Students

ACCG905 – CPA - Financial Risk Management

2015 – S1 Day

General Information

Download as PDF
Unit convenor and teaching staff Unit convenor and teaching staff Convenor
Garry Morris
garry.morris@mq.edu.au
Contact via via email
E4A level 2
Tuesday 5 pm
Credit points Credit points
4
Prerequisites Prerequisites
ACCG926 or ACCG855 or admission to MAdvProfAcc
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This unit provides extended formal academic support for students concurrently enrolled in the Financial Risk Management unit of the CPA program. This unit provides knowledge, principles, skills and an appreciation of the treasury function in a corporate environment. It presents an overview of various aspects of treasury focusing on the identification and management of financial risks that organisations face. The unit will also address investment evaluation, the sourcing of necessary funds for an organisation, and the application of and accounting for hedge instruments.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • Implement controls to safeguard against loss
  • Apply accounting standards for recording transactions
  • Formulate strategies to manage financial risks
  • Explain derivatives and other hedging techniques
  • Identify financial risks that companies face

Assessment Tasks

Name Weighting Due
Class test 1 25% Week 5
Class test 2 25% Week 10
Report 20% Weeks 9 and 12
Final examination 30% 18 to 24 April

Class test 1

Due: Week 5
Weighting: 25%

Open book test with up to 50 multiple choice questions covering topics in modules 1 to 4. The topics include an introduction to financial risk management; the management of liquidity, debt and equity; investment evaluation and capital structure; as well as derivatives.

Submission The test will be conducted during class time and submitted directly to the lecturer in week 5.

Extension No extensions will be granted unless the Disruption to Studies Policy is followed.

Penalties Students who do not complete the test will be awarded a zero mark unless the Disruption to Studies Policy is followed.

Estimated student workload It is expected that you will spend approximately 9 hours to prepare and complete this task.

Marking criteria Your mark will be based on the accuracy of your answers.
On successful completion you will be able to:
  • Explain derivatives and other hedging techniques
  • Identify financial risks that companies face

Class test 2

Due: Week 10
Weighting: 25%

Open book test with up to 50 multiple choice questions covering topics in modules 5 to 8. The topics include interest rate risk management; foreign exchange and commodity risk management; accounting for derivatives and hedge relationships; as well as controlling risks.

Submission The test will be conducted during class time in week 10 lecture and submitted directly to the lecturer.

Extension No extensions will be granted unless the Disruption to Studies Policy is followed.

Penalties Students who do not complete the test will be awarded a zero mark unless the Disruption to Studies Policy is followed.

Estimated student workload It is expected that you will spend approximately 9 hours to prepare and complete this task.

Marking criteria Your mark will be based on the accuracy of your answers.
On successful completion you will be able to:
  • Implement controls to safeguard against loss
  • Apply accounting standards for recording transactions
  • Formulate strategies to manage financial risks
  • Explain derivatives and other hedging techniques

Report

Due: Weeks 9 and 12
Weighting: 20%

A research paper will be written as part of a group. Groups will be formed in week 2. The submission will be in the form of a business report with each group allocated a different publicly listed company. Your group will identify the relevant financial risks and recommend suitable risk management approaches. The written report will be worth 15% of your marks with an additional 5% for your presentation.

Submission The written report will be handed to your lecturer in class in week 9. Each group will also provide a contribution sheet that shows what each group member contributed to the report and their percentage contribution. Your presentation will be given in class in week 12 after the CPA exam.

Extension No extensions will be granted unless the Disruption to Studies Policy is followed.

Penalties Groups who do not submit their assignment on time will lose 5%. An individual who does not present with their team will lose their 5%.

Estimated student workload It is expected that you will spend approximately 25 hours to prepare and complete this task.

Marking criteria Your mark will be based on your interpretation and solution to the risks that your allocated company faces, as well as the way in which you present your report and your communication skills when delivering your presentation.
On successful completion you will be able to:
  • Formulate strategies to manage financial risks
  • Explain derivatives and other hedging techniques
  • Identify financial risks that companies face

Final examination

Due: 18 to 24 April
Weighting: 30%

Exam required by CPA. Obtain at least a PASS assessment in the CPA external examination. Note that if you do NOT pass the CPA exam then you cannot attain a pass in this unit in this session.

Submission/Extension/Penalties The examination will be conducted under the rules and conditions as set out by CPA Australia.

Estimated student workload It is expected that you will spend approximately 18 hours to prepare and complete this task.

Marking criteria Your mark will be based on the accuracy of your answers.
On successful completion you will be able to:
  • Implement controls to safeguard against loss
  • Apply accounting standards for recording transactions
  • Formulate strategies to manage financial risks
  • Explain derivatives and other hedging techniques
  • Identify financial risks that companies face

Delivery and Resources

Technology Used and Required Students must be familiar with the learning management system iLearn. Students are required to conduct their own research and need to be familiar with internet search engines and library databases.

Required unit materials and/or recommended readings CPA program: CPA Financial Risk Management, Deakin University, Geelong, revised January 2015. Other references are given at the end of each of the 8 modules in the CPA manual.

Requirement to complete the unit satisfactorily You will be expected to attend 3 hours of face-to-face lectures/tutorials each week. You will also need to satisfactorily complete 2 class tests online as well as a team-based research project. These tasks will require at least 50% or 35 of the allocated 70 marks for the internal Macquarie University component of this unit. In addition you need to achieve at least a PASS in the CPA external exam.

Timetable The timetable for classes can be found on the University webpage http://timetables.mq.edu.au 

Unit Schedule

Week

 

Date

 

 

Topic

 

1

3 February

 

Module 1, Introduction to Financial Risk Management

 

2

10 February

 

Module 2, Management of Liquidity, Debt & Equity

  

3

 

17 February

 

Module 3, Investment Evaluation & Capital Structure

4

 

24 February

 

Module 4, Derivatives

 

5

 

 

3 March

 

1st Test (Modules 1 to 4)

Module 5, Interest Rate Risk Management

6

 

10 March

 

Module 6, Foreign Exchange & Commodity Risk

 

7

 

17 March

 

 

Module 7A, Accounting for Derivatives

 

8

24 March

 

Module 7B, Accounting for Hedge Relationships

 

9

31 March

Assignment due (to be handed to lecturer in class)

Module 8, Controlling Risks

 

10

7 April

 

2nd Test (modules 5 to 8) and revision

 

 

11

 

14 April

Exam results and revision

 

 

 

 

 

CPA Exams    {18 to 24 April}

12

28 April

 

Presentations

 

 

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:

Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html

Assessment Policy  http://mq.edu.au/policy/docs/assessment/policy.html

Grading Policy http://mq.edu.au/policy/docs/grading/policy.html

Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html

Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html

Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.

In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/

Results

Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Learning Skills

Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.

Student Services and Support

Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.

Student Enquiries

For all student enquiries, visit Student Connect at ask.mq.edu.au

IT Help

For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/. 

When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.

Graduate Capabilities

PG - Critical, Analytical and Integrative Thinking

Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.

This graduate capability is supported by:

Learning outcomes

  • Implement controls to safeguard against loss
  • Apply accounting standards for recording transactions
  • Formulate strategies to manage financial risks
  • Explain derivatives and other hedging techniques
  • Identify financial risks that companies face

Assessment tasks

  • Class test 1
  • Class test 2
  • Report
  • Final examination

PG - Research and Problem Solving Capability

Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.

This graduate capability is supported by:

Learning outcomes

  • Formulate strategies to manage financial risks
  • Explain derivatives and other hedging techniques
  • Identify financial risks that companies face

Assessment tasks

  • Class test 1
  • Class test 2
  • Report
  • Final examination

PG - Effective Communication

Our postgraduates will be able to communicate effectively and convey their views to different social, cultural, and professional audiences. They will be able to use a variety of technologically supported media to communicate with empathy using a range of written, spoken or visual formats.

This graduate capability is supported by:

Learning outcomes

  • Formulate strategies to manage financial risks
  • Explain derivatives and other hedging techniques
  • Identify financial risks that companies face

Assessment tasks

  • Class test 1
  • Class test 2
  • Report
  • Final examination

Research & Practice, Global & Sustainability

This unit addresses global and sustainability issues as direct areas of study and as necessary implications arising from the materials, assessment and academic discussion and debate in classes. We promote sustainability by developing ability in students to research and locate information within the accounting discipline as it relates to a company's financial situation. We aim to provide students with an opportunity to obtain skills which will benefit them throughout their career.

The unit materials have a reference list at the end of each module containing all references cited by the various authors. These provide some guidance to references that could be used to research particular issues.

Changes since First Published

Date Description
27/01/2015 Class test are open book and not online with allocated times for completion of tasks and not inclusive of lecture times and reading/self study.