Course teached as: B013882 - ANALISI DI BILANCIO Second Cycle Degree in ACCOUNTING FOR CERTIFIED PUBLIC ACCOUNTANTS
The pivotal concept of Financial Statement Analysis Class is represented by the Cash
Flow Statement: our focus is on how to prepare it and interpret its contents.
Other related topics are:
• earnings management;
• balance sheet statement and income statement "reformulation";
• accounting data quality and earnings management;
• profitability analysis;
• solvency analysis;
• risk analysis
The main topics the class deals with are analyzed in several very good international
handbooks. Four of them are particularly interesting:
– S.H. Penman, Financial Statement Analysis and Securities Valuation, McGraw
Hill International Edition, 2010.
– C.P. Stickney – P. R. Brown – J. M. Wahlen, Financial Reporting, Financial
Statement Analysis, and Valuation, Thomson South-Western, 2007.
– K. R. Subramanyam – J. J. Wild, Financial Statement Analysis, McGraw Hill-
– G. I. White – A. C. Sondhi – D. Fried, The Analysis and Use of Financial Statements,
John Wiley, 2003.
Students are free to choose the source to draw from. Once your choice made, only a few
selected chapters should be studied. The chapters that are the most related to the class
• Penman: 3, 7-11, 17-19;
• Stickney: 1, 3-6;
• Subramanyam: 1, 2, 6-8, 10
• White: 2-4, 17-18
Clearly, a student is free to shape his/her personal booklet, by gathering chapters selected
from the recommended handbooks.
Type of Assessment
The final exam is a written test.
Students have to analyze the financial statements of a real company. They have to work out two separate documents:
a) accounting report;
b) narrative report.
More details are on www.analisidibilancio.it.
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