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Accounting for Financial Analysis syllabus

ACS 2086 units · 21 topicsAcademic year 2083/84
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Accounting for Financial Analysis

6 units

1. Introduction (2 LHs)

  1. Financial analysis
    1. Financial analysis: concept, objectives, importance, and types of financial analysis

2. Cost Management and Reporting (6 LHs)

  1. Cost concept and classification
    1. Cost concept and classification
  2. Segregation of semi-variable cost using the point method and regression method
    1. Segregation of semi-variable cost using the point method and regression method
  3. Measurement of correlation
    1. Measurement of correlation, coefficient of determination, testing of significance with ‘t’ value
  4. Reporting based on marginal costing
    1. Reporting based on marginal costing.

3. Cost Volume Profit Analysis (8 LHs)

  1. Application of cost-volume-profit for breakeven analysis and profit planning
    1. Application of cost-volume-profit for breakeven analysis and profit planning, including multiple products with interpretation
  2. CVP analysis under the condition of uncertainty
    1. CVP analysis under the condition of uncertainty
  3. Cost-volume-profit analysis under resource constraints
    1. Cost-volume-profit analysis under resource constraints: Allocation of a single resource constraint, Allocation of multiple resource constraints using a linear programming model

4. Interpretation of Financial Statement (15 LHs)

  1. Concept and interpretation of
    1. Concept and interpretation of: Statement of Profit and Loss account
  2. Statement of Financial Position
    1. Statement of Financial Position
  3. Statement of Cash Flow Statement and different financial indicators i
    1. Statement of Cash Flow Statement and different financial indicators i.e. liquidity (current ratio and quick ratio)
  4. Leverage (debt to total capital ratio, interest coverage ratio and debt coverage ratio)
    1. leverage (debt to total capital ratio, interest coverage ratio and debt coverage ratio)
  5. Efficiency
    1. efficiency (receivable turnover ratio including collection period, payable turnover ratio including payable period, total assets turnover ratio)
  6. Profitability
    1. profitability (income/sales per employee, operating profit ratio, net profit increase rate, net profit ratio, employee expenses to total operating expenses ratio, return on equity, return on total assets and return on common shareholders equity) and earning evaluation ratios (EPS, DPS, BVPS and price-earnings ratio) for evaluating the financial performance of the business.

5. Investment Analysis (10 LHs)

  1. Concept and need of capital budgeting
    1. Concept and need of capital budgeting
  2. Investment analysis techniques
    1. Investment analysis techniques: discounted PBP, NPV, PI, and IRR
  3. Economic analysis of project
    1. Economic analysis of project: cost benefits analysis
  4. Risk analysis in capital budgeting
    1. Risk analysis in capital budgeting: sensitivity, standard deviation, scenario analysis, probability distribution approach

6. Financial Measures of Performance (7 LHs)

  1. Return on Investment (ROI), Residual Income (RI) and Economic Value Added (EVA)
    1. Return on Investment (ROI), Residual Income (RI) and Economic Value Added (EVA): concept, objectives, importance, calculation and interpretation of ROI, RI and EVA
  2. Differences between RI and EVA
    1. Differences between RI and EVA
  3. Differences between ROI and ROA
    1. Differences between ROI and ROA