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Latest Module Specifications

Current Academic Year 2025 - 2026

Module Title Financial Statement Analysis & Ethics
Module Code ACC1034 (ITS: EF5155)
Faculty DCU Business School School DCU Business School
NFQ level 9 Credit Rating 7.5
Description

This module provides an intensive introduction to analysis of reported financial statements and the use of accounting information. Financial statement analysis examines publicly available financial statements produced by entities and the use of accounting information from a financial manager perspective. The students will be equipped to understand certain key dimensions of a few International Financial Reporting Standards (IFRS) and comparison of financial information and disclosure within and across industries with the help of key financial analysis tools. 1.50 credits of this module are dedicated to ethics and its relevance for the financial sector. The ethical reflection is articulated at the individual level, managerial level, and at the level of interaction between finance and society.

Learning Outcomes

1. Demonstrate an understanding of publicly available financial statements produced by entities.
2. Demonstrate an understanding of the key accounting regulations/frameworks/standards that an entity must comply with in producing publicly available financial statements
3. Analyse the financial health of a company from the perspective of investors, lenders and other users, using horizontal analysis, trend analysis, ratio analysis and corporate failure prediction models.
4. Describe what is ethics and its theoretical and practical relevance for financial activity.
5. Demonstrate their ability to critically apply the knowledge on ethics and translate it into skills and attitudes.


WorkloadFull time hours per semester
TypeHoursDescription
Lecture33Formal lectures and problem-based learning
Tutorial10No Description
Independent Study54Directed reading
Directed learning40.5Preparation and completion of test and assignment.
Directed learning50Preparation for end-semester exam.
Total Workload: 187.5
Section Breakdown
CRN10061Part of TermSemester 1
Coursework0%Examination Weight0%
Grade Scale40PASSPass Both ElementsY
Resit CategoryRC1Best MarkN
Module Co-ordinatorVed Dilip BeloskarModule TeacherTongbin Xu
Section Breakdown
CRN20036Part of TermSemester 2
Coursework0%Examination Weight0%
Grade Scale40PASSPass Both ElementsY
Resit CategoryRC1Best MarkN
Module Co-ordinatorVed Dilip BeloskarModule TeacherTongbin Xu
Assessment Breakdown
TypeDescription% of totalAssessment Date
In Class TestClass-based test during the semester.20%n/a
Group assignmentApplication-based group assignment on ethics.20%n/a
Formal Examinationn/a60%End-of-Semester
Reassessment Requirement Type
Resit arrangements are explained by the following categories;
RC1: A resit is available for both* components of the module.
RC2: No resit is available for a 100% coursework module.
RC3: No resit is available for the coursework component where there is a coursework and summative examination element.

* ‘Both’ is used in the context of the module having a coursework/summative examination split; where the module is 100% coursework, there will also be a resit of the assessment

Pre-requisite None
Co-requisite None
Compatibles None
Incompatibles None

All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml

Indicative Content and Learning Activities

Introduction to Financial Statements and Analysis Framework
Accounting process, standard layout, contents and purpose of financial statements, FSA framework, Principles of Revenue Recognition and Expense Recognition, Inventory valuation methods, Property, Plant, and Equipment, Intangible Assets, current and non-current classification of assets and liabilities

Financial Reporting Quality
Quality spectrum of financial reports, evaluating earnings quality, cash flow quality, balance sheet quality, conservative and aggressive accounting, mechanisms that discipline financial reporting quality, Detection of financial reporting quality issues, developments in bankruptcy prediction models.

Analysis of Pensions, Stock Compensation and Other Employee Benefits
Types of post-employment benefit plans, financial statement reporting of pension plans and other post-employment benefits, share-based compensation

Analysis of Inter-Corporate Investments and Business Combinations
Corporate Investment Categories, Classification of investments in financial assets, Business combination methods

Analysis of Global Operations
Foreign Currency Transactions, Exposure to Foreign Exchange Risk, Disclosures Related to Foreign Currency Transaction Gains and Losses, Translation of Foreign Currency Financial Statements

Ratio and Financial Analysis
Calculation of Profitability Ratios, Activity Ratios, Liquidity Ratios, Solvency Ratios and Market Value Ratios, Application of Ratio Analysis, DuPont Analysis, Common size analysis, EVA and MVA

Ethics for Finance
Meaning of ethics; existence of different ethical theories; ethics and culture. Individual ethics in finance; managerial ethics in finance; relationship between finance and society; professional ethics; case studies on the areas under “ethics for finance students.”

Indicative Reading List

Books:
  • Thomas R. Robinson,Elaine Henry,Wendy L. Pirie,Michael A. Broihahn: 2015, International Financial Statement Analysis, 3rd, John Wiley & Sons, 9781118999479
  • Peter D. Easton,Mary Lea McAnally,Gregory Sommers: 2021, Financial Statement Analysis and Valuation, 6th, Cambridge Business Publishers, 9781618533609
  • CFA Institute: 2024, Financial Statement Analysis, 978191409231


Articles:
  • Wibbens, P. D., & Siggelkow, N.: 2020, Introducing LIVA to measure long-term firm performance, Strategic Management Journal, 41, https://doi.org/10.1002/smj.3114, 522743
  • 2016: Where financial reporting still falls short, Harvard Business Review, https://hbr.org/2016/07/where-financial-reporting-still-falls-short, 522744, 1
  • Twenty-five years of the Taffler Z-score model: does it really have predictive ability?: Accounting and Business Research, 522745, 1, Altman, E.I.
  • New York University Working Paper:
Other Resources

  • 1: Website, Bruns, William J., Jr., 1993, "Thumbs-Up Video, Inc." case, Harvard Business School
  • 419379: 1, Website, Lerner, Josh., 2018, "The Case of the Unidentified Ratios",

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