ØARR4600 Valuation for Auditors Course description

This course explores the valuation concepts relevant for Auditors with a focus on the fair value accounting in IFRS accounting standards. The objective of this course is to provide students with valuation methods from both a conceptual and practical framework. We will discuss the drivers of corporate value, cover financial analysis using data from the annual report, and build an integrated valuation model using discounted cash flow (DCF), as well as relative valuation based on market or transaction pricing.

ØABED3000/4000 Corporate Finance

None

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student

• has obtained an understanding of fundamental drivers of value, and valuation techniques.
• has an advanced understanding of relevant theoretical and practical application of valuation for the fair value accounting in IFRS accounting standards
• has implemented and understood the use of this knowledge in practical settings.

Skills

The student

• is able to apply the advanced valuation techniques to real companies, to form an informed opinion as to the fair value with respect to the IFRS standards.
• has increased competence in presenting and discussing complex valuation issues.
• is able to take complex financial information and distil them into relevant information for the valuation process.
• is able to confidently present the findings of their analysis verbally and in written and presentation of the fair value in a IFRS context towards investors, top management, and board of directors.

General competence

The student

• has completed demanding case work and presentations as constructive members of a student group.
• can produce alternative methods or resolve discrepancies and argue why they are good solutions to the problem.

The course is case-based. Learning approaches include lectures, in-class problem solving, group presentations, and group work.

The following coursework requirements must have been approved in order for the student to take the exam: 

• Coursework 1: Four written case submissions, each with a maximum of 1000 words, plus appendixes. The submissions will be written in groups of 2-4 students
• Coursework 2: The group must make one oral presentation. All group members are required to present. The presentation will last 10-20 minutes.

All required coursework must be completed and approved by the given deadline in order for the student to take the exam. If one or more coursework requirements have not been approved, the student will be given one new opportunity to get these approved, within a given deadline.

The exam in the course consists of two parts:

1) A written group project with a scope of maximum 5 pages, excluding front page, table of contents, list of references and any appendices. Font and font size: Arial / Calibri 12 points. Line spacing 1.5. The written group project accounts for 50% of the final grade.

2) An individual supervised exam of 3 hours. The individual exam accounts for 50% of the final grade.

Both the written group project and the individual supervised exam must be passed in order to pass the course.

The following aids are permitted for the written group project:

• All aids are permitted, as long as the rules for source referencing are complied with.

The following aids are permitted for the individual supervised exam: 

• Calculator (see regulations for the use of calculators in the programme description)
• One dictionary (either first language-English/English-first language or English/English)

Grade scale A-F

The exam papers are assessed by one internal and one external examiner.

At least 25% of the exam papers will be assessed by two examiners. The grades awarded for the papers assessed by two examiners form the basis for determining the level for all the exam papers.