Financial Statement Analysis: Link between

financial statements development; Traditional and decision makers, Historical

approaches and recent developments in the area of FSA. Requirements of Information users of accounts.
Module - II

Mechanics of FSA : Financial ratio Analysis; ratio classification and structure; Empirical basis of financial ratios; ratio information; Interfirm and intrafirm analysis; Univariate and multi variate approach; Weakness of ratio Analysis; practical difficulties.

Module -III Decomposition Analysis : Assets, liabilities

and income statements

 decompositions; Accounting issues in FSA ;Problems of measurement and valuation in accounting and its impact on FSA;Price level problem and its implications.

Module IV Applications of FSA: FSA as an information processing system; Assessment of corporate solvency and performance; prediction of corporate earnings and growth; credit valuation.

Module - V

Finance theories and FSA: Portfolio theories and FSA;efficient capital markets-CAPM and FSA