BUACC 3701 – Week 3 Long Term Financial Planning and Corporate Growth

Oh! It's you again.... hehe.

Looking at the topic that is Long Term Financial Planning and Corporate Growth, I just break it down to some general areas to get your brains working. Long term means for a very lengthy duration. It could be more than a year (if you consider one year is long enough), or it can be 5 years, 10 years, 15 years. For example, the plan formulated by our Prime Minister (hmmm...) TN50 (Transformasi Nasional 2050) a plan which heading to the year 2050 with much development we are going to do and many things we going to achieve. Talking about numbers... a lot! A lot of effort, sweat, ideas to achieve the desired TN50 (and a lot they can make too!) Hahaha.

So, what is the long term is for? It is about financial planning. The same thing you plan what you gonna be in 5 years from now. Simple, what you want to eat tomorrow, you have to start thinking from today, If you want to eat a nice succulent steak at super duper expensive restaurant, you have to start finding some money for it. Of course, you need to plan your finance, how much to have, how to save, how to spend and most importantly, how to start. So now, you have Long Term Financial Planning... It is a plan to finance you for your future. Simple, kan, kan, kan?

Lastly is Corporate Growth..Why are you studying this for? Of course, if it is not for you, then it will be for those companies you gonna serve. By having good financial planning, you can build the organization, the empire and your life, stay there for a long long time. There is nothing gonna stop you. Speaking about nothing gonna stop us from planning, Then I will treat you with an old song, Nothing's Gonna Stop Us Now. After that, we will continue with the topic....see ya later!

Financial planning (business)

From Wikipedia, the free encyclopedia

Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set. The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the time frames involved.

The Financial Planning activity involves the following tasks;----

• Assess the business environment
• Confirm the business vision and objectives
• Identify the types of resources needed to achieve these objectives
• Quantify the amount of resource (labor, equipment, materials)
• Calculate the total cost of each type of resource
• Summarize the costs to create a budget
• Identify any risks and issues with the budget set

Performing Financial Planning is critical to the success of any organization. It provides the Business Plan with rigor, by confirming that the objectives set are achievable from a financial point of view. It also helps the CEO to set financial targets for the organization, and reward staff for meeting objectives within the budget set.

The role of financial planning includes three categories:

1. Strategic role of financial management
2. Objectives of financial management
3. The planning cycle

When drafting a financial plan, the company should establish the planning horizon,^[1] which is the time period of the plan, whether it be on a short-term (usually 12 months) or long-term (2–5 years) basis. Also, the individual projects and investment proposals of each operational unit within the company should be totaled and treated as one large project. This process is called aggregation.^[2]

CORPORATE GROWTH

Corporate growth can be defined in numerous ways and be achieved in several strategic forms. In general, the matter of whether—and at what rate—a company is growing can be highly ambiguous. A company can experience strong sales growth, but simultaneously be losing market share and experiencing financial losses. In such a case, the company's volume is rising, but that of its competitors is rising even faster. And, on the bottom line, sales growth means little when the company cannot turn a profit.

The same company may be gaining market share, but losing sales volume and money. This suggests that volume is falling throughout the industry, but only less so for this company. In any case, it still loses money on its operations.

Consider a third case, where a company's earnings are rising, but it's losing sales volume and market share. This is quite possibly the only favorable scenario, because it suggests that the company is cutting marginal operations to concentrate on what it does best—in effect, becoming smaller but more profitable.

While these criteria can provide some insight into the true nature of the firm—whether it really is growing or not—they also can provide some indication of what type of firm the company is: a dog, a question mark, a cash cow, or a star.

A dog is a company with low or declining market share and low or declining market growth, typically a description of a dying firm. A company with low or declining market share but a high rate of sales growth is a question mark, because its success depends on whether it can outperform competitors in terms of sales growth and eventually gain market share.

Alternatively, a company with low or declining sales growth but high or increasing market share is a cash cow because its position in the market is secure even though the industry in which it operates has matured. Such a company is typically overrun by successful question marks and becomes a dog. In the meantime, however, it generates a healthy income.

A company with high or growing market share and high or growing sales volume is called a star because it is outperforming its competitors. Dogs typically lose—or will lose—money, while stars typically make—or will make—money.

Whether in terms of market share or sales volume, growth may be pursued in one of three ways. In a high-growth company, either or both market share and sales volume growth are pursued vigorously, even at the expense of short-term profitability. This is a risky strategy because the company risks going bankrupt before it can achieve commanding positions in terms of market share and/or sales volume.

A slow-growth company concentrates on maintaining profitability while pursuing incremental gains in market share and/or sales volume. The slow-growth strategy emphasizes financial longevity.

The third growth strategy is based on negative growth, or retrenchment. A company in retrenchment is purposely sacrificing market share and sales growth with the singular goal of emphasizing short-term profitability. In other words, the company is abandoning operations in markets where it has the fewest advantages, vis-à-vis competitors.

When the retrenchment has run its course, the company is left with a core business in which it enjoys solid advantages over competitors, and may take advantage of its superior profitability to pursue either a high- or slow-growth strategy. In effect, retrenchment strategies establish bases for the other growth strategies.

OTHER ASPECTS OF CORPORATE GROWTH

Whether a company is in a growth industry or a mature market, corporate growth is necessary for a company to remain healthy. Companies that compete in a growing market must grow in order to maintain market share. Without such growth, they fail to realize benefits of growth such as economies of scale and the ability to attract talented managers and employees. Especially in global markets, economies of scale allow growing companies to make significant investments in research and development and worldwide marketing.

Similarly, companies competing in mature markets must find ways to grow. Otherwise, they are forced to compete on the basis of price and face declining margins. In order to achieve growth such companies typically exit slow-growth products or market segments that aren't very profitable and enter those markets or related markets that are growing more quickly. They may develop and nurture new businesses that will replace or complement their maturing core business. Other growth strategies for companies competing in mature markets include acquiring smaller competitors or consolidating fragmented industries into a single-source operation. Growth companies in mature industries may include electric utilities, large retailers, and railroad companies.

As desirable as corporate growth may be, a study, conducted by the Corporate Strategy Board, of 3,700 U.S. and international companies for the period from 1990 to 1997 found that only 3.3 percent of those companies had consistent profitable growth in revenues, net income, and shareholder returns for the period. Of the companies studied, only 21, or less than I percent, achieved consistent growth over the past 20 years.

[ John Simley , updated by David P. Bianco ]

Read more: http://www.referenceforbusiness.com/encyclopedia/Con-Cos/Corporate-Growth.html#ixzz4oNWEsfvB

Here are some notes that can help...

The slides...  Ross_7e_PPT_Ch04

The notes... Week 3 Additional Notes

And lastly...the questions.... hahahaha   Week 3 (Ch 4)- Tutorial Questions

And some presents for you... Look what I found!

Questions for this chapter, same like those in the outlines and ANSWERS!!!!!
rossfund_ch04 and chapter4 answers

ACC1231 & BUS1233 - Accounting Equation Notes

Take a look at this...this might give you some ideas to your exercises...

 

BUS1233 & ACC1231 SELF LEARNING ACTIVITIES – WEEK 3 (31 July – 3 Aug)

Click the link below to retrieve the document.

SELF LEARNING ACTIVITIES – WEEK 3 (31 July – 3 Aug)

Required:

1. Download the required document.
2. Print it.
3. Attempt all the questions.
4. Bring them to class for discussion.

Potential marks ♥♥

ACC 2232 - Answers to Classification of Costs

Well, as promised, below are the answers for relevant and irrelevant cost...

Solution - Relevant and irrelevant costs

We have two alternatives: (a) dental care division is sold off and (b) dental care division continues to operate. Identifying relevant costs and irrelevant costs is easy when we see if a cost changes between two alternatives or not. If it changes it is relevant, if it doesn’t it is irrelevant.

1. CEO’s salary is irrelevant because it shall remain the same whether the dental care division exists or it is disposed off.
2. Salaries of employees who can be laid off is relevant because the cost shall continue to be incurred if the division exists but it shall be reduced to zero if the division is disposed off.
3. Salaries of employees who can’t be laid-off is irrelevant because it shall continue to be incurred regardless of whether the division is disposed off or not.
4. One-time retirement benefits cost is relevant because it shall be incurred only if the division is disposed off. If the division continues to operate, the cost shall continue to be incurred.
5. Cost of raw materials is relevant cost because it shall be zero if the division no longer operates because then there will be no production.
6. Annual directors fee is irrelevant cost because it shall stay the same even if dental care is disposed off.
7. Interest paid on dental care division loans is relevant because if the division is sold off the loan could be paid off which shall cease the interest cost.
8. Salary of the dental care chief operating officer is relevant because he will most likely lose his job. If he is accommodated in another division, this cost shall be irrelevant.
9. Company-wide quality certification fee is irrelevant because it shall continue to be incurred even if dental care division is no longer there.
10. License fee paid for manufacturing dental care products is a relevant cost because it shall cease with disposal of the division.
11. Head office rent is irrelevant because it shall remain the same regardless of the number of divisions. If a division is sold-off, head-office will still exist and the office rent shall be incurred.
12. Audit fee is irrelevant if it does not depend on the number of divisions. Audit shall be conducted even if there is one division less.

Solution - Controllable and Uncontrollable Costs

The controllable costs are: direct materials, direct labor, indirect materials, and indirect labor (supervision). Depreciation, insurance, allocated repairs and maintenance, and allocated rent and utilities expense are not under the influence of the production manager. Under responsibility accounting, managers are evaluated based on costs that they can control. Hence, uncontrollable costs are ignored in evaluating managers.

Change of venue again....BUS1233 Section 2

Effective from today onwards, our class BUS1233 Section 2 (1400-1530hrs) will be relocated to E-203. Sorry I just being notified through system at the very last minutes....

ACC1231 & BUS1233 Accounting Equation and Business Transactions Exercises

So far, there are no questions from you guys, so I assume that all of you understood. Attached is the word documents containing simple accounting exercises. I hope you manage to do them and if you do them on by yourself without discussion, it is even better!  Potential marks ♥♥♥♥

Accounting Equation and Business Transactions

start cracking your heads and you have 6 days to finish them

ACC 2232 - Chapter 2 Cost Accounting Concept

According to Wikipedia...Classification of cost means, the grouping of costs according to their common characteristics. ... Indirect costs are allocated or apportioned to cost objects. By Functions: production,administration, selling and distribution, R&D. By Behavior: fixed, variable, semi-variable.

 

Let's look at the classification of cost by decision making.

RELEVANT AND IRRELEVANT COST (AccountingExplained)

The classification of costs between relevant costs and irrelevant costs is important in the context of managerial decision-making.

In any managerial decision involving two or more alternatives, the prime focus of analysis is to find out which alternative is more profitable. The profitability of alternatives is determined by considering the revenues generated by and costs incurred under each alternative. Some costs may stay the same regardless of which alternative is chosen while some costs may vary between the alternatives. The classification between relevant and irrelevant costs is useful in such situations.

Examples of situations in which the relevant vs irrelevant classification is useful include decisions regarding:

• Shutting down a division of a business,
• Accepting an special order at lower price,
• Making a product in-house or purchasing it from outside,
• Selling a semi-finished product or processing it further, etc.

 

Relevant costs

Relevant costs are costs that are affected by a managerial decision in a particular business situation. In other words these are the costs which shall be incurred in one managerial alternative and avoided in another. As the name suggests they are ‘relevant’ for managerial analysis and should be considered in all calculations made for the purpose.

 

Irrelevant costs

Irrelevant costs are costs that are not affected by the ultimate decision. In other words, these are the costs which shall be incurred in the all managerial alternatives being considered. Since they are the same in all alternatives, they become irrelevant and need not be considered in calculations made for managerial analysis.

 

Try to do this!

Vital Industries is a company that manufactures personal care products. It has three divisions: hair care, skin care and dental care. Following is an extract from the financial statements for the year ending 31 December 2014:

	Hair Care	Skin Care	Dental Care
Revenue	$900 million	$600 million	$300 million
Net income/(loss)	$210 million	$100 million	($50 million)

In the board meeting summoned for review of financial statements, a director proposed that the company should dispose of the dental care division because it is loosing money. The CEO argued that the board can’t conclude that a segment is losing money just because it generated net loss for a period. He suggested that the company’s chief financial officer should conduct a detailed analysis for presentation in the next board meeting. Being the company’s management accountant, the CFO asked you to identify which of the following costs are relevant for the decision:

1. CEO’s salary
2. Salaries of Dental Care workers who can be laid-off
3. Salaries of Dental Care workers who can’t be laid-off
4. One-time retirement benefits to be paid to laid-off workers
5. Cost of raw materials consumed by Dental Care division
6. Annual directors’ fee
7. Interest paid on loans raised for Dental Care division
8. Salary of the Dental Care chief operating officer
9. Company-wide quality certification fee
10. License fee paid for the rights to manufacture dental care products
11. Head office rent
12. Audit fee (if it doesn’t depends on the number of divisions)

Discuss and debate.
Potential marks ♥♥♥
Answer will be published on 27th July 2017 at 12 noon.

 

AVOIDABLE AND UNAVOIDABLE COST (my accounting course)

In a down economy, management is often faced with the decision of cutting branches, departments, and even products. In order to save the company money, managers tend to look the departments or products that are losing money or not turning a profit. A lot of times shutting down departments simply because they are losing money is not always a good idea. In fact, shutting down some non-profitable departments might even cost the company more money. Managers need to take a look at two main expenses when making a decision to close a department: avoidable costs and unavoidable costs.

 

Avoidable cost

Avoidable costs are costs that can be eliminated if a department is closed. Salaries are a good example of avoidable costs. When the branch closes, the salaries are stopped as well.

 

Unavoidable cost

Unavoidable expenses, on the other hand, are expenses that will not be eliminated if a department is closed. Unavoidable expenses are also called inescapable expenses for this very reason. A good example of an unavoidable expense is rent. Think if a business rents a 10,000 square foot building and uses it for three different departments or branches. Each department earns revenue and pays for a third of the rent expense. If one of the branches is closed, the company will still have to pay to rent the entire building. This rental expense isn't eliminated if the department is closed. In this case, the company might be better off keeping the non-profitable department open because it helps contribute one third of the rental expenses.

 

SUNK COST (accounting tools)

A sunk cost is a cost that an entity has incurred, and which it can no longer recover by any means. Sunk costs should not be considered when making the decision to continue investing in an ongoing project, since you cannot recover the cost. However, many managers continue investing in projects because of the sheer size of the amounts already invested in the past. They do not want to "lose the investment" by curtailing a project that is proving to not be profitable, so they continue pouring more cash into it. Rationally, they should consider earlier investments to be sunk costs, and therefore exclude them from consideration when deciding whether to continue with further investments.

An accounting issue that encourages this adverse behavior is that capitalized costs associated with a project must be written off to expense as soon as the decision is made to cancel the project. When the amount to be written off is quite large, this encourages managers to keep projects running.

Examples of Sunk Costs

Here are several examples of sunk costs:

• Marketing study. A company spends $50,000 on a marketing study to see if its new auburn widget will succeed in the marketplace. The study concludes that the widget will not be profitable. At this point, the $50,000 is a sunk cost. The company should not continue with further investments in the widget project, despite the size of the earlier investment.
• Research and development. A company invests $2,000,000 over several years to develop a left-handed smoke shifter. Once created, the market is indifferent, and buys no units. The $2,000,000 development cost is a sunk cost, and so should not be considered in any decision to continue or terminate the product.
• Training. A company spends $20,000 to train its sales staff in the use of new tablet computers, which they will use to take customer orders. The computers prove to be unreliable, and the sales manager wants to discontinue their use. The training is a sunk cost, and so should not be considered in any decision regarding the computers.
• Hiring bonus. A company pays a new recruit $10,000 to joint the organization. If the person proves to be unreliable, the $10,000 payment should be considered a sunk cost when deciding whether the individual's employment should be terminated.

 

OPPORTUNITY COST (BusinessDictionary)

A benefit, profit, or value of something that must be given up to acquire or achieve something else. Since every resource (land, money, time, etc.) can be put to alternative uses, every action, choice, or decision has an associated opportunity cost.
Opportunity costs are fundamental costs in economics, and are used in computing cost benefit analysis of a project. Such costs, however, are not recorded in the account books but are recognized in decision making by computing the cash outlays and their resulting profit or loss.

Example of opportunity costs;

• The CEO of Ace Corporation considered the merger that the competing company offered him, but after examining the opportunity cost he decided that the sacrifices were too high and the benefits were too low to accept the deal.
• I would have gone to the movie since it cost less and the tickets were not refundable but I have to see this concert even if the opportunity cost doesn't make sense to most people.
• When deciding on whether or not to go back to college full-time, Jack included the opportunity cost of foregoing a stable paycheck in his decision.

 

Controllable Costs (accountingverse)

Controllable costs are costs that can be influenced or regulated by the manager or head responsible for it.

For example: direct materials, direct labor, and certain factory overhead costs are controlled by the production manager. Another example: the sales manager has control over the salary and commission of sales personnel.

 

Uncontrollable Costs

From the term itself, uncontrollable costs are those that are not under the control of a specified manager. These cannot be influenced by decisions or actions of the manager. These costs are imposed by the top management or allocated to several departments. For example, a company-wide advertising cost that is allocated by the central office to different departments is not under the control of the department heads.

Other examples include depreciation, insurance, share in rent, share in organization-wide security costs, etc.

 

Try to do this!

To effectively evaluate the performance of the production department of ABC Company, the management accountant wants to determine the controllable and uncontrollable costs from the following items:

1. Direct materials
2. Direct labor
3. Factory overhead and other charges
   
   1. Indirect materials
   2. Indirect labor (supervision)
   3. Depreciation
   4. Insurance
   5. Allocated repairs and maintenance
   6. Allocated rent and utilities expense

Discuss and debate.
Potential marks ♥♥♥
Answer will be published on 27th July 2017 at 12 noon.

 

COST BEHAVIOUR

Each cost has its own behaviour. Basically, there are 4 kinds of cost behaviour that we need to know and it relates to our daily life. We are making expenses but some of us may not know the cost classification and most of us making important decision based on wrong facts... FaCT!. See below

BUACC 3701 - Week 2 Time Value of Money

What do we know about time value of money? Of course it is not a song title, but I remembered there was a song by Michael Bolton 'Time, Love and Tenderness' and it was my favourite. It was during the 90s. Hahahaha. So take a look at this video first before we go to our main discussion regarding the Time Value of Money.

I took this from a website called AccountingCoach

What is the time value of money?

The time value of money tells us that receiving cash today is more valuable than receiving cash in the future. The reason is that the cash received today can be invested immediately and will begin growing in value. For instance, if a company receives $1,000 today and it is invested at 8% per year, the company will have $1,080 after 365 days.A time value of money of 8% per year also tells us that receiving $1,080 one year from now is comparable to receiving $1,000 today. With a time value of money of 8% per year, accountants will state that receiving $1,080 in one year has a present value of $1,000.In accounting, a time value of money of 8% means that a company performing services today in exchange for cash of $1,080 in one year has earned $1,000 of service revenues today. The $80 difference will become interest income as the company waits 365 days for the money.

 

The time value of money is important in accounting because of the cost principle and the revenue recognition principle. However, materiality and cost/benefit allow the accountants to ignore the time value of money for its routine accounts receivable and accounts payable having credit terms of 30 or 60 days.

Here are some video regarding time value of money. I took it from Khan Academy. Maybe it helps... It is a link and there will some illustration video on the topic.

 

https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/time-value-of-money

 

The slides for Topic 2....Ross_7e_PPT_Ch05

Here are some notes from the FedUni for you to read...Week 2 Additional Notes

Don't forget your tutorial question...Week 2 (Ch 5) -Tutorial Questions

BUS1233 - Change of venue (S1)

Effective from Tuesday onwards, our class BUS1233 Section 1 (1230-1400hrs) will be relocated to W-310. This is due to the air-cond is not being fixed yet. God knows when! The time remains.....

See you tomorrow

BUS1233 - Change of venue (S2)

Effective from tomorrow onwards, our class BUS1233 Section 2 (1400-1530hrs) will be relocated to W-313. This is due to the air-cond is not being fixed yet. God knows when! The time remains.....

See you tomorrow

ACC 2232 - Chapter 1 Introduction To Cost Accounting

In this topic, you will learn about cost and the importance of it in determining the pricing of a product or service. It can also be expanded to greater detail for Managerial Accounting where it helps us in decision making. Well it is too early to learn Management Accounting but first you have to prepare a sound foundation to know what is cost accounting is all about.

COST

Anything that involve money to spend on something to get something going...hehe. Or to create something. If you want to go for a movie, there is cost involve. If you want to eat at McDonalds, of course there is also cost. In short, the thing you spent on something whether it is paid or still due to be paid, as long as you have already spent....that is COST!

I always remember there was a saying in one of the book I've read... "When you start calculating cost, the cost begins....."

COSTING

The word 'ting' at the end of the word cost....represents the action. Now I'm going to a little bit of english here, but you have to know this. Costing is a technique and process of finding the right way of ascertaining the cost. Of course, there are a lot of things you have spent on doing something, but not all the things that you spent can be put to the costing of that particular activity. There are certain rules  and principles we have to follow. Like everything you do, there are ways on how to do them.

COST ACCOUNTING

When the two words merge together, it is now can be defined as " the process of accounting for cost, which begin with the recording of income and expenditure, on the basis of which they are calculated and ends with the preparation of periodical statements and reports for ascertaining and controlling costs. - CIMA. I'm going a bit formal huh!. Well, that's the definition of cost accounting.

To cut it short, there is more.

• Determining product cost and pricing

Know the cost, mark-up a bit and there you have your selling price. Make sure that the selling price should be enough to cover the cost of producing the product and yield satisfactory profits. Or else, the owner will make noise, and ultimately you'll be fired! Hahaha

• Planning and control

Planning is always an important process to achieve organizations' objective. Cost is one of them. Any projects, production even going to war, you have to come out with a plan. Or else, you will ended losing. When you plan, you'll know how much to produce, what to produce, when to produce, where to produce, therefore you can have an estimate ton the cost of each level of activities. Remember, Plan to Fail don't Fail to Plan.

Control is also an important criteria in managing the cost. You need to be in control of your cost. It can be assigning responsibility, reviewing the production process, regular maintenance on the machines, measuring the performance and comparing results, taking necessary corrective actions and go back to the drawing board and start planning back. These continuous process will go on and on. Boring right? But this is control. You are the master of your own process.

 

Discuss the advantages and limitations of cost accounting in class. I want you to explore, read, there are a lot in the web.

Potential marks ♥

BUACC3701 - Week 1

Sitting in class, hearing what the lecturers have to say is not as effective as you learn by doing your own research. You have to put additional effort by browsing, reading and discussing the tutorial questions. These subject will get tougher day by day. I'm just giving you topics on the surface but the rest.....you are on your own.

Okay, the attachment below are the additional notes for you to read. If they are too long for you to handle, break them into shorter pages and divide them. You will be teaching each other within your own small group. That's effective! That's the FaCT™.

Slides - Ross_7e_PPT_Ch01  (Ch14 cannot be uploaded due to technical reasons)

Notes - Week 1 Additional Notes  Week 1a Additional Notes  Week 1b Additional Notes  Week 1c Additional Notes

Tutorial Questions - Week 1 - Tutorial Question.doc

Welcome BUACC3701 Students

Assalamualaikum and selamat sejahtera to you.

As you are aware, your class will starts on 17 July 2017.  Maybe some of you knew me and maybe not. But as for the Do's and Don'ts, you can refer to my other writings in this blog. I will start posting weekly tutorial questions and what i want you to do is to read the chapter first before coming to the class. In class, I will just flip through the slides and asking you the answer for the tutorial questions...

Ross, S., Drew, M., Walk, A., Westerfield, R., and Jordan, B., (2017), Fundamentals of Corporate Finance, 7^th edn, McGraw-Hill Education, Ryde, NSW. ISBN 9781743762967

Twelve weeks as usual and the topics are as below;

Week	Topic	Chapter	Tutorial Questions
1	Introduction to Corporate Accounting Australian Financial Markets and Liquidity Management	1 & 14	Chapter 1 - Questions 1, 4, 5, 7, 8, 14. Chapter 14 - Questions 1, 4, 7, 8, 13, 15.
2	First Principles of Valuation: The Time Value of Money	5	Chapter 5 - Questions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 41, 42, 46, 47
3	Long-Term Financial Planning and Corporate Growth	4	Chapter 4 - Questions 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29
4	Return, Risk & the Security Market Line	11
5	Valuing Shares & Bonds	6	Chapter 6 - Questions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 14, 15, 16, 17, 20, 22, 25, 26, 29, 30, 31, 32.
6 & 7	Net Present Value & Other Investment Criteria. Making Capital Investment Decisions Project Analysis and Evaluation	7, 8 & 9
8	Shareholder Value and the Cost of Capital	17
9	Financial Leverage & Capital Structure Policy	19
10	Current Investment Decisions Working Capital Management	12 & 13	Chapter 12 - Questions 7, 11, 14, 15, 16, 17, 18, 19, 20, 21, 23. Chapter 13 – 2, 3, 4, 5, 7, 8, 12, 13, 15, 16, 19, 20, 21, 22, 23, 25, 26, 28, 29, 30, 32, 33, 34.
11	Rewarding Shareholders: Setting Dividend Policy	18
12	Review

Additional Resources:

Berk, J., DeMarzo, P., Harford, J., Ford, G., and Finch, N., (2013), Fundamentals of Corporate Finance, 2^nd edn Pearson Education, Frenchs Forest.

Besley and Brigham, (2013), CFIN, (Student Edition) South Western Cengage Learning, USA.

Brealey, R., Myers, S., and Allen, F., (2010), Principles of Corporate Finance, 10^th edn, McGraw-Hill/Irwin, Massachusetts, USA.

Frino, F., Hill, A., and Chen, Z., (2012), Introduction to Corporate Finance, 5^th edn, Pearson Education, Frenchs Forest, NSW.

Gitman, L.J., Juchau, R., & Flanagan, J., (2011), Principles of Managerial Finance, 6e, Pearson Education Inc., NSW. ISBN 978-1-4425-1819-3

Keown, A., Martin, P., and Petty, J., (2014), Foundations of Finance, 8^th edn, Pearson Education, USA.

Megginson, W., and Smart, S., (2009), Introduction to Corporate Finance, 2^nd edn, South Western Cengage Learning, USA.

Parrino, R., Kidwell, D., Yong, H. H. A., Morkel-Kinsbury, N., Dempsey, M., and Murray, J, Kopfoed, J., and Ekanayake, S., (2013), Fundamentals of Corporate Finance, 2^nd edn, John Willey and Sons, Australia.

Pierson, G., Brown, R., Easton, S., Howard, P., and Pinder, S., (2014), Business Finance, 12^th edn, McGraw-Hill Australia, Ryde, NSW.

Titman, S., Martin, T., Keown, A., and Martin., (2016), Financial Management: Principles and Application, 7^th edn, Pearson Australia, Melbourne, Vic.

The link to the library website for more information is:
http://www.federation.edu.au/current-students/assistance,-support-and-services/academic-support/learning-and-study/resources/general-guide-for-the-presentation-of-academic-work  

 

Assessment Task 1: Individual Test

• Assessment Details

The test will be a 90 minute in-class closed-book test which will feature short answer questions relating to key concepts from the first four weeks of the course.

• Submission details

Test will be held during lecture in week 5. Lecturer will collect papers.

Assessment Task 2: Assignment

• Assessment Details

Assignment consists of several questions and is to be completed in groups of no more than three students.

• Criteria used to grade the task

Refer to assignment on Moodle shell

• T

• Submission details

Assignment due at the end of week 10. Submission will be online via Moodle

• Feedback and return of work

Feedback and grades will be communicated via Moodle within three weeks of report submission

Assessment Task 3: Examination

• Assessment Details

The exam is a closed book exam of 3 hours duration and will comprise a mixture of theoretical and practical questions. An unmarked bilingual dictionary is permitted along with an appropriate calculator as discussed above

• Criteria used to grade the task

Mark allocation and format will be specified in the in-class exam briefing session in week 12 and on the examination paper itself

• Submission details

The examination will be held during the exam period following the end of the semester. Normal exam conditions will apply


HAPPY STUDYING!!!

Welcome ACC1231, ACC2231, ACC2232 and BUSS1233 students

Assalamualaikum and salam sejahtera,

I would like to take this opportunity to welcome you to my class for the above subjects. First of all, let me lay down some rules and what the do's and don'ts  for the class.

Do's

1. Come to class.
2. Be punctual.
3. Mobile phones should always be in silent mode.
4. Always bring your accounting book/manual to class.
5. Every students' should own a calculator (real calculator).
6. Give full attention to the lectures.
7. Sleep if you feel to sleep.
8. Attempt or sit for exercises,quizzes or assignment on specified date.
9. Submit any work given on time.

Don'ts

1. Absent without valid reasons.
2. Late to class.
3. Browsing, texting and talking on the phone during lecture time.
4. Sharing books is not recommended.
5. Using mobile phone as calculator.
6. Chit chatting/discussion with friends during the lecture.
7. Sleepwalking.
8. Absent for the exercises, quizzes or assignment without valid reasons.
9. Late submission of exercises, quizzes or assignment.

I welcome for students who wish to bring drinks or snacks to the lecturer ....hahaha

Please regularly check the blog as I will be posting some notes, exercises, assignments etc. Look at this sign Potential marks ♥♥♥♥♥ coz this will contribute to the marks when we discuss or when you you submit whatever is being required.

Certified Healthcare Facility Manager Training - Radicare Sdn Bhd Batch 2

Certified Healthcare Facility Manager Training
IIUM Kuantan,
Indera Mahkota, Pahang.
Module 6 - Finance to Non-Finance Manager
16th, 17th, 23rd and 24th May 2017.
Group: Radicare Sdn Bhd – East and Central Chapter (Batch 2)

[facebook url="https://www.facebook.com/fadhilconsult/videos/1878576018835161/" /]

A collaboration program with the International Islamic University Malaysia and Ministry of Health Malaysia. The four days seminar covered important areas namely the introduction of financial and managerial accounting, financial management and decision making techniques, auditing and basic taxation. The seminar enhances the participants’ knowledge in areas of accounting and understanding the importance and the contribution to the corporate decision making.

Kuantan is a place which seldom visited especially IIUM Kuantan campus. Sultan Haji Ahmad Shah Mosque is now standing beautifully by the lake and many new building have been built marking the progress of the University itself. Even though the budget accommodation was not so pleasing but it was enough, can’t comment more (suits the name ‘Budget Hotel’). Akob Ikan Patin, Mok Na stall and Teluk Cempedak Beach are among recommended places to be while in Kuantan.

Alhamdulillah for the sharing knowledge session (training), the awesomeness of the participants, the hospitality, the food, the ambience, IIUM Kuantan, IIUM Crescent and many more. Alhamdulillah!

Hope to see you guys again. InsyaAllah and thank you!

KUANTAN!!!! Peace yo!

Gas Transmission Company Limited (GTLC) PETROBANGLA, DHAKA, BANGLADESH

GAS TRANSMISSION COMPANY LIMITED (GTLC)
PETROBANGLA, DHAKA, BANGLADESH
Geomatika University College,
Setiawangsa, Kuala Lumpur.

Financial Accounting, Reporting & Business Support in the Gas Industry 16th - 18th April 2017.
[facebook url="https://www.facebook.com/fadhilconsult/videos/1876914102334686/" /]

A financial training seminar conducted by Geo Management and Training, of GUC. A one week training and tourism program where the participants learn about the financial aspects of oil and gas industry as well as a sight-seeing program discovering Kuala Lumpur, Melaka and Langkawi.

Participants were very talented, intelligent and sharp-minded person who’s holding various important position in the said organization. The rest of the seminar was conducted by another expert from GUC in great detail.

Alhamdulillah, thank you Mr Maminul Islam, the director of International Student Office for giving me the opportunities to be part of the program.

I really missed them and sharing knowledge with them was the best part of the program.

Certified Healthcare Facility Manager Training - UEM Edgenta Batch 2

Certified Healthcare Facility Manager Training
TH Hotel and Convention,
Alor Setar, Kedah.
Module 6 - Finance to Non-Finance Manager
4th, 5th, 18th and 19th January 2017.
Group: UEM Edgenta Sdn Bhd - Northern Chapter (Batch 2)
[facebook url="https://www.facebook.com/fadhilconsult/videos/1730891400270291/" /]

A collaboration program with the International Islamic University Malaysia and Ministry of Health Malaysia. The four days seminar covered important areas namely the introduction of financial and managerial accounting, financial management and decision making techniques, auditing and basic taxation.

New place, nice town, good food even though the journey took me nearly 6 hours to arrive at the destination. But, it was worth it. Nasi Lemak Royale, Nasi Kandar Yasmine and the delicious Laksa Ikan Sekoq have made my trip a memorable one.

Hope to see you guys again. InsyaAllah and thank you!

Accounting S01E05

Part 5 - Users and Uses of Accounting Information
The financial statements are being prepared for certain purposes. Both internal and external users need financial information in order to arrive at important decision regarding their business. In this short video, it explains the internal users of financial information and why they need them. Stay tune for the last part of the season...hehe

Accounting S01E04

Part 4 - Accounting Definition in greater detail
Further explanation of Accounting definition and the birth of financial statements. Short and sweet for those who really want to know about accounting. Enquiries are welcome.

Accounting S01E06

Part 6 - Users and Uses of Accounting Information
Our final episode for this inaugural season. The external users and uses of accounting information and financial statements. Hopefully, viewers could benefited from these short videos. We are trying our best to educate and spread the awareness of the importance of accounting to the community. Students especially, do like our page for important seminars, trainings etc.

We are in the midst of preparing our second season for accounting presentation. Make du'a and pray for us that we are able to finish them as soon as possible.