Course Title: Evaluate organisation's financial performance

Part B: Course Detail

Teaching Period: Term1 2013

Course Code: ACCT5317C

Course Title: Evaluate organisation's financial performance

School: 650T TAFE Business

Campus: City Campus

Program: C6113 - Advanced Diploma of Accounting

Course Contact : Angelo Sellan

Course Contact Phone: +61 3 9925460

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


Name and Contact Details of All Other Relevant Staff

Cluadio Marasco claudio.marasco@rmit.edu.au

Ian Nash ian.nash@rmit.edu.au

Meetu Aggarwal meetu.aggarwal@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

FNSACC503A Manage budgets and forecasts

Course Description

This unit describes the performance outcomes, skills and knowledge required to evaluate returns to operations, determine short-term and long-term needs and evaluate an organisation’s financial position and performance. This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.

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:

FNSACC608A Evaluate organisation's financial performance

Element:

1. Evaluate returns to operations
2. Determine short-term and long-term needs
3. Review performance

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
2.1. Resources required by organisation to meet short-term 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 are reviewed and analysis of a range of possible assets and liabilities to optimise the capital mix is conducted to support operations and trading need
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 organisation's expected performance and established in line with organisational objectives using standard accounting techniques
3.1. Forecasts made are justifiable given observed trends, information, events and assumptions with standard errors calculated to produce levels of accuracy suitable for planning purposes
3.2. Forecasts are reviewed regularly in line with actual performance and alternative sources of information
3.3. Risk strategies are assessed for long-term viability and harmonised with short-term goals and obligations
 


Learning Outcomes



Details of Learning Activities

This unit one of a co-delivered and assessed group of units referred to as a cluster. This cluster includes ACCT5317C Evaluate an Organisations Financial Performance and MKTG6988C Interpret and Use Financial Statistics and Tools . As a result, two 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 informatioin is consistent with the unit mapping document for this cluster.


Using various materials along with facilitator led discussion, students will be progressively introduced to statistical methods which will be used to assist in forecasting and to provide insights into quantifying risk and return and applying this to the evaluation of the financial performance of a firm. This course will involve both theory and practical learning activities.

As part of this cluster , in-class activities will account for 80 of the 120 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 excercises 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 40 of the 120 nominal hours are for self directed learning and should be taken up with work on any course study activitty and the assignment outside of scheduled class time. Please note that the format of the classes wil be a total of five  hours per week (full time students).

Evening / Partime students: Please note shedule will differ from full time students. Part time students should refer to the weekly schedule below immediately following the Full Time Student Weekly Schedule. Part time students will only have 6 scheduled class times nominated as "Workshops" they will be conducted in weeks 1, 4, 8,12, 15 and 16. The workshops will be of 3 hour durations. In this format in class activities will account for 18 of the nominal 120 hours allocated to the co-delivered courses. The remaining 102 hours are for self directed learning and should be taken up with work on any course study activitty and the assignment outside of scheduled class time.

Critical aspects of evidence:

  • use standard financial analysis techniques and accounting techniques plus organisational policies and procedures
  • evaluate returns to operations
  • determine long and short-term organisational needs
  • review financial performance across an organisation

Skills:

well-developed communication skills to:
• evaluate an organisation’s financial performance, using questioning of personnel and management for confirmation
• liaise with others, share information, listen and understand
• use language and concepts appropriate to cultural differences
• highly developed research skills for accessing and managing financial services information
• well-developed literacy skills for analysing financial information and performance indicators and preparing forecasts, financial options and clear written advice
• numeracy skills for financial calculations and analysis, estimating and forecasting
• IT skills for developing and using integrated financial systems, spreadsheets and databases and internet information
• learning skills to maintain knowledge of organisational performance best practice principles, processes and procedures
• problem solving skills to identify performance issues that have the potential to impact on organisations and to develop options to resolve these issues when they arise
• organisational skills, including the ability to plan and sequence work and correctly schedule financial performance monitoring and reporting

Knowledge:

o techniques for developing long and short-term plans
o undertaking a SWOT analysis
o duties of auditors
o ethical considerations for compliance purposes
o financial legislation such as:
o taxable transactions
o reporting requirements
o principles of cash flow and budgetary control
o principles of cost-benefit analysis and use of forecasting techniques
o principles of internal control including statutory requirements
o principles of risk management
organisational structures and lines of management authority


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 (five hours per week) online learning and other froms 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 this cluster are a guide only and represent the toal 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.

 The weekly schedule immediately below is for FULL TIME students only. Part time students should refer to the schedule which follows further below.

WeekDateContent / ActivityAssessment
111/2/2013

• Course requirements
• Course support documents
• Blackboard
• Overview of assessment requirements including Recognition of Prior Learning and Credit Transfers
• Grading
• Plagiarism
• Appeals
• Extensions
• Feedback
• Privacy
• Submission requirements
• Resubmission policy
• Where to get support
• Student responsibilities

Finance function. Overriding goal of financial management

 

218/2/2013

Gearing. Operational and Financial Leverage
Frequency tables and histograms (grouped data) & Relative frequency distributions / histograms. Normal distributions and their qualities.

Online Multiple Choice Test (test your progress; feedback puposes only) This is mandatory.

 
325/2/2013Measures of central tendency. Determining a compound growth rate.
Risk and return (Expected return: Shares / Portfolio)
TASK EP2 Consultation and Feedback
 Evidence Portfolio: TASK EP1. It is expected for assessment and feedback purposes for this task to be completed and submitted into Blackboard by the first class of this week. Your facilitator will ask to sight this TASK anytime after this date.
44/3/2013

Measures of dispersion
Share risk / Portfolio Risk

Time Series

TASK EP2 Consultation and Feedback

 
511/3/2013

Correlation and regression
Diversification: Systematic Vs Un-Systematic Risk Share Beta
CAPM TASK EP2 Consultation and Feedback

TASK 1HA Consultation and Feedback

 
618/3/2013Working Capital: Operating / Cash Cycle
TASK 1HA  & EP tasks Consultation and Feedback
 Evidence Portfolio: TASK EP2.  It is expected for assessment and feedback purposes for this task to be completed and submitted into the Blackboard by the first class of this week. Your facilitator will ask to sight this TASK anytime after this date.
725/3/2013 & 01/4/2013

Working Capital: Inventory management
TASK 1HA  & EP tasks Consultation and Feedback

Easter Mid-semester break 28th of March to 3rd of April

 Evidence Portfolio: TASK EP3. It is expected for assessment and feedback purposes for this task to be completed and submitted into the Blackboard by the first class fo week commencing 1/4. Your facilitator will ask to sight this TASK anytime after this date
88/4/2013Working Capital: Receivables Management
TASK 1HA & EP tasks Consultation and Feedback
 Evidence Portfolio: TASK EP4.  It is expected for assessment and feedback purposes for this task to be completed and submitted into the Blackboard by the first class of this week. Your facilitator will ask to sight this TASK anytime after this date.
915/4/2013

Weighted Average Cost of Capital

TASK 1HA & EP tasks Consultation and Feedback

 Evidence Portfolio: TASK EP5. It is expected for assessment and feedback purposes for this task to be completed and submitted into the Blackboard by the first class of this week. Your facilitator will ask to sight this TASK anytime after this date.
1022/4/2013Capital Budgeting: NPV Cash Flow Construction
TASK 1HA & EP tasks Consultation and Feedback
 Evidence Portfolio: TASK EP6. It is expected for assessment and feedback purposes for this task to be completed and submitted into Blackboard by the first class of this week. Your facilitator will ask to sight this TASK anytime after this date.
1129/4/2013


Capital Budgeting & Risk; NPV Pure Play method for determining project specific risk

TASK 1HA & EP tasks Consultation and Feedback

 
12 6/5/2013

Evaluation of financial leases. Lease Vs borrow and buy

TASK 1HA & EP tasks Consultation and Feedback

 Evidence Portfolio: TASK EP7.  It is expected for assessment and feedback purposes for this task to be completed and submitted into the Blackboard by the first class of this week. Your facilitator will ask to sight this TASK anytime after this date.
13 13/5/2013 TASK 1HA & EP tasks Consultation and Feedback TASK 1HA to be submitted by the end of this week. If required you will receive the necessary feed back in weeks 15 and 16. The resubmission for this work is due by the end of week 16
14 20/5/2013 Consultation and Feedback 
15 27/5/2013 Consultation and Feedback

 Deadline for submission onto Blackboard of any outstanding EP tasks.

ALL EP tasks must be uploaded onto Blackboard by the end of this week.

16 3/6/2013 Deferred and resubmitted assessments 

The following course weekly outline is relevant to part time (evening) students only. Scheduled face to face sessions (Workshops) will be conducted only in weeks 1, 4, 8, 12, 15 and 16. The course will require students to undertake significant self directed learning. Please note there will be an expectation that the student would have already covered the material and completed any exercises in the Blackboard in the weeks leading upto the workshops; the topics of which are outlined in the weekly guide below. The workshops should therefore be seen as a forum within which focused attention can be provided on content queries and assessments.

WeekDateContent / ActivityAssessmentExercise
 111/2/2013

 WORKSHOP 1

• Course requirements
• Course support documents
• Blackboard
• Overview of assessment requirements including Recognition of Prior Learning and Credit Transfers
• Grading
• Plagiarism
• Appeals
• Extensions
• Feedback
• Privacy
• Submission requirements
• Resubmission policy
• Where to get support
• Student responsibilities
Finance function. Overriding goal of financial management

 

 You will have materials and exercises in the blackboard designated for each week of the course. Please access the relevant folder, work through the notes and complete the exercises therein.

Complete exercises in week one Blackboard folder.
 

 218/2/2013 Gearing. Operational and Financial Leverage
Frequency tables and histograms (grouped data) & Relative frequency distributions / histograms. Normal distributions and their qualities.
Online Multiple Choice Test (test your progress; feedback puposes only) This is mandatory. This is an out of class test
 

 Work through materials complete problems 8.1 up to and including 8.5. From your text. Problem 8.6 is your first Evidence Portfolio piece

Attempt the Operating / Financial Leverage MCQ practice test in week 2 folder of the blackboard

Complete the frequency distribution questions provided on the blackboard

 325/2/2013 Measures of central tendency. Determining a compound growth rate.
Risk and return (Expected return: Shares / Portfolio)
 
Evidence Portfolio: TASK EP1. It is expected for assessment and feedback purposes for this task to be completed and submitted into Blackboard by COB Friday of this week.

 Ensure you complete the first EP piece and submit by end of the week.

Work through materials and complete work through excercises provided for Measurses of central tendency, measures of dispersion and Correlation and Regression questions

 4 4/3/2013

 WORKSHOP 2

Measures of dispersion
Share risk / Portfolio Risk
Time Series

 

 Use the workshop to cover any of the above topics you may have queries about, please try to email your tutor in advance with any queries, this will allow more efficient use of time.

From the text; Self test questions 13.1, 13.2, & 13.3. Problems, 13.1, 13.2 13.3, 13.4, 13.5, 13.6, 13.7, 13.8, 13.9

 5 11/3/2013 Correlation and regression
Diversification: Systematic Vs Un-Systematic Risk Share (Equity) Beta
 From the text; Problems13.15, 13.17, 13.18, 13.19, 13.20, 13.21, 13.22, 13.23, 13.24, 13.25
 
 6 18/3/2013Working Capital: Operating / Cash Cycle
TASK 1HA & EP tasks Consultation and Feedback
Evidence Portfolio: TASK EP2. It is expected for assessment and feedback purposes for this task to be completed and submitted into the Blackboard by COB Friday of this week. Your facilitator will ask to sight this TASK anytime after this date.From the text; 13.22, 13.23, 13.24, 13.25. Task EP2 is problem 13.25 from the text. Make sure you complete and submit in this week.
 
 7 25/3/2013 & 01/4/2013 Working Capital: Inventory management
TASK 1HA & EP tasks Consultation and Feedback
Easter Mid-semester break 28th of March to 3rd of April
 Evidence Portfolio: TASK EP3. It is expected for assessment and feedback purposes for this task to be completed and submitted into the Blackboard by the first class of week commencing 1/4. Your facilitator will ask to sight this TASK anytime after this date

 Work through materials and complete practice questions provided on Blackboard

Work on EP piece

Work on Task 1AHA

 8 8/4/2013

WORKSHOP 3

 Working Capital: Receivables Management
TASK 1HA & EP tasks Consultation and Feedback

 Evidence Portfolio: TASK EP4. It is expected for assessment and feedback purposes for this task to be completed and submitted into the Blackboard by the first class of this week. Your facilitator will ask to sight this TASK anytime after this date.

 Use the workshop to cover any of the above topics you may have queries about, please try to email your tutor in advance with any queries, this will allow more efficient use of time. Your facilitator will also use this session to provide further feedback on assessments if required.
 

Work through materials and complete practice questions provided on Blackboard

Work on EP piece

Work on Task 1AHA

 9 15/4/2013 Weighted Average Cost of Capital

TASK 1HA & EP tasks Consultation and Feedback

  Evidence Portfolio: TASK EP5. It is expected for assessment and feedback purposes for this task to be completed and submitted into the Blackboard by the first class of this week. Your facilitator will ask to sight this TASK anytime after this date.

 Work through materials and complete practice questions provided on Blackboard

Work on EP piece

Work on task 1AHA
 

 10 22/4/2013 Capital Budgeting: NPV Cash Flow Construction
TASK 1HA & EP tasks Consultation and Feedback
 Evidence Portfolio: TASK EP6. It is expected for assessment and feedback purposes for this task to be completed and submitted into Blackboard by the first class of this week. Your facilitator will ask to sight this TASK anytime after this date.

 Work through materials and complete practice questions provided on Blackboard

Work on assessments
 

 11 29/4/2013 Capital Budgeting & Risk; NPV Pure Play method for determining project specific risk

TASK 1HA & EP tasks Consultation and Feedback

 

 Work through materials and complete practice questions provided on Blackboard

Work on assessments
 

 12 6/5/2013

 WORKSHOP 4

Evaluation of financial leases. Lease Vs borrow and buy

TASK 1HA & EP tasks Consultation and Feedback

 Evidence Portfolio: TASK EP7. It is expected for assessment and feedback purposes for this task to be completed and submitted into the Blackboard by the first class of this week. Your facilitator will ask to sight this TASK anytime after this date.

 

Use the workshop to cover any of the above topics you may have queries about, please try to email your tutor in advance with any queries, this will allow more efficient use of time. Your facilitator will also use this session to provide further feedback on assessments if required.
 

Work through materials and complete practice questions provided on Blackboard

Work on assessments
 

 13 13/5/2013 TASK 1HA & EP tasks Consultation and Feedback TASK 1HA to be submitted by the end of this week. If required you will receive the necessary feed back in weeks 15 and 16. The resubmission for this work is due by the end of week 16

Work through materials and complete practice questions provided on Blackboard
 

Work on assessment

 14 20/5/2013

 Consultation & Feedback

Refer to Blackboard gradebook for feedback

 Work on assessment
 15 27/5/2013

 WORKSHOP 5

Consultation & Feedback

 Deadline for submission onto Blackboard of any outstanding EP tasks.

ALL EP tasks must be uploaded onto Blackboard by the end of this week.

Use the workshop to cover any of the above topics you may have queries about, please try to email your tutor in advance with any queries, this will allow more efficient use of time. Your facilitator will also use this session to provide further feedback on assessments if required.
 

Work on assessment

 16 3/6/2013

 WORKSHOP 6

Deferred and resubmitted assessments

  Use the workshop to cover any of the above topics you may have queries about, please try to email your tutor in advance with any queries, this will allow more efficient use of time. Your facilitator will also use this session to provide further feedback on assessments if required.
 


Learning Resources

Prescribed Texts

Financial Management. Principles and Applications. 5th Edition Revised. Pearson Clive Wilson, Bruce Keers, Andrew Medlen, Brian Walters


References


Other Resources

All materials for this cluster of units will be available in the ACCT5317C Evaluate an Organisations Financial Performance Blackboard shell only, There is no need to access the alternative clustered unit blackboard shell.


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 2  tasks. You must successfully complete both tasks to be deemed competent in this unit.

TASK 1 Evidence Portfolio. Completed portfolio due last class of week 15.

The Evidence Portfolio provides the formative assessment of the course and comprises a number of exercises denoted by the following "TASK EP" 1 or 2...etc as the case may be. The evidence portfolio includes seven (7) individual hurdle tasks. Each EP Task will focus on a particular topic. The learner will need to progressively finish these tasks as the various topics are completed. The "assessment" column of the teaching schedule above outlines the dates by which these tasks need to be completed. Your facilitator will ask to sight these tasks during class any time after this date. You will be asked to orally explain or demonstrate how you solved the task. These short sessions should be used for feedback purposes. You will then have the opportunity to review and adjust your task if required. All tasks should be saved and backed up securely. The Evidence Portfolio with all included tasks should be submitted by the last class of week 15. ALL individual evidence portfolio pieces must be satisfactorily completed (competent) to achieve and overall competent for this assessment.


TASK 1AHA

This task comprises the holistic assessment of the course. You will need to draw on all topics to solve the various problems within a case. In this case you are an operative in an accounting firm and Louie a small business owner has approached you with a number of difficulties he is experiencing with his business and requires for you to carry out a financial evaluation of his business with a view to identifying the problem areas and providing recommendations to Louie in order to rectify his difficulties. You will need to supply Louie with a final report outlining your findings and recommendations. The report will need to be supported with the relevant calculations.

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

  • use standard financial analysis techniques and accounting techniques plus organisational policies and procedures to evaluate returns to operations
  • determine long and short-term organisational needs
  • review financial performance across an organisation
  • apply knowledge of statistical methods used in the financial services industry
  • use financial data tools and calculations to produce accurate and informative statistical reports from data
  • record and stroe data for retrieval

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