Analysis of the Financial Statements

Teaching results

The purpose of the teaching is to acquire knowledge, skills and competences in the field of detailed analysis of the financial statements of entrepreneurs maintaining their books under the system of double entry bookkeeping, in the field of calculation and economic interpretation of financial analysis´ ratios with the intention to build in students the ability to assess the financial health of the accounting entity and use the results acquired by the analysis of the financial statements in the financial management and in making economic decisions.
After the completing the course students gain:
a) knowledge – comprehensive understanding of the methods and procedures for assessing the financial position and financial performance of business accounting entities in terms of fundamental analysis and elementary methods of technical analysis, in terms of economic interpretation of calculated ratios and their use in the decision-making process;
b) skills – to apply the acquired theoretical knowledge about financial analysis methods in the process of analysis of the financial health of particular accounting entities; to calculate and economically interpret the results; to compare them over time, within the industry, region; to make the relevant economic decisions aimed at supporting strengths and eliminating weaknesses of accounting entities;
c) competences – to perform a financial analysis of selected accounting entities, to evaluate ratios characterizing financial health, to be able to predict the development of ratios in the future, to perform analysis in time and in the region, to propose measures to maintain favorable developments in the future and eliminate risk factors and factors affecting financial health in a negative way.