AC3103/AA301
ACCOUNTING ANALYSIS & EQUITY VALUATION
_________________________________________________________________________
Course Description and Scope
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.
Course Learning Objectives
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.
Course Assessments
Components
Class Participation
In-class Workshop
Take-Home Assignment
Guest Lecture
Written Assignment:
- Report
- Presentation
Final Examination
Total
Marks
10%
6%
10%
4%
Individual / Group
Individual
Individual
Individual
Individual
15%
5%
50%
100%
Group
Individual
Individual
Page 1
Distributed by Nanyang Business School, Nanyang Technological University. All Rights Reserved.
Textbook
PHP Palepu, Healy & Peek, Business Analysis and Valuation: IFRS Edition, Text and Cases.
2nd Edition. Cengage Learning, 2010 (Call No: HF5636.B979 2010).
Companion Website: http://www.cengage.co.uk/palepu_peek2/
Scott Financial Accounting Theory: Readings for Business Valuation and Analysis (customized
Pearson Prentice Hall text)
This customized Pearson Prentice Hall text is adapted from: Scott, Financial Accounting Theory. 6th
Edition Pearson Prentice Hall, 2011 (Call No: HF5636.S36 2011)
Proposed Weekly Schedule
Week
1
2
3
4
5
6
7
8
9
10
11
12
13
Topic
Course Introduction
Information Perspective on Accounting Information
Information Perspective on Accounting Information
Measurement Perspective on Accounting Information
The Business Analysis and Valuation Process
Accounting Analysis
Accounting Analysis
Accounting Analysis
Accounting Analysis
Recess Week
Financial Analysis
Prospective Analysis: Valuation Theory and Models
Prospective Analysis: Forecasting
Business Analysis and Valuation
Corporate Communication and Corporate Governance
Corporate Social Responsibility
Corporate Communication and Corporate Governance
Written Assignment
Presentations
Written Assignment
Presentations
Page 2
Distributed by Nanyang Business School, Nanyang Technological University. All Rights Reserved.