Financial Analysis, Sustainability, and Reporting, 30 Credits

Contents

This course give students a high level of expertise in central areas of accounting and finance with a sustainability perspective, covering topics such as firm valuation, financing, ESG reporting, and risk management. Each module covers different aspects of the financial management of companies. 
The course is given and examined in English.

• Module 1. Financial Reporting and Analysis, 7.5 credits
• Module 2. Advanced Corporate Finance, 7.5 credits
• Module 3. Advanced Financial and Sustainability Reporting, 7.5 credits
• Module 4. Risk Management, 7.5 credits

Common expected learning outcome:

• communicate central concepts for the course in English, both orally and in writing

Module 1.  Financial Reporting and Analysis, 7.5 credits
The aim of the module is to develop the students' abilities to prepare and analyse financial reports. The module has an international perspective and it focuses on accounting based on international accounting standards (IAS/IFRS). These standards are applied by listed companies in most countries around the world. Students taking the module are expected to have good basic knowledge in accounting.

Expected learning outcomes
After completing the module, the student should be able to:

• explain and evaluate the purposes of accounting according to the International Accounting Standard Board's conceptual framework, as well as to understand and be able to apply accounting principles and valuation methods.
• apply the international accounting standards in different situations such as revenue recognition, tangible and intangible assets, leasing transactions, income taxes, provisions and contingent liabilities.
• prepare a cash flow statement and to analyse a company's cash flow.
• prepare consolidated financial statements for a company that has domestic and foreign subsidiaries.
• analyse and evaluate the financial status and performance of a company using ratio analysis. 
• use present value calculations to value the assets and liabilities of companies.
• understand and be able to apply an academic approach to avoid plagiarism in academic work.

Focus of instruction
Learning is supported by lectures, practically oriented exercises, teacher-led case-discussions and tutoring sessions. Students are introduced to academic conduct, for example how cheating and plagiarism can be avoided and referencing techniques.

Examination
The examination is based a written individual hall exam, an individual computer based examination on plagiarism and referencing, and cases. The case-assignments are solved in groups and the assessment is based on the student-groups' written submissions and students' activity in the teacher-led case-discussions. A passing grade is required for each part of the module. Note as well examination modes for the course below.

Module 2. Advanced Corporate Finance, 7.5 credits
The primary purpose of this module is to provide an integrated overview of the most important concepts in Corporate Finance, both in theory and in practise and in some cases methodologically. The subject extends the student's knowledge about the context in which corporations operate. Topics to be covered in this module include capital market imperfections and methods developed in finance to control risk and reduce uncertainty in the financial management of corporations. Issues in corporate policy and strategy, based on theoretical developments in finance are presented. Students will learn the processes involved in the valuation of debt and equity and the methods that have been used to manipulate external perceptions of business outcomes. During the module, students will also be introduced to methods of working in international teams.

Expected learning outcomes
After completing the module, the student should be able to:

• assess the impact of information asymmetry on corporate financial policy decisions from the selection of particular modes of financing to dealing with the problems associated with financial distress
• explain the theoretical basis and applicable strategies applied in regard to issues of corporate control
• compare and contrast leverage strategies in ideal versus real capital markets and be able to explain the expected impact of alternative taxation systems on the use of debt in a firm's capital structure
• argue for optimal levels of corporate debt and/or equity and be able to value an offering of either, under different financing strategies
• reflect upon sustainable finance in relation to corporate finance

Focus of instruction
Learning is supported by lectures, as well as group workshops and seminars.

Module examination modes
Examination is based upon a written individual hall exam and written group assignments with presentations. Note as well examination modes for the course below.

Module 3. Advanced Financial and Sustainability Reporting, 7.5 credits
The module develops students' abilities to prepare and analyse financial and sustainability reports. It focuses on the reporting in large companies and develops students' abilities to handle also more complicated accounting issues. The module covers financial and sustainability reporting from an international perspective as it focuses on the International Financial Reporting Standards and sustainability standards used in the European Union.

Expected learning outcomes
After completing the module, the student should be able to:

• apply IFRS accounting standards, in both moderately difficult and more advanced situations 
• assess the consequences of different options in relation to accounting-method choices and approaches used for making estimates in accounting.
• apply the European Union's and the International Sustainability Standards Board's regulations when preparing sustainability reports.
• make materiality assessments in the financial reporting and sustainability reporting.

Focus of instruction
Learning is supported by lectures, practically oriented exercises, teacher-led case-discussions and tutoring sessions.

Module examination modes
The examination is based on a written individual hall exam and cases. The case-assignments are solved in groups and the assessment is based the students-group' submissions and the students' activity in the teacher-led case-discussions. Note as well examination modes for the course below.

Module 4. Risk Management, 7.5 credits
A general principal in finance is that there is a trade-off between expected return and risk. The module covers traditional risks such as market and credit risks, and then focuses on recent developments regarding liquidity, operational and model risks. It combines discussions around the concepts and mathematical approaches of volatility and Value at Risk and also highlights the role of trading, regulations and innovations. The module focuses on the way risks are managed by financial institutions, but many of the ideas are equally applicable to all kinds of businesses. The module content is aligned with the FRM Certification, Exam Part 1, delivered by the Global Association of Risk Professionals (GARP).

Expected learning outcomes
After completing the module, the student should be able to:

• integrate knowledge from a broad range of risk management concepts and techniques
• analyse the effects of the Basel Accords and other types of regulation.
• demonstrate analytical and integrative skills in solving advanced tasks within strategic risk management
• integrate risk management within sustainable strategies
• produce detailed and coherent reports in matters related to assessing risk management in real-life financial institutions.
• understand and apply ethical/professional rules in one's own learning
• evaluate own competence and own need for competence development in order to work with financial management

Focus of instruction
Learning is supported by lectures, seminars, case studies, guest lectures, with bank managers and course papers. The core topics will be covered by lectures and seminars. Cases related to the topics will also be used. Students are required to make oral presentations at seminars and during case analyses and to submit written course papers. Students will write an individual reflection paper in which they will assess their current performance and identify their needs of further knowledge.

Examination modes
Examination is based upon a written individual hall exam and written group assignments with oral presentation, and a written individual assignment. Note as well examination modes for the course below.

Expected learning outcomes

See each separate module.

Required Knowledge

A bachelor's degree (equivalent to a Swedish Kandidatexamen, 180 credits) from an internationally recognised university with 75 credits in Business Administration or equivalent with a minimum of 22.5 credits in Accounting/Finance. Proficiency in English equivalent to Swedish upper secondary course English B/6.

Form of instruction

See each separate module.

Examination modes

The course examinations are carried out in English. All examinations must be passed in order to obtain a passing grade on module and course. See also each separate module and below.
 
The following grading system is used:
Pass with distinction (Väl godkänd, VG, 75% or more),
Pass (Godkänd, G, 50% or more)
and Fail (Underkänd U, less than 50%).
 
Grades on the course are awarded when the student has passed all examinations and compulsory course elements.

To receive the grade Pass with distinction (VG) in the 30 credits course consisting of four modules of the same size, the student must have achieved Pass with distinction (VG) in at least three of the four modules. In shorter courses for example 7,5 credit courses, 15 credit courses or 22,5 credits courses Pass with distinction (VG) is given when the student has achieved at least 75% of the total weighted points.

A student who does not pass the first examination will be offered an opportunity for re-examination within 2 months. An additional examination opportunity is normally offered every academic year, one week prior to the start of the autumn term. If required by specific circumstances, another form of examination can be used.

A student that has failed an examination on two occasions has a right to have another examiner or grading teacher appointed, unless there are special reasons against it. A written request addressed to the Director of Studies should be made no later than 14 days before the next examination opportunity.

Adaptations 
Examiners may decide on deviations from the modes of assessment in the course syllabus. Individual adaptation of modes of assessment must give due consideration to the student's needs. The adaptation of modes of assessment must remain within the framework of the intended learning outcomes in the course syllabus. Students who require an adapted examination - and have received a decision on the right to support from the coordinator at the Student Services Office for students with disabilities - must submit a request to the department holding the course no later than 10 days before the examination. The examiner decides on the adaptation of the examination, after which the student will be notified.

Academic integrity and cheating
As a student, you are expected to act with academic integrity. This means writing and presenting within the limits of the academic rules and expectations communicated in the university's regulations and what is otherwise specified by the responsible department. Disciplinary action may be taken against students who use unauthorized help aids or in some other way try to mislead in examination. Rules and regulations concerning the production of academic texts and correct referencing is applicable to written assignments. Submitted material is subject to plagiarism control. In addition, Umeå University rules and regulations for education and research apply.

Transfer of credits
Student who considers themselves to possess knowledge from previous relevant studies or professional or vocational experience that can be comparable to a course or part of a course, can apply for transfer of credits. Approved transfer of credits means that the student does not need to take the or those parts of the course that the decision covers. Information about transfer of credits can be found on Umeå University's web site.

Other regulations

This course can not be included in the degree together with 2FE144, 2FE107, 2FE195, 2FE196, 2FE180, 2FE108, 2BA415, 2BA402, 2BA404, 2BA414