PETROCELLI COLLEGE OF CONTINUING STUDIES MADS 6601 FINANCIAL ADMINISTRATION SPRING TRIMESTER 2012 SYLLABUS

Instructors Name Email Phone Dr. James Tong jtong@fdu.edu 604-682-8112 Course Room No. Meeting Times MADS 6601 Financial Administration 133 (Section 1), 130 (Section 2), 136 (Section 3) Wednesday : 12:00 noon 2:50 p.m. (Section 2) 5:00 p.m. 7:50 p.m. (Section 1) Thursday : 9:00 a.m. 11:50 a.m. (Section 3) www.fdu.edu/vancouver

Office Hours

Office PREREQUISITES : Nil

Wednesday : Website 2:50 p.m. 5:00 p.m. Thursday : 8:30 a.m. 9:00 a.m. and 11:50 a.m. 12:30 p.m. 842, Cambie Street, Vancouver, B. C., V6B 2P6

COURSE DESCRIPTION : This course analyses the concepts and principles used in the financial administration of the business, public, and not-for-profit sectors. This includes the key elements of accounting, budgeting, planning and control, costing, and their integration into a comprehensive control system, including issues of system design and implementation. RELATION TO COLLEGE MISSION : The Master of Administrative Science (MAS) degree is a 30-credit program structured to meet the career development needs of adult learners working in administrative and professional positions in the private sector, government agencies and not-for-profit organizations. Its primary purpose is to enhance the administrative and leadership skills of graduates. The MAS is FDUs largest part-time graduate studies program. The program is designed to serve primarily in-service students with five or more years of relevant professional work experience. Since the degree program is targeted toward working adults, admission is based on multiple criteria, including the applicants career and other accomplishments, personal maturity and evidence of commitment to graduate study and continued professional development. Special consideration will be given to applicants who have a significant record of relevant professional and/or administrative experience. The program combines both cognitive and affective (interactive) instruction through case studies, simulations, individual and group exercises, and fieldwork that helps to develop critical managerial effectiveness. The MAS educational experience seeks to develop critical administrative competencies in a supportive learning environment in conjunction with specific and clear feedback. The primary educational objective of the course, which is one of the capstone courses of the Master of Administrative Science (MAS) degree program, is to facilitate, in its students, the development of competencies that are necessary to skillfully plan, organize, direct, and manage the functions and processes within a firm or organization. COURSE OBJECTIVES : Upon successful completion of this course, students should be able to have acquired an understanding and appreciation of the financial planning and strategies, budgeting processes including decision-making rationale, planning and control, competitive demands on limited resources, costing methods, and financial and management reporting, management accounting tools and strategies to help management make sound decisions for control purposes.

SPECIFIC COMPETENCIES : Having successfully completed the course, students should be able to: Describe, orally and in writing, the budget process and the budget cycle; Explain how a budget can help an organization ensure that its resource allocation decisions are and remain congruent with its vision and mission and aligned with its strategic plan; Describe the strengths and weaknesses of line item budgets, performance budgets, program budgets, and zero-based budgets; Explain present value, future value, net present value, and describe the relevance of these computational techniques; Demonstrate how the use of cost-benefit analysis allows a manager to identify the component inputs and outputs of policy alternatives, measure the cost of each alternative, determine which alternative provides the best financial return on the entitys investment, and factors, other than cost, that must be considered; Describe and provide examples of working capital and why estimating and analyzing it is important; Demonstrate the different costing methods and strategies to help management make business decisions; Describe and provide examples of how management accounting can help management make decisions for control purposes.

COURSE TOPICS : Fundamentals of management accounting Nature of costs and cost behaviours Opportunity cost of capital and capital budgeting Organizational structure and management incentive schemes Responsibility accounting and the mechanics of transfer pricing Budget preparation and allocation of costs Corporate finance and time value of money Cash flows and tax implications Analysis of financial statements, financial planning and forecasting Financial markets, financial institutions, and financial securities Long-term financial and investment decisions Risks and expected returns on investments Valuation of financial securities Cost of capital and capital leverage Working capital and management of current assets and liabilities

TEXTBOOKS : Jerold L. Zimmerman. Accounting for Decision Making & Control. Seventh Edition (2011). McGraw Hill Ryerson, Canada. Lawrence J. Gitman & Sean M. Hennessey, and Principles of Corporate Finance, Second Canadian Edition (2008), Pearson Education Canada, Toronto, Ontario, Canada. TEXTBOOK WEBSITES : www.mcgrawhill.ca www.pearsoncanada.ca ADDITIONAL READING MATERIALS : You can access the electronic copy of the textbook available from the publisher on subscription basis. Other resources and materials will be obtained through local newsprints and searching the relevant websites. SUPPLEMENTARY READINGS : Cozzetto, Don and Kweit, Mary and Robert. Public Budgeting: Politics, Institutions, and Processes. (White Plains, NY : Longman, 1995) Friedman, Milton. Capitalism and Freedom (Chicago: University of Chicago Press, 1982) Heilbroner, Robert and Thurow, Lester. Chapter 2 (pp 71 to 142) : Macroeconomics - The Analysis of Prosperity and Recession, Economics Explained (New York : Touchstone, 1998) Learner, Allan and Wanat, Section 8 : Organizational Analysis and Budget Formats, Public Administration : Scenarios in Public Administration. (Englewood Cliffs, NJ : Prentice Hall, 1993) Lee, Robert D. and son, Ronald W. Public Budgeting Systems (Gaithersburg, MD : Aspen Publishers, 1998)

Miller, Gerald. Productivity and the Budget Process and Cost-Benefit Analysis, Public Productivity Handbook, (Marc Holzar, ed.). (New York : Marcel Dekker, Inc., 1992) Reich, Robert - The Work of Nations. (New York : Random House, 1992) Rubin. Irene - The Politics of Public Budgeting, Fourth Edition. (New York : Chatham House, 2000) OPPORTUNITIES TO ENCOURAGE STUDENT LEARNING : Each class will consist of a blend of textual presentation, class studies, and problem-solving analyses. Students are expected to prepare for each class, by having carefully reviewed and outlined each chapter prior to the class. Students will be called to discuss problems and concepts either individually or in small groups. To foster a cohesive learning environment, students are encouraged to carry out studies in small groups outside of the class. Students are expected to attend each class regularly and punctually. GRADING AND ASSESSMENT POLICY : There will be a project, homework assignments, mid-term test and final examination which may be in the form of case study analysis. The dates of the mid-term test and the final examination (which will not be comprehensive and are also subject to the instructors revision if class performance on the overall class work is considered disappointing) will be announced in class. Final grades will be based on the project, homework assignments, mid-term test, final examination, and class attendance/participation. Details of the project and homework assignments will be discussed in class. Late submission of the project, homework assignments, and other course exercises will not be marked or subject to loss of marks. The following summarizes the assessment format : Class Attendance/Participation Project Oral Presentation and Written Report Homework Assignments Mid-Term Test Final Examination Total 15% 15% 20% 20% 30% 100%

No makeup tests or examinations will be given. If you miss the mid-term test and/or the final examination, you are likely to fail the course; unless appropriate prior notification with supporting written documentation of illness or emergency has been given to the University. FINAL GRADES WILL BE DETERMINED BY THE FOLLOWING : Score 95-100% 90-94.9% 87-89.9% 83-86.9% 80-82.9% 75-79.9% 70-74.9% Below 70% (0-69.9%) IMPORTANT DATES : SPRING TRIMESTER 2012 New Years Day Holiday (Monday) (US & Canada) Registration/Academic Advising (Tuesday-Friday) New Student Orientation - Undergraduate (Thursday & Friday) Undergraduate Classes Begin, 8:00 AM (Monday) Graduate Program Orientation (Thursday) Last Day for Registration (undergraduate) Graduate Classes Begin, 8:00 AM (Monday) Last Day for Drop/Add Classes (undergraduate) Last Day for Registration (graduate) Last Day for Drop/Add Classes (graduate) Last Day for Withdrawal from Classes (undergraduate) Jan. 2 Jan. 3 - 6 Jan. 5 - 6 Jan. 9 Jan. 12 Jan. 16 Jan. 23 Jan. 30 Mar. 12 Grade A AB+ B BC+ C F

Last Day for Withdrawal from Classes (graduate) Good Friday Holiday (US & Canada) Easter Monday Holiday (Canada) Last Day of Classes, Spring Trimester (Tuesday) Reading Days/Make-up Days (Wednesday-Friday) Final Examinations (Monday-Friday) NB: exams run to 7:00 pm or later on each day. Trimester Ends, 11:00 PM (Friday) COURSE SCHEDULE * Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 * Dates Jan. 18 Jan. 25 Feb. 1 Feb. 8 Feb.15 Feb. 22 Feb. 29 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. 4 Apr. 11 Apr. 18 Apr. 23 - 27 Topics Generally Accepted Accounting Principles and fundamentals of management accounting Different elements and nature of costs as well as cost behaviours Concepts and application of opportunity cost of capital and capital budgeting Overview of organizational structure and management incentive schemes Role of responsibility accounting and the mechanics of transfer pricing Preparation of budgets and allocation of costs Corporate finance and time value of money Financial statements, cash flows, and taxes Financial statement analysis, financial planning and forecasting Financial markets, financial institutions, and financial securities Long-term financial and investment decisions Risks and expected returns on investments and valuing financial securities Cost of capital and capital leverage Working capital and management of current assets and liabilities Final Examination

Mar. 19 Apr. 6 Apr. 9 Apr. 17 Apr. 18 - 20 Apr. 23 - 27 Apr. 27

Reading Materials and Assignments Assignment One Chapter case discussions Assignment Two Chapter case discussions Chapter case discussions Assignment of project Chapter case discussions Chapter case discussions Chapter case discussions Assignment Three Assignment Four Assignment Five Chapter case discussions Presentation of project Presentation of project Presentation of project Presentation of project

This syllabus is subject to change. Changes will be made based on the pace and performance of the class. You will be informed sufficiently well in advance about any relevant changes.

PROJECT This assignment requires you, either individually or in small groups, to critically review an assigned topic or area related to financial administration in relation to the content of this course. For each assigned topic or area, you are expected to: (1) (2) (3) Briefly summarize the chosen or assigned topic or area. Explain how you think the topic illustrates the concepts that the course is covering. This section should make reference to the specific course materials, with relevant examples to demonstrate your mastery of the assigned topic or area. Present your personal opinion about what this assigned topic means in relation to managing the financial and business operations, ethics, and the people in the organization.

You are to include a final concluding section in which you tie the readings or articles together and draw more general conclusions and observations about management accounting and how it relates to managing a business. You may use print sources (e.g. Local newspapers, Globe and Mail, or other newspapers, weekly magazines (e.g. McLean, Time, Economist, etc.), online sources (websites for any newspaper, http://www.cica.ca/ or other accounting websites. You need to include bibliographic references for each reference that you use according to the APA Style Guide. The following is a list of the topics or areas which are not meant to be exhaustive: Accounting ethics Accounting scandals Activity-based costing Budgets and budgeting process Capital Asset Pricing Model (CAPM) Capital market securities

Cost-volume-profit analysis Debt and equity capital Financial markets and institutions General concepts of taxation systems Financial markets and financial institutions Internal control systems International accounting standards Investment decisions Net Present Value and Internal Rate of Return techniques Project evaluation and Weighted Average Cost of Capital (WACC) Risk and return of financial securities Transfer pricing Valuation of financial securities Other topics related to the course

As part of this assignment, you are required to present your research findings on your assigned topic or area to the class on a specified date. The presentation is expected to be approximately 25 minutes in length and should include a paper of your assigned topic or area in the APA format, with reference to applicable management accounting topics covered in class, what this assigned topic means in relation to managing the financial and business operations, ethics, and the people in the organization. You should include an appropriate visual aid (if available). Assessment of your project is based on the breadth and depth of your research and the presentation of the project together with the written report in the form of a paper in the APA format. MID-TERM TEST AND FINAL EXAMINATION The mid-term test and final examination, which may be in the form of case study analysis to be carried out either individually or in small groups, will be held in the middle of the semester and on the last week of the course. In the event of case study analysis, you have to comply with the proper format. Each case study analysis should be double spaced and no longer than 10 pages excluding appendixes. It is your responsibility to determine what information provided in the case being relevant to the problem and to devise a solution based on the facts, your assumptions, alternatives and details of the analysis with conclusions and recommendations. Each case study must include the following sections: 1. 2. 3. 4. 5. 6. Problem statement - one or two sentences to state what are the elements of the problem. Background - give appropriate background information relevant to the analysis (i.e. objectives, environment or marketing analysis, technology or competitive environments, etc.). Alternatives - provided possible alternatives to solve the problem. Analysis of Alternatives - build arguments to accept or reject the alternatives - provide pros and cons of each alternative. Recommendation - select one alternative to recommend to management and support that alternative. Conclusions and Action Plan - provide the appropriate conclusions with suggested short and/or long-term action plans to put your recommendation into place, including the reduction/elimination of the cons noted in your detailed analyses.

To help you perform the detailed analysis of each case, you may be provided with appropriate hints in tackling the problems or issues in the case. WITHDRAWALS : In the event you choose to withdraw from the course, the burden of following through with the withdrawal process is your responsibility. You may or may not be dropped for excessive absences. However, failure to attend does not guarantee being dropped. Please understand that if you do not officially withdraw before the end of March 19, 2012, you will be assigned a grade based upon what you have earned. This may be anything from A (unlikely) to F. Please refer to the University Catalogue for more details. If you believe that you MUST withdraw for any reason, PLEASE consult with the instructor first! Perhaps we can find a way to help you complete the course successfully. GENERAL CLASS POLICIES : 1. 2. 3. 4. 5. Please turn all cell phones and pagers to vibrate mode. Turn off all iPods, other MP3 players, Walkman, Discman, etc. Courtesy, kindness, and respect are great human qualities to be cultivated. It is expected that all students will participate fully during class. Prior reading of assigned materials will be helpful and in some cases mandatory. Eating and drinking in class are discouraged.

SPECIFIC CLASS POLICIES : ATTENDANCE POLICY

Students are expected to attend all classes, both because of the pace and amount of material in the course, and also because of the classroom interaction and activities which are vital to the structure of the course. In the case of absence, you are responsible for the materials covered and to turn in any required assignments on time. Problems in coming to class should be discussed with the instructor, whenever possible, before the class is missed. Missed classes without prior communication with the instructor will result in loss of participation points. You may be dropped for excessive absences, and absences may contravene the stipulations of visas for international students. Makeup quizzes/assignments/projects/tests/examinations will only be given for extremely valid reasons (such as illness, emergency, etc.) and with proper documentation. Unexcused absences may result in a loss of grades and may contravene the terms of visas for international students. LATENESS Arriving late for class will lower your participation score. TIME DEADLINES Tests, examinations, assignments, projects, and homework all have pre-scheduled due dates. On occasions, it may be necessary to alter these dates due to pace of progress during the semester. You will always be given advance notice of such changes. INCOMPLETES IN THE COURSE An "incomplete" grade will not be given unless the student has a legitimate personal crisis that prevents finishing the course on time. Students receiving an incomplete grade must be doing passing work up to that point. If such an occurrence happens, it is the student's responsibility to contact the instructor immediately to explain the situation and to make the necessary remedial plans. RELIGIOUS OBSERVANCEDS Please notify the instructor in advance of religious observances that interfere with class attendance. STUDENTS WITH DISABILITIES FDU has a tradition of providing access to education for students with disabilities. Students with disabilities should inform the instructor especially if there are medical problems or learning disabilities. Accommodations may be provided as recommended by the Special Resource Center. ACADEMIC INTEGRITY Any suspected violation of the University code of integrity will result in, at least, a failing grade in this course. You may be subject to suspension or expulsion from the University. Violations of academic integrity include cheating on tests or examinations, helping others to cheat on tests or examinations, copying others work, and plagiarism. Consult the Office of Academic Affairs for more information.