Students
ACST852 – Finance and Financial Reporting
2018 – S2 Evening
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Lecturer and Unit Convenor
Chi Truong
Contact via via Dialogues in iLearn
E4A R230
By appointment
Lecturer
Ian Kwan
Contact via By email
Angela Chow
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|---|---|
| Credit points |
Credit points
4
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| Prerequisites |
Prerequisites
(4cp in ACCG or ACST or BUS or ECON or MKTG units at 600 level) or admission to MActPrac post 2014
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| Corequisites |
Corequisites
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| Co-badged status |
Co-badged status
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| Unit description |
Unit description
This unit provides a basic understanding of corporate finance, including a knowledge of the instruments used by companies to raise finance and manage financial risk, and an ability to interpret accounts and financial statements of companies and financial institutions. Students gaining a grade of credit or higher in this unit may apply for exemption from subject CT2 of the professional exams of the Institute of Actuaries of Australia.
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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:
- Demonstrate an understanding of the process of financial reporting and the interpretation of financial reports
- Understand and explain in a group presentation how one or more finance concepts in this unit relate to corporate finance practice
- Demonstrate an understanding of the basic concepts of finance, including risk and return, financial instruments, cost of capital, and capital structure
- Organise and actively participate in a project to report on an aspect of finance and financial reporting
General Assessment Information
Gradebook
It is the responsibility of students to view their marks for each within session assessment on iLearn within 20 working days of posting. If there are any discrepancies, students must contact the unit convenor immediately. Failure to do so will mean that queries received after the release of final results regarding assessment marks (not including the final exam mark) will not be addressed.
Assessment Criteria
Assessment criteria for all assessment tasks will be provided on the unit iLearn site.
Late submission or non-attendance penalties
Tasks 10% or less – No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.
Tasks above 10% - No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved. No submission will be accepted after solutions have been posted.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Class Tests | 15% | No | Weeks 3 and 10 |
| Group Assignment | 20% | No | Week 11 |
| Final Examination | 55% | No | Examination period |
| Presentations | 10% | No | Throughout |
Class Tests
Due: Weeks 3 and 10
Weighting: 15%
A class test focusing on the material taught in Weeks 1 to 2 will be held in the lecture in Week 3, and returned to students during Week 4. Please use the first class test as an indicator of whether you are progressing satisfactorily in the unit. If you are having difficulties, please see the Unit Convenor and consider withdrawing before the census date.
A class test focusing on the material taught in Weeks 5 to 8 will be held in the lecture in Week 10 and returned to students during Week 11.
Unless otherwise specified by the Lecturer, the Class Tests are closed book assessments.
On successful completion you will be able to:
- Demonstrate an understanding of the basic concepts of finance, including risk and return, financial instruments, cost of capital, and capital structure
Group Assignment
Due: Week 11
Weighting: 20%
This task must be submitted electronically via iLearn.
Every student must participate in the group assignment and report so that individual student contribution to the group report can be identified. Each member of a group will be required to complete an assessment of the contributions of individual members.
More details will be provided on iLearn at the beginning of the semester.
In addition to this 20% unit weighting, a further direct assessment on the assignment will be made as a part of the Final Examination.
On successful completion you will be able to:
- Demonstrate an understanding of the process of financial reporting and the interpretation of financial reports
- Organise and actively participate in a project to report on an aspect of finance and financial reporting
Final Examination
Due: Examination period
Weighting: 55%
A two hour final examination for this unit will be held during the University Examination period.
You are permitted ONE A4 page of paper containing reference material printed on both sides. The material may be handwritten or typed. The page will not be returned at the end of the final examination.
On successful completion you will be able to:
- Demonstrate an understanding of the process of financial reporting and the interpretation of financial reports
- Understand and explain in a group presentation how one or more finance concepts in this unit relate to corporate finance practice
- Demonstrate an understanding of the basic concepts of finance, including risk and return, financial instruments, cost of capital, and capital structure
Presentations
Due: Throughout
Weighting: 10%
Throughout the semester, students will present in groups of 3 to 5 students on given topics that link the unit material to real world issues and problems.
Every student must participate in the group presentations and report so that individual student contribution to the group presentations and report can be identified. Each member of a group will be required to complete an assessment of the contributions of individual members.
On successful completion you will be able to:
- Demonstrate an understanding of the process of financial reporting and the interpretation of financial reports
- Understand and explain in a group presentation how one or more finance concepts in this unit relate to corporate finance practice
- Demonstrate an understanding of the basic concepts of finance, including risk and return, financial instruments, cost of capital, and capital structure
Delivery and Resources
Required and Recommended Texts and/or Materials
Text
Ross, S., Drew, M., Walk, A., Westerfield, R. and Jordan, B. 2017. Fundamentals of Corporate Finance (7th ed.) N.Ryde, NSW, Australia: McGraw-Hill Education.
The hardcopy version is available from Co-op Bookshop (ISBN 9781743762967, this ISBN includes (CONNECT). Contact McGraw-Hill Education directly for assistance with CONNECT technical and content enquiries.
Reference
Brealey, R. A., Myers, S.C., Allen, F. 2016. Principles of corporate finance (Global edition) 12th ed. McGraw-Hill Education.
Titman, S., Martin, T., Keown, A.J. and Martin, J.D.. 2016. Financial Management: Principles and Applications (7th ed). Pearson Australia.
Technology Used and Required
Calculators
You may use a calculator in the class test and in the final examination provided it is portable, silent and battery operated, but you must show clearly the steps involved in every calculation. You may NOT use any calculators that have a text-retrieval capacity, whether or not they have a full alphabet on the keyboard. Calculators may be checked at the commencement of the class test and final exam, and the make/model may be recorded.
Word processing
Students need to have access to word processing software (like Word) to complete the Group Assignment. You will need electronically submit your Assignment (using iLearn) as a PDF file. Check your word processing software can generate a PDF file.
Spreadsheet program
Many of the problems you will encounter in this unit can be solved easily with the spreadsheet program, Excel. You can use this spreadsheet program to verify your solutions to many of the problems you are solving.
Unit Schedule
| Week | Topic |
|---|---|
| 1 | Overview: Context of the financial markets, the corporation and its objectives |
| 2 | What is accounting and understanding financial statements |
| 3 | Class test, Financial statement analysis - Ratios |
| 4 | Financial statement analysis - applications in insurance |
| 5 | Risk and return in context of valuation |
| 6 | Capital project analysis – Methods |
| 7 | Capital project analysis: Issues and applications |
| Semester break | |
| 8 |
Cost of capital |
| 9 |
Capital structure and International Corporate Finance |
| 10 |
Class test, Business ethics |
| 11 |
Dividends, taxation and working capital decisions |
| 12 | Issues in corporate finance practice |
| 13 | Revision |
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy (Note: The Special Consideration Policy is effective from 4 December 2017 and replaces the Disruption to Studies Policy.)
Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/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/study/getting-started/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.
Supplementary Exams
Further information regarding supplementary exams, including dates, is available here
https://students.mq.edu.au/study/my-study-program/special-consideration
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 - Discipline Knowledge and Skills
Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.
This graduate capability is supported by:
Learning outcomes
- Demonstrate an understanding of the process of financial reporting and the interpretation of financial reports
- Demonstrate an understanding of the basic concepts of finance, including risk and return, financial instruments, cost of capital, and capital structure
Assessment tasks
- Class Tests
- Final Examination
- Presentations
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
- Demonstrate an understanding of the process of financial reporting and the interpretation of financial reports
- Understand and explain in a group presentation how one or more finance concepts in this unit relate to corporate finance practice
- Demonstrate an understanding of the basic concepts of finance, including risk and return, financial instruments, cost of capital, and capital structure
- Organise and actively participate in a project to report on an aspect of finance and financial reporting
Assessment tasks
- Class Tests
- Group Assignment
- Final Examination
- Presentations
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
- Understand and explain in a group presentation how one or more finance concepts in this unit relate to corporate finance practice
- Organise and actively participate in a project to report on an aspect of finance and financial reporting
Assessment tasks
- Group Assignment
- Presentations
Changes from Previous Offering
Besides rearranging the topics, there are some minor changes:
1. Group assignment has been given a weight of 20% while Final Examination now has a weight of 55%.
2. A more updated textbook by Ross et al. (2017) is now used.