Course Title: Provide financial and business performance information

Part B: Course Detail

Teaching Period: Term1 2012

Course Code: ACCT5240C

Course Title: Provide financial and business performance information

School: 650T TAFE Business

Campus: City Campus

Program: C6072 - Advanced Diploma of Accounting

Course Contact : Angelo Sellan

Course Contact Phone: +61 3 9925 5460

Course Contact Email:angelo.sellan@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Colin Byron

colin.byron@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

Nil

This course is co-delivered and co-assessed holistically along with FNSACCT608B (ACCT5264C) Evaluate an Organisations Financial Performance and BSBITU402A (COSC 5946C) Develop and Use Complex Spreadsheets.

Course Description

The unit covers the competency to analysis and report a broad range of financial and business performance information.  The course seeks to develop and employ skills related to assessing clients’ needs, analysing data and preparing advice.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACCT501B Provide financial and business performance information

Element:

1. Assess client needs

Performance Criteria:

1.1. Expectations and objectives of client are clarified and confirmed to ensure mutual understanding of client goals
1.2. The client's specific legal and financial requirements are identified when establishing, structuring and financing a business
1.3. Financial options and processes are discussed with client to develop suitable plans for the provision of information for the achievement of client goals
1.4. Progress of plans is reviewed regularly against agreed criteria and results communicated to client
1.5. Client objectives are monitored to identify changes in client needs
1.6. Feedback on service is regularly obtained, analysed and incorporated into services to client
1.7. Shortfalls in customer service are investigated and proposals for overcoming them are formulated and implemented

Element:

2. Analyse data

Performance Criteria:

2.1. Advice on reliability and accuracy of data is sought from appropriate authorities and sources in accordance with organisational procedures
2.2. Data is compiled in accordance with standard financial reporting requirements
2.3. Revenues and costs are analysed in accordance to standard accounting techniques and consistent with the organisation's objectives
2.4. All data and reports are analysed in accordance with standard financial analysis techniques
2.5. Data is reconciled to ensure statements are accurate and comply with organisational procedures and statutory requirements
2.6. Information is evaluated in relation to the financial performance of a business, specifically profitability, efficiency and financial stability
2.7. Further analysis is undertaken to ensure consistency of analysis with client's business and personal objectives
2.8. Further evaluation is undertaken to assess the financial potential of the business, its future funding requirements and its statutory obligations

Element:

3. Prepare advice

Performance Criteria:

3.1. Advice provides client with a realistic view of financial performance and compliance, including significant taxation issues and comparisons of alternative options
3.2. Suitable methods of presentation, language and forms of documentation are used to convey information to client
3.3. Advice identifies how risks, contingencies and future cash flows may be identified and quantified
3.4. Client is advised of risk management options
3.5. Client is advised of rights and obligations
3.6. Client is advised on alternative sources and features of short and long term finance


Learning Outcomes


To provide client focused financial and business performance information.


Details of Learning Activities

This course is co-delivered with ACCT5246C Evaluate and Organisations Financial Performance & COSC5946C Use Complex Spreadsheets . As a result, three course guides will be prepared but only the Elements, Performance Criteria, Critical Aspects, Knowledge and Skills requirements for each course will be specific to each course (guide). The remainder of the information such as "Teaching Activities" "Teaching Schedule" "Resources" and "Assessments Tasks & Matrix" will be identical on both course guides
Importantly, the attached information is consistent with the unit mapping document for this cluster.

 
Using various materials along with facilitator led discussion, students will be progressively introduced to the age old economic problem of scarce resources and investigates various financial techniques / applications with a view to maximising returns to owners of businesses via optimisation of the attainment, combination, and end use of those scarce resources. The course seeks to develop and employ skills related to financial analysis, estimation, and performance review of both the short and long term activities of a firm. Attention will be drawn on meeting the information needs of a target client. In our case this will be a client with a proposed business idea. A condensed business plan will be developed for the client, integrating the client’s objectives and needs. Relevant financial and non financial performance indicators will be developed and used to analyse the business. Preparing and developing spreadsheets and applying various spreadsheet functions to the business / financial principles & techniques learned in the co delivered units will also make up part of the course.This course will involve both theory and practical learning activities.

As part of these co delivered units, in-class activities will account for 48 of the 110 nominal hours allocated to these co-delivered cluster/courses and will include class work on theory, practical and computer work in the computer labs, together with work on portfolio exercises and assignment. Please note that in-class activities includes assessment. This will involve observation and one on one questioning of prescribed task execution. The remaining 62 of the 110 nominal hours are for self directed learning and should be taken up with work on any course study activity and the assignment outside of scheduled class time. Please note that the format of the classes will be a total of three hours per week (evening part time students)


Teaching Schedule

The total number of scheduled hours of teaching, learning and assessment involved in this course will include all planned activities. This will incorporate face to face classes (three hours per week) online learning and other forms of structured teaching and learning. The total scheduled hours includes the amount of effort required to undertake, evaluate and complete all assessments requirements, including observation of work performance, discussion with Facilitators and one on one sessions with students.
The nominal hours associated with these co delivered units are a guide only and represent the total teaching time and student effort required to successfully complete the course. This may include not only scheduled classes but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non classroom activities.

The teaching schedule below incorporates the two co delivered units.

 

SEMESTER ONE   
WeekDateContent / ActivityAssessment
1

6/2/2012

 

Introduction –Financial management functions / Goal: Profit maximization v Maximise share holders wealth.
Leverage effects on profits, Operating v Financial leverage, capital structure and earnings per share.
Spreadsheet revision
 
213/2/2012 
 
Long term planning. Pro forma statements
Financial analysis: Introduction to ratios, areas of performance, Trend analysis and benchmarks, Liquidity ratios.
Develop and prepare spreadsheets
 
320/2/2012 Long term planning. Pro forma statements use with Internal growth rate, Sustainable growth rate.
Financial analysis; Profitability, Gearing and Valuation ratios
Standardise spreadsheets
 Consultation and feedback for assignment one provided
427/2/2012 Short term planning - working capital requirements / management
Efficiency / utilisation ratios, operating and cash cycles.
Business Plan: Choosing a business idea / setting key business objectives.
Spreadsheet charts
 Consultation and feedback for assignment one provided
55/3/2012Short term planning – Accounts receivable management.
In class consultation for assignment one.
Business Plan: Evaluating the business idea
Spread Sheet logical functions
Initial meeting with client group proposed in week 10 for purposes of collecting information from client for purposes of Assignment 2.
612/3/2012Short term planning – Inventory management EOQ, reorder points.
In class consultation for assignment one.
Business Plan: Assessing Business Opportunities
Use spreadsheets
Assignment One due by the end of this week; if needed feeback will be provided at end of week 9 for resubmission in week 10
719/3/2012All of the above further exercises to consolidate and integrate topics.
Business Plan: Marketing
Use Spreadsheets
 
826/3/2012 Progress checks Assignment Two, used for individual consultation and feedback
 
92/4/2012Weighted average cost of capital
Mid semester break Tuesday 9th to Wednesday 15th.
Business Plan: Financial Plan
Standardise and use spreadsheets
 
   Term Break 
10 16/4/2012 Weighted average cost of capital
Business Plan: Financial Plan
Standardise and use spreadsheets
Assessment Two consultation and feedback
 Follow up meeting with client group proposed in week 10 for purposes of collecting information from client for purposes of Assignment 2.
11 23/4/2012Long term planning. Financial math and net present value revisited. Cash flow construction for capital budgeting net present value applications
Use spreadsheets
 
1230/4/2012Long term planning. Financial math and net present value revisited. Cash flow construction for capital budgeting net present value applications
Use spreadsheets
 
 137/5/2012Risk in capital budgeting
Risk adjusted discount rate, Systematic risk, Various approaches to evaluating risk.
Use spreadsheets
Assignment Two due at end of week 13. If needed feedback will be provided in week 15 for resubmission in week 16
1414/5/2012Accounting for leases. Operating Vs Financial Leases and differences in accounting treatment.
In class consultation assignment three.
Use spreadsheets
 Assignment Three due by end of week 14. If need be feedback will be provided in weeks 15 for resubmission in week 16
15 21/5/2012 Evaluation of leases, Borrow and buy Vs Lease.
In class consultation assignment three
Use spreadsheets
 
 16 28/5/2012Deferred assessments. Resubmissions. FeedbackDeadline for any 2nd time resubmissions on any assessments above.


Learning Resources

Prescribed Texts


References


Other Resources


Overview of Assessment

Assessment may incorporate a variety of methods including technical requirements documentation, homework, assignments, group and/or individual projects, in class exercises, written and practical tests, problem solving exercises, presentations, direct observation of actual and simulated work practice, presentation of a portfolio of evidence which may comprise documents, and/or photographs and/or video and audio files, review of products produced through work-based or course activities.

Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met. Students will be provided with feedback throughout the course to check their progress.


Assessment Tasks

You are required to complete 3 tasks. You must successfully complete all three tasks to be deemed competent in this unit.

Assignment One: (to be completed individually)
A report incorporating ratio analysis of the relevant performance areas of a publicly listed company with the view to providing a recommendation to a potential investor (client); advising whether to view the company favourably or unfavourably for the purpose of inclusion to an investment horizon. Annual reports are disaggregated and financial analysis is conducted on the profitability (returns to operations), efficiency, liquidity, gearing (financial risk), and investor valuation areas.

To be deemed competent in this task you must cover the following:

  • Clearly identify the end users needs / objectives
  • Analyse and evaluate a public companies financial statements using ratio analysis.
  • Complete a report for an end user commenting on profitability, efficiency, stability, and valuation ratios of that company.
  • Make a recommendation about that security to the end user.
  • Complete a pro forma income statement and balance sheet for that company.
  • Build an excel model for purposes of generating the pro forma statements above which accomodates management needs.

Assignment Two: (to be completed in teams of two)
A business plan, providing a client with details of the client’s business idea, and providing the client with information related to legal / marketing / financial / requirements / options related to the business idea, along with congruent risks and recommended mitigating strategies. Suggested performance indicators related to key success factors relevant to identified client objectives are included. The assignment will require liaising with clients, presenting to clients, and providing a completed business plan.

To be deemed competent in this task you must cover the following:

  • Clearly identify the clients needs and objectives
  • Update the client regularly on developments / research findings
  • Discuss with the client business viability issues
  • Communicate necessary financial legislative obligations / requirements connected with clients business idea
  • Communicate any local, state, or federal legislation which is relevant / applicable to the business idea
  • Provide the client with options: E.g. Business form, Business approach, Financing, etc.
  • Apply standard accounting techniques to the business plan financials
  • Identify and communicate all necassary assumptions and variables for purposes of preparing business plan financials
  • Include a SWOT analysis in the business plan
  • Identify and communicate relevant risks faced by the prospective business and steps to mitigate the risks
  • Complete all parts of the business template provided
  • Document all team and client meetings.
  • Build and excel spread sheet model for purposes of generating business forecast monthly Income Statement and Cash Flow Statement for first 12 months.

Assignment Three: (to be completed individually)
A case study where various financial management techniques and applications are used to solve a client’s specific concerns. The client is provided with a report outlining the findings and a recommended course of action so as to rectify the problems

To be deemed competent in this task you must cover the following:

  • Clearly identify the clients needs and address the specific problems
  • Using accounting and financial techniques investiigate the clients business
  • Identify the problem area
  • Clearly communicate recommendations
  • Generate pro forma statements of clients business if recommendations enacted.
  • All the above in the form of a report with all calculations attached as appendix to the report.

Excel spreadsheets must be employed for all assignments above.

Submission Requirements

Assessment tasks need to be submitted via Blackboard.

You should:

• Ensure that you submit assessments on or before the due date. If your performance in the assessment is affected by unexpected circumstances, you should consider applying for Special Consideration. Information on the process and application forms is available at http://rmit.edu.au/browse;ID=ls0ydfokry9rz website.
• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of work for assessment is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Angelo Sellan, 55460, Task 2HA, ACCT5317C Evaluate an Organisations Financial Performance, Page 1 of 10.

 

Marking Guide (competency):

Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.

You need to demonstrate you are competent in each element of the unit of competency you are studying.

You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.

Please refer to the Final Grades table below.

Marking Guide (Grading)

After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.


The grading is according to the following criteria:

1. LEVEL OF INDEPENDENCE, INITIATIVE, ENTERPRISE AND PERFORMANCE OF WORK TASK

We are looking for a high level of ability to complete all tasks independently as per the specifications as well as demonstrating a high level of initiative in your approach to your tasks
2. DEMONSTRATED BREADTH OF UNDERPINNING KNOWLEDGE AND A WILLINGNESS TO CONTINUE LEARNING

We are looking for depth of understanding of the key concepts and knowledge required in completing your tasks. You should be able to demonstrate a thorough understanding of all applicable requirements in all the assessment tasks.

3. TECHNIQUES & PROCESSES, TECHNOLOGY SKILLS AND PROBLEM SOLVING

We are looking for appropriate use of technology to assist in presenting all tasks clearly and suitable for the intended audience.
4. WORK ORGANISATION, PLANNING AND SELF MANAGEMENT

We expect to see timely submission of all required assessment tasks.


5. COMMUNICATION, PEOPLE NETWORKING, LANGUAGE AND INTERPERSONAL SKILLS AND TEAMWORK

We expect to see contributions to relevant discussions and scheduled collaborative sessions. In addition your team tasks will provide opportunities to demonstrate how well you work in a team.
Final Grades table:


CHD Competent with High Distinction
CDI Competent with Distinction
CC Competent with Credit
CAG Competency Achieved – Graded
NYC Not Yet Competent
DNS Did Not Submit for assessment


Further information regarding the application of the grading criteria will be provided by your teacher.


Assessment Matrix

Course Overview: Access Course Overview