East West University
Department of Business Administration
FIN –408, Financial Statements Analysis, Spring - 2009
Course Instructor: Md. Lutfur Rahman, Senior Lecturer and Assistant Proctor
Office:11th floor, DDC building,
Tele: Office: 9882308, 8812335, Ext. 277, e-mail-lutfur@ewubd.edu
Class hours
Course Section Class Time Weekday
Room No
FIN408
1
01:30 - 03:00
TR
ADMN-402 (Multi Media)
FIN408
2
10:10 - 11:40
ST
Academic-401 (Multi Media)
Office hours
Day
Sunday
Monday
Tuesday
Wednesday
Thursday
Time
12:00 p.m. - 04:00 a.m.
01:30 p.m.- 03:00 p.m.
11:50 a.m.- 01:20 p.m.
01:30 p.m.- 03:00 p.m.
12:00 a.m. - 01:30 a.m.
03:00 p.m.- 05:00 p.m.
COURSE OBJECTIVE:
This Course is designed to provide Students with tools & techniques for proper
analysis of Financial Statement of Business Organizations. The analysis will focus
from the point of view of the primary users of Financial Statements: Equity & Credit
analysis. Corporate managers & those trained to be managers, requiring an
understanding of how financial Statement provides information regarding an
enterprise and its functions. This course helps the students to prepare and Interpret
financial Information.
COURSE CONTENTS:
Topics to be covered in this course include, among other things, understanding and
analysis of basic financial statements, such as, the income statement, balance sheet,
and statement of cash flows, foundation of ratio and financial analysis , analysis of
inventories longed – lived assets, financial liabilities.
REQUIRED TEXTBOOK:
1. The Analysis and use of Financial Statement by White, Gerald I., Sondhi,
Ashwinpaul C. and Fried, Dov, Third Edition, 2003, John Wiley & Sons, Inc.
Tentative Class Schedule
SL No.
Topic
Chapters
NO.
Classes
1
Framework
of
Financial
Statement
1
2
2
3
3
2
4
3
6
3
Analysis
(Topics to be covered: Need for financial
statement analysis, focus on investment
decisions, the financial reporting system,
international accounting standard, principal
financial
statements,
other
sources
of
financial information)
2
Accounting Income and Assets: The
Accrual Concept
(Topics to be covered: Income, cash flow
and assets: definition and relationships, the
accrual concept of income, nonrecurring
items, the balance sheet, statement of
stock holders equity)
3
Analysis of Cash Flows
(Topics to be covered: Statement of cash
flow, information of cash flow information)
4
Foundation
of
Ratio
and
be
covered:
Financial
Analysis
(Topics
to
Introduction,
common size statements, Discussion of
ratios by category, ratios : an integrated
analysis, earning per share and other ratios
used in valuation)
5
Analysis of Inventories
(Topics to be covered: Inventory and cost
of
goods
comparison
sold:
of
basic
information
relationship,
provided
by
alternative methods, LIFO versus FIFO,
adjustment from LIFO to FIFO and FIFO to
LIFO, financial ratios: LIFO versus FIFO)
of
6
Analysis of Long-lived Assets: Part 1
7
3
8
3
10
3
(Topics to be covered: Introduction, the
capitalization decision, capitalization versus
expensing:
conceptual,
general
and
industry issues)
7
Analysis of Long-lived Assets: Part 2
(Topics
to
be
covered:
Introduction,
depreciation concept, analysis of fixed asset
disclosures)
8
Analysis of financing Liabilities
(Topics
to
be
covered:
Introduction,
balance sheet debt)
Mid Terms and Final Exams on
- First class in the exam week
HOME ASSIGNMENTS
Home assignments play a key role for quiz and exam preparation. Home assignments
must be submitted at the beginning of the class on the day the assignments are due.
There will be at least four assignments of which best three will be counted.
QUIZ
There will be at least four quizzes of which the best three will be counted for the
grading purpose. No makeup quiz will be entertained whatever the reason.
EXAMINATIONS
There will be three examinations. Each exam is important and you must be serious
about them. Makeup exam is especially discouraged.
PENALTY FOR CHEATING BY STUDENTS IN EXAMINATIONS:
As per East West University rules “There is zero tolerance for cheating at EWU.
Students caught with cheat sheets in their possession, whether used or not used, &
or copying from cheat sheets, writing on the palm of hand, back of calculators, chairs
or nearby walls, etc. would be treated as cheating in the exam hall. The only penalty
for cheating in the exam hall is expulsion from EWU.”
COURSE EVALUATION:
Grades are earned, not given. Grades will be based on home assignments, quizzes,
and examinations. The distribution of total marks of 100 will be as follows:
1.
Quizzes
10 percent
2. Assignments and term paper
10 percent
3. First Mid-term Examination
25 percent
4. Second Mid-term Examination
25 percent
5. Final Examination
30 percent
Total
100 percent
GRADING POLICY:
Guideline for converting numerical scores to letter grades:
A+
73 - below 77
C+
90 - below 97
A
70 - below 73
C
87 - below 90
A-
67 - below 70
C-
83 - below 87
B+
63 - below 67
D+
80 - below 83
B
60 - below 63
D
77 - below 80
B-
- below 60
F
97 97- 100