1. Financial Analysis MBA Option Course 15 - 17, 27 & 28 February 2017
OVERVIEW
If accounting is the language of business, then financial analysis allows us to interpret the story being told by the numbers. Learning to read and understand the story told by the financial analysis is therefore key to success in both business and investing; vital to identifying both the risks and opportunities available.
This 5 day course will give you an in-depth insight into how strategy and accounting results interact, telling the story of strategic choice, implementation and performance feedback. It reveals the characteristics of the “good company” and how to build one, and how as an investor you can use innovative techniques to assess when the “good company” is also good value.
The course will explore what works and what does not work in relation to traditional financial analysis and commonly used performance indicators, providing its own ideas on how performance measures should link to strategy.
AIMS & OUTCOMES
The course provides a critical appraisal of current accounting and financial analysis leading to the development of innovative techniques giving new insights on business. It covers the good company and assesses whether or not, and when, its shares are good value.
The course will allow participants to;
Identify the ‘good company’
Locate the organisation’s cash needs and cash management within the context of the business model
Assess the significance of the organisation’s choice of key performance measures and what they can tell us about the business
Be aware of the limitations of popular financial performance measures especially those used in long term incentive plans
Be able to calculate 4S (the four slices of equity) and use this analysis to gain new insights on gearing, risk, performance measurement and share valuation
Deal with difficult adjustments required for acquisitions, disposals and impairments
Take a view as to the future development of the business and its performance measures in the light of the need for a stronger economy
4S evaluation methodology is something totally new to me that I am sure will distinguish me from others in my professional path.”
As an investment analyst of 11 years I can confidently state that this course really gets to the heart of financial analysis through Prof Brown and Hatherly’s insightful approaches”
WHO WILL BENEFIT FROM THE COURSE?
The course is aimed at investment professionals, corporate executives and managers who need to know a good company and assess its value as an investment; and who consequently employ or intend to employ an analysis of financial performance.
For accountants and auditors it exposes new insights and ideas that are not those typically employed by the profession.

2. Days Content Overview Day 1 Day 2 Day 3 Day 4 Days 5 COURSE CONTENT
An intensive five day course, including group work on four evenings. The course takes multiple stakeholder perspectives but primarily those of management and investors. The programme is mostly taught through the annual report and accounts of the case companies.
Days
Content Overview
Day 1
A focus on cash and financial management
The links between market behaviour, corporate strategy and financial performance
Analysing corporate strategy: the 3 Line model
Key financial performance metrics: what works and why?
The principles of cash flow and the practice of free cash flow analysis
Interactive financial statement modelling
Day 2
Takeovers and acquisitions
Context: the macro-economy
Equity valuation: conventional methods and critique
The agency problem: corporate game playing
Pulling it all together: conducting a rigorous and coherent analysis
Day 3
The four slices of equity (4S accounting); traditional assets, intangible assets, promises and prospects.
How the four slices are valued
How relations between them are used to give insights on gearing, performance measurement and share values
Day 4
Adjusting performance measures for exceptional items, impairments, acquisitions and disposals
Impairments as prospects
The validity of cost cutting ‘synergies’
Evaluating the price paid for acquisitions
Days 5
The relationship between the company and the economy
Are stakeholder relationships sustainable?
The factors of price, volume, efficiency and innovation
The impact of economic policy
GDP positive accounting and GDP positive investment funds
ASSESSMENT/CREDITS
Participants are required to attend every session and to take part in all activities and submit all assessments. On successful completion, they will receive a certificate and 10 credits which can be used towards an University of Edinburgh MBA/EMBA programme.
There are two assessments for the course. One is a group presentation (30%) and the other is an individual report (70%). Both assessments are an analysis of a company’s financial performance and share price based upon the annual report and accounts. The individual assessment is completed after the course itself.

3. SPEAKER COURSE FEE COURSE DATES HOW TO APPLY David Hatherly
David Hatherly is an Emeritus Professor in the Business School. He has served as Director of the University’s Management School and as Director of Auditing and Accounting Research at the Institute of Chartered Accountants of Scotland where he is a member as well as being a member of the Institute of Chartered Accountants in England and Wales.
He has taught financial analysis successfully for many years both within the School and outside notably to HMRC, KPMG and Oracle. In 2013 he authored his pioneering work ‘The Failure and the Future of Accounting: Strategy, Stakeholders and Business Value’ published by Gower.
COURSE FEE
The course fee is £1,505. This includes all tuition and course materials, but excludes any textbooks that may be required. Catering and accommodation are not included. Please contact us for information on our preferred suppliers and special rates for accommodation.
There is a 20% discount for University of Edinburgh Business School Alumni and staff.
COURSE DATES
This course is taught over two blocks of teaching - Wednesday 15th to Friday 17th February and then Monday 27th and Tuesday 28th February Attendance on all days is required.
This is an intensive course, with teaching based on a 9-5pm working day however there will be group work (some of which is assessed), individual assessed assignments and reading outside these hours. There will also be some pre-course reading and tasks to complete before the first session.
HOW TO APPLY
To apply for this course please visit:
We strongly encourage you to apply as early as possible before the start of the course to avoid disappointment.
Please note the deadline for applications for this course is Monday 16th January 2017.
Tom Brown
Tom Brown is currently the Senior Postgraduate Tutor for the Business School and previously was Director of the MSc in Accounting and Finance. He is a member of the Institute of Chartered Accountants in Scotland.
He has taught successfully on a wide range of Business School programmes specialising in the relationship between strategy and financial analysis.