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Using Accounting Analytics to Make an Investment Decision
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Reference: IVEY-9B16B013-E
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Year: 2015
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Number of pages: 12
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Geographic Setting: India
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Publication Date: Oct 17, 2016
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Fecha de edición: Oct 17, 2016
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Source: Ivey Business School (Canada)
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Type of Document: Case
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Industry Setting: Information, Media & Telecommunications;
Description
In 2015, Hanuman Singh, a portfolio investor, was looking for investment opportunities in India. His friend Ram Naik suggested Singh invest in Tata Consultancy Services Limited, an information technology company based in Mumbai. Singh’s normal practice was to look at the company balance sheets, understand the company’s strategy, and then decide whether to invest. But he recently had a bitter investing experience when the company he invested in went bankrupt. Singh now understood that a deeper analysis was required before investing. He was looking for an accounting analysis that would give him insight into any possible manipulations so that his investment decision would yield his expected results.
Learning Objective
This case is suitable for MBA students taking a course in fraud and forensic accounting and for financial analysts who give clients investment advice. After completing the case, students and financial analysts will be able to ·understand financial statements thoroughly by focusing on key variables for analysis; ·recognize popular fraud prediction models; ·understand the interpretation of fraud prediction models; and ·make accurate investment decisions.