Course syllabus FMD - Accounting Consequences of Financial Modelling (ŠAVŠ - WS 2019/2020)

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Course title: Accounting Consequences of Financial Modelling
Semester: WS 2019/2020
Course supervisor: doc. Ing. Romana Čižinská, Ph.D.
Supervising department: Department of Finance and Accounting (ŠAVŠ)
Prerequisites for registration: Bachelor state examination
Time allowance: full-time, 1/2 (hours of lectures per week / hours of seminars per week)
part-time, 0/12 (lectures per period / seminars per period)
Type of study: usual, consulting
Form of teaching: lecture, seminar
Mode of completion and credits: Exam (5 credits)
Course objective:
The goal of the course is to get students acquainted with the impacts of financial decision making into accounting statements. The emphasis is put on variability of inputs, which is typical for the recent decision making of the companies. MS Excel is used as a basic tool throughout the course.
 
Course methods: The full-time course consists of theoretical lectures and seminars. During the term, several case studies and exercises are elaborated. The emphasis is put on the managerial interpretation of the results. For students in the part-time form of study, the course is lectured in three tutorial sessions (4 x 45 minutes each) and in individual sessions with the lecturer (if necessary).
 
Course content:
1.Analysis of Financial Statements and Evaluation of Financial Performance (allowance 3/4)
 
a.Financial ratios
b.Invested capital (net operating assets)
c.Economic and market value added (EVA and MVA)
d.Relationship Between EVA, MVA and enterprise / equity value

2.Financial Planning of Accounting Statements (allowance 2/4)
 
a.Methods of Financial Planning
b.Net Working Capital Planning
c.Operating Leverage
d.Direct and Indirect Methods of Cash Flow Planning
e.Additional Funds Needed

3.Capital Budgeting and its Accounting Consequences (allowance 2/4)
 
a.Capital Expenditures and Income Planning
b.Dynamic Analytical Methods
c.Ways to Incorporate Risk Into Capital Budgeting
d.Sensitivity Analysis.

4.Corporate Valuation (allowance 2/6)
 
a.Object, subject and purpose of valuation
b.Three basic approaches used in corporate valuation
c.Financial value drivers
d.Discounted cash flow and economic value added methods of corporate valuation

5.Accounting Impacts of the Changes of Capital Employed and Relations to Equity / Entity Value (allowance 3/6)
 
a.Increase in Equity and its Accounting Projection
b.Evaluation of the Costs of Equity Using Empirical Data
c.Increase in Debt Capital and its Accounting Projection
d.Costs of Debt. WACC.
e.Relations Between WACC and Entity / Equity Value

 
Learning outcomes and competences:
After completing the course, student:
 
-Will argue the impacts of different company decisions on the additional funds needed taking WACC into consideration and solve "cyclical problem"
-Will assess the efficiency of different forms of the long term investments
-Will calculate and interpret the value of the company using discounted cash flow and economic value added valuation methods
-Will define main financial goal of the company, argue the possibilities of its measurement using company accounting statements and explain the company financial decisions with the positive contribution to the financial goal achievement
-Will evaluate company financial performance and interpret the structure of internally and externally generated cash flows

Teaching methods and workload (hours of workload):
Type of teaching methodDaily attendanceCombined form
Direct teaching
     Attendance of lectures12 h8 h
     Attendance of courses/seminars/tutorials24 h0 h
     Consultations with teacher (part-time form of study)0 h4 h
Self-study
     Course reading and ongoing preparation20 h30 h
     Ongoing evaluation14 h14 h
     Preparation for final test14 h28 h
Total84 h84 h
 
Assessment methods:
Requirement typeDaily attendanceCombined form
Mid-term test(s)60 %60 %
Final test30 %30 %
Final oral exam10 %10 %
Total100 %100 %
 
Course completion:
During the semester:
Completion of the two component (midterm) tests in MS Excel is necessary. Sample numerical cases are downloadable from AIS. The Total Score is 30 points maximum for each test (i.e. 2 x 30 points). A minimum of 50% (i.e. 30 points) is necessary to fulfill this part of the overall evaluation.

Final Exam:
Written test containing theoretical tasks (questions). Total Score is 40 points. Oral exam follows, but is not necessary in the case of excellent written exam. See AIS for the list of questions (tasks).

Final Grade is computed based on the following formula: Two midterm tests (maximum of 60 points) + Final Exam (maximum of 40 points) = maximum of 100 points. The grading scale is as follows:
90 - 100 points = 1
75 - 89 points = 2
60 - 74 points = 3
59 and less = fail
 
Support for combined/distance forms of study:
Educational and supporting study materials distributed through the AIS.
 
Reading list:
Basic:
DAMODARAN, A. Damodaran Online.  [online]. 2018. URL: http://pages.stern.nyu.edu/~adamodar/.
Language of instruction: Czech
MAŘÍK, M. Metody oceňování podniku.: Proces ocenění základní metody a postupy. 3rd ed. Praha: Ekopress, 2011. ISBN 978-80-86929-67-5.

Recommended:
Language of instruction: Czech
KISLINGEROVÁ, E. Manažerské finance.: 3. vydání +CD. 3rd ed. Praha: C.H.BECK, 2010. ISBN 978-80-7400-194-9.

Study plans:
N-EM-FRP Corporate Finance Management in the Global Environment, full-time form, initial academic year SS 2017/2018
N-EM-MAR Marketing Management in the Global Environment, part-time form, initial academic year SS 2017/2018
N-EM-MP Business Administration and Operations, full-time form, initial academic year SS 2017/2018
N-EM-GPP Law in the Global Business Environment, full-time form, initial academic year SS 2017/2018
N-EM-MP Business Administration and Operations, part-time form, initial academic year SS 2017/2018
N-EM-FRP Corporate Finance Management in the Global Environment, part-time form, initial academic year SS 2017/2018
N-EM-MAR Marketing Management in the Global Environment, full-time form, initial academic year WS 2018/2019
N-EM-MP Business Administration and Operations, part-time form, initial academic year WS 2018/2019
N-EM-MAR Marketing Management in the Global Environment, part-time form, initial academic year WS 2018/2019
N-EM-GPP Law in the Global Business Environment, full-time form, initial academic year WS 2018/2019
N-EM-FRP Corporate Finance Management in the Global Environment, part-time form, initial academic year WS 2018/2019
N-EM-MP Business Administration and Operations, full-time form, initial academic year WS 2018/2019
N-EM-FRP Corporate Finance Management in the Global Environment, full-time form, initial academic year WS 2018/2019
 
Run in the period of: SS 2019/2020, SS 2018/2019, WS 2018/2019, SS 2017/2018, WS 2017/2018, SS 2016/2017   (and older)
Course tutor: doc. Ing. Romana Čižinská, Ph.D. (examiner, instructor, lecturer, supervisor)
Teaching language: Czech
Room: Mladá Boleslav, Praha


Last modification made by Ing. Lucie Bydžovská on 10/10/2019.

Type of output: