Knowledge and understanding: students develop the ability to analyze companies' financial statements, highlighting any weaknesses. Moreover, students learn how to create budgets for small-medium enterprises and understand the logic of consolidation of financial statements.

Applied knowledge and understanding: the student can use financial ratios to evaluate companies' financial position and performance; moreover, students can use Excel sheets for financial planning. Concerning financial statements consolidation, the student can eliminate intra-group transactions and estimate goodwill at the acquisition date.

Making judgment: the student can assess a company's financial position and performance through a critical reading of its financial statements. Students are encouraged to prepare a financial statements analysis report for the exam. In addition, students acquire the concepts to independently assess the financial feasibility of a business plan.

Communication skills: as a reporting tool, the budget is an instrument of corporate communication. Students understand how companies communicate their performance, including gross margins and ratios commonly used in financial markets.

Ability to learn: the course provides the basis for addressing corporate finance studies and, more generally, strategy and management.

The knowledge of accounting systems and of the layout of financial statements are considered prerequisites for this course. These issues are discussed in the Accounting course (1st year of the degree) and the Advanced Accounting course (2nd year).
ERASMUS students must consider that the course deals with Italian norms and accounting accepted principles (Standards).

1. The content of the Financial Statements according to the accounting standards
2. Financial Statement Analysis: the method
3. Reclassified statements
4. Financial ratios
5. A case study
6. Introduction to financial planning
7. Consolidated financial statements

Fazzini Marco, "Analisi di bilancio" IPSOA 2023


ISBN:
9788821782503

Course introduction: contents, learning objectives, relation with other courses, exam;
The financial statements in the Italian law
Financial statements' analysis: the methodology
Reclassifying financial statements: different models of reclassified income statement and balance sheet
Gross incomes: operating profit, EBIT, EBITDA, added value
An exercise on reclassification of the financial statements
Cash flow statements: how to is it for the assessment of the short term financial position
Financial ratios: liquidity ratios, ratios for the analysis of the working capital, profitability ratios
Financial leverage
Financial statements analysis: examples
Financial planning: methods
Examples of financial planning and what if analysis
Introduction to the consolidated financial statements
Who has to consolidate the statements and what is the perimeter od consolidation?
Alternative theories for consolidation of financial statements and their effects
Partial and full goodwill
Minority interests
The elimination of intra-group transactions
Examples of consolidation transactions

A mix of theory and practice is used. Students are invited to discuss cases of financial statements analysis and financial planning. With reference to consolidated financial statements, an analysis of the norms preludes to subsequent exercises.

The book covers the analysis of the financial statement. Adjunctive teaching material is available on moodle2.units.it or Microsoft Teams

A written test on financial planning and another test on consolidated statements are programmed. The evaluation of these tests contributes 50% to the overall assessment.
The final exam is held orally: students have the opportunity to discuss their work on the analysis of the financial statements of a specific company.
Students that pass the written tests are not expected to discuss the same issues in the oral exam.
Students can discuss a case study of financial statement analysis in the oral exam.

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all