Unit FIRM AND GROUP PERFORMANCE ANALYSIS
- Course
- Business economics and management
- Study-unit Code
- GP004206
- Location
- TERNI
- Curriculum
- In all curricula
- Teacher
- Alessandro Montrone
- Teachers
-
- Alessandro Montrone
- Hours
- 63 ore - Alessandro Montrone
- CFU
- 9
- Course Regulation
- Coorte 2021
- Offered
- 2021/22
- Learning activities
- Caratterizzante
- Area
- Aziendale
- Academic discipline
- SECS-P/07
- Type of study-unit
- Obbligatorio (Required)
- Type of learning activities
- Attività formativa monodisciplinare
- Language of instruction
- Italian
- Contents
- Analysis of economic and financial performance of companies and business groups, as well as the techniques of preparation of the consolidated group. Some lessons will be held in english.
- Reference texts
- A. MONTRONE, L'analisi del valore e della performance nel ciclo di vita dell'impresa, FrancoAngeli, Milano, 2016 (capp. 3, 4, 5, 6 e 7).
A. MONTRONE, Il bilancio consolidato dei gruppi aziendali. Metodologia di redazione e di analisi, FrancoAngeli, Milano, 2018 (capp. 1-10). - Educational objectives
- Knowledge and ability to apply techniques for the analysis of economic and financial performance of companies and groups, as well as the techniques of preparation of the consolidated group.
The main knowledge gained shall be:
- the doctrinal framework of financial analysis, with in-depth reflection on the conditions necessary for its reliability;
- the rationale behind the reclassification of balance sheet and income statement;
- a framework of meaningful ratios of the financial position and of the economic performance;
- the underlying logic of the financial flows analysis, distinguishing between cash flows and working capital flows;
- the economic role and organization of business groups and aggregation phenomena among companies;
- the law on corporate groups;
- the theories regarding the business groups and the consolidated financial statements;
- the evolution of accounting harmonization process;
- the method of presentation of the consolidated financial statements, also with reference to specific sectors.
The main skill achieved shall be:
- to analyze the financial statements of companies and business groups, also making comparisons in space and time;
- to understand the results of a system of ratios in order to measure business performance;
- to reconstruct the cash flow;
- to prepare consolidated financial statements. - Prerequisites
- There are no specific pre-requisites with reference to subjects covered by the course, but the acquisition of the previous three-year degree in the knowledge and skills of other SSD SECS-P / 07 (Business Economics, Financial Accounting and Management Accounting).
- Teaching methods
- Face to face lectures and practical training.
- Other information
- Attending lessons is not compulsory but strongly recommended.
- Learning verification modality
- Multiple choice written exam and oral exam.
Only the students who earn at least a vote of 18/30 in the written exam, can access to the oral exam
The written exam consists in performing some case studies related to the issues of the prepartation of cash flow statement, the reclassification of the balance sheet or of the income statement, the calculation and interpretation of some financial ratios, the preparation of the consolidated financial statements, together with some multiple choice questions.
The oral exam is equally divided between the different parts of the program, contemplating both the financial analysis and the consolidated accounts. - Extended program
- PART I: BUSINESS PERFORMANCE ANALYSIS
Introduction to financial analysis
1. The purposes and types of financial statement analysis
2. The conditions for the reliability of financial statements analysis
3. The relativity of judgments based on the analysis of financial statements and the need for standard reference values
4. The "continuity" of the financial analysis for the monitoring of corporate performance
5. The systemic approach of the financial analysis
Financial and economic analysis
1. The qualitative analysis of capital
2. The reclassification of the Balance Sheet
3. The ratios of financial and asset situation
4. The reclassification of the Income statement
5. The economic performance indicators
6. The ratios of rotation and duration of loans and debts
7. The ratios of rotation and duration of stock
8. The cash flow analysis
PART II: ANALYSIS OF THE PERFORMANCE OF GROUP
Economics, legislation and consolidated financial statements of the corporate group
1. The phenomena of business combination
2. The group
3. The equity and control rates
4. The discipline of management and coordination
5. Theories on business groups and consolidated financial statements
6. The functions, the stakeholders and the discolsure of the consolidated financial statements
The process of accounting harmonization in consolidated accounts
1. The process of accounting harmonization
2. The implementation of International Accounting Standards
3. The consolidated financial statements under International Accounting Standards
The consolidated financial statements
1. The preliminary steps to consolidate
2. The elimination of the effects of intra-group transactions
3. The consolidation
4. The information system of consolidated financial statements
5. The consolidated financial statements of the local administrations
6. The consolidated financial statements of banking groups
The ratio analysis of financial statements
1. The peculiar problems of the analysis of the consolidated accounts
2. The reclassification of the balance sheet and consolidated income statement
3. The ratios for the analysis of the consolidated financial statements