Acc.Information and Security Valuation

Subject ACCT90008 (2014)

Note: This is an archived Handbook entry from 2014.

Credit Points: 12.50
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject is not offered in 2014.

Time Commitment: Contact Hours: One 3-hour seminar per week
Total Time Commitment:

Estimated total time commitment of 120 hours per semester

  • Acceptance into the Graduate Certificate in Business Forensics or the Master of Accounting and completion of ACCT90002 Financial Statement Analysis (or equivalent) OR
  • Acceptance into the Master of Management (Accounting) and completion of ACCT90012 Corporate Reporting (or equivalent) and FNCE90060 Financial Management (or equivalent).
Study Period Commencement:
Credit Points:
Semester 1, Semester 2
Semester 1, Semester 2
Semester 1, Semester 2


Recommended Background Knowledge:


Non Allowed Subjects:


Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website:


Melbourne Business School @ Berkeley Street
Level 4, 198 Berkeley Street
Telephone: +61 3 8344 1670

Subject Overview:

This subject examines the use of financial statements for the fundamental valuation of listed and non-listed entities. Fundamental analysis will be examined in detail and applied to valuation projects involving local and multinational companies. This subject is built around the use of residual earnings as a means of determining the intrinsic value of an entity using only accounting data. It explores the relation between the residual income valuation model, discounted cash flow valuation methods and dividend discount model. It also refers to EVA as a parallel valuation methodology. The subject will also consider forecasting firms' future performance and how it determines the firm’s price/earnings and market to book ratios.

Learning Outcomes:

On successful completion of this subject, students should be able to:

  • Describe how 'intrinsic values' are calculated;
  • Identify the relevant firm attributes that determine value;
  • Explain the role of financial statements in determining intrinsic values;
  • Analyse whether some aspects of the financial statements are more important than others and explain the role of 'bottom line' earnings (net income) and book value;
  • Analyse financial statements in order to extract the relevant information;
  • Describe how traditional ratio analysis aids valuation;
  • Evaluate the relevance of cash-flow information and of the accruals in accounting;
  • Explain how accounting methods are applied to financial statements;
  • Explain what determines a firm's P/E ratio and a firm's market-to-book (P/B) ratio;
  • Describe how the P/E and P/B ratios are articulated;
  • Explain how analysis differs across countries and how P/E ratios can consequently be compared across countries;
  • Describe how risk is evaluated, particularly in relation to equity and debt;
  • Identify what EVA is and explain how it is used in performance evaluation.
  • Two-hour mid-semester test (30%)
  • 3000 word group project due late in the semester (20%)
  • One 3-hour end of semester examination (50%)

Note: Successful completion of this subject requires a pass (50%) in the final exam.

Prescribed Texts:

You will be advised of prescribed texts by your lecturer.

Recommended Texts:


Breadth Options:

This subject is not available as a breadth subject.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

On successful completion of this subject, students should have improved the following generic skills:

  • Develop an argument logically and coherently;
  • Synthesis of information;
  • Application of current technologies to practice;
  • Accessing data and other information from various sources;
  • Using computer programs, particularly in relation to the processing of data;
  • Problem solving;
  • Statistical reasoning;
  • Critical thinking;
  • Oral and written communication.

Students who have completed ACCT30006 Business and Financial Analysis should take an elective in place of ACCT90008 Acc.Information and Security Valuation.

Related Course(s): Graduate Certificate in Business Forensics
Master of Accounting
Master of Accounting

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