[Hertfordshire Business School]

[Reflection Essay _Financial Statement Analysis (FSA) II]

FSA II is an extension to the FSA I which emphasises on the relevant theoretical
aspects of accounting. In my last reflection, Ive wrote about my journey from fearing this
subject to actually embracing it. This semester, FSA II is no exception; the experience was
even better and more intriguing.
Knowledge and professional development are crucial ingredients for success for every
individual and I am not an exception. As concluded by Megginson et. al, 2007: a persons
security does not lie in the job or organization they work for but in the skills, knowledge and
experiences that they have within themselves. In this reflection essay Ill share my experience
on how the module which is taught by Miss Anna Paraskeva has increase my knowledge
through specialized and well-tailored module to help me succeed in my career.
I believe that the module has further improved my analytical skills on investment
valuation process; accessing firm's liquidity, profitability, solvency and assessing the effects
of alternative accounting methods and assumptions on financial statements for both US and
international financial accounting standards.
In the first week we were taught the adoption of IFRS in the EU. This topic was an
eye opener as I was never familiar with this topic. At the end of the class, Ive develop
awareness on the underlying reasons for accounting harmonisation across the EU and the
relevant EU directives. The following week, we were taught financial reporting quality. There
was never a dull moment during the class, as the lecturer made the subject even more
interesting by relating it to real-life examples and also engaging us in the discussion.
We progressed by learning about application of financial statement analysis. We had
given Nike and Adidas case study in which we made a sincere attempt to try to understand
and compare their different accounting approach. Then we learned about Inter-corporate
investments; Analysis of multinational operations and Analysis of financial statements: a
synthesis.
The topics mentioned above are well-tailored, presented and explained. Furthermore,
the weekly tutorial questions has allowed me to apply financial statements and supporting
documentation in the investment valuation process; assess a company's performance and
financial status using appropriate analytical models; predict bankruptcy by understanding the

early warning signals, allow me to provide constructive criticism on some of the application
of analytical models and understand the consequence of alternative accounting standards and
practices on financial reports and performance measures(ratios).
The main difference between FSA II compared to the previous module taught is the
engagement and active discussion being held during tutorial. This is a very effective learning
tool as the discussion between groups members regarding the respective topics as well as
presenting the topic in class has provided us with a better learning experience. This translates
into further positive outcomes as I was able to grasp the knowledge and have better in-depth
understanding which was evidence as I was able to answer the essays questions in the
examination by relating to this experience. Again, this is just not about the examinations, but
about the knowledge that will guide me throughout my chosen professional career in the
coming years. One of my biggest challenges was the different treatments for foreign currency
transactions and the translation of foreign currency financial statements. However, Anna
provided us with a diagram that sums this up in a simplistic manner which made this
complicated topic much easier to comprehend.
Overall, the knowledge I have gained from this module would definitely come in
handy when Im preparing for my CFA examination and consequently in my chosen career as
a financial analyst. I have learnt each and every aspect of accounting differences, strategies
and analysis of financial statements from this module as well as deep understanding about
real situation in market. Another important skill learned is how incorporating the right
strategy and model can make tremendous change in interpreting financial statements.
Henceforth, I strongly believe this accredited modules has provided me the opportunity to
practise, and develop a solid understanding, shows me where to improve my skills which will
ultimately allow me to build my experience and skills. This module has not only given me
knowledge, but also has added weight to my qualification in the current competitive market.

Salvation can only by gained by education and knowledge and not by futile acts or rituals
Guru Angad, 1550