BUDGET ANALYSIS AND TECHNIQUES
Academic year and teacher
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- Versione italiana
- Academic year
- 2022/2023
- Teacher
- SALVATORE MADONNA
- Credits
- 6
- Didactic period
- Primo Semestre
- SSD
- SECS-P/07
Training objectives
- Main knowledge: The course aims the deepening of construction processes, reading and interpretation of the financial statements, for the assessment of the operating results of businesses. Following presentation of the accounting language and of the principles and techniques of assessment of the economic and balance sheet items, the course proceeds to the illustration of the keys to business periodical financial performance through the main budget analysis techniques. It is then highlighted the process of formation of the financial statements, proceeding following his critical interpretation based on the analysis of the budget criteria for index. The training program will also draw on the support of insights and practical examples, designed to analyze material technical, judicial support and to discuss about issues most topical.
Main skills acquired: The course aims to illustrate the logic of the financial statements composition, and methods through which to understand, through the analysis of this document, the company's health. Students will gain thereby the ability to maneuver in the general ledger system and exercise surveys, identifying the methods of recognition and measurement Predictions and guessed at year-end, in the logic of the financial statements intended for publication and, finally, in recognition of the techniques and tools with which to perform a budget analysis. For the pursuit of these aims, the lessons will be characterized by a practical approach, suffering from case studies and real hypotheses, as well as examples prepared by the teacher. Prerequisites
- Students must possess a knowledge of the fundamental institutions of private law and commercial law. And 'it recommended a knowledge of the principles of bankruptcy law. It 'also advisable to combine their studies of banking contracts.
Course programme
- The course is divided into two parts.
In the first part, after stating purpose, object and nature of the financial statements, there it will be arisen the purpose of describing the detection cycles that give life to the general ledger system. More precisely, the following topics are analyzed:
- The movement of the values connected to the control operations;
- Recognizing the logic of the movement of values;
- The representation of the values in the financial statements;
- References to the main adjustment entries.
In the second part, it will be illustrated other ways of re-classification of the summary tables, the construction technique of the cash flow statement and key indicators to appreciate the company's health. The issues addressed in this section are:
- The meaning and function of the budget analysis techniques;
- Reclassification of the Balance Sheet and Income Statement;
- Construction of the main indices of measurement of equity and economic efficiency solidity;
- Interpretation of the set of indices studied in managerial perspective. Didactic methods
- The course aims to stimulate as much as possible the student's involvement in the discussion of practical cases, the theoretical issues and insights that will be discussed during class. For this reason the course is not a mere explanation of the manual recommended because it aims to expand on aspects of banking. The notes taken in class and the material distributed shall supplement the concepts in the exposition.
The method used in the lessons requires reading the manual parts - which will be indicated by the teacher from time to time - by the student prior to the respective lesson. Learning assessment procedures
- The exam with oral test. The examination is intended to ensure the full and in-depth knowledge of the given program.
Reference texts
- 1) Astolfi, Rascioni & Ricci, "We go into business today" (vol. 1), Tramontana- RCS Libri, Milano.
2) C. Caramiello and other (Di Lazzaro and Flowers), Balance sheet ratios, Milan, Giuffre, 2003 - selection of parts treated in the classroom:
• on pages 25 to 80: Reclassification of S.P.
• on pages 89 to 117: Composition Analysis
• from page 131 to 172: Correlation - structure
• from page 181 to 198: Correlation - Treasury
• from page 232 to 241; from page 242 to 244;
. from page 259 to 270: Reclassification C.E.
• from page 337 to 342: ROE
• from page 361 to 364 and from page 367 to 373: ROI and its components
• from page 373 to 376: Comparison ROI / ROE
Any detailed text will be reported by the teacher at the specific request of the students concerned.
