Skip to main content

AC210: Financial Statement Analysis for Investment Banking and Asset Management

Subject Area: Accounting

Course details

  • Department
    Department of Accounting
  • Application code
Session oneFull - 17 Jun 2024 - 5 Jul 2024
Session twoNot running in 2024
Session threeNot running in 2024



Register your interest below to be notified when applications open again.


Accounting information is of critical importance to capital markets. This introductory course combines academic theory and real-world cases to provide students with a thorough grounding in the use of financial statements for investment analysis and banking.

The aim of the course is to help students become sophisticated users of financial information. The course is thus suitable for students interested in learning how financial information can be useful in asset allocation and, more broadly, in making decisions about providing equity and debt financing to firms. 

The course covers several important topics, including revenue and expense recognition, accounting for debt and equity financing and complex M&A transactions, cash flow analysis, and security valuation using multiples and discounted cash flows. 

The course blends cutting-edge research and extensive real-world applications. It is especially suitable for those students interested in pursuing careers in equity research, asset management, and investment banking and provides an excellent foundation for those preparing for interviews and assessment centres in these fields.

Key information

Prerequisites: Any undergraduate-level course with some accounting or finance content.

Level: 200 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: Two written examinations (Midterm exam 50% and final exam 50%)

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

Is this course right for you?

The course will be particularly valuable to students who plan to pursue careers in equity research, asset management, and investment banking. 

The course is suitable for students with little prior exposure to accounting. However, students who have already taken several accounting courses will also find the unique blend of academic evidence and real-world applications novel and appealing. 

The course is designed for a diverse international audience and therefore emphasizes differences between international accounting standards (IFRS) and US GAAP when appropriate. 


  • Understand the roles of key players in capital markets

  • Learn how to extract and interpret relevant financial statement information

  • Understand how financial statement information is used in investment banking and asset management

  • Apply discounted cash flow models and multiples to value a firm

  • Conduct fundamental analysis in equity and credit markets

  • Relate economic events to financial statements and disclosures

  • Critically evaluate financial reporting choices made by corporations

  • Understand different ways in which companies communicate information to financial markets

  • Assess how environmental factors might impact financial analysis

  • Learn how to account for different types of equity and debt financing and M&A transactions

  • Understand firms’ reporting incentives and detect earnings management


Rhea Sahajwani, India

I have gained new perspectives and knowledge in finance which will help me in my career. I am looking forward to applying what I have learnt to my course back home.


The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.

Maria Correia

Dr Maria Correia

Summer School Programme Director, Accounting - Associate Professor of Accounting

Jose Carabias Palmeiro

Dr Jose Carabias Palmeiro

Assistant Professor of Accounting


LSE’s Department of Accounting enjoys a reputation as one of the leading groups in the world for teaching and research on the economic, institutional and organisational aspects of accounting and financial management.

The Department, along with the Departments of Finance and Management, was ranked as the UK leader for Business and Management Studies in the most recent Research Excellence Framework.

The Department offers an outstanding interdisciplinary research environment, retaining close ties with other departments and professional communities which ensures that our faculty work at the cutting edge of new developments in accounting practice. Students gain the knowledge, critical thinking and analytical skills to break down complex ideas and apply new concepts to real-world problems, preparing them with the necessary skills to thrive in various sectors, including corporate, government, non-profit and the public sector.



Register your interest below to be notified when applications open again.