then need to submit the originals or certified copies of your completed Professional Authority form (pdf - download here) and other supporting documentation to Student Central. For more information, please study carefully in advance the instructions and conditions at: https://my.unsw.edu.au/student/atoz/SpecialConsideration.html.

2. Please note that documentation may be checked for authenticity and the submission of false documentation will be treated as academic misconduct. The School may ask to see the original or certified copy.
3. Applications will not be accepted by teaching staff. The lecturer-in-charge will be automatically notified when you lodge an online application for special consideration.
4. Decisions and recommendations are only made by lecturers-in-charge (or by the Faculty Panel in the case of UG final exam special considerations), not by tutors.
5. Applying for special consideration does not automatically mean that you will be granted a supplementary exam or other concession.
6. Special consideration requests do not allow lecturers-in-charge to award students additional marks.

ASB Policy on requests for Special Consideration for Final Exams in Undergraduate Courses: The policy of the School of Accounting is that the lecturer-in-charge will need to be satisfied on each of the following before supporting a request for special consideration:

1. Does the medical certificate contain all relevant information? For a medical certificate to be accepted, the degree of illness, and impact on the student,

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