Course Title: Evaluate organisation's financial performance

Part B: Course Detail

Teaching Period: Term1 2010

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

Ian Nash
ian.nash@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  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
2.2.Financial priorities are established and reviewed based on reported performance and identified trends, organisational objectives and expected returns to operations and investments
2.3.Financial options review and analyse a range of possible assets and liabilities to optimise the capital mix required to support operations and trading needs
2.4.Organisational policies and procedures for expenditures and investments are evaluated to ensure relevance to changing personnel profiles
2.5.Debt to equity targets are analysed in terms of organisations expected performance and established in line with organisational objectives using standard accounting 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
1.2.Averaged returns are disaggregated to assess strengths and weaknesses in organisational performance
1.3.Investment returns are evaluated against risk, profit and capital budget requirements

Element:

Review performance

Performance Criteria:

3.1.Forecasts are justifiable given observed trends, information, events and assumptions
3.2.Standard errors are calculated to produce levels of accuracy suitable for planning purposes
3.3.Forecasts are reviewed regularly in line with actual performance and alternative sources of information
3.4.Risk strategies are assessed for long term viability and harmonised with short term goals and obligations


Learning Outcomes



Details of Learning Activities

Activities may include a variety of methods such as tests, workbooks, presentations, class exercises, case studies, assignments, group work, etc.


Teaching Schedule

WeekWeek CommencingTopicAssessment
1Feb 8
 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
 
2 Feb 15
 Long term planning. Pro forma statements
Financial analysis: Introduction to ratios, areas of performance, Trend analysis and benchmarks, Liquidity ratios.
Develop and prepare spreadsheets
 
3 Feb 22
 Long term planning. Pro forma statements use with Internal growth rate, Sustainable growth rate.
Financial analysis; Profitability, Gearing and Valuation ratios
Standardise spreadsheets
 
4 March 1
 Short term planning - working capital requirements / management
Efficiency / utelisation ratios, operating and cash cycles.
Business Plan: Choosing a business idea / setting key business objectives.
Spreadsheet charts
 
5 March 8
 Short term planning – Accounts receivable management.
In class consultation for assignment one.
Business Plan: Evaluating the business idea.
Spreadsheet logical functions.
 1st meeting with clients (assignment two)
6 March 15
 Short term planning – Inventory management EOQ, reorder points.
In class consultation for assignment one.
Business Plan: Assessing Business Opportunities.
Use spreadsheets
 Assignment One
7 March 22
 All of the above further exercises to consolidate and integrate topics.
Business Plan: Marketing.
Use spreadsheets
 
8 March 29
 ASSESSMENT WEEK TEST 1
  April 5
 Mid Semester Break 
9 April 12

 Weighted average cost of capital
Business Plan: Financial Plan. Standardise and use spreadsheets

 
10 April 19
 Weighted average cost of capital (WACC); components of WACC, calculation and application of WACC.
Business Plan: Balanced score card. Use Spreadsheets
 2nd meeting with clients (assignment two)
11 April 26
 Long term planning. Financial math and net present value revisited. Cash flow construction for capital budgeting net present value applications. Use spreadsheets
 
12 May 3
 Long term planning. Financial math and net present value revisited. Cash flow construction for capital budgeting net present value application. Use spreadsheets  
13 May 10
 Risk in capital budgeting
Risk adjusted discount rate, Systematic risk, Various approaches to evaluating risk. Use spreadsheets
 Presentations to clients (assignment two)
14 May 17
 Accounting for leases. Operating Vs Financial Leases and differences in accounting treatment.
In class consultation assignment three. Use spreadsheets
 
15 May 24
 Evaluation of leases, Borrow and buy Vs Lease.
In class consultation assignment three. Use spreadsheets
 
16 May 31
 ASSESSMENT WEEK TEST TWO
17 June 7
 Deferred assessments. Resubmissions. Feedback
 Assignment Three


Learning Resources

Prescribed Texts

Clive Wilson, Bruce Keers, Andrew Medlen, Brain Walters.
Financial Management Principles and Applications, 5th Edition.
Pearson / Prentice Hall.

9780733978708


References


Other Resources

Lecture materials, Class exercises notes on DLS


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

2 tests at 15% each = 30%
Assignment 1, 25%. Assignment 2, 25%. Assignment 3, 20%.
To gain overall competency, students must show competency in each assignment. A graded result will only be supplied where in addition to competent completion of assignments both tests are completed and the over all cumulative score of all assessments is 50% or greater.


Assessment Matrix

Course Overview: Access Course Overview