KIMEP University
Bang College of Business (BCB)
Fall Semester 2013
Course Syllabus for: FIN4214/ACC4208 INTRODUCTION TO
FINANCIAL STATEMENT ANALYSIS
____________________________________________________________
1. Basic Information
Course Code and Title: FIN4214/ACC4208 INTRODUCTION TO FINANCIAL STATEMENT
ANALYSIS
Course Meeting Time and Place:
Group 1: #117 (New Academic Building), 14:30 –15:45, Monday, Wednesday
Group 2: #118 (New Academic Building), 17:30 –18:45, Tuesday, Thursday
Course Credit: Three (3) credits
Instructor Information: Akhliddin Ismailov, MBA
Office: Room #318 Dostyk (Administrative) Building
Phone: 270 44 40 Ext. 2140
E-mail: ismailov@kimep.kz
Prerequisite: FIN3121 Principles of Finance
FIN3101 Financial Institutions and Markets
2. Instructor Availability
Office Hours: Monday – Thursday 16:00 – 17: 00
Location: Room #318 Dostyk (Administrative) Building
Teaching Assistant Information: Danara Utemis
E-mail: danara.utemis@kimep.kz
Phone: 270 44 40 Ext. 2140
3. Instructional Resources
Required Textbook
Financial Statement Analysis and Security Valuation, Stephen H. Penman, Mc Graw Hill 4th ed.
Optional text
Please consult your KIMEP library for additional text available for this course.
On-line sources:
You will also be encouraged to access course information on KIMEP Network disk
L:\ Akhliddin Ismailov
Cases and Additional Readings: Listed in Course Schedule below, available on L-Drive, etc.
4. Course Description/Overview
The course will examine the fundamental techniques of financial statement analysis. Building
upon a review of accounting and investment concepts, the course will cover the analysis and
interpretation of financial accounting information including the balance sheet, income
statement and statement of cash flows. The course will also examine the use of accounting
information in investment and credit decisions, including valuation and debt ratings
1
5. Learning objectives
At the end of the course, students should be able to do the following:
KNOWLEDGE:
 Integrate financial statement analysis with corporate finance
 Exploit accounting as a system for measuring value added
 Compare different technologies on a cost/benefit criterion
 Build from first principles
SKILLS: Students will learnt to
 How intrinsic values are calculated
 How to pull apart the financial statements to get at the relevant information
 How growth is analyzed and valued
 How businesses are analyzed to assess the value they create
 How to do business forecasting
APPLICATION ABILITIES: Students will be able to
 Assess the quality of the accounting
 Evaluate risk and return
 Calculate the P/E ratio that should be
 Pull apart the financial statements to get at the relevant information
VALUES AND ATTITUDES: Students practice
 KIMEP Core Values
 Academic honesty
 Respect for peers and instructors
6. Teaching Methodology
The format of the course is basically lectures but also includes the following:
 Tutorials, problem solving
 Case studies and discussions
 Group projects
7. Assessment Scheme
Continuous Assessment
 Short exams (4*12%)
 Project (1*12%)
Final Assessment
 Examination
60%
48%
12%
40%
40%
TOTAL
100%
ASSESSMENT IN DETAIL
Organizational Note: For the group project, you should form groups of four (4) students.
(60%) Continuous Assessment
This part of assessment will include both group and individual components, as follows:
2
 (48%) Four short exams, 12% each, throughout the course, which will include problem
solving and quizzes (multiple-choice questions). The exact date of each will be agreed with the
students in the class
 (12%) one project performed by a group of students
(40%) Final Examination
The final examination will be close-book and of two or three hour duration.
8. Grading Scale
Letter grades for the course will follow the same standards as specified in the Catalog. See the
following table for grading scale:
Letter grade
A+
A
AB+
B
BC+
C
CD+
D
DF
Numerical scale or
percentile
90-100
85-89
80-84
77-79
73-76
70-72
67-69
63-66
60-62
57-59
53-56
50-52
Below 50
9. Course Policies and Instructor’s expectations of students
Students must attend 80% of the classes and those who are more than five minutes late will be
marked absent.
Academic honesty: We have a zero tolerance policy for academic dishonesty. Check the catalog for
details.
Cell phones: should be turned off at the beginning of the class, or put it on vibrate or silent mode (in
case of emergency).
Information dissemination: Information regarding this course and assignments will be given by the
instructor during the class or can be found on the L-drive.
No checking E-mails or surfing the Internet during the class.
Students are also expected to check their Umails.
Enrollment in the course constitutes an agreement with the terms and requirements in this syllabus.
10. Period-by-period Schedule (Tentative)
Week
1
2
3
Chapter
Chap 1
Chap 2
Chap 3
Topics, Readings & Activity
Introduction to Investing and Valuation
Introduction to the Financial Statements
How Financial Statements Are Used in Valuation
Short Exam#1 Chapter 1, 2, 3
3
4
Chap 4
Cash Accounting, Accrual Accounting, and Discounted Cash Flow
Valuation
5
6
Chap 5
Chap 6
Accrual Accounting and Valuation: Pricing Book Values
7
Chap 8
The Analysis of the Statement of Shareholders` Equity
Accrual Accounting and Valuation: Pricing Earnings
Short Exam#2 Chapter 4, 5, 6
8
MID-TERM BREAK
The Analysis of the Statement of Shareholders` Equity
9
Group project#1
The Analysis of the Statement of Shareholders` Equity
10 Chap 9
11
Chap 10
Short Exam#3 Chapter 8, 9, 10
12
13
14
15
16
The Analysis of the Cash Flow Statement
Chap 11
Chap 12
Review
The Analysis of Profitability
The Analysis of Growth and Sustainable Earnings
Short Exam#4 Chapter 11, 12
Preparation to final exam
Course objectives and their assessment
COURSE OBJECTIVES AND THEIR ASSESSMENT
Learning Outcomes
How they
taught
Understand the reformulation of the
statement and its importance. How
management can create value (and losses)
for shareholders with share transactions.
Chapter on the analysis of the
Statement of the Shareholders
Equity
Short exam, project
Understand what a valuation technology
looks like. How a valuation model provides
the architecture for fundamental analysis.
Chapters on the valuation of the
financial statements
Short exam, project
Understand how the dividend discount
model works (or does not work). Why free
cash flow may not measure value added In
operations.
Chapters on Cash Accounting,
Accrual
Accounting,
and
Discounted Cash Flow
Short exam.
What balance sheet and income statement
ratios reveal.
Chapters on the analysis of
financial statements
Short exam, project
4
will
be How to assess