Statement-analysis methods

Unit 15: Analysis of Financial StatementTopic 2 of 8

Browse the Financial Accounting and Analysis syllabus

Financial Accounting and Analysis

15 units

1 Basic Understanding of Financial Accounting
2 Conceptual Framework of Accounting
3 Accounting Process
4 Accrual Basis of Accounting
5 Accounting for Inventories and Cost of Goods Sold
6 Accounting for Cash and Internal Control
7 Accounting for Receivables
8 Accounting for Current Liabilities and Contingencies
9 Accounting for Long-Lived Assets
10 Accounting for Long Term Liabilities
11 Accounting for Shareholders' Equity
12 Basic Financial Statements
13 Cash Flow Statement
14 Value Added Statement
15 Analysis of Financial Statement

On this page

What the syllabus expects

Horizontal and vertical analysis
Comparative and common-size statements
Applications

Statement-analysis methods

Bachelor of Business Studies (BBS) — First Year

Subject: Financial Accounting and Analysis (MGT 211)

Unit 15: Analysis of Financial Statement

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

Explain the scope and key elements of statement-analysis methods.
Identify the accounting treatment, prepare relevant records or calculations and interpret their financial effects.

Curriculum Scope

Horizontal and vertical analysis
Comparative and common-size statements
Applications

Detailed Microsyllabus

Horizontal analysis
1. Compare periods and absolute changes.
2. Percentage changes and comparative statements.
3. Interpret trends.
Vertical analysis
1. Use appropriate statement bases.
2. Common-size income and position statements.
3. Compare composition across periods or suitable firms.

Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 20-22.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here.