BAF4101: Financial Statement and Analysis Notes

Institution: Mount Kenya University

Course: Diploma in Banking

Content Category: Tutorials

Posted By: PENTAMRK

Document Type: PDF

Number of Pages: 98

Price: KES 300
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Summary

MOUNT KENYA UNIVERSITY
SCHOOL OF BUSINESS AND SOCIAL SCIENCES DEPARTMENT OF FINANCE AND ACCOUNTING

Course Objectives and Topics:
Financial reporting systems serve many purposes. They are used to inform both current and potential investors. The accounting numbers reported in the financial statements are
used in contracting between shareholders, managers, creditors and others. Regulators use financial reports to make assessments of competitive conditions and financial strength.
At various times, management makes financial reporting and/or transaction design
decisions to obtain some objectives with these various user groups. In this course, we will examine and analyze the financial accounting model in order to obtain a better understanding of these decisions and their telltale signs in the financial reports. These skills will enable us to make assessments of the “quality of reported earnings” and to make comparative assessments of performance and risk.

The Financial Statement Analysis Course provides many essential tools and concepts for students contemplating careers in corporate finance, auditing, investment banking, and equity and fixed income research. The material is covered in a rigorous, analytical manner.
LESSON 1:
• Definition
• Features of Financial Analysis
• Purpose of Analysis of financial statements
• Procedure of Financial Statement Analysis
• Importance of Financial Statement Analysis: LESSON 2 and 3
• Users of financial statements
• The need for Financial statements for various users
• Costs associated with disclosures
LESSON 4 and 5
• Tools for financial statement analysis
• Vertical analysis
• Horizontal analysis

LESSON 6 and 7

• Definition
• Objectives of Ratios:
• Pre-Requisites to Ratio Analysis:
• Classification of Ratios
• Calculations
• Limitations of Rations
• Horizontal analysis

LESSON 8 and 9

• Define financial forecasting
• Importance of financial forecasting
• Methods/Techniques of Financial Forecasting

LESSON 10 and 11

• Definition
• Effects of Financial Distress
• Indicators of a financially distressed firm
• Market efficiency
• levels and types of market efficiency
• Bankruptcy

LESSON 12: Revision.......................


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