Understanding and practicing the basic methods of evaluating companies from their financial statements

・Accounting and financial statements are being developed for the accurate reports of business activities. Financial statements become extremely useful tools to recognize present situations and issues for the future business, if they are analyzed properly.
・The goal of this course is to acquire the basic skills of accounting and financial analyses, which are essential for drawing up and evaluating a business budget plan as well as understating the business partner companies, for the sake of more efficient and effective PPPs.
・The accounting and financial analysis in this course is geared towards beginners and the actual planning work of business budget plans will be performed during “Financial Planning Theory (Professor Igarashi)” in the fall semester.
・In order to experience the applicability and the joy of actual financial analysis, students will experience the fact that accounting and financial analysis are useful tools to clarify the true nature of companies and to form business plans and strategies through case studies of successful companies.

・Be able to read financial statements (annual securities reports) of companies.
・Be able to evaluate the current and future status of companies that belong to various industries.
・Especially for the local government staff, be able to evaluate future partners in PPP business.

Some parts of contents in the scheduled classes might be changed to the next class, for the efficient lecture.
1. Course orientation, Basics of financial analysis (1): Types of accounting
・Types of accounting
・Purpose for corporate accounting
・Structure of corporate accounting theories
・Disclosure of listed companies' financial results
2. Basics of financial analysis (2): Bookkeeping・Journaling・Financial statements
・Basics of bookkeeping
・Basics of journaling
・Composition of financial statements
・Preparation of financial statements from journaling
・Case studies
3. Basics of financial analysis (3): Balance sheets・Profit and loss statements
・Overview of financial statements
・Balance sheets (Assets)
・Balance sheets (Liabilities)
・Balance sheets (Net assets)
・Profit and loss statements
・Accounting policy notes
4. Basics of financial analysis (4): Comprehensive income statements・Statement of changes in shareholders' equity, etc.・Cash flow statements
・Comprehensive income statements
・Statement of changes in shareholders' equity, etc.
・Cash flow statements
・Cash flow analysis
5. Financial analysis (1): Financial indicator analysis
・Financial analysis by financial indicators
・Analysis of profitability
・Analysis of safety
・Analysis of activity
・Analysis of productivity
・Analysis of growth potential
・Case studies
6. Financial analysis (2): Financial analysis①
・Overview of financial analysis
・Comparative method by theoretical value (Target value)
・Time series analysis
7. Financial analysis (2): Financial analysis②
・Cross-section analysis method
・Application of management accounting method
・Practice to obtain financial information
・Advanced consideration of financial analysis
8. Financial analysis (3): Financial analysis in the broad sense
・Overview of financial analysis in the broad sense
・Explanation of points for financial analysis in the broad sense
9. Financial analysis (4): Case studies
・Explanation of templates for financial analysis reports
10. Analysis examples of actual companies (1): Manufacturing industry（Automobile）
Present and actual situation of a typical global company
11. Practical workshop for financial analysis
12. Analysis examples of actual companies (2): Non-manufacturing industry ①（Retail）
Present and actual situation of a company in the industry,
which regional trade companies are categorized in
13. Analysis examples of actual companies (3): Non-manufacturing industry ②（Real estate）
Present and actual situation of a company in the industry,
which a lot of PPP projects are created in
14. Analysis examples of actual companies (4): Non-manufacturing industry ②（Rail way）
Present and actual situation of a typical public utility company
15. Summary of course (complementary topics)

・Lectures will be held mainly with the materials prepared by the lecturer.
(An assignment is required for 11. Workshop.)
・The materials for lectures will be put on ToyoNet-ACE in advance.

・To prepare for class, it is desired that students look for questions and issues about the scheduled theme, obtained in their business and activities.
・As post-class review, it is desired that students consider influence and effects to their business and activities, obtained from the results of discussions.
・Preparation before class and post-class review are expected to take 30-60 minutes each. It is recommended that graduate students in the workforce take advantage of time during their own businesses and activities to observe.

Students will be graded based on the Toyo University Graduate School grading standards upon determining the following comprehensively.
1. Attendance to lecture 45 points
2. Level of participation for questions, presentations and exchange of opinions during class 15 points
3. Final paper (evaluate a designated company using what you learned in this course) 40 points

PPP students only

MMaterials for this course will be distributed via ToyoNet-ACE. Before each lesson, students are expected to obtain lesson’s materials and handouts.

The books indicated below are recommended as a reference, depending on the experience to study financial analysis by students.
For the first learners, Iwatani. Seiji 2010. Basic accounting. Nippon Jitsugyo Publishing. 1,650 yen (including tax)
For the already-learners, Inoue. Tatsuo, Yamaji. Noriaki 2021. Essential financial accounting. Chuokeizai-sha, Inc. 4,180 yen （including tax）