Investment, Financing & Financial Statement Analysis

Bachelor

The students
• can graphically represent and interpret linear and special functions.
• can transform mathematical formulas.
• can calculate simple interest and compound interest.
• understand the concepts of net present value and present value.
• can calculate annuities of long-term financing and create an amortization schedule.
• understand the relationship between balance sheet, profit and liquidity.
• know the basic concepts and fundamentals of financial planning.
• can calculate cash flows and interpret cash flow statements.
• can apply static and dynamic investment calculation methods.
• know the financing forms at a glance and their advantages and disadvantages.
• are able to assess the effects of financing decisions on business objectives.
• are able to assess essential forms of financing.
• know the statutory components of the annual financial statements under the Austrian UGB and the German HGB.
• know and understand the principles of proper accounting (GAAP).
• know and understand the system of accounting with regard to recognition and measurement, and can apply selected mandatory, prohibited, and optional accounting treatments.
• are able to apply selected regulations on balance sheet structure and presentation.
• know the types of profit and loss statements.
• know the elements of the extended annual financial statements (notes and management report), as well as the fundamentals of disclosure and audit requirements.
• know the fundamentals of financial statement analysis and can determine and interpret selected financial ratios.

None

Part A: Business Mathematics
• Figures or functions with one or more variables
• Transforming and solving formulas and equations
• Formulation of linear equations incl. graphical representation
• Special mathematical functions (exponential function, logarithm etc.)
• Introduction to interest calculations (simple interest, compound interest, compounding and discounting, annuity, amortization schedule)
• Introduction to the concept of net present value and the net present value method

Part B: Financing
• Fundamentals and forms of financing at a glance
• External financing instruments
• Instruments of internal financing
• Special features of start-up financing
• Forms of financing under consideration of the company life cycle

Part C: Fundamentals of financial and liquidity management
• Investment & financing from the point of view of the annual financial statements and liquidity
• Fundamentals of financial planning
• Cash flow and cash flow statement

Part D: Investment
• Basic problems with investment decisions
• Overview of investment calculation procedures
• Cost/profit-oriented (static) investment calculations
• Cash flow-oriented (dynamic) investment calculations
• Qualitative investment evaluation - benefit analysis

Part E: Preparation of the Balance Sheet and the Profit and Loss Statement
• Legal foundations and structure of the annual financial statements under commercial law
• Generally Accepted Accounting Principles
• Recognition of assets (criteria for capitalization, recognition of liabilities, mandatory and optional recognition)
• Valuation of assets (cost of acquisition and production, going-concern value, depreciation, accruals/deferrals, inventory valuation methods)
• Tax reconciliation (add-backs and deductions) and the distinction between commercial and tax accounting regulations

Part F: Fundamentals of Annual Financial Statement Analysis
• Preparation of data for balance-sheet analysis (fixed assets, current assets, gross profit, long-term and short-term liabilities, etc.)
• Preparation of a funds flow statement (movement analysis)
• Profitability ratios (return ratios, employee-related ratios, cost and revenue ratios)
• Liquidity, financing, and investment ratios (investment rate & degree of self-financing, investment coverage & intensity, asset structure, capital structure)
• Ratio comparisons (period comparison, inter-company comparison, target-actual comparison)
• Calculation of selected examples using software tools

• Becker, H. P., & Peppmeier, A. (2022). Investition und Finanzierung: Grundlagen der betrieblichen Finanzwirtschaft. Wiesbaden: Springer Verlag.
• Bitzyk, P., & Steckel, R. (2023). Der Jahresabschluss - Einzelabschluss nach dem UGB. Wien: LexisNexis ARC ORAC.
• Egger, A., Bertl, R., & Hirschler, K. (2022): Der Jahresabschluss nach dem Unternehmensgesetzbuch, Band 1: Der Einzelabschluss. Erstellung, Prüfung, Veröffentlichung. Wien: Linde Verlag.
• Flotho, S. (2021). Wirtschaftsmathematik: Einfach und verständlich. Wiesbaden: Springer Verlag.
• Guserl, R., Pernsteiner, H., & Brunner-Kirchmair, T. M. (2022). Finanzmanagement: Grundlagen - Konzepte - Umsetzung. Wiesbaden: Springer Verlag.
• Heitmann, D., Skill, T., & Weiß, C. (2022). Finanzmathematik: Eine Einführung für Mathematik, Wirtschaftswissenschaften und Praxis. Berlin-Heidelberg: Springer Verlag.
• Poggensee, K (2022). Investitionsrechnung: Grundlagen - Aufgaben - Lösungen. Wiesbaden: Springer Verlag.

Exam

German

6

The course is conducted in a blended-learning-format. A combination between online phases (inductive method for the independent acquisition of knowledge and the practice of tasks) and presence phases (deductive method, in which assistance is given in the learning process and knowledge is imparted via frontal lectures) is used.

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