【全英文教学大纲】Financial Statements Analysis.docVIP

PAGE PAGE 2 Course Outline Financial Statements Analysis  School: Accounting Dept: Accounting ?  Chapter 1 Overview of Financial Statement Analysis LEARNING OBJECTIVES Explain business analysis and its relation to financial statement analysis Identify and discuss different types of business analysis Describe the component analyses that constitute business analysis Explain business activities and their relation to financial statements Describe the purpose of each financial statement and linkages between them Identify relevant analysis information beyond financial statements Analyze and interpret financial statements as a preview to more detailed analyses Apply several basic financial statement analysis techniques Explain the purpose of financial statement analysis in an efficient market Define and formulate some fundamental valuation models CHAPTER OVERVIEW Financial statement analysis is one important step in business analysis. Business analysis is the process of evaluating a company’s economic prospects and risks. This includes analyzing a company’s business environment, its strategies, and its financial position and performance. Business analysis is useful in a wide range of business decisions such as investing in equity or debt securities, extending credit through short or long term loans, valuing a business in an initial public offering (IPO), and evaluating restructurings including mergers, acquisitions, and divestitures. Financial statement analysis is the application of analytical tools and techniques to general-purpose financial statements and related data to derive estimates and inferences useful in business analysis. Financial statement analysis reduces one’s reliance on hunches, guesses, and intuition for business decisions. This chapter describes business analysis and the role of financial statement analysis. The chapter also introduces financial statements and explains how they reflect underlying business activities. Several