ICS , Graduate School of International Corporate Strategy
[Term 2] Accounting & Business Valuation (K. Koga) (2008/Term 1&2 (Fall&Winter))
This course is aimed at MBA candidates who expect at some point in their careers to use financial statements to evaluate the performance of a company and the value of a business. The objective of the course is to provide hands-on experience in financial statement analysis. By the end of the course, you will be able to read firms’ financial statements and also understand how a financial statement can be used to do “fundamental analysis” and equity valuation.
How can we translate “sustainable competitive advantage” into accounting numbers? How about the concepts of “cost leadership” and “core competence”? The course focus is not on the details of accounting rules, but on interpreting strategy from profitability, efficiency, financial health, stability, and so on.
Course Structure
In this course students will be exposed to a comprehensive financial statement analysis and valuation framework that integrates accounting, financial analysis, and valuation.
The first half of the course develops financial statement analysis and an accounting-based valuation framework that integrates accounting numbers and corporate strategy. This will help students understand how strategy is reflected in financial numbers.
In the second half of the course, the fundamental analysis framework will be applied in a variety of business contexts, such as the following:
(1) Valuation of diversification strategy
(2) Valuation of M&A and divestiture
(3) Financial reporting strategy
(4) Financial policies, such as stock repurchase and dividend policy
Teaching Method
The early part of the course will be slide oriented with accounting data. From the midpoint, some cases will be used. Students are expected to analyze financial statement information and prepare case studies thoroughly.