Accounting and corporate financial performance

Recommended Prerequisites

NA

Teaching Methods

Concepts and case studies

Learning Outcomes

 Introducing students to the objectives of financial accounting, to the different reporting statements  and its use in evaluating business performance. Analysis of financial and non financial indicators of  corporate performance. Studying valuation techniques as they relate to investment, operational and  financial performance, and also how ex post follow up in project appraisal is key to successful policies. Additionally, to relate corporate performance to shareholder remuneration in the form of dividends.

The course is directed to students expecting to work in the financial departments  of firms, the banking sector, the financial consulting industry, in mergers and acquisitions,  and related activities.

Work Placement(s)

No

Syllabus

1-         Basics of accounting principles and financial statements; the evaluation of performance

1.1       The role of IFRS in accounting harmonization

1.2       Characteristics of accounting info

1.4       The income statement; the balance sheet and the cash flow statement.

1.5       Notes to the statements and their role in interpreting accounting numbers

1.6       Case studies: SONAE Inc; GOOGLE Inc.

 

2-         Financial indicators and firm´s performance: profitability, liquidity and risk; the balanced scorecard. The non-financial dimensions of performance

 

2.2 Rates of return; leverage and other factors impacting investors´ remuneration

3- Corporate performance and business valuation: Asset based, Net Income based, and Cash flow based methods. The ex post performance in corporate and project valuation

3.1 How to value a business. Micro firms and big corporations

3.2 Methods of valuation: asset based; profit based and cash flow based

3.3 The role of comparable transactions and due diligence

Head Lecturer(s)

António Manuel Ferreira Martins

Assessment Methods

Assessment
Periodic or by final exam as given in the course information: 100.0%

Bibliography

Larry Walther  (2022) Financial Accounting; CreateSpace Independent Publishing Platform

James  Hitchner (2020), Financial Valuation: Applications and Models, Wiley Ed. 

 Jonathan Berk & Peter DeMarzo (2020), Corporate Finance, Pearson