22753 Business Analysis

Subject level: Postgraduate

Handbook description

This is a specialised accounting-based subject that links the analysis and management of physical business operations to the financial outcomes as reflected in the financial statements.

The subject focuses on the application of quantitative techniques for the analysis and prediction of business operations using accounting techniques, financial management concepts combined with information technology productivity tools for the development of information products to support management decision making.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. understand and apply quantitative techniques to investigate, analyse historical business operations and use this information for the preparation of forecasts of business activity
2. explore decision problems relating to cost behaviour and profit planning with consideration to quantitative and qualitative factors affecting the measurement of core business operations and their influence on overall business performance
3. use accounting and financial management tools to analyse business operations on the basis of the information content of published financial statements
4. understand alternative business valuation techniques using earnings and/or assets and/or cash flows as the basis for the development of the valuation model
5. apply information technology productivity tools for data analysis in the development of quantitative information products providing decision support for strategic management using relevant analytical and quantitative tools provided by the functional areas of accounting, finance and economics.

Contribution to graduate profile

This is a specialised subject that examines accounting practices and techniques used in the development of information products to support management action.

The subject brings together skills acquired in the areas of accounting, management, finance and economics (through prior studies in the core subjects of graduate level programs) and utilises these techniques for the development of decision support models for resource allocation problems confronting managers in the determination of the strategic direction of the business organisation.

Teaching and learning strategies

The subject will be taught using a combination of lectures, tutorials and computer-based workshops. These classes will be supplemented with both printed and electronic materials and resources. The UTS web-based communication tool (Blackboard Course Information) will be used to share information and encourage continuous interaction between staff and students. Students will also use computer software such as spreadsheets, Optimist business modelling software, and word processors to complete assigned tasks.

Content

1. Introduction to the subject including its aims and rationale. Overview of statistical techniques used in the analysis of published corporate data.
2. Forecasting using time series methods. The analysis of forecasts using continuous probability distributions and the development of quantitative models of business operations using simple and multiple regression analysis.
3. The analysis of financial performance using accounting ratios and the evaluation of management performance using Economic Value Added (EVA).
4. Modelling business operations using specialised computer based modelling packages, with the parameters of the models being developed in points 1 to 3 above.
5. Business valuation techniques using either, earnings or assets or cash flows as the basis for the valuation model.

Assessment

Assessment item 1: Mid-Semester Examination (Individual)

Assessment item 2: Major Presentation and Written Submission (Group)

Assessment item 3: Final Examination (Individual)

Required text(s)

Pazmandy, G and Brown, PJ (Ed), 2008, Readings in Business Analysis, 2nd edn, McGraw Hill Custom Publishing

Faculty of Business, 1999, Guide to Writing Assignments, Faculty of Business, University of Technology, Sydney.

Indicative references

Kay, J., Pazmandy, G., and Thong H.Y.,Commercial Computing, Using Microsoft Office, ABC Publisher, Sydney Australia, 4th Edition, 2004.

Langfield-Smith, K., Thorne, H., Hilton, R.W., Management Accounting An Australian Perspective, McGraw Hill, Sydney Australia, 3rd edition, 2003

Horngren, C. T., Foster, G., Datar, M. S., Cost Accounting, A Managerial Emphasis, Prentice Hall, New Jersey, USA, 10th edition.

Kaplan, R. S., Atkinson, A.A., (1998) Advanced Management Accounting, Prentice Hall, New Jersey, USA, 3rd Edition.

Penman, S., 'Financial Statement Analysis and Security Valuation', McGraw Hill, 2001.

Palepu, K., P. Healy & V. Bernard, 'Business Analysis and Valuation using Financial Statements: Text and cases', 3rd ed., Southwestern, 2003.

Hollander, A. S., Denna, E. L., and Cherrington, J. O., Accounting, Information Technology, and Business Solutions, McGraw Hill, 2nd edition, 2000.

Romney, M.B., Steinbart, P.J., Accounting Information Systems, Prentice Hall International, New Jersey, USA, 8th Edition, 2000.

Moscove, Stephen, A., Simkin, Mark, G. and Bagranoff, Nancy, A. Core Concepts of Accounting Information Systems, John Wiley & Sons, Inc., USA, 5th Edition, 1996

Price Waterhouse, ValueBuilder Services Group, Delivering Shareholder Value, Survey of Current Methods, Price Waterhouse, 1996.

Pierson, R., Brown, R., Easton, S. and Howard, P., Business Finance, Latest Edition, McGraw-Hill, Sydney.

Anderson, D. R., Sweeney, D. J., and Williams, T.A., Statistics for Business and Economics, West Publishing Company, USA, Latest edition.

Copeland, T., Koller T. and Murrin, J., Valuation: Measuring and Managing the Value of Companies, McKinsey & Company, Inc 1990