UNIVERSITAS INDONESIA FACULTY OF ECONOMICS AND BUSINESS DEPARTMENT OF ACCOUNTING EKONOMt DAN BISNIS UNDERGRADUATE PROGRAM SYLLABUS ANALISIS DAN VALUASI BISNIS (BUSINESS ANALYSIS AND VALUATION) ECAU609109 ODD SEMESTER 2018-2019 ['No. | Lecturers E-mail | Class in Bahasa Indonesia: 1 | Evony Silvino / Rallyati Anas evony.silvino@gmail.com/ rallyati.anas@gmail.com 2 | Catur Sasongko / Sylvia Veronica catur_sasongko76@yahoo.com/ sylvia. veronica@ui.ac.id 3__| Flok Tresnaningsih elok.tres@gmail.com | 4 | Arman Hendiyanto / Helen Hendiyanto | arman.hendiyanto@gmail;com/ helenhendiyanto@yahoo.com Class in English: S| kurnia |. Rais kurnia.i.rais@gmail.com [6 Widhi Astono widhiastono17@gmail.com | Subject Code ECAU609109 | Subject Title Business Analysis and Valuation Credit Value 3 | Pre-requisite 7 | advanced Financial Accounting 1 Co-requisite/ Investment and Capital Market | Exclusion Strategy and Performance Management of Organization Role and This course is part of the financial accounting class. The Course aims at giving Purposes | thorough understanding to the students about finenci statements and notes to the financial statement with an em compare, and justify arguments on th financial statement. This course will h appropriateness of accounting policie analysis. Students will be provided by communicate it in English, Page 1of 6 skills and critical thinking (Qutcome 4). The analyses focus on the financing activities, as well as cash flow, Profitability, prospective and credit financial statements quality of earnings, and make 2 Presentation and phasis on how to interpret, analyze, 'e financial statements and notes to. lp students to develop strong analytical | ' used in operating, investing, and concept and framework to analyze the N‘Subject Upon completion of the subject, the student will be able to: Learning 1. Interpret financial statements and related disclosures (T5) Outcomes a) Understand the concept and framework to analyze and interpret the financial statements, b) Analyze and explain the income statement, financial position, and cash flow statement. 2. Interpret reports that include non-financial data, for example, ‘sustainability reports and integrated reports (T6) ¢) Analyze and explain the integrated financial statements. 3. Demonstrate, evaluate, analyze and compare alternatives choices (C2) 4) Understand and compare the financial analysis techniques. 4. Demonstrate to justify an argument or solution with supporting evidence/relevant references (C3) e) Understand, evaluate, and justify arguments on the financial report quality. 5. Demonstrate ability to forecast the company’s future profitability and ‘solvency and incorporating information about expected changes in the economics of the industry f) Understand, evaluate financial report in order to prepare forecasting 6. Understand on how to value the firm using various valuation methods, making an equity investment decision by comparing likely ranges of the value of the share to the share Price observed in the capital market 8) Understand, evaluate financial report in order to prepare valuation of the firm Detailed Course Work Plan Week # Topic Lo | Required Reading 1 TA Framework for Business Analysis and ‘A | Palepu ch. ‘Valuations using Financial Statement PART Il: BUSINESS ANALYSIS AND VALUATION L Toous 2 | Accounting Analysis: The Basics a | Palepu ch. 3and4 ‘Accounting Analysis: Accounting Adjustments | b | PSAK Weekly Assignment 1 3° | Strategy Analysis © | Palepu ch. 2 a Weekly Assignment 2 Page 2 of 6Financial Analysis, Weekly Assignment 3 Palepu ch. 5 Prospective Analysis: Forecasting Weekly Assignment 4 Palepu ch. 6 Valuation Theory and Concepts Weekly Assignment 5 Palepu ch. 7 ral Lecturing Learning from the expert: sustainability reporting and integrated reporting Submission of Final Assignment - Progress Report 1 Prospective Analysis: Valuation Implementation Weekly Assignment 6 Palepu ch.& PART Ill: BUSINESS ANALYSIS AND VALUATION APPLICATIONS Equity Security Analysis Weekly Assignment 7 Palepu ch. 9 10 General Lecturing Learning from the expert: Equity Analyst Submission of Final Assignment - Progress Report 2 Ft Credit Analysis and Distress Prediction Palepu ch. 10 2 Mergers & Acquisitions Submission of Final Assignment - Final Report Palepu ch. 11 B Group presentation Final Assignment 4 Group Presentation ~Final Assignment Page 3 of 6Teaching/Lear ning Methodology Teaching method uses student active learning, lecturing and class discussions, in which students achieve the study objectives by discussing and completing related cases under the guidance of lecturer. The cases are related to the topics for the session and can be downloaded from IDX, or from current developing issues. Students must make a group, which consists of 3 (three) students. Weekly Assignments Each group must submit one publicly listed company (excluding financial Industry) in session 2, and use that company annual report (for example, 31 December 2017} asa basis for analysis of the topic in discussed in the session. It is suggested to pick one comparable (public company) operating in the same industry. Maximum two teams per week will be randomly selected by the lecturer to deliver a presentation (maximum 15 minutes including the Q&A). The lecturer will see the depth of analysis (60%), the flow of the presentation (20%), and the delivery of the presentation (20%). This weekly assignment should be compiled throughout the semester and lecturer will make sure that each group has to deliver 1 (one) weekly presentation. At the end of the semester, 5 out of 7 weekly assignments will be regarded as a group task. Final Assignment Each group must use the chosen public company as a basis for final assignment throughout the semester. Each group has to write a complete report, which consists of following items: ~ Summary of financial statement analysis based on weekly assignments + Financial performance comparison with another company in the same industry + Three years ~ forecasted financial statement, supported by underlying assumptions and analysis = Equity valuation = _ Recommendation (buy/sell/hold) Each group must submit progress report 1 (session 7), progress report 2 (session 10) and final report (session 12) Each group will present the final report during session 13 and 14 (maximum 30 minutes each including the Q&A), The lecturer will see the depth of analysis (60%), the flow of the presentation (20%), and the delivery of the presentation (20%). Guest Lecture There will be two guest lectures in session 7 (on. sustainability reporting and integrated reporting) and in session 10 (on equity analysis). Student should ‘submit a report of each guest lecture (the format will be shared later). Page 4 of 6Assessment [7 Method in Specific Assessment * Alignment Methods/Tasks Weighting with Intended gaming Continuous Assessment 100% | pefefet= Outcomes GROUP 40% Presentation (20%) v[v[vyi[vf[v Final Assignment (202%) vj[vi[v[vt[yv INDIVIDUAL 60% ‘Mid Term Exam (30%) 20% | 20% | 20% | 20% | 20% [Final Term Exam (30%) 40% | 45% | 15% LL | Details of | The specific learning methods used in this subject are Learning 1. Active Student Centered Learning : every week students have to submit their Methods understanding on the topic discussed and relate the topic to the chosen Company 2. Lecturing 3. Problem/Case-Based Learning In most of the sessions uses case-based learning, in which students are divided into groups and discuss the specific cases in a team. Each group is responsible for a particular topic, and the case must be related to the theme of the session. Finally, each group will present the case and discuss with other group facilitated by the lecturer. The result of the presentation and discussion are expected to improve students understanding the concept and the implementation based on cases. These presentation sessions are also supposed to benefit the students to learn the analysis from other groups’ cases. ‘Student Study Effort Class Contact : Expected Lectures 15 Hours | Case-Based Learning 27 Hours Presentation 4 Hours Other Student Study Effort: Preparation for Project/Assignment/Tests 40 Hours Reading List | Required Readings: and 1. Palepu, Krishna G., Paul M. Healey & Erik Peek, Business Analysis and References Valuation: IFRS Edition, Text and Cases. Fourth Edition. Cengage Learning, L 2016. (Palepu) 2. Standar Akuntansi Keuangan. Ikatan Akuntan Indonesia, 2018. (PSAK) ‘Supplementary Readings : 3. Damodaran, Aswath, Investment Valuation. Third Edition. New Jersey: John Wiley and Sons, 2012. (Damodaran) 4. Robinson, T.R, Henry, E., Pirie, W.L., Broihahn, M.A., and Cope., A.t. (2015). Page Sof 6International Financial Statement Analysis, 3rd Edition. New Jersey: John | Wiley and Sons (RHP) Wild, John J,, and K.R. Subramanyan. Financial Statement Analysis, 10th Edition, McGraw-Hill, 2009. (WSH) Page 6 of 6 \