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ACCG8305 – CPA - Financial Risk Management

2023 – Session 1, In person-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
Mostafa Hasan
mostafa.hasan@mq.edu.au
Unit Moderator
Chris Patel
chris.patel@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
(ACCG907 or ACCG8307) and (ACCG908 or ACCG8308) and (ACCG913 or ACCG8313)
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. It 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 also addresses investment evaluation, the sourcing of necessary funds for an organisation, and the application of and accounting for hedge instruments. In addition, the unit considers the need for suitable controls within the treasury function.

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:

  • ULO1: Demonstrate an understanding of the different financial risks that companies face and formulate strategies to manage these financial risks
  • ULO2: Analyse practical elements of accounting for derivatives, including embedded derivatives used for hedging purposes
  • ULO3: Apply accounting standards for recording financial transactions
  • ULO4: Analyse the significance for companies having adequate controls to safeguard against financial loss and propose specific policies and procedures to reduce risk

General Assessment Information

Late Assessment Submission Penalty  

Unless an application for Special Consideration has been submitted and approved, a 5% penalty (of the total possible mark) will be applied each day a written assessment is not submitted, up until the 7th day (including weekends). After the 7th day, a grade of ‘0’ will be awarded even if the assessment is submitted. Submission time for all written assessments is set at 11.55pm. A 1-hour grace period is provided to students who experience a technical concern.  

For any late submissions of time-sensitive tasks, such as scheduled tests, exams, performance assessments, and/or scheduled practical assessments/labs, students need to submit an application for Special Consideration 

Assessment Tasks

Name Weighting Hurdle Due
Class tests 1 20% No Week 5
Class test 2 20% No Week 9
Class participation 10% No Each week
CPA External Exam 30% Yes Examination period
Business Report 20% No Week 12 & 13

Class tests 1

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 20 hours
Due: Week 5
Weighting: 20%

 

An online class test comprising of multiple-choice questions will be conducted in computer labs. This test is designed to provide feedback to students on their level of understanding of key topics and concepts covered and to identify any particular learning challenges or areas of difficulties.

 
On successful completion you will be able to:
  • Demonstrate an understanding of the different financial risks that companies face and formulate strategies to manage these financial risks
  • Analyse practical elements of accounting for derivatives, including embedded derivatives used for hedging purposes
  • Apply accounting standards for recording financial transactions
  • Analyse the significance for companies having adequate controls to safeguard against financial loss and propose specific policies and procedures to reduce risk

Class test 2

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 20 hours
Due: Week 9
Weighting: 20%

 

An online class test comprising of multiple-choice questions will be conducted in computer labs. This test is designed to provide feedback to students on their level of understanding of key topics and concepts covered and to identify any particular learning challenges or areas of difficulties.

 
On successful completion you will be able to:
  • Demonstrate an understanding of the different financial risks that companies face and formulate strategies to manage these financial risks
  • Analyse practical elements of accounting for derivatives, including embedded derivatives used for hedging purposes
  • Apply accounting standards for recording financial transactions
  • Analyse the significance for companies having adequate controls to safeguard against financial loss and propose specific policies and procedures to reduce risk

Class participation

Assessment Type 1: Participatory task
Indicative Time on Task 2: 24 hours
Due: Each week
Weighting: 10%

 

Students are required to actively participate in class discussions both individually and in a group context when required. Prior preparation is necessary for active participation. The participation mark will be a result of attempting to participate, as well as the quality and frequency of that participation. Class participation is designed to encourage and help students achieve the learning outcomes of this unit.

 
On successful completion you will be able to:
  • Demonstrate an understanding of the different financial risks that companies face and formulate strategies to manage these financial risks
  • Analyse practical elements of accounting for derivatives, including embedded derivatives used for hedging purposes
  • Apply accounting standards for recording financial transactions
  • Analyse the significance for companies having adequate controls to safeguard against financial loss and propose specific policies and procedures to reduce risk

CPA External Exam

Assessment Type 1: Examination
Indicative Time on Task 2: 20 hours
Due: Examination period
Weighting: 30%
This is a hurdle assessment task (see assessment policy for more information on hurdle assessment tasks)

 

Examination administered by CPA Australia. CPA Australia will advise on the format and topics included in the final exam. Students need to achieve at least a PASS mark in this CPA external examination. If students do not pass this CPA examination, students will not pass this unit.

 
On successful completion you will be able to:
  • Demonstrate an understanding of the different financial risks that companies face and formulate strategies to manage these financial risks
  • Analyse practical elements of accounting for derivatives, including embedded derivatives used for hedging purposes
  • Apply accounting standards for recording financial transactions
  • Analyse the significance for companies having adequate controls to safeguard against financial loss and propose specific policies and procedures to reduce risk

Business Report

Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 36 hours
Due: Week 12 & 13
Weighting: 20%

 

Students will write a 1,500 word report (worth 10%) and each student will give a 5-minute presentation (worth 10%) outlining their findings and recommendations. The focus of the task will be to identify the key financial risks of a (public listed) company allocated to the team. The team will need to propose methods to manage the risks and identify suitable benchmarks to measure Treasury’s performance.

 
On successful completion you will be able to:
  • Demonstrate an understanding of the different financial risks that companies face and formulate strategies to manage these financial risks
  • Analyse practical elements of accounting for derivatives, including embedded derivatives used for hedging purposes

1 If you need help with your assignment, please contact:

  • the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
  • the Writing Centre for academic skills support.

2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation

Delivery and Resources

• Required Taxt CPA Program: CPA Financial Risk Management 3rd Edition (enhanced)

• Unit Web Page www.mq.edu.au

• Technology used and required familiarity with iLearn and access to a computer

• Delivery format and other details, including timetable found at http://timetables.mq.edu.au

• Recommended readings mentioned in CPA Financial Risk Management text

• Other course materials as suggested in the CPA text or in iLearn

Unit Schedule

Week

Lecture Topic

1

Module 1 Introduction to Financial Risk Management

2

Module 2 Management of Liquidity, Debt and Equity

3

Module 3 Investment Evaluation & Capital Structure

4

Module 4 Derivatives

5

Module 5 Interest Rate Risk Management/ 1st Test

6

Module 6 Foreign Exchange & Commodity Price Management

7

Module 7 Accounting for Derivatives & Hedge Relationships

8

Module 8 Controlling Risks

9

2nd Test

10

Test results and Revision

11

Revision

 

CPA Exams

12

Presentations & Project submission

13

Presentations & Project submission

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:

Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.

To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct

Results

Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) 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 or if you are a Global MBA student contact globalmba.support@mq.edu.au

Academic Integrity

At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.

Student Support

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

The Writing Centre

The Writing Centre provides resources to develop your English language proficiency, academic writing, and communication skills.

The Library provides online and face to face support to help you find and use relevant information resources. 

Student Services and Support

Macquarie University offers a range of Student Support Services including:

Student Enquiries

Got a question? Ask us via AskMQ, or contact Service Connect.

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.

Unit information based on version 2023.01 of the Handbook