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 ang general competence:

Knowledge

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

Skills

• be 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.
• have increased competence in presenting and discussing complex valuation issues.
• be able to take complex financial information and distil them into relevant information for the valuation process.
• be 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

• have 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.

Students work in groups of 3 students, with the exception of minimum 2 students if the number of students is not divisible by 3.

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

6x Case Hand-ins (maximum 1000-word group report, plus appendix).

Present at least one Hand-in (10-minute group-based presentation) for class discussions.

Participate and Discuss the cases during the presentations/discussions in class.

If the assignments are not approved, the student will be given one opportunity to submit a new or improved version. The lecturer will provide more detailed information about deadlines for submission. 

The final grade will be based on the Portfolio of the written assignments (Individually graded). This is the portfolio of the 6x case hand-ins in their final reworked version, with a maximum of 1000 words per case and a total of 6000 words, plus appendixes.

All reference aids are allowed as long as the rules for source references are followed.

Grade scale A-F

An internal and an external examiner will grade the exam.

A selection of at least 25% of the exam papers will be assessed by two examiners. The grades awarded to exam papers assessed by the external and internal examiner will be used to determine the level of all exam papers.