Learning Guide 2015 Second Semester

Transcription

1 Faculty of Management Sciences Learning Guide 2015 Second Semester Subject: Project Accounting IV Subject Code: PKA42AB Programme: B-Tech: Project Management Programme Code: BEBBTPJ NQF level: 7 Credits: 12 Compiled by: P.K. Hoeyi Department of Business Support Studies Faculty of Management Sciences Building Room B106 Telephone

2 Table of Contents COURSE INFORMATION... 3 LEARNING ASSUMED TO BE IN PLACE... 4 LEARNING OUTCOMES FOR THE COURSE... 4 CRITICAL OUTCOMES... 4 ASSESSMENT CRITERIA... 4 METHODS OF ASSESSMENT... 4 WELCOME... 5 PRESCRIBED READING... 5 RECOMMENDED READING... 5 GROUP ASSIGNMENT... 5 WARNING:... 6 SYLLABUS

3 INSTRUCTIONAL OFFERING SUBJECT CODE EXAMINATION DATE COURSE INFORMATION PROJECT ACCOUNTING IV PKA42AB 2015 SECOND SEMESTER CREDITS 12 NQF LEVEL 7 TYPE OF LEARNING PART-TIME 3

4 LEARNING ASSUMED TO BE IN PLACE At least NQF level six. LEARNING OUTCOMES FOR THE COURSE Upon completion of this course, the candidate will provide evidence that he/she knows, understands, and can apply managerial accounting concepts and tools covered. CRITICAL OUTCOMES Candidates will: 1. Identify and solve problems using critical and creative thinking (i.e. problem-solving skills); 2. Collect, analyse, organise and critically evaluate information (i.e. research skills); 3. Organise and manage themselves and their activities responsibly and effectively (i.e. selfresponsibility skills); 4. Communicate effectively using visual, symbolic and/or language skills in various modes. ASSESSMENT CRITERIA Candidates display knowledge and understanding of selected accounting, budgeting and costing concepts and tools and can apply these correctly in making business decisions. METHODS OF ASSESSMENT 1. Course mark (40% of final mark): (a) Formal group assignments and tests addressing the critical outcome areas identified above. (b) You must obtain a course mark of at least 40% to be admitted to the exam 2. Exam mark (60% of final mark): (a) A formal 3 hours examination (that counts 60% of the final mark) addressing the specific outcome areas identified. (b) You need a minimum 50% final mark to pass a course (c) If you fail to obtain the required pass mark, you need a minimum 45% final mark to qualify for supplementary exams (d) A final mark of 75% or more is required to pass a course with distinction (e) Final mark = [Course mark (40%)] + [Exam mark (60%)] 4

5 WELCOME The nature of the course is such that there is no single textbook that can cover the specific outcomes. Whilst an attempt has been made to provide you with a prescribed book and annexure, it remains the responsibility of the learner to get more reading materials, especially those in the recommended reading list. Secondly, it must be clearly noted that no student is permitted to use illegally copied material in class. Some exams and tests may be open book and students can only use original books. PRESCRIBED READING Corporate Finance: A South African Perspective, 2 nd Edition, 2014, ISBN Du Toit et al. Oxford University Press RECOMMENDED READING Introduction to Managerial Accounting, 5th Edition Brewer, Garrison, Noreen McGraw-Hill 2010, ISBN Principles of accounting and finance Davies & Boczk McGraw-Hill Principles of financial management Posthumus et al Juta Finance for non-financial managers Marx NAE Managerial accounting Garrison et al McGraw-Hill GROUP ASSIGNMENT This assignment must be done strictly in groups of three (3), four (4) or five (5) students and submitted by the deadline stated below. 1. Based on your understanding of the goals of financial management, (a) Explain the principal-agent problem (10 marks) (b) Discuss five measures you would put in place to combat this problem in your company (20 marks) 2. Discuss five main purposes for which people use the financial system (financial markets). (20 MARKS) N.B.: GROUP ASSIGNMENT TO BE SUBMITTED BY 1.00PM ON 21 ST AUGUST

6 KEY MOMENTS Activity Due/Submission Date Time Venue Group Assignment 21 st August pm B106 Individual Assignment 3 rd September pm B020/B106 Class Test 17 th September pm B020/B106 Sick Test 2 nd October am To be announced Second Semester Main Exam Begins 24 th October 2015 WARNING: (a) You must follow correct protocol when lodging complaints (b) You must follow correct academic writing procedures. (c) You will be severely punished for plagiarism. In the worst case of plagiarism, the result will be a zero mark. 6

7 Introductory concepts SYLLABUS Part 1 SPECIFIC OUTCOME ASSESSMENT CRITERIA Credits Notional hours Weeks UNIT 1 The ability to: Learners will understand: 1. What corporate finance is 2. The goals of financial management 3. The corporate forms of business 4. The agency problem 5. Financial markets and institutions 6. Corporate governance and ethics Required Readings: Du Toit et al: Ch 1 Brewer et al: Ch 1 Davies & Boczko Ch 1 1. Explain the role of corporate financial management and the role and responsibilities of the financial manager 2. Review the three types of corporate financial management decisions and identify the main goal of financial management 3. Describe the different corporate forms of business 4. Discuss the agency problem and agency cost 5. Understand the functions of financial markets and institutions, and the role of corporate governance and business ethics. 7

8 Financial management basics Part 2 SPECIFIC OUTCOME ASSESSMENT CRITERIA Credits Notional hours Weeks UNIT 2 The ability to: Learners will understand: 1. The objectives of financial statements 2. Who are the users of financial statements 3. Requirements for financial statements 4. The standardization of financial statements 5. Statement of financial position 1. Discuss the objectives and requirements of financial statements 2. Identify the users of financial statements 3. Identify the components included in the main types of financial statements 4. Distinguish between the three main types of financial statements 5. Describe the formats of a statement of financial position, statement of comprehensive income and statement of cash flows. 6. Statement of comprehensive income 7. Statement of cash flows Required readings: Du Toit et al. Ch 2 Brewer et al Ch 2 pp UNIT 3 The ability to: To understand: 1. Requirements for financial ratios 1. Discuss the requirements for financial ratios 2. Identify the norms of comparison used to evaluate ratios 2. Norms of 3. Identify the different types of ratios comparison 4. Define, calculate and interpret 3. Types of ratios profitability, liquidity, solvency, cash 4. Financial gearing flow and investment ratios 5. DuPont Analysis 5. Explain financial gearing Required readings: 6. Apply the DuPont Analysis system to Du Toit et al. Ch 3 evaluate return ratios. Marx Ch 2 Brewer et al Ch 14 8

9 UNIT 4 To understand: 1. Interest rates 2. Future value and compounding of lump sums 3. Compounding interest more frequently than annually 4. Nominal and effective interest rates 5. Present value and discounting 6. Valuing annuities and perpetuities Required Readings: Du Toit et al. Ch 4 The ability to: 1. Use various computation tools to analyse the role of time value in finance 2. Calculate, interpret and explain the future value and present value of single amounts or lump sums, and investigate the relationship between them 3. Calculate, interpret and explain the future and present value of annuities (ordinary annuities and annuities due) 4. Calculate, interpret and explain the present value of a perpetuity 5. Calculate and interpret the present value and future value of a mixed stream of cash flows 6. Calculate the present value, future value, interest rate and time period using discounting and compounding principles

10 UNIT 5 To understand: 1. The importance of efficient investment appraisal 2. Types of investment projects 3. The average return method 4. The discounted payback period method 5. The net present value method 6. The internal rate of return method 7. Modified internal rate of return 8. The profitability index Required Readings: Du Toit et al. Ch 5 Brewer et al. Ch 12 The ability to: 1. Understand the importance of the investment appraisal process 2. Distinguish between the different types of investment projects 3. Calculate, interpret and evaluate the average return method 4. Calculate, interpret and evaluate the payback period method 5. Calculate, interpret and evaluate the discounted payback period method 6. Calculate, interpret and evaluate the net present value method 7. Calculate, interpret and evaluate the internal rate of return method. 8. Define, construct and interpret a net present value profile graph 9. Calculate, interpret and evaluate the modified internal rate of return method 10. Calculate, interpret and evaluate the profitability index method 11. Understand why ranking investment proposals on the basis of the net present value and internal rate of return methods may lead to conflicting rankings

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