City University of Hong Kong

Course Syllabus

offered by Department of Accountancy

with effect from Semester A 2022/23

Part I Course Overview

Course Title: Financial Statement Analysis

Course Code: CB3041

Course Duration: 1 semester

Credit Units: 3

Level: B3
Arts and Humanities
Study of Societies, Social and Business Organisations
Proposed Area:
(for GE courses only) Science and Technology

Medium of
Instruction: English

Medium of
Assessment: English

Prerequisites:
(Course Code and Title) CB2100 Introduction to Financial Accounting

Precursors:
(Course Code and Title) Nil

Equivalent Courses:
(Course Code and Title) Nil

Exclusive Courses:
(Course Code and Title) Nil

Course Syllabus
1
Jun 2017
 Part II Course Details

1. Abstract
(A 150-word description about the course)

This course aims to:

1. develop students' ability to analyse and interpret financial reports for the purposes of assessing
financial performance of firms to facilitate investment, lending, and other financial decisions;
2. provide students with hands-on experience in financial statement analysis;
3. develop students’ broader spectrum of business analysis invoking core financial statement
analysis skills and drawing economic conclusions in a variety of business contexts.

2. Course Intended Learning Outcomes (CILOs)

(CILOs state what the student is expected to be able to do at the end of the course according to a given standard of
performance.)

No. CILOs# Weighting* Discovery-enriched

(if curriculum related
applicable) learning outcomes
(please tick where
appropriate)
A1 A2 A3
1. Demonstrate a comprehensive framework for business
20% ✓ ✓
analysis and valuation using financial statement data.
2. Identify and describe different tools of financial
40% ✓
statement analysis.
3. Apply appropriate financial analysis tools to analyse and
20% ✓ ✓
assess the financial performance and position of firms.
4. Generate financial and business decisions for
investment, lending, and other purposes with the aid of 20% ✓ ✓
financial analysis tools.
* If weighting is assigned to CILOs, they should add up to 100%. 100%
#
Please specify the alignment of CILOs to the Gateway Education Programme Intended Learning outcomes
(PILOs) in Section A of Annex.

A1: Attitude
Develop an attitude of discovery/innovation/creativity, as demonstrated by students possessing a strong
sense of curiosity, asking questions actively, challenging assumptions or engaging in inquiry together
with teachers.
A2: Ability
Develop the ability/skill needed to discover/innovate/create, as demonstrated by students possessing
critical thinking skills to assess ideas, acquiring research skills, synthesizing knowledge across disciplines
or applying academic knowledge to self-life problems.
A3: Accomplishments
Demonstrate accomplishment of discovery/innovation/creativity through producing /constructing
creative works/new artefacts, effective solutions to real-life problems or new processes.

Course Syllabus
2
Jun 2017
 3. Teaching and Learning Activities (TLAs)
(TLAs designed to facilitate students’ achievement of the CILOs.)

TLA Brief Description CILO No. Hours/week

1 2 3 4 (if
applicable)
Seminar class Students will learn and interact ✓ ✓ ✓ ✓
with lecturer and other students
on various knowledge, theories
and practices
Live case studies Students will be assigned live ✓ ✓ ✓ ✓
cases to study using given
information and web data the
financial performance of these
cases
Project Students will search through the ✓ ✓ ✓
study/Presentation* web on identified live
corporations and generate
indicated financial and business
decisions through performing
financial analysis and
presentation on their finding and
financial decisions.

*DEC TLA element

4. Assessment Tasks/Activities (ATs)

(ATs are designed to assess how well the students achieve the CILOs.)

Assessment Tasks/Activities CILO No. Weighting* Remarks

1 2 3 4
Continuous Assessment: 50%
Class discussion and quizzes ✓ ✓ ✓ ✓
Students are required to 10%
initiate and participate in
discussion of various course
topics and attempt short
quizzes during the classes.

Homework assignments ✓ ✓ ✓
Students need to answer 10%
specific theoretical and
practical questions in core
financial analysis concepts
and tools including simple
case analysis.

Course Syllabus
3
Jun 2017
 Project report/Presentation# ✓ ✓ ✓
Students have to prepare a 30%
project report on a live listed
corporation in Hong Kong
or overseas on identifying
appropriate business
decisions for this
corporation based on
financial and business
analysis tools.
Examination: 50% (duration: 3 hours)
Final examination ✓ ✓ ✓ ✓
Students will attempt 50%
moderate case questions on
financial analysis and
related business and finance
decisions drawn from both
hypothetical and real live
corporate and financial data.
* The weightings should add up to 100%. 100%
#
DEC AT element

Students are required to pass both coursework and examination components to guarantee to
pass the course. Failing either component may lead to failure in the course. The passing mark
is generally 50.

Course Syllabus
4
Jun 2017
5. Assessment Rubrics
(Grading of student achievements is based on student performance in assessment tasks/activities with the following rubrics.)

Assessment Task Criterion Excellent Good Fair Marginal Failure

(A+, A, A-) (B+, B, B-) (C+, C, C-) (D) (F)
1. Class discussion Performance in Students have Students have Students have Students have Students randomly
and quizzes class activities demonstrated demonstrated demonstrated demonstrated or rarely join
excellent initiative good initiative and reasonable occasional discussion of
and interactions in interactions in interactions in interactions in issues and cases
raising sensible raising reasonable raising questions joining discussion with little
questions and questions and and joining of issues and cases contribution to
giving insightful joining discussion discussion of relating to the the course topics
discussion of of issues and cases issues and cases course topics in in class
issues and cases relating to the relating to the class
relating to the course topics in course topics in
course topics in class class
class
2. Homework Performance in Students perform Students perform Students perform Students fairly Students perform
assignments answering excellently in the well in the reasonably well in perform in the badly in the
questions for the assignments and assignments and the assignments assignments and assignments and
assignments provide very good provide good and provide some provide some cannot provide
answers to answers to good answers to acceptable acceptable
assignment assignment assignment answers to answers to
questions questions questions assignment assignment
questions questions
3. Project report / Performance in Students perform Students perform Students perform Students fairly Students cannot
Presentation preparing and excellently in well in project reasonably well in perform in project perform
presenting a project analysis analysis and project analysis analysis and satisfactorily in
project report and presentation presentation and and presentation presentation and project analysis
related to an and provide a very provide a good and provide good provide reasonable and presentation
identified live good report of report of required discussion and discussion in and only provide
corporation required competency analysis in certain certain parts of the basic discussion in
competency parts of the report report of required certain parts of the
of required competency report of required

Course Syllabus
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Jun 2017
 competency competency

4. Final examination Performance in Students perform Students perform Students perform Students fairly Students perform
answering excellently in the well in the exam reasonably well in perform in the badly in the exam
questions in the exam and provide and provide good the exam and exam and provide and cannot
final examination very good answers answers to exam provide some some acceptable provide acceptable
to exam questions questions good answers to answers to exam answers to exam
exam questions questions questions

Course Syllabus
6
Jun 2017
Part III Other Information (more details can be provided separately in the teaching plan)

1. Keyword Syllabus
(An indication of the key topics of the course.)

Financial Reporting Functions; Business Analysis and Valuation; Financial Statements;

Accounting Analysis; Financial Analysis; Prospective Analysis; Equity Security Analysis; Credit
Analysis; Corporate Failure Analysis, Investment Analysis; Contemporary Movement in Business
Context and Financial Analysis Tools

2. Reading List
2.1 Compulsory Readings
(Compulsory readings can include books, book chapters, or journal/magazine articles. There are also collections of
e-books, e-journals available from the CityU Library.)

1. Wahlen et al., Financial reporting, financial statement analysis, and valuation : a strategic
perspective, latest edition, Cengage

2.2 Additional Readings

(Additional references for students to learn to expand their knowledge about the subject.)

1. Palepu, et al., Business Analysis and Valuation, latest edition, Thompson

2. Penman, S., Financial Statement Analysis and Security Valuation, latest edition, McGraw
Hill
3. Gibson, Charles H., Financial Statement Analysis using Financial Accounting
Information, Latest edition, South-Western.

Course Syllabus 7
Jun 2017