Business Analysis and Valuation — DU Bachelor of Management Studies Previous Year Question Papers

Review financial statements and sources of financial statement information. The company's strategy and business model. Ratio analysis – short term solvency ratios, long term solvency ratios, turnover ratios and profitability ratios (Historical ratio analysis of real companies using Excel). Du-Pont analysis. How to use all the ratios, to forecast future financial statements? Accounting based valuation. Unit II: Earnings Management (12 Hours) Overview of earnings management: Means, motive, opportunity, how managers actually make their earnings look better, their incentives for manipulating earnings, and how they get away with it. Revenue recognition red flags: revenue before cash collection. Revenue recognition red flags: revenue after cash collection. Expense recognition red flags: capitalizing vs. expensing. Expense recognition red flags: Reserve Accounts and write-offs. Unit III: Big Data and Prediction Models (11 Hours) Overview: Big Data and Prediction Models. Discretionary Accruals Models: Model the Non-Cash portion of Earnings or Accruals. Discretionary expenditure Models: Model the Cash Portion of Earnings. Fraud Prediction Models and Benford's Law. Unit IV: Non-Financial Metrics and Financial Performance (11 Hours) Introduction: Connecting numbers to non-financial performance measures. Linking non-financial metrics to financial performance: Overview and steps. Targets setting, incorporation of analysis results in financial models and how to use analytics to choose action plans. Essential/recommended Readings (latest edition of readings will be used) 1. Diri, M.E. (2017). Introduction to Earnings Management. Springer. 2. Richardson, V.J., Teeter, R.A., Terrel, K.L. and Mohapatra, P.S. (2020). Data Analytics for Accounting. 2nd Edition, McGraw Hill.. 3. Prince, J.T. and Bose, A. (2020). Predictive Analytics for Business Strategy – Reasoning from Data to Actionable Knowledge. 1st Ed., McGraw Hill Note: Examination scheme and mode shall be as prescribed by the Examination Branch, University of Delhi, from time to time DISCIPLINE SPECIFIC ELECTIVE -FINANCE (DSE-9) DSE 9: BUSINESS ANALYSIS AND VALUATION Credit distribution, Eligibility and Pre-requisites of the Course Course title & Code Credits Credit distribution of the course Eligibility Pre-requisite of Lecture Tutorial Practical/ criteria the course Business Analysis and Valuation (DSE 9) 4 3 1 0 Class XII Basic knowledge of accounting and Finance Learning Objectives This Paper will enable the learners to analyze the health of a company through their annual reports, through management quality analysis, and will equip them to understand what an asset is worth and what determines that value. Learners will understand the issues and challenges faced during the valuation of assets especially in conditions of uncertainties. Learning Outcomes On successful completion of the course the learner will be able to: Remember the various elements of the Income statement and Balance sheet.