Students

ACCG905 – CPA - Financial Risk Management

2016 – S1 Day

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Lecturer
Garry Morris
Contact via Email
E4A level 2
Wednesday 5:30 pm to 6 pm and after class
Tutor
Meiting Lu
Credit points Credit points
4
Prerequisites Prerequisites
ACCG907 and ACCG908 and ACCG913
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:

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

General Assessment Information

It is expected that students will attend all classes with the following workload:

Weekly seminars                                           36 hours

Class test 1                                                     9 hours

Class test 2                                                     9 hours

Research report                                            25 hours

Final examination                                         18 hours

Readings/self study                                      53 hours

TOTAL                                                       150 hours

Assessment Tasks

Name Weighting Due
Class test 1 25% Week 5
Class test 2 25% Week 10
Report 20% Weeks 7, 9, 12
Final examination 30% 23 April to 8 May

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.

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.

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.

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

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.

Marking criteria Your mark will be based on the accuracy of your answers.


On successful completion you will be able to:
  • Formulate strategies to manage financial risks
  • Explain derivatives and other hedging techniques
  • Apply accounting standards for recording financial transactions
  • Implement controls to safeguard against financial loss

Report

Due: Weeks 7, 9, 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 individual presentation.

Submission An initial outline giving background information about your Company and its financial risks will be submitted in week 7 to your lecturer in class. The final report will be handed to your lecturer in class in week 9. Each group will provide a contribution sheet identifying the parts of the report completed by each member of the group. This will form the basis of allocating marks to each member for the written report. A group presentation will be given in week 12 after the CPA exam and each student will be awarded a mark for their individual presentation.

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

Penalties Late task will be accepted up to 72 hours after the submission deadline. There will be a deduction of 20% of the total available marks from the total awarded for each 24 hour period or part thereof that the submission is late. As an example, if the report is submitted 25 hours late, then there will be 40% penalty. This penalty does not apply if the Disruption to Studies Policy is followed.

Marking criteria Your mark will be based on demonstrated understanding of your allocated company's financial risks and the appropriateness of your recommendations to manage these exposures. Consideration will be given to each student's contribution to the written report and their individual 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: 23 April to 8 May
Weighting: 30%

Exam required and set by CPA. Obtain at least a PASS assessment by CPA. Note if you do NOT pass the CPA exam 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.

Marking criteria Your mark will be based on the accuracy of your answers.


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
  • Apply accounting standards for recording financial transactions
  • Implement controls to safeguard against financial loss

Delivery and Resources

Technology used and required Students must be familiar with the learning management system iLearn. Students will require access to a computer to conduct their own research using internet search engines and library databases.

Required unit materials and/or recommended readings CPA Program: CPA Financial Risk Management, Deakin University, Geelong, revised January 2016. Other references are given at the end of each module in the CPA manual.

Requirements to complete the unit satisfactorily You will be expected to attend 3 hours of face-to-face lectures each week. You will also need to satisfactorily complete 2 class tests as well as a team-based research project. These tasks will require at least 50% of the total marks awarded or 35 in total 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

 

8 February

 

Module 1, Introduction to Financial Risk Management

 

 

2

 

15 February

 

Module 2, Management of Liquidity, Debt & Equity

  

 

3

 

22 February

 

 

Module 3, Investment Evaluation & Capital Structure

 

4

 

29 February

 

 

Module 4, Derivatives

 

5

 

7 March

 

1st Test (Modules 1 to 4)

Module 5, Interest Rate Risk Management

 

6

 

14 March

 

 

Module 6, Foreign Exchange & Commodity Price Management

 

 

7

 

21 March

 

Submit initial work on research project

Module 7A, Accounting for Derivatives

 

 

8

 

28 March

 

 

Module 7B, Accounting for Hedge Relationships

 

 

9

 

4 April

 

Research project to be submitted in class

Module 8, Controlling Risks

 

 

10

 

11 April

 

2nd Test (modules 5 to 8) and revision

 

 

11

 

18 April

 

Test results and revision

 

 

 

 

 

 

 

CPA Exams     {23 April to 8 May}

 

12

 

9 May

 

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

New Assessment Policy in effect from Session 2 2016 http://mq.edu.au/policy/docs/assessment/policy_2016.html. For more information visit http://students.mq.edu.au/events/2016/07/19/new_assessment_policy_in_place_from_session_2/

Assessment Policy prior to Session 2 2016 http://mq.edu.au/policy/docs/assessment/policy.html

Grading Policy prior to Session 2 2016 http://mq.edu.au/policy/docs/grading/policy.html

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

Complaint Management Procedure for Students and Members of the Public http://www.mq.edu.au/policy/docs/complaint_management/procedure.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://www.mq.edu.au/about_us/offices_and_units/information_technology/help/

When using the University's IT, you must adhere to the Acceptable Use of IT Resources 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

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

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 Contexts & Sustainability

This unit addresses global and sustainability issues as direct areas of study and as necessary implications arising from 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.