Course Title: Financial Management

Part A: Course Overview

Course Title: Financial Management

Credit Points: 12.00


Course Code

Campus

Career

School

Learning Mode

Teaching Period(s)

ACCT2141

City Campus

Postgraduate

115H Aerospace, Mechanical & Manufacturing Engineering

Distance / Correspondence

Sem 2 2007,
Sem 2 2008,
Sem 2 2009

Course Coordinator: Margaret Tein

Course Coordinator Phone: +61 3 99258069

Course Coordinator Email: tein@rmit.edu.au

Course Coordinator Location: 57.5.24

Course Coordinator Availability: Please contact by email to make appointment


Pre-requisite Courses and Assumed Knowledge and Capabilities

None


Course Description

This course is aimed at making you proficient in managing the financial function of an organisation, which is an essential part of the overall work of any manager. It will not turn you into a professional accountant, but it will enable you to understand the professional advice and help that accountants and other finance professionals can provide.

Almost everything you do in business costs money, so this course is designed to make you cost conscious and ensure that your decisions and actions are cost effective. The cheapest alternative is not always the best, but you need to be able to justify why it is not.


Objectives/Learning Outcomes/Capability Development

The Capabilities Of An Aviation Management Graduate – Post Graduate Level


Overall Integrative Capability: Proactive Problem Identification, Innovative Problem Solving and Empowering Communication

CAPABILITY: Responsible and Professional Work Practices: Work within the ethical and legal framework of the industry while contributing to professional work settings through responsible, self-managed, independent work and effective participation in multidisciplinary teams.

Dimension of Capability: Personal Development

Descriptor:

• Awareness of and commitment to one’s own set of values.
• Observance of professional ethics.
• Taking responsibility and participating in one’s own career planning and development.
• Acting as a Reflective Practitioner leading to a personal continuous improvement process.
• Engagement in and commitment to career-long learning.

Dimension of Capability: Sustainability

Descriptor:

• Balance of the technical, economic, environmental and social demands of an industry-based situation.
• Protection of safety, health and welfare.

Dimension of Capability: Problem solving and decision making

Descriptor:

• Model organizational problems using a systems framework, recognising the impact on sub- and related systems.
• Use of a wide range of problem solving tools and techniques.
• Selectivity in the choice of data to be used to support decision-making.
• Access to information from a wide range of sources, discerning values, bias and usability.

Dimension of Capability: Technical Competence

• Conceptualise, plan, design and manage the interface between human and technical systems.
• Perform a range of analytical tasks as appropriate to the specialization within the industry.
• Design and conduct diagnostic activities within the specific industry discipline.

Dimension of Capability: Teamwork and Leadership

• Operate effectively within a complex organisational setting.
• Manage multiple hierarchical relationships.
• Work effectively within a team.
• Exhibit appropriate and effective professional behaviours in the team environment.
• Provide constructive feedback to colleagues.
• Resolve conflict within the team.
• Work with members of other disciplines in a team with conflicting needs.

Dimension of Capability: Communication

• Communicate effectively - that is to listen, observe, speak, and write.
• Communicate results and outcomes qualitatively, quantitatively, graphically, electronically and textually.
• Communicate processes of thinking and reflection.

CAPABILITY: Global perspective

Locate one’s professional practice within the global parameters of the industry recognizing the different cultural perspectives, national and local variations in legal, industrial and economic environments.

Dimension of Capability: Personal Development

• Awareness of and respect for other’s sets of values.
• Observance of professional ethics.
• Taking responsibility for understanding cultural differences.
• Acting as a Reflective Practitioner leading to a personal continuous improvement process.
• Engagement in and commitment to career-long learning.

Dimension of Capability: Sustainability

• Balance of the technical, economic, environmental and social demands of different cultural and national situations.
• Protection of safety, health and welfare.

Dimension of Capability: Problem-solving and decision-making

• Model organizational problems using a systems framework, recognising the impact on sub- and related systems within different cultural contexts.
• Use of a wide range of problem solving tools and techniques.
• Selectivity in the choice of data to be used to support decision-making.
• Access to information from a wide range of sources, discerning values, bias and usability.

Dimension of Capability: Technical Competence

• Conceptualise, plan, design and manage the interface between human and technical systems taking into consideration variations in local technical adoption rates.
• Perform a range of analytical tasks as appropriate to the specialization within the industry.
• Design and conduct diagnostic activities within the specific industry discipline and cultural context.

Dimension of Capability: Teamwork and Leadership

• Operate effectively within a complex organisational setting.
• Manage multiple hierarchical relationships.
• Work effectively within a multicultural team.
• Exhibit appropriate and effective professional behaviours in the multicultural team environment.
• Provide constructive feedback to colleagues.
• Resolve conflict within the multicultural team.
• Work with members of other disciplines in a team with conflicting needs.

Dimension of Capability: Communication

• Communicate effectively - that is to listen, observe, speak, and write appropriately within the cultural context.
• Communicate results and outcomes qualitatively, quantitatively, graphically, electronically and textually.
• Communicate processes of thinking and reflection.

CAPABILITY: Communication and Personal Engagement

Communicate the processes and results of organisational activities within the industrial sectors’ communities in forms consistent with the appropriate sector practices. Extend relationships through confident interactions across various levels and functions of the organisation and the industry’s sectors.

Dimension of Capability: Personal Development

• Awareness of and respect for divergent views.
• Observance of professional ethics.
• Taking responsibility for ones’ own communication style and responses of others to it.
• Acting as a Reflective Practitioner leading to a personal continuous improvement process.
• Engagement in and commitment to career-long learning.

Dimension of Capability: Sustainability

• Balance of the technical, economic, environmental and social demands of different cultural and personal backgrounds.
• Protection of safety, health and welfare.

Dimension of Capability: Problem-solving and decision-making

• Explain organizational problems and associated solutions within a systems framework, recognising the impact on individuals and groups with different perspectives and views.
• Use a wide range of problem solving tools and techniques.
• Selectivity in the choice of data to be used to support decision-making.
• Access to information from a wide range of sources, discerning values, bias and usability.

Dimension of Capability: Technical Competence

• Professionally communicate the conceptualisation, planning, design and management of the interface between human and technical systems taking into consideration variations in personal technical adoption rates.
• Discuss the performance of a range of analytical tasks as appropriate to the specialisation within the industry.
• Participate in the design and conduct diagnostic activities within the specific industry discipline and cultural context.

Dimension of Capability: Teamwork and Leadership

• Communicate effectively and collaboratively within a complex organisational setting.
• Manage multiple hierarchical relationships.
• Work effectively within a multicultural team.
• Facilitate effective and appropriate interactions between colleagues and subordinates across the organisation hierarchy.
• Provide constructive feedback to colleagues.
• Resolve conflict within the multicultural team.
• Work with members of other disciplines in a team with conflicting needs.

Dimension of Capability: Communication

• Communicate effectively - that is to listen, observe, speak, and write appropriately within the cultural context.
• Communicate results and outcomes qualitatively, quantitatively, graphically, electronically and textually.
• Communicate processes of thinking and reflection.
.


After studying this course you should be able to:

  • identify the different types of business organisations
  • explain the basic principles of financial accounting and management accounting
  • explain the role and content of each of the four main financial statements and describe the methods and principles used to prepare each
  • discuss the issues involved in developing a funding structure for an organization
  • discuss the importance of corporate governance in both private and public organisations
  • analyse financial statements using common techniques
  • demonstrate the use of a range of costing systems and cost control methods
  • prepare budgets and evaluate long-term capital investment proposals
  • discuss the issues involved in selecting an appropriate approach to managerial performance measurement
  • use accounting information for managerial decision making.


Overview of Learning Activities

The focal strategy utilised in the whole course is the Management Learning Team (MLT). This group represents a project team whose members carry a dual responsibility. Firstly, MLT members carry a responsibility to the team for the learning and development of each member, and secondly, a responsibility for their own personal learning.

MLT’s are encouraged to explore the resources of the team for problem solving and addressing issues prior to seeking the guidance or assistance of an academic staff member.

The specific learning activities include:

Seminars
Workshops
On-call Consultation
Projects
Directed Research
Self-directed Learning
Fieldwork


Overview of Learning Resources

Prescribed text for this course:

Bazley, M., Hancock, P., Berry, A. & Jarvis, R. 2004, Contemporary Accounting, Thomson, Southbank, Victoria.

Additional resources to accompany the text can be found on the following websites: http://www.mycourse.com.au
http://www.infotrac-college.com


Futher Reading

Suggestions for further reading are included at the end of each topic, along with full bibliographic details for references cited. These lists should not be regarded as lists of required additional reading but have been included for those interested in further pursuing the ideas presented in the topic.

The prescribed text will provide you with an introduction to both financial accounting and management accounting. Should you require more detail on management accounting, either one of the two texts listed below would be appropriate.

Blocher, E.J., Chen, K.H., & Lin, T.W. 2005, Cost Management: A Strategic Emphasis, McGraw-Hill, New York, Chapters 2, 7, 9, 10.

Horngren, C.T., Foster, G. & Datar, S. 2003, Cost Accounting: A Managerial Emphasis, Prentice-Hall, New Jersey, Chapters 3, 11, 12.

Blocher et al. is the 3rd edition of a text that has evolved in response to the major changes that have occurred in management accounting over the last two decades with regards to changed manufacturing and information technologies, competitive environments and globalisation.

Horngren et al. is now in its 11th international edition. Since its original publication it has become the most widely adopted text in the area of management accounting, and its quality improves with each new edition. The authors focus on how cost accounting can help management make better decisions.

Both these texts cover essentially the same material, and while Horngren et al. is perhaps more thorough in its coverage, you may find Blocher et al. easier to read and understand. Both texts contain practical examples that may be of assistance in a work environment.

In addition to the above, the following journals, magazines, newspapers and other websites will be useful for following current trends and developments in accounting and financial management. The list is by no means exhaustive but does cover a range of topics.

Journals, magazines and newspapers

Australian Financial Review http://afr.com
Asia Business Daily http://www.asiabusinessdaily.com
Business Review Weekly http://www.brw.com.au
Business Week http://www.businessweek.com
The Economist http://www.economist.com
Euromoney http://www.euromoney.com
Fairfax Group site http://www.fairfax.com.au
Far Eastern Economic Review http://www.feer.com
Financial Times (UK) http://www.ft.com
Forbes http://www.forbesmagazine.com
Fortune http://www.fortune.com
The Guardian and Observer (UK) http://www.guardian.co.uk
The Times (UK) http://www.timesonline.co.uk
Wall Street Journal http://www.online.wsj.com

Other websites

Accounting standards and Australian accounting associations

Australian Accounting Standards Board http://www.aasb.com.au
International Accounting Standards Board http://www.iasb.org
CPA Australia http://www.cpaaustralia.com.au
The Institute of Chartered Accountants in Australia http://www.icaa.com.au
IAS Plus—International accounting news http://www.iasplus.com

Australian government and other financial institutions

Australian Financial Markets Association http://www.afma.com.au
Australian Securities & Investment Commission http://www.asic.gov.au
Reserve Bank of Australia http://www.rba.gov.au

Australian stock exchanges

Australian Stock Exchange http://www.asx.com.au
Sydney Futures Exchange http://www.sfe.com.au

Financial directories and dictionaries

Australian Financial Services Directory http://www.afsd.com.au
Company annual reports http://www.annualreports.com
Investopedia financial dictionary http://www.investopedia.com/dictionary


Overview of Assessment

Distance Delivery Mode Assessment Tasks:

  • Assignment 1 - wieghting 20% - 1500 words.
  • Examination - weighting 80% - 3 hours writing, 10 minutes reading.