Course Title: Evaluate organisation's financial performance
Part B: Course Detail
Teaching Period: Term1 2009
Course Code: ACCT5264C
Course Title: Evaluate organisation's financial performance
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
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 BSBITU402A (COSC-5946C)Develop and use Complex Spreadsheets and FNSACCT501B (ACCT5240C) Provide Business and Financial Performance Information.
Course Description
This unit covers the analysis and estimation process required to determine an organisation’s financial position and performance. 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.
If you are undertaking this course in Melbourne from semester 2, 2012 onwards your teacher will advise you if you require access to a computer for the course. It is recommended that you have access to a mobile computing device to allow greater flexibility in terms of where you can work on campus outside class times.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title: |
FNSACCT608B Evaluate organisation's financial performance |
Element: |
Determine long and short term needs |
Performance Criteria: |
2.1. Resources required by organisation to meet short and long term obligations are identified and costed using standard financial analysis techniques |
Element: |
Evaluate returns to operations |
Performance Criteria: |
1.1. Cash flow and profitability patterns are trended to identify current position and expected returns from investments and projected operations |
Element: |
Review performance |
Performance Criteria: |
3.1. Forecasts are justifiable given observed trends, information, events and assumptions |
Learning Outcomes
Details of Learning Activities
Students will study financial evaluation and monitoring; skills and theory in laboratory sessions, tutorials, and practical sessions through prescribed exercises and assessment work. These techniques and concepts will also be explored through the investigation of appropriate real world simulated environments.
Teaching Schedule
Teaching week | Week Commencing | Topic, Relevant performance criteria, and assessment planned dates |
1 | 09/02/09 | 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. 1.1, 2.1, 2.2, 2.3, 2.4, 2.5 |
2 | 16/02/09 | Long term planning. Pro forma statements Financial analysis: Introduction to ratios, areas of performance, Trend analysis and benchmarks, Liquidity ratios. Spread sheet revision 2.2, 2.4, 3.1,3.3 |
3 | 23/02/09 | Long term planning. Pro forma statements use with Internal growth rate, Sustainable growth rate. Financial analysis; Profitability, Gearing and Valuation ratios Spread Sheet charts 2.2, 2.4, 3.1, 3.3 |
4 | 02/03/09 | Short term planning - working capital requirements / management Efficiency / utelisation ratios, operating and cash cycles. Business Plan: Choosing a business idea / setting key business objectives. Spread Sheet logical functions 2.1, 2.2, 2.3, 2.5 |
5 | 9/03/09 | Short term planning – Accounts receivable management. In class consultation for assignment one. Business Plan: Evaluating the business idea 2.1, 2.2, 2.3, 2.5 1st meeting with clients (assignment two) |
6 | 16/03/09 | Short term planning – Inventory management EOQ, reorder points. |
7 | 23/03/09 | All of the above further exercises to consolidate and integrate topics. Business Plan: Marketing |
8 | 30/03/09 | ASSESSMENT WEEK TEST 1 |
9 | 06/04/09 | Weighted average cost of capital Mid semester break Tuesday 9th to Wednesday 15th. Business Plan: Financial Plan |
10 | 20/04/09 |
Weighted average cost of capital (WACC); components of WACC, calculation and application of WACC. 2nd meeting with clients (assignment two) |
11 | 27/04/09 | Long term planning. Financial math and net present value revisited. Cash flow construction for capital budgeting net present value applications 1.1, 1.2, 2.1, 3.1 |
12 | 04/05/09 | Long term planning. Financial math and net present value revisited. Cash flow construction for capital budgeting net present value applications 1.1, 1.2, 2.1 |
13 | 11/05/09 | Risk in capital budgeting Risk adjusted discount rate, Systematic risk, Various approaches to evaluating risk. 3.1, 3.2, 3.3, 3.4 Presentations to clients (assignment two) |
14 | 18/05/09 | Accounting for leases. Operating Vs Financial Leases and differences in accounting treatment. In class consultation assignment three 2.2 |
15 | 25/05/09 | Evaluation of leases, Borrow and buy Vs Lease. In class consultation assignment three 2.2 |
16 | 01/06/09 | ASSESSMENT WEEK TEST TWO |
17 | 08/06/09 | Deferred assessments. In class consultation / completion assignment three Assignment Three |
18 | 15/06/09 | Feedback |
Learning Resources
Prescribed Texts
Clive Wilson, Bruce Keers, Andrew Medlen, Brain Walters. |
References
Pierson, Brown, Easton, Howard, Pinder. Business Finance 9th Edition (2006) McGraw Hill Irwin. |
Other Resources
Class exercises, solutions, notes, and other material will be made available on the DLS as required.
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
Assessment for this course comprises 2 closed book tests and three assignments. The first assignment comprises a financial analysis of a publicly listed company with a view to reporting the analysis findings to a designated stakeholder for the purposes of facilitating decision making. The second assignment entails the development of a business plan, comprising a report and final presentation to a designated client. The third assignment involves the application of financial techniques to a given case study, with a view to identifying and solving areas of poor performance, and making recommendations for improvements.
Assessment Matrix
Test 1 | Test 2 | Assignment 1 | Assignment 2 | Assignment 3 | |
FNBACC15B/01 Evaluate returns to operations |
y | y | y | y | y |
FNBACC15B/02 Determine long and short term needs | y | y | y | y | y |
FNBACC15B/03 Review performance | y | y | y | y | y |
Course Overview: Access Course Overview