Course Title: Introduction to Financial Management

Part B: Course Detail

Teaching Period: Term2 2012

Course Code: ACCT5072

Course Title: Introduction to Financial Management

School: 130T Engineering (TAFE)

Campus: City Campus

Program: C6016 - Advanced Diploma of Engineering Technology (Principal Technical Officer)

Course Contact : Program Manager

Course Contact Phone: +61 3 9925 4468

Course Contact Email:engineering-tafe@rmit.edu.au

Name and Contact Details of All Other Relevant Staff

Daniela Achim
Tel. No. 99254523
email: daniela.achim@rmit.edu.au

Nominal Hours: 60

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

None

Course Description

This course will enable students to describe the processes of financial management in their enterprise, to perform relevant calculations and to prepare a budget for their enterprise.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

EB023 Introduction to Financial Management

Learning Outcomes

On completion of this module the learner should be able to:

1. Define the accountant’s role and the accounting process.
2. Describe the financial tools available to management.
3. Define and explain the function of key financial terminologies.
4. Describe the characteristics of an overhead and the bases for allocation of overhead expenses, and calculate overhead recovery rates.
5. Describe the information required to effectively manage a business enterprise and a profit centre within an enterprise.
6. Define and apply production efficiency ratios.
7. Prepare key financial and accounting reports.
8. Explain the purpose and function of a budget.
9. Calculate break even point for a given project in monetary value and units.
10. Evaluate the various sources of finance available to an enterprise.
11. Identify reasons for a company’s inability to collect all debts and demonstrate an understanding of how its credit policy can be efficiently controlled.
12. Demonstrate an understanding of the financing of capital equipment.

Details of Learning Activities

Lectures

In class activities including role play, review and analysis of financial statements

Team project analysis of public company financial management

Close book  final exam 

Videos.
 

Teaching Schedule

Session/Beginning Week	Topics	Reference	Assesment
1	Fundamentals of accounting process The accountant’s role Financial teminology	Robert Clift, (1990), Australian Financial Accounting, eds Harper & Raw Publishers, Sydney, Ch1, pp 1-18.	Handout Assessment 2
2	The accounting tools available to managers Budgeting The elements of a budget Zero-based budgeting Preparation of budgets	Anandarajah, Aseervatham, Reid (2005), Prepare and manage budgets and financial plans, 3rd edition, eds Pearson, Prentice Hall, Ch4, pp 86-87.
3	Financial terninology Profit and loss Ballance sheet Current and non-current assets and liabilities Legal structures	Ray Jopling, Peter Lucas, Gary Norton, (2007), Accounting for business A non-acountant’s guide, 2nd edition, eds McGraw Hill, Ch1, pp1-9, Ch5, pp72-73, 76-77.
4	Fixed and variable overhead Methods for allocating overhead expenses Overhead recovery	Hogget &Edwards, (1990), Accounting in Australia, 2nd edition, eds Wiley, Ch 21, pp 971-991
5	Ballance sheet Profit and Loss Records Operating budgets Monthly sales reports Cash flow forecast	Colin Bear, Peter Blythe, David Flanders, (2005),Introduction to budgeting, 4th edition, Cengage Learning, Ch7, pp127-135.
6	Revision Weeks 1-5		Revision
7	Purchase variance price Materials usage variance Labour efficiency variance overhead recovery variance	Jacqueline Birt, Keryn Chalmers, Suzanne Byrne, Albie Brooks, Judy Oliver, (2008), Accounting business reporting for decision making, 3rd edition, eds John Wiley and Sons Inc, Ch8, pp302-340.
8	Cost centre report Job or contract assessment Key financial ratios Current ratio Liquidity ratio Debt to equity ratio	Horngren, George Foster, (1991), Cost accounting – a managerial emphasis, 7th edition, eds Prentice Hall, International Editions, Ch8, pp252-270.
9-10	Assessment 1 Financial report of chosen organization (30%)		Assessment 1, Oral Presentation in class 30%
11	Main elements of a budget Who is responsible How is a budget developed Cash flow to fund activity level	Greg Dickman, (2000), Business mathematics, 2nd edition, eds Nelson Thompson Learning, Ch3, pp52-64
12	Describe the purpose and function of break-even analysis Financial factors Calculate the break-even in $ and units	Robert Clift, (1990), Australian Financial Accounting, eds Harper and Row, Ch19, 659-677.
13	Traditional creditors Bank overdraft Bank loans Leasing operational and capital Owners equity Present and future vaue annuities Factors required to maintain good credit control	John Hoggett and Lew Edwards, (1990), Accounting in Australia, 2nd edition, eds. john Wiley and sons Inc, Ch 20, 474-491.	Assessment 1 Hardcopy or e_document Due
14-15	Revision Weeks 8-13		Revision
16 -18	Assessment 2 - Final Exam - 70%		Final Exam-70% MSAC

Learning Resources

Prescribed Texts

References

Anandarajah, Aseervatham, Reid (2005), Prepare and manage budgets and financial plans, 3rd edition, eds Pearson, Prentice Hall. C Bear, P Blythe, D Flanders, (2005),Introduction to budgeting, 4th edition, Cengage Learning J Birt, K Chalmers, S Byrne, A Brooks, Judy Oliver, (2008), Accounting business reporting for decision making, 3rd edition, eds John Wiley and Sons Inc. R Clift, (1990), Australian Financial Accounting, eds Harper & Raw Publishers. G Dickman, (2000), Business mathematics, 2nd edition, eds Nelson Thompson Learning. J Hoggett, L Edwards, (1990), Accounting in Australia, 2nd edition, eds. john Wiley and sons Inc. Horngren, G Foster, (1991), Cost accounting – a managerial emphasis, 7th edition, eds Prentice Hall, International Editions R Jopling, P Lucas, G Norton, (2007), Accounting for business A non-acountant’s guide, 2nd edition, eds McGraw Hill.

Other Resources

Overview of Assessment

Assessment for this module will consist of the following:
 1 x written examination at the completion of the course.
 2 x written assignments provided throughout the program.

Assessment Tasks

Assessment 1 - Financial Report of chosen organisation - Oral Presentation (Week 9&10) - 30%

Assessment 2 - Final Exam - 70%
 

Assessment Matrix

Assessment/Outcome

1

2

3

4

5

6

7

8

9

10

11

12

1 Financial Report

x

x

x

x

x

x

x

x

x

x

x

x

2 Exam

x

x

x

x

x

x

x

x

x

x

x

x

Other Information

Study and learning Support:

Study and Learning Centre (SLC) provides free learning and academic development advice to all RMIT students.
Services offered by SLC to support numeracy and literacy skills of the students are:
- Assignment writing, thesis writing and study skills advice
- Maths and science developmental support and advice
- English language development

Please refer http://www.rmit.edu.au/studyandlearningcentre to find more information about Study and Learning Support.

Disability Liaison Unit:

Students with disability or long-term medical condition should contact Disability Liaison Unit to seek advice and support to complete their studies.
Please refer http://www.rmit.edu.au/disability to find more information about services offered by Disability Liaison Unit.

Late submission:

Students requiring extensions for 7 calendar days or less (from the original due date) must complete and lodge an Application for Extension of Submittable Work (7 Calendar Days or less) form and lodge it with the Senior Educator/ Program Manager.
The application must be lodged no later than one working day before the official due date. The student will be notified within no more than 2 working days of the date of lodgment as to whether the extension has been granted.

Students seeking an extension of more than 7 calendar days (from the original due date) must lodge an Application for Special Consideration form under the provisions of the Special Consideration Policy, preferably prior to, but no later than 2 working days after the official due date.

Assignments submitted late without approval of an extension will not be accepted or marked.


Special consideration:

Please refer http://www.rmit.edu.au/browse;ID=riderwtscifm to find more information about special consideration.

Plagiarism:

Plagiarism is a form of cheating and it is very serious academic offence that may lead to expulsion from the University.

Please refer: www.rmit.edu.au/academicintegrity to find more information about plagiarism.

Email Communication:

All email communications will be sent to your RMIT email address and you must regularly check your RMIT emails.

Course Overview: Access Course Overview