Course Title: Evaluate organisation's financial performance

Part B: Course Detail

Teaching Period: Term2 2020

Course Code: ACCT5390C

Course Title: Evaluate organisation's financial performance

School: 650T Vocational Business Education

Campus: City Campus

Program: C6163 - Advanced Diploma of Accounting

Course Contact: Doug Gourlay

Course Contact Phone: +61 3 9925 5944

Course Contact Email: doug.gourlay@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

FNSACC511 Provide financial and business performance information

Course Description

This unit describes the 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.

 

It applies to experienced individuals who use specialised knowledge and skills to evaluate complex financial information and make recommendations relevant to strategic organisational activity.

 

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACC608 Evaluate organisation's financial performance

Element:

1. Evaluate returns to operations

Performance Criteria:

1.1 Trend cash flow and profitability patterns to identify current position and expected returns from investments and projected operations 1.2 Disaggregate averaged returns to assess strengths and weaknesses in organisational performance 1.3 Evaluate investment returns against risk, profit and capital budget requirements

Element:

2. Determine short-term and long-term needs

Performance Criteria:

2.1 Identify resources required by organisation to meet short-term and long-term obligations, and cost using standard financial analysis techniques 2.2 Establish and review financial priorities based on reported performance and identified trends, organisational objectives and expected returns to operations and investments 2.3 Review financial options and conduct analysis of range of possible assets and liabilities to optimise capital mix to support operations and trading need 2.4 Evaluate and document organisational policy and procedures for expenditures and investments to ensure relevance to changing personnel profiles 2.5 Analyse debt to equity targets in terms of organisation's expected performance and establish in line with organisational objectives using standard accounting techniques

Element:

3. Review performance

Performance Criteria:

3.1 Ensure 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 Regularly review forecasts in line with actual performance and alternative sources of information 3.3 Assess risk strategies for long-term viability and harmonise with short-term goals and obligations


Learning Outcomes



Details of Learning Activities

A range of learning activities are planned for this course including self-paced and collaborative classroom based activities.

The self-paced activities will be delivered thought various technology platforms and include your contribution to, reflective journals, quizzes and interactive sessions.

The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice your skills in a simulated/real workplace environment.

We expect you to participate and contribute in all scheduled learning activities.


Teaching Schedule

This course is clustered (co-delivered and co-assessed) with MKTG7947C Interpret and Use Financial Statistics & Tools

 

The nominal hours associated with this are a guide only and represent the total teaching time and student effort required to successfully complete this 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.

 

Teaching Schedule:

Week                                                            

Topic

Readings and Activities                                            

Assessment

      1

Course requirements 
• Course support documents
 • Blackboard 
•Introduction

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

Topic 1. Finance Introduction and Finance function. Overriding goal of financial management

Reading:

* Canvas Shell Navigation
* Financial Intro

* What is leverage

Activity:

EPS Questions

 

 

 

      2

Topic 2 : Accessing, Interpreting and using Financial Statistics for the Financial Services Industry

This includes discussing the Australian Bureau of statistics (ABS), Reserve Bank, ATO, Etc

 

 Reading:

Topic Slides

Activity:

ABS Website questions

 

 

      3

Topic 3 Statistical Ratios and Analytical Tools for the Financial Services Industry

 

Reading: Ratio summaries and frequency distributions and Histograms

Activities: Review questions

 

     3

Topic 3 - Statistical Ratios and analysis tools for the Financial Services Industry

Reading: Ratio summaries, frequency tables

Activity: Review questions and Histograms

 

      4

 Topic 4 Business Statistics

Measures of Central Tendency and Dispersion

Standard Deviation and Normal Distribution

Reading: Canvas Week 4 Materials

Activities: Central Tendency questions

Measures of dispersion questions

Normal Distribution questions

 
       5

Topic 5

Correlation and Regression Analysis

Portfolio Analysis

Capital Asset Pricing Model (CAPM)

Reading: Week 5 Canvas materials

Activities: Correlation and Regression questions

Assessment 1 Due for Submission
     6

Topic 6 - Cost of Capital 

Debentures - Yield to Maturity

Weighted Average Cost of Capital (WACC)

Reading: Week 6 Canvas materials

Activities: Cost of Capital questions and WACC questions

 
    7

Topic 7 - Working Capital Management

Time Value of Money

Reading: Week 7 Canvas materials

Activities: Working Capital  Questions

 
      8

Topic 8 Inventory Management

including EOQ and Safety Stock and Z factors

Reading: Week 8 Canvas materials

Activities: EOQ and Safety stock questions

 
    9 Topic 9 Accounts Receivable Management including DSO and Prompt discount rate calculations

Reading: Week 9 Canvas Materials

Activities: Debtors questions

Assessment 2 Due for Submission
  10 

Topic 10 - Long Term Planning and Capital Budget

NPV and cash flow construction

Reading : Week 10 Canvas materials

Activities: Capital Investment questions

 
    11

Topic 11 Lease versus Buy

IFRS16 Leasing Standard

Reading: Week 11 Canvas materials

Activities: Lease versus Buy questions

 
12 Work in class on Assessment 3 Activities: Pit Stop meeting with teacher to review Excel model calculations  
13 Work in Class on Assessment 3 Activities: Pit Stop meetings to review excel model calculations and business Report  
   14 Work in Class on Assessment 3

Activities;

Complete excel model and Business Report / SWOT

Assessment 3 Due for Submission
   15 Assessment 3 Role Play Activity: One on one role plays with student and Mr. Murray (owner of the business)  
  16 Resubmissions  

 

 

 

 

 

 

 

 


Learning Resources

Prescribed Texts


References


Other Resources


Overview of Assessment

Performance Evidence

Evidence of the ability to:

  • evaluate returns to operations using standard financial analysis and accounting techniques, and following organisational policy and procedures
  • determine long-term and short-term organisational needs
  • review and monitor financial performance across an organisation
  • assess risk strategies and make recommendations regarding financial performance.

 

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • discuss techniques for developing long-term and short-term plans, and determining financial priorities
  • explain the purpose and key features of standard financial analysis techniques and business review processes
  • explain the role of audits in evaluating financial performance
  • discuss ethical considerations in evaluating financial performance
  • identify and explain the key features of financial legislation relating to the evaluation of financial performance
  • identify and explain the key principles of:
  • cash flow and budgetary control
  • cost benefit analysis and use of forecasting techniques
  • internal control, including statutory requirements
  • outline the key features of organisational structures and lines of management authority
  • discuss strategies for risk identification and management.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

  • common office equipment, technology, software and consumables
  • an integrated financial software system and/or data.

 

Assessors must satisfy NVR/AQTF assessor requirements.

You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.

Feedback

Feedback will be provided throughout the semester in class and/or online discussions.  You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.

You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course. 


Assessment Tasks

This course is clustered (co-delivered and co-assessed) with MKTG7947C  Interpret and Use Financial Statistics & Tools

 

The cluster will have 3 assessments.

Assessment 1 comprises a report that consists of a series of extended response questions that cover a. Financial statistics and b. Financial Performance. This assessment will allow you to demonstrate your knowledge required to access, interpret and analyse statistical data in the financial services industry and evaluate returns to operations, determine short-term and ling-term needs and evaluate an organisation's financial position and performance. Assessment 1 Due week 5

Assessment 2 - This product assessment task will allow you to demonstrate your ability to access, interpret and analyse statistical data relevant to the financial industry. You will be required to source and interpret financial statistical data and analyse the data using appropriate techniques and tools. You will preparing a report to your client outlining your recommendations. Assessment 2 due week 9

Assessment 3 This will consist of a holistic case study. The case study will be discussed extensively in class and students will have the opportunity to work on it during  the Semester. You will be assessing the financial performance of the company using financial techniques submitted on a spreadsheet and preparing a Report including an evaluation of the business and recommendations to address the owners concerns. Assessment 3 due week 14

 

 

You must successfully complete all tasks to be deemed competent in this course.


Assessment Matrix

 

Assessment Martix - Refer both Competency Assessment Maps in CANVAS. Refer: https://rmit.instructure.com/courses/74472/assignments/475045

Other Information

Submission Requirements

 

You should:

 

  • Ensure that you submit assessments on or before the due date. 
  • 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 the Assessment task document that includes a declaration and statement of authorship.
  • 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.

 

Late Submission Procedures

You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.

If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days.

More Information:  https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/extensions-of-time-for-submission-of-assessable-work

Where an extension of greater than seven days is needed, you must apply for Special Consideration.  Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination.

More Information: https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/special-consideration

 

Resubmissions (VE Programs):

If you are found to be unsuccessful in a particular Course Assessment Task (or you do not submit/attend) you will be allowed one resubmission.  Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. 

If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.

 

Adjustments to Assessment

In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website:

https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/adjustments-to-assessment

 

Marking Guide (Competency):

 

You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying.

 

You will receive feedback on each assessment task that will inform you about your progress and how well you are performing.

Course Overview: Access Course Overview