22319 Business Analysis (Capstone)
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Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksRequisite(s): (22420 Accounting Standards and Regulations AND 25300 Fundamentals of Business Finance AND 22320 Accounting for Business Combinations AND (30 credit points of completed study in spk(s): MAJ08437 Accounting Major BBus OR 30 credit points of completed study in spk(s): MAJ08993 72cp Extended Accounting Major BBus) AND (84 credit points of completed study in Must have completed at least Business Faculty Bachelor's Degree OR 140 credit points of completed study in Must have completed at least Business Faculty Bachelor's Combined Degrees OR 140 credit points of completed study in Must have completed at least Bachelor's Combined Degrees with Business Faculty OR 140 credit points of completed study in Must have completed at least Bachelor's Combined Honours with Business Faculty))
These requisites may not apply to students in certain courses. See access conditions.
Description
The aim of this subject is to demonstrate and apply a framework for business analysis and valuation using both financial and non-financial data. The emphasis of the subject is on translating the tools of business analysis and valuation into practical situations. To achieve this, the subject is case study intensive, with an aim to develop and demonstrate key business acumen skills. The subject is intended for students interested in business consulting, investment banking, business analysis and corporate lending. Given the increasing trend towards a business analysis-based approach to auditing and assurance services, it is also relevant to those interested in public accounting.
Subject learning objectives (SLOs)
| 1. | apply business environment and strategy analysis |
|---|---|
| 2. | explain the governance and risk management of a business |
| 3. | interpret financial and non-financial information of a business |
| 4. | apply the techniques of financial analysis and business valuation |
| 5. | demonstrate strong business acumen via linking business analysis, accounting analysis, financial/non-financial analysis and prospective analysis |
Course intended learning outcomes (CILOs)
This subject also contributes specifically to the following program learning objectives:
- Apply evidence, creativity and critical reasoning to solve business problems (1.1)
- Make judgements and business decisions consistent with the principles of social responsibility, inclusion and knowledge of Indigenous peoples (3.1)
Contribution to the development of graduate attributes
This course focuses on establishing a clear linkage between several skills normally acquired by business students so as to enable them to conduct rigorous business analysis and prepare sound business valuations. The course combines skills in business strategy, finance and accounting, so as to enable students to apply these methods of analysis in combination. It also contributes to the accounting major by demonstrating the analysis of accounting quality and its implications for financial analysis and valuation.
This subject contributes to the development of the following graduate attributes:
- Intellectual rigour and innovative problem solving
- Professional and technical competence
Teaching and learning strategies
The subject will be taught using a combination of large lectures and smaller tutorials. The lectures provide the structure of the topic area, discussion of the theory and some practical examples. Tutorials provide an opportunity to discuss ideas, issues and make practical application of the theory, as well as encouraging students to think in a creative manner to solve real world problems, using learning from other core subjects. Extensive use is made of the UTS Learning Management System, which will be used to share information, provide feedback and encourage interaction between staff and students. Students will also use appropriate computer software to complete assigned tasks.
Strategy 1. Students’ Preparation for Learning: Each week, students are expected to undertake pre-work which starts with readings on business valuation and financial analysis. These readings introduce students to the theoretical aspects of the subject and enable them to attend the valuation problems and real life case studies. After doing this pre-work, students are expected to work on their group and individual assignments and apply business valuation and financial analysis skills in order to understand and value an ASX listed firm.
Strategy 2. Lectures: Lecturers provide students both theories and practical applications about performing financial statement analysis in the real world. Students are expected and encouraged to discuss issues and challenge ideas about financial statement analysis during lectures.
Strategy 3. Active learning in tutorials: Each week, students are expected to debate over the pre-work that they have done prior to coming to the seminar. In addition, students are expected to work closely with their fellow students and their lecturer on analyzing and understanding the ASX listed firm that they have chosen for the assignments.
Strategy 4. Online learning: Extensive use is made of the UTS Learning Management System, which will be used to share information, provide feedback and encourage interaction between staff and students. Students are expected to explore prescribed case studies, videos, readings and engage in weekly activities provided on the learning management system. In addition, students are encouraged to share their questions and ideas on discussion board, with prompt guidance and feedback from the Subject Coordinator.
Strategy 5. Ongoing feedback: Structured feedback is provided individually about weekly tutorial activities, formative assessment tasks and the assignment progress. Detailed guidance as to the assessment criteria and the provision of timely feedback forms an important part of the learning process in this subject.
Content (topics)
- Business environment and strategy analysis: Understanding the global environment that a business operates in, the external and internal factors that influence the strategic decisions of a business.
- Governance and risk management: Understanding the principles of good governance and analysing a business’s risks and opportunities through risk management analysis.
- Accounting analysis: Evaluating the quality of accounting information and assessing the risks of material misstatement in the financial statements
- Financial analysis: Assessing the financial performance and position of a business using ratio analysis and cash flow analysis, in light of the strategic direction and accounting quality
- Non-financial analysis: Understanding and interpreting non-financial data and reports
- Prospective analysis: Forecasting future business performance.
- Prospective analysis: Understanding how to implement business valuation models and assess the value’s sensitivity to forecast assumptions.
Assessment
Assessment task 1: Assignment (Group)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 5 |
|---|---|
| Weight: | 20% |
| Length: | Maximum 3500 words (exclusive of references and appendices). Appendices are limited to a maximum of 10 pages. Please use a font size of 12, 2.5cm page margins and a line spacing of 1.5. |
| Criteria: | Students will be assessed based on the following criteria:
|
Assessment task 2: Assignment (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 3, 4 and 5 This addresses program learning objectives(s): 1.1 and 3.1 |
|---|---|
| Weight: | 40% |
| Length: | Individual Assignment - Written Report: maximum 4000 words (exclusive of references and appendices). Appendices are limited to a maximum of 10 pages. Please use a font size of 11, 2.5cm page margins and a line spacing of 1.5. |
| Criteria: | Students will be assessed based on the following criteria:
|
Assessment task 3: Final Examination (Individual)
| Intent: | This assessment task is a compulsory component of the subject. A student must attain no less than 40% of the marks in this assessment to pass the subject irrespective of the subject’s total marks. |
|---|---|
| Objective(s): | This addresses subject learning objective(s): 1, 2, 3, 4 and 5 |
| Weight: | 40% |
| Length: | 2 hour plus 10 minutes reading time. |
| Criteria: | Students will be assessed based on the following criteria:
|
Minimum requirements
A student must achieve 50% or more of the subject’s total marks AND achieve 40% or more in the final exam to pass the subject.
A Fail (X) Grade is awarded to a student who attains 50% or more of the overall subject assessment marks but attains less than 40% of the final exam marks. To pass the subject, the student must then attain 50% or more of the marks in the supplementary task, in which case the student is awarded an overall mark of 50P.
Required texts
Palepu, K, Healy, P, Wright, S, Bradbury, M, and Lee, P, Business Analysis & Valuation using Financial Statements: Text & Cases, Third Asia-Pacific Edition.
Faculty of Business: Guide to Writing Assignments, Faculty of Business, University of Technology, Sydney (accessed via the link below) Guide to Writing Assignments
Recommended texts
Penman, S. (Fifth Edition) Financial Statement Analysis and Security Valuation, McGraw-Hill, New York.