AFM ELECTIVES

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1 AFM ELECTIVES MSc Accounting & Financial Management 25 October 2016 Department of Accounting & Control

2 BMME005 ASSURANCE SERVICES

3 ASSURANCE SERVICES Assurance Services: An independent professional service, provided by a certified public accountant (RA), with the goal of improving the information so that decision makers can make more informed, and presumably better, decisions Source: Mathhews, C. & Gandel, S. (2015, December 27). The 5 biggest corporate scandals of Fortune. Retrieved from This course: Demand for assurance services Quality (determinants) of assurance services and audits The auditing process Internal control Recent developments: Fraud cases, Big Data & IT, Laws & regulations 3

4 ASSURANCE SERVICES Course Approach: A mix of lectures Theory based Hands-on exercises Guest lectures and work sessions Cases Presentations Academic articles Home assignments Mostly group work A mix of theoretical, practical and academic perspectives on assurance services and auditing Good start as a basis if you are considering pursuing a CPA (RA) or internal auditing position as future career option 4

5 FUTHER QUERIES Dr. Nadine Funcke: 5

6 BMME006 CONTROLLERSHIP (CMA TRACK)

7 WHAT IS THE CMA? IMA s certification for accountants and financial professionals in business The CMA (Certified Management Accountant) title validates mastery of financial planning, analysis, control, and decision support the critical skills required of valuable strategic advisors in an organization w 7

8 WHY THE CMA? CMA certification can expand your career opportunities Organizations of all types and sizes seek professionals with critical accounting and financial management skills Multinational Corporations Private Firms Not-for-Profit Organizations Government Organizations IMA has over 300 professional and student chapters worldwide. Today, there are more than 20,000 active CMAs Globally, CMAs earn 59% more in median salary and 63% more in median total compensation than their non-cma peers. 8

9 IMA IN EUROPE More than 75,000 Members, thereof 2,600 in Europe 62% U.S.; 38% Non-U.S. IMA Europe Office located in Zürich. IMA s international community is growing rapidly. 9 European chapters: Germany, Netherlands (Amsterdam), Benelux, Switzerland, Austria, Turkey, Russia, France and Kazakhstan Chapter. More than 2,000 CMAs granted in Europe, thereof 679 in the Netherlands More than 700 exams taken in Europe in 2015, thereof 250 in the Netherlands Membership in the Netherlands has grown for each of the last 10 years. 9

10 CMA CERTIFICATION PROGRAM Experience Qualification Candidates for certification must complete 2 continuous years of professional experience in management accounting or financial management. This may be completed prior to application or within 7 years of passing the examination. Exam Part 1: Financial Planning, Performance and Control Part 2: Financial Decision Making Each part takes 4 hours: 100 multiple-choice questions (3h) & two 30-minute essay-questions (1h) 3 years to complete the exams from date of program enrollment. Must take at least 1 exam part within 1 year from enrollment Testing window periods: January & February / May & June / September & October 10

11 ELECTIVE CONTROLLERSHIP CONTENTS Lecture 1 6: CMA Part 1: Financial Planning, Performance and Control Planning, budgeting and forecasting (30%) Performance measurement (25%) Cost management (25%) Internal Controls (15%) Professional Ethics (5%) Lecture 7 12: CMA Part 2: Financial Decision Making Financial statement analysis (25%) Corporate finance (25%) Risk management and decision analysis (25%) Investment decisions (20%) Professional Ethics (5%) 11

12 TOP PASS-RATES FOR FIRST-TIME TEST TAKERS Source: Strategic Finance, September 2016

13 RSM PASS-RATE VS. OVERALL PASS-RATE YEAR RSM OVERALL Part 1 Part 2 Part 2 Part % 73% 35% 49% % 75% 36% 55% 13

14 ELECTIVE CONTROLLERSHIP & CMA EXAM FEES All costs in USD per person (as of July 2016) Regular Prices RSM fees Annual Membership Fee $230 $25 Dutch RC-program fees (for 2-years) 25,580 One-time application fee $15 0 CMA Program Entrance Fee $250 $83 Fees for 2 exams $830 $479 TOTAL $1,325 $587 Wiley CMA Learning Material (2016): ~ 470 included shipping and any applicable sales tax. Includes a selfstudy book, participant guide, and online access to CMA practice tests 14

15 CMA SCHOLARSHIP PROGRAM a) 5 scholarships by the Department of Accounting & Control : full coverage of CMA Learning Material costs b) 10 scholarships awarded by IMA covering a comprehensive package of benefits to take the CMA exam at no cost: IMA membership registration fee Entrance fee to the CMA program ($250) Registration fees for the first attempt at both parts of the CMA exam Exam Support Package: a tool assessment that can help assess the content covered on the CMA Exams Scholarships will be awarded to 10 students enrolled in the elective on the basis of the 4 MSc AFM core courses grades 15

16 FURTHER QUERIES Dr. Stephan Kramer: David Unterdorfer MSc CMA Ph.D. candidate & CMA 2014 Bronze Medal the drinks!) 16

17 BMME002 ADVANCED BUSINESS ANALYSIS & VALUATION

18 ADVANCED BUSINESS ANALYSIS & VALUATION Practical sessions with topical examples from different sectors Group and individual assignments around cases Use of guest speakers from industry Focus on three different topics: Accounting and valuation of banks Valuing Private Companies Understanding Corporate Risk Management Valuing Firms in Financial Distress and Real Option Valuation 18

19 WORKSHOPS Case studies on firm valuation multiples Company valuation exercises 19

20 UNDERSTANDING RISK MANAGEMENT

21 FURTHER QUERIES Dr. Solomon George Zori: 21

22 BMME001 ACCOUNTING ANALYTICS

23 ACCOUNTING ANALYTICS From information origin (core courses) to information use The role of accountants and controllers is evolving: IT/ERP skills New business reporting technologies (e.g., XBRL) Business analytics skills Approach: theory and practice (e.g., case studies, guest lectures, hands-on exercises)

24 ACCOUNTING ANALYTICS Source: PwC, Data Driven: What Students Need to Succeed in a Rapidly Changing Business World 24

25 MAIN TOPICS Main business processes: Revenue cycle Expenditure cycle Production cycle Decision making, data analysis, and visualization: Big Data Predictive analytics and risk analysis Continuous auditing through process mining 25

26 TUTORIALS Case studies / problems / software demonstrations Hands-on exercises with a real Enterprise Resource Planning (ERP) system 26

27 SAP UNIVERSITY ALLIANCES Why SAP? Market leader and well-recognized brand Network of universities worldwide Same software platform adopted by SAP customers and partners, not a demo version Enhanced learning experience with new skills

28 FURTHER QUERIES Dr. Nicola Dalla Via: 28

29 BMME003 NEUROACCOUNTING

30 NEUROACCOUNTING: LEARNING OBJECTIVES Explain how brain processes are related to financial decision making Explain the techniques used to study brain processes in neuroscience at a basic level Explain findings from extant neuroscience research papers Apply knowledge of neuroaccounting to practical problems in finance and control Formulate a research question that applies social cognitive neuroscience

31 NEUROACCOUNTING: TOPICS & FORMAT Introduction to neuroscience: brains, neurons & behavior Decision making and the brain Neuroscientific methods Neuroscience and: (Behavioral) economics Cognitive & social psychology Accounting applications: Financial reporting Financial decision making Controllership Working format Lectures Working groups Lab visit(s)

32 NEUROACCOUNTING

33 FURTHER QUERIES Prof. Dr Frank Hartmann (course coordinator): Ph.D. Students: Aljaž Sluga MSc Anke Murillo Oosterwijk MSc

34 BMME004 TAXATION

35 TAXATION: COURSE OUTLINE Taxation affects many business decisions, such as: where to invest, what organizational forms to choose, how to finance the business, when and where to recognize elements of revenues and expense for financial accounting and tax purposes, what transfer prices to charge. This course provides a conceptual overview of how taxes (should) affect financial decisions: Financing decisions Investment decisions (type and location) Managerial compensation (e.g., deferred compensation)

36 TAXATION: LEARNING OUTCOMES During the course we will answer the following questions: Who are the stakeholders in (business) taxation. Why taxes may distort firm s decisions. How taxes affect firm s decisions regarding locational and organizational form choices, financing, and transfer pricing. and can every company reduce its taxes as much as, for example, Apple, Google, or Starbucks? 36

37 TAXATION: FORMAT Working format Lectures In-class discussion and exercises (Group) assignments General remark: during this course legal and accounting aspects of taxation will be introduced. However, the aim of this course is NOT covering specific rules or tax treatments. 37

38 FURTHER QUERIES Dr. Saskia Kohlhase: from 1 November kohlhase@rsm.nl 38

39 BMME007 MERGERS & ACQUISITIONS AND CORPORATE GOVERNANCE

40 MERGERS & ACQUISITIONS AND CORPORATE GOVERNANCE This course provides students with a guide to understand merges and acquisitions in today s competitive markets. It combines: lectures providing a comprehensive overview of accounting, economic, and financial issues related to mergers and acquisitions. Specifically, we review the market for corporate control and discuss strategic and corporate governance issues related to firms' decision to acquire or be acquired guest lectures that give students insights from professionals hands-on experience Case study discussions of empirical research about M&As and/or corporate governance: e.g. Yermack (2006), Flights of Fancy: Corporate Jets, CEO Perquisites, and Inferior Shareholder Returns, Journal of Financial Economics. 40

41 MERGERS & ACQUISITIONS AND CORPORATE GOVERNANCE During the course we try to answer the following questions: Why do firms merge, or acquire others? What role does the management and board of directors play? What role do hedge funds play? What are the costs and benefits of M&A? and if the WSJ is right in saying that investors fall out of love with deals 41

42 FURTHER QUERIES Dr. Caspar David Peter: 42

43 QUESTIONS? Should you have any further query, feel free to contact: Dr. Paolo Perego Thesis coordinator & Academic Director MSc Accounting & Financial Management Room T