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Reputable Graduate Business School for a Sustainable Tomorrow

AGW 610/3 Finance and Accounting for Management Graduate School of Business Universiti Sains Malaysia

COURSE GUIDE

Lecturers: Dr. Fathyah Hashim/ Assoc. Prof. Dr. Azlan Amran Semester: Semester 1, Academic Session 2013/ 2014

The information in this document is important and should be noted by all participants undertaking the Master of Business Administration Degree

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AGW 610/3 Finance and Accounting for

Management

Course GUIDE Semester 2/ 2012/2013

Learning Outcome

After successful completion of this course, learners should be able to:

LO1: evaluate the advance knowledge of accounting and finance and integrate sustainability issues, other business related disciplines together with previous learning and experiences to address complex global business situations holistically (PO1) (C6)

LO2: deduce financial and non-financial accounting information in justifying the financial positions and performance of a company (PO1) (C6)

LO3: construct financial statements based on generally accepted accounting standards (PO2) (P5)

LO4: formulate financial strategies based on accounting information to ensure sustainability of a company in a rapidly changing the world's economic landscape (PO3) (A5)

LO5: conform ethical, values and professional attitude in developing financial strategies (PO6) (A5)

LO6: practice strategic thinking, innovation and entrepreneurial skills in making managerial decisions (PO8) (A5)

Teaching Panel

Name Room # Email

Dr. Fathyah Hashim D05-C-06 2755 fathashim@usm.my; fathashim.hashim@gmail.com

AP Dr. Azlan Amran D05-B-03 2788 azlan_amran@usm.my

Consultation Hours

Time Day

By appointment

Any day

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Duration

15 Weeks (Sept 2013 – Jan 2014)

Student’s Learning Activities Week Activities

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Part A: Introduction to the course At the end of Part A, learners are expected to:

1. explain the objectives of this course 2. comprehend the learning outcomes of this course and the learning activities to

achieve each one of them 3. comprehend on how they are being assessed and the components 4. explain the expectations from the project 5. explain the general rules and procedures with regard to the course 6. know their course-mates

Part B: Lesson 1: The Nature and Purpose of Accounting (LO1) (LO2) Learning outcomes from Lesson 1. Students are expected to be able to:

1. identify the four types of accounting information 2. explain the rules and basic concepts that governs the financial accounting 3. describe the end products of the financial accounting process

To achieve the learning outcomes, students are required to:

1. Comprehend Chapter 1 from Anthony et al. 2. Analyse and participate in discussion for Case 1: Kim Fuller 3. Complete and submit Problem 1-2, 1-3, 1-5 (Anthony et al., p.20-1) in Week 2

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Lesson 2: Basic Accounting Concepts (LO1) (LO2) (LO3) Learning outcomes from Lesson 2. Students are expected to be able to:

1. apply the accounting concepts, principles and accounting equation for constructing financial statements

2. Evaluate the differences between accrual accounting and cash-basis accounting 3. Apply Accounting period concept, Revenue and Matching Principles in

constructing financial statements 4. Construct financial statement after adjusting entries 5. Identify accounting cycle 6. Show how to close accounts and classify them for presentation on the financial

statements

To achieve the learning outcomes, students are required to: 1. Comprehend Chapters 2 and 3 from Anthony et al. 3. Analyse and prepare for participation for Case 2: Dubai Pet World: Kennel

and Grooming Centre 4. Complete and submit Problem 2-2, 2-5 (Anthony et al., p.45-6) and Problem 3-3,

3-7 (Anthony et al., p.71-2) in Week 3

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Lesson 3: Cost of Sales and Inventories (LO1) (LO2) (LO4)

Learning outcomes from Lesson 3. Student are expected to be able to: 1. Describe and illustrate the operations of two types of inventory systems 2. Compare the effects of different costing methods

To achieve the learning outcomes, students are required to:

1. Read Chapter 6 from Anthony et al. 2. Analyse and prepare for participation for Case 3: Paragon Electronics, Inc. 3. Complete and submit Problem 6-3 and 6-4 (Anthony et al., p.162) in Week 4

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Lesson 4: Revenue and Monetary Assets; Long-lived Non-monetary Assets and their Amortization (LO1) (LO2) (LO3) (LO6) Learning outcomes from Lesson 4. Student are expected to be able to:

1. Describe and illustrate the components of internal control for cash and receivables

2. Use allowance method to account receivables 3. Measure and account for cash, receivables, PPE and intangibles

To achieve the learning outcomes, students are required to:

1. Read Chapters 5 and 7 (Anthony et al.) 2. Analyse and prepare for participation for Case 4: Depreciation Policy: British

Airways vs Lufthansa 3. Complete and submit Problem 7-2 (Anthony et al., p.195) in Week 5

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Lesson 5: Source of Capital: Debt (LO1) (LO2) (LO3) (LO4) (LO5) Learning outcomes from Lesson 5. Student are expected to be able to:

1. Account and disclose current and long-term liabilities on the balance sheet 2. Compare issuing liabilities and equities

To achieve the learning outcomes, students are required to:

1. Read Chapter 8 (Anthony et al.) 2. Complete and submit Problem 8-5 and 8-7 (Anthony et al., p.241-2) in Week 6

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Lesson 6: Source of Capital: Owner’s Equity (LO1) (LO2) (LO3) (LO4) (LO6)

Learning outcomes from Lesson 6. Student are expected to be able to: 1. Describe the two sources of shareholders’ equity and classes of shares 2. Account and disclose equities and dividends

To achieve the learning outcomes, students are required to:

1. Read Chapter 9 (Anthony et al.) 3. Analyse and prepare for participation for Case 6: Suzlon Energy: Financing

Problems 2. Complete and submit Problem 9-1 and 9-6 (Anthony et al., p.270-2) in Week 7

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7 Lesson 7: The Statement of Cash Flows and Financial Statements Analysis (LO1) (LO2) (LO3) (LO4) (LO6) Learning outcomes from Lesson 7. Student are expected to be able to:

1. Explain and prepare two methods of cash flows statement 2. Analyse financial statements using various methods.

To achieve the learning outcomes, students are required to:

1. Read Chapters 11 and 13 (Anthony et al.) 2. Analyse and prepare for participation for Case 7: JD Hall & Sons Limited Case

(A) 3. Complete and submit Problem 11-1 and 11-4 (Anthony et al., p.337-8), 13-1, 13-

3, 13-4, 13-5 (Anthony et al., p.386-7) in Week 8

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Lesson 8: The Nature of Management Accounting LO1) (LO2) (LO5) (LO6)

Learning outcomes from Lesson 8. Student are expected to be able to: 1. Distinguish between management accounting information used and financial

reporting 2. Describe the main uses of management accounting information 3. Use the spreadsheets and database systems to make accounting information

more accessible and useful 4. Make some general observations regarding management’s use of accounting

information

To achieve the learning outcomes, students are required to: 1. Read Chapters 15 (Anthony et al.) 2. Analyse and prepare for participation for Case 8: The Brief Career of Carly

Hennessley 3. Complete and submit Problem 15-3 and 15-4 (Anthony et al., p.453) in Week 9

9 MID SEMESTER BREAK (no class)

10 MID SEMESTER EXAM

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Lesson 9: The Behaviour of Costs, Full Costs and Their Uses (LO1) (LO2) (LO4) (LO5) (PO6) Learning outcomes from Lesson 9. Student are expected to be able to:

1. Describe and identify the cost-volume 2. Identify how changes in volume affect costs 3. Use fixed, variable and step-function costs information together with revenue

information to develop a profit graph 4. Use full cost concepts to record full costs in a cost accounting system 5. Calculate the direct and indirect costs of a product

To achieve the learning outcomes, students are required to:

1. Read Chapters 16 and 17 (Anthony et al.) 2. Analyse and prepare for participation for Case 9: Davey Brothers Watch Co. 3. Complete and submit Problem 16-1 and 16-3 (Anthony et al., p.479-480) and

17-4 (Anthony et al., p.507-8) in Week 11

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Lesson 10: Control: The Management Control Environment and Process (LO1) (LO2) (LO4) (LO5) (LO6)

Learning outcomes from Lesson 10. Student are expected to be able to:

1. Describe the nature of the management control environment and process 2. Identify the responsibility centers, profit centers and investment centers 3. Use transfer pricing to evaluate performance 4. Use the principle steps and process in management control system to evaluate

performance

To achieve the learning outcomes, students are required to: 1. Read Chapters 22 and 23 (Anthony et al.) 2. Analyse and prepare for participation for Case 10: Tractor Company of Asia 3. Complete and submit Problem 22-1 (Anthony et al., p.665) in Week 12

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Lesson 11: Strategic Planning and Budgeting (LO1) (LO2) (LO4) (LO5) (LO6) Learning outcomes from Lesson 11. Student are expected to be able to:

1. Use strategic planning to make decisions on upcoming major programs 2. Prepare and use budgets

To achieve the learning outcomes, students are required to:

1. Read Chapter 24 (Anthony et al.) 2. Analyse and prepare for participation for Case 11: Tokyo Disneyland and the

Disneysea Park 3. Complete and submit Problem 24-2 (Anthony et al., p.732) in Week 13

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Lesson 12: Short-Run Alternative Choice Decisions (LO1) (LO2) (LO4) (LO5) (LO6)

Learning outcomes from Lesson 12. Student are expected to be able to: 1. Describe and identify information relevant to business decisions (short-term and

capital budgeting) 2. Use differential concept to make alternative choice decisions 3. Use contribution analysis to analyze differential costs 4. Make decision based on alternative choice problem

To achieve the learning outcomes, students are required to:

1. Read Chapter 26 (Anthony et al.) 2. Analyse and prepare for participation for Case 12: Horseshoe Resort 3. Complete and submit Problem 26-3 (Anthony et al., p.830) in Week 14

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Lesson 13: Longer-Run Decisions: Capital Budgeting (LO1) (LO2) (LO4) (LO6)

Learning outcomes from Lesson 13. Student are expected to be able to: 1. Describe and identify the alternative choice decisions that involve relatively long-

term differential investment of capital 2. Use capital investment problems/capital budgeting problems to make decision 3. Make a long-term decision using a more complicated analytical approach

To achieve the learning outcomes, students are required to: 1. Read Chapter 27 (Anthony et al.) 2. Analyse and prepare for participation for Case 13: Cool Moose Creamery 3. Complete and submit Problem 27-5 (Anthony et al., p.861)

Independent Study

Lesson 14: Accounting Information System (LO1; C5) (LO2;C6) (LO3;P7) Self study – no class Learning outcomes from Lesson 13. Student are expected to be able to:

1. explain the characteristics of data and information and their values (LO1-2) 2. relate accounting information system (AIS) and the basic functions it performs

(LO1-3) 3. justify the role AIS in a company’s value chain to a business (LO1-2) 4. defend the application of AIS concept in developing strategies (LO1-2)

To achieve the learning outcomes, students are required to:

1. Read Article Accounting Information System (LO1-3)

TEXTS PRESCRIBED TEXT Anthony, R.N., Hawkins, D. & Merchant, K.A. 2011. Accounting: Text and Cases. 13th

Edition. McGraw Hill International Edition (Anthony et al.) Additional Readings:

1. Dyson, J.R. 2010. Accounting for non-accounting students. 8th Edition. Prentice Hall.

2. Schroeder, R.G., Clark, M.W. & Cathey, J.M. 2009. Financial Accounting Theory and Analysis: Text and Cases. 9th Edition. John Wiley & Sons, Inc.

3. Horngren, Harrison and Oliver (2009), Financial and Managerial Accounting; 2nd Edition, Pearson International Edition (HHO)

4. Business Times Online: http://www.btimes.com.my 5. Yahoo Malaysia Business News: http://malaysia.news.yahoo.com/business-

news-malaysia.html 6. Malaysian Accounting Standards Board: http://www.masb.org.my/ 7. Online Encyclopaedia on Accounting: www.wikipedia.org