Reputable Graduate Business School for a Sustainable Tomorrow

AGW 610/3 Finance and Accounting for Management Graduate School of Business Universiti Sains Malaysia

COURSE OUTLINE
Lecturers: Dr. Fathyah Hashim/ Assoc. Prof. Dr. Azlan Amran Semester: Semester 1, Academic Session 2013/ 2014

Finance and Accounting for Management

Teaching Panel
Name
Dr. Fathyah Hashim AP Dr. Azlan Amran

AGW 610

Room #
D05-C-06 D05-B-03

2755 2788

Email
[email protected]; [email protected] [email protected]

The Rationale for Inclusion of the Course in the Programme

Welcome to AGW 610, Finance and Accounting for Management This course is a core for those undertaking the Master of Business Administration. It provides principles, theories, concepts, practices, interpretations, techniques, strategies and issues of accounting and finance which are essential for business leaders for managing an organisation. This course covers the core knowledge of the essential features of financial accounting, management accounting and financial management from the perspective of a non-business major. It is highly practical course that will help participants to increase your explaining of the use of accounting and finance in the business context. It will increase your confidence and explaining in financial matters, develop your skills in analysing and interpreting financial and non-financial information, particularly in the context of the organisation's strategy, its competitors and its industry in a global market. This course also incorporates relevant topics for business leaders or entrepreneurs to be better at decisions making and problems solving, both on day-to-day matters and investment decisions, increase your ability to communicate effectively with company accountants and explain how and why value is created by businesses for sustainability. By the end of the programme, participants will be able to communicate effectively and confidently on financial matters within your organisation.

Semester Offered: Semester 1and Semester 2 Student Learning Time (SLT):

Total Student Learning Time (SLT) 126 hours Face to Face Lectures 39 hours Total Guided and Independent Learning 87 hours

Credit Value: 03
2

Prerequisites: No prerequisites for this course. Learning Outcomes

After successful completion of this course, participants should be able to:
LO1: evaluate the advance knowledge of accounting and finance and integrate sustainability issues, other business related disciplines together with previous learning and experiences to address complex global business situations holistically (PO1) (C6) deduce financial and non-financial accounting information in justifying the financial positions and performance of a company (PO1) (C6) construct financial statements based on generally accepted accounting standards (PO2) (P5) formulate financial strategies based on accounting information to ensure sustainability of a company in a rapidly changing the world's economic landscape (PO3) (A5) conform ethical, values and professional attitude in developing financial strategies (PO6) (A5) practice strategic thinking, innovation and entrepreneurial skills in making managerial decisions (PO8) (A5)

LO2:

LO3:

LO4:

LO5:

LO6:

Note
Participants are given clear guidelines as to expected outcomes and objectives of each topic, thereby being made aware of their responsibility in undertaking the required reading and additional work requirements for each topic. This promotes an explaining of the principles in each topic and is an important part of the learning process. Participants are notified of the basic requirements for progress but they are also encouraged to work at their own pace, with the proviso that they maintain contact with me so as to enable guidance and clarification if needed.

Transferable Skills
This course is aimed to ensure participants could appreciate experience and have knowledge on the principles, theories, concepts, practices, interpretations, techniques, strategies and issues of accounting and finance which are essential for business leaders as well as entrepreneurs. The course will also enhance the participants confidence in understanding and develop your technical and problem solving, ethics and entrepreneurial skills in the context of the organizations strategy, its competitors and its industry.

Teaching-Learning and Assessment Strategy

Self instructional Course Materials Course Outline Course Guide Main text book Additional text books Articles Face to Face Interaction Lectures Group presentations Class discussion Problems/Cases Analysis Student Centred Learning Activities Online Videos Self Assessment Quizzes Online Supplementary Materials Reading E-Learning Assessment Strategy Continuous Assessment (Coursework) 50% Semester End Exam (Final Exam) 50%

Course Synopsis
This course covers the core knowledge of the essential features of financial accounting, management accounting and financial management from the perspective of a non-business major. It is highly practical course that will help participants to increase your explaining of the use of accounting and finance in the business context. It will increase your confidence and explaining in financial matters, develop your skills in analysing and interpreting financial and non-financial information, particularly in the context of the organisation's strategy, its competitors and its industry.

Mode of Delivery
Totally based on Student-centred Learning Self Learning Activities as prescribed in the Course Guide, Face to Face Interactions Approximately 1 1/2 hours of debate/discussion and 1 1/2 hours of interactive lecture based on predetermined case/s for each topic The sessions will outline the main theoretical issues and will sometimes involve practical illustrations of the application of concepts and principles. Online learning system (e-learning), Forum, Discussion Cases will be used to illustrate the application of theory, concepts and principles to practical issues Note: It is neither possible nor intended that all aspects of every issue will be covered in each session. It is expected that participants will need to do additional reading.

Assessment Methods and Types Continuous assessment: 1. Coursework i. Participation and Quizzes ii. Mid Semester Exam iii. Project 2. Final Exam TOTAL 50% (20) (15) (15) 50 % 100 %

Mapping of the course to the Programme Aims

Programme Aims
1. To

Minor Contribution

Major Contribution X

produce business leaders who possess advance knowledge and integrate with previous learning and experiences to address complex situations holistically with wisdom and visionary thoughts in managing change within the dynamic business environment

2. To stimulate creativity, critical thinking and problem-solving

3. To develop business leaders with CLASS (Capable Leaders

Accountable for Strategic Sustainability) quality whilst upholding faith and high ethical values in their business practice

Mapping of the course to the Programme Learning Outcomes

PROGRAMME OUTCOMES (PO) Learning Outcomes of the Programme
Apply the advanced knowledge of accounting, finance, organizational behavioural, marketing, operations strategy, quantitative analysis, business research, management information systems, managerial economics, sustainability issues and other business related disciplines and to integrate their learning from a range of subject areas to explain and address complex situations holistically Synthesize advanced practical and technical tools to be applied into complex business situations Justify using scientific methods and critical thinking in applying management strategies at a senior level in changing business environments to analyze, synthesize and solve complex unstructured business problems Demonstrate well-developed interpersonal skills and the ability to communicate effectively with all stakeholders and to interact with groups and individuals at all levels and make sound judgments with incomplete data and communicate conclusions clearly to a range of audiences Practice social skills, team building and responsibilities in their managerial tasks Incorporate managerial ethics, values, attitude and professionalism in decision making and problems solving Make evidence on competency and confidence in using and managing ICT and take responsibility for continuing to develop their personal knowledge and skills, be selfdirected and able to act autonomously in planning and implementing projects Display strategic thinking, innovation and entrepreneurial skills based on previous relevant experience in business and management Establish interpersonal, group-working and leadership skills with explain and have experience of global issues to transform organizations through strategic leadership and intellectual rigor

Minor Contribution

Major Contribution

PO1

PO2

PO3

PO4

PO5 PO6

X X

PO7

PO8

PO9

Contents outline of the course and the SLT per topic:

Face to face interactions

Part A: Introduction to the course Part B: Lesson 1: The Nature and Purpose of Accounting (LO1) (LO2) The need for information The profession of Accounting Our approach to Accounting The Financial Accounting Framework Financial Statements Lesson 2: Basic Accounting Concepts (LO1) (LO2) (LO3) The Balance Sheet o Money measurement concept o Entity concept o Going-concern concept o Cost concept o Dual-aspect concept The Income Statement o Accounting period concept o Conservatism concept o Realization concept o Matching concept o Recognition of expenses o Gains and losses Lesson 3: Cost of Sales and Inventories (LO1) (LO2) (LO4) Types of companies Merchandising companies Manufacturing companies Service companies Inventory costing methods Lower of Cost or Market Lesson 4: Revenue and Monetary Assets; Long-lived Nonmonetary Assets and their Amortization (LO1) (LO2) (LO3) (LO6) Timing of revenue recognition Amount of revenue recognized Monetary assets Nature of Long-lived Assets Plant and equipment: Acquisition Plant and equipment: Depreciation Accounting for Depreciation Plant and equipment: Disposal Intangible Assets

Total SLT (hours)

9 9 9 9

Course materials

Case Study

Self study

Lesson 5: Source of Capital: Debt (LO1) (LO2) (LO3) (LO4) (LO5) Nature of Liabilities Debt Capital Accounting for Bonds Leased Assets Other liabilities Lesson 6: Source of Capital: Owners Equity (LO1) (LO2) (LO3) (LO4) (LO6) Forms of Business Organization Accounting for Proprietors and Partners Equity Ownership in a corporation The line between debt and equity Lesson 7: The Statement of Cash Flows and Financial Statements Analysis (LO1) (LO2) (LO3) (LO4) (LO6) Purpose of the Cash Flow Statement The Cash Flow Statement Misconceptions about Depreciation Business Objectives Overall Measures Profitability ratios Investment Utilization ratios Financial Condition ratios Dividend policy Growth measures Making comparisons Lesson 8: The Nature of Management Accounting (LO1) (LO2) (LO5) (LO6) Management Accounting Contrast between Management Accounting and Financial Reporting Types of Management Accounting Information and Their Uses Databases General Observations on Management Accounting Lesson 9: The Behaviour of Costs, Full Costs and Their Uses (LO1) (LO2) (LO4) (LO5) (PO6) Relation of Costs to Volume Profit-graphs Cost Concepts Product Costing Systems Nonmanufacturing Costs Uses of Full Costs

Lesson 10: Control: The Management Control Environment and Process (LO1) (LO2) (LO4) (LO5) (LO6) Management Control The Environment Responsibility Centres and Responsibility Types of Responsibility Centres Phases of Management Control Accounting Information Used in Management Control Behavioural Aspects of Management Control Lesson 11: Strategic Planning and Budgeting (LO1) (LO2) (LO4) (LO5) (LO6) Strategic Planning Budgeting The Operating Budget Preparing the Operating Budget The Cash Budget The Capital Expenditure Budget Beyond Budgeting Lesson 12: Short-Run Alternative Choice Decisions (LO1) (LO2) (LO4) (LO5) (LO6) The Differential Concept Contribution Analysis Alternative Choice Problems Differential Costs Types of Alternative Choice Problems Lesson 13: Longer-Run Decisions: Capital Budgeting (LO1) (LO2) (LO4) (LO6) Nature of the Problem General Approach Estimating the Variables Other Methods of Analysis Preference Problems Non-profit Organizations Lesson 14: Accounting Information System (LO1; C5) (LO2;C6) (LO3;P7) Characteristics of data and information and their values Accounting information system (AIS) and the basic functions it performs. The role AIS plays in a companys value chain and its value to a business. The importance of AIS for management for decision making. AIS strategies Total SLT

126

TEXTS PRESCRIBED TEXT

1. Anthony, R.N., Hawkins, D. & Merchant, K.A. 2011. Accounting: Text and Cases. 13th Edition. McGraw Hill International Edition (Anthony et al.) Additional Readings: 1. Dyson, J.R. 2010. Accounting for non-accounting participants. 8th Edition. Prentice Hall. 2. Schroeder, R.G., Clark, M.W. & Cathey, J.M. 2009. Financial Accounting Theory and Analysis: Text and Cases. 9th Edition. John Wiley & Sons, Inc. 3. Horngren, Harrison and Oliver (2009), Financial and Managerial Accounting; 2nd Edition, Pearson International Edition (HHO) 4. Business Times Online: http://www.btimes.com.my 5. Yahoo Malaysia Business News: http://malaysia.news.yahoo.com/business-newsmalaysia.html 6. Malaysian Accounting Standards Board: http://www.masb.org.my/ 7. Online Encyclopaedia on Accounting: www.wikipedia.org Participants have to fulfil 80% class attendance requirement in their tutorial sessions. Failure to observe this rule will result in the participant not being able to sit for the final exam

Assessment Details
1. Mid-semester TEST Details (20%): The Mid-Term Test primarily seeks to gauge participants general understanding of the course, and to examine participants ability to identify and differentiate important terms and concepts. The test will be carried out in class (usually in Week 9). It can be given using any or a combination of short question(s), essay, and case study. 2. Group Presentations, Individual Participation and Quizzes (15%) The objectives of these parts of the assessment are to increase your knowledge of the subject, enhance independent problem solving and analytical skills, and to develop adaptability and ability to cope with uncertainty. Each participant is required to participate actively in class lecture (all 14 lessons), class discussions and/or debates to ensure participation marks will be secured. Participation here also includes class attendance and individual support via attendance any Industry/Professor Speaks and CEO Forum held by GSB in the semester. Quizzes will be given from time to time as the objective is to primarily gauge participants general understanding of the course and to examine participants ability to identify and differentiate important terms, concepts of accounting and finance. 3. Submission of Research Project Details (15%): (Assignment Handout will have further information) The objective of this part of the assessment is to increase your knowledge and to develop your skills in research, analysis and expression WHILE WORKING AS A GROUP. In assessing the groups assignment, I will be looking for evidence that you or your team have acquired knowledge through independent work, and your groups views have been carefully, critically and objectively

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articulated. The arguments in the essay should be presented clearly in a logical structure. It is a major requirement of this subject that the essay be properly researched and presented. As such it should Be original and performed as a team effort [ALL quotations MUST be clearly distinguished from by quotation marks] Be typed [printed], and double spaced for clarity. A high standard of presentation is expected. Complete with a front cover and identification sheet, with all relevant details including - names of all group members AND participant number - the subject name and code, title of the essay and date of submission contain correct referencing, using the Harvard system include a bibliography adequately referencing your sources [including all books, articles and other works referred to in essay, and only these]

Late Submission of Assignments & Resubmission Policy

EXTENSIONS
All assessment should be handed in at the required due date. Extensions are not normally granted, but in exceptional cases or where there is genuine hardship, limited extensions MAY be granted. Any applications should be made in writing to me before the due date, and where appropriate a medical certificate should be attached.

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Plagiarism (Important)

Examination and assessment misconduct including plagiarism

Participants should note the policy of the Universiti Sains Malaysia on cases of examination or assessment irregularity. Plagiarism is the action or practice of taking and submitting or presenting the thoughts, writings or other work of someone else as though it is your own work. Plagiarism includes any of the following, without full and appropriate acknowledgment to the original source(s): (a) (b) the use of the whole or part of a computer program written by another person; the use, in essays or other assessable work, of the whole or part of a written work from any source including but not limited to a book, journal, newspaper article, set of lecture notes, current or past participants work, any other persons work, a website or database; the paraphrasing of anothers work; the use of musical composition, audio, visual, graphic and photographic models, the use of regalia, that is objects, artefacts, costumes, models and the like

(c) (d) (e)

Plagiarism also includes the preparation or production and submission or presentation of assignments or other work in conjunction with another person or other people when that work should be your own independent work. This remains plagiarism whether or not it is with the knowledge or consent of the other person or people. It should be noted that USM encourages its participants to talk to staff, fellow participants and other people who may be able to contribute to a participants academic work but that where independent assignment is required, submitted or presented work must be the participants own. Enabling plagiarism contributes to plagiarism and therefore will be treated as a form of plagiarism by the University. Enabling plagiarism means allowing or otherwise assisting another participant to copy or otherwise plagiarise work by, for example, allowing access to a draft or completed assignment or other work.

Participant Notes

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