This module will allow the candidate to integrate their understanding of economics with financial statement analysis to perform a fundamental analysis of a company (that can then be applied to either equity or fixed income security valuation in other modules).
1. The candidate should be able to demonstrate a thorough knowledge of microeconomic and macroeconomic principles.
2. The candidate should be able to demonstrate a thorough knowledge of financial reporting procedures and the rules that govern financial reporting disclosure. Emphasis is on basic financial statements and how alternative accounting methods affect those statements and the analysis of financial statement relationships.
3. The candidate will the learn how to integrate the three subjects to form a holistic and integrated approach to corporate valuation.
This module is compulsory for MSc Investment Management programme, and optional for MSc Financial Computing programme. It provides an integrated framework for the candidate to conduct a thorough analysis in financial statements at the company level by taking a number of economic factors and principals into account, which develops the candidate’s capabilities of qualitative and quantitative analysis.
A A systematic understanding of knowledge, and a critical awareness of current issues in the area of professional practice related to financial analysis
B Originality in the application of knowledge, together with a practical understanding of established, applied techniques of research and analysis as used to interpret knowledge and practice in the area
C Conceptual understanding that enables the student to evaluate methodologies and develop critiques of them and, where appropriate, propose new practices
This module will be taught using a combination of lectures, tutorials and practicals in the Thomson Reuters financial lab. Learning will also be reinforced by readings from the textbook and industry reports and analysis. Extensive use will be made of case studies and highlight the various ethical and professional standards in the industry related to this market activity.