ENTREP 7059 - Project and Innovation Finance and Accounting

North Terrace Campus - Trimester 2 - 2019

Engineers, scientists, technologists and those starting new ventures understand that a good grasp of accounting and financial management disciplines are crucial to success. This course is designed to take such professionals through the essential knowledge and skills development in areas such as: accounting concepts, understanding and analysing financial statements, book keeping, the accounting cycle, cash flow, company accounting, budgeting and planning, an introduction to management accounting. This course introduces financial modelling, analysis of project proposals and cost optimisation. Major topics include the time value of money and capital budgeting processes, depreciation, capitalisation and valuation, sensitivity analysis, value management, earned value, life cycle costing. Application of projects and innovative new ventures. The context of the course is projects in engineering, technology, information technology. It covers design and production, operations and processes. These include consulting, production, procurement, maintenance and logistics supply for technology based operations and assessment of efficiency, risk and quality management. The context of the course is engineering, technology and information technology design and production, operations and processes, which include consulting, production, procurement, maintenance and logistics supply for technology based operations, including defence, construction, and manufacture, and IT provision for ongoing businesses, assessment of efficiency, risk and quality management, and related aspects.

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Course Details

Course Code	ENTREP 7059
Course	Project and Innovation Finance and Accounting
Coordinating Unit	Entrepreneurship, Commercialisation & Innov Centre
Term	Trimester 2
Level	Postgraduate Coursework
Location/s	North Terrace Campus
Units	3
Contact	Intensive. 36 - 40 hours
Available for Study Abroad and Exchange	Y
Assumed Knowledge	ENTREP 5016OL (or ENTREP 5036OL) AND ENTREP 5018OL (or ENTREP 5038OL)
Assessment	Assignments: individual and group

Course Staff

Course Coordinator: Professor Paul Steffens

Program Director Contact Details: Innovation and Entrepreneurship (PG)
Name: Prof Paul Steffens
Email: paul.steffens@adelaide.edu.au

Teaching Staff
Name: Dr Anton Jordaan
email: anton.jordaan@adelaide.edu.au

Course Timetable

The full timetable of all activities for this course can be accessed from Course Planner.

Course Learning Outcomes

On successful completion of this course, students will be able to:

1	Articulate the importance of accounting concepts and their relationship with corporate governance and reporting requirements in multinational, project-based organisations;
2	Differentiate between the impact of cash vs accrual accounting in preparing financial statements for projects and start-up ventures;
3	Analyse and interpret financial reports to assess financial viability of suppliers,contractors, and venture partners in projects and new ventures;
4	Use internal management reporting concepts such as break-even, contribution margin, and cost-volume-profit analysis to manage cost structures in new ventures;
5	Use financial management concepts such as resource planning and budgeting to determine debt and equity investment, and working capital requirements in high-growth, innovative ventures;
6	Analyse, compare and apply the decision making rules for capital investments between competing projects or venture opportunities.

University Graduate Attributes

This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

University Graduate Attribute	Course Learning Outcome(s)
Deep discipline knowledge informed and infused by cutting edge research, scaffolded throughout their program of studies acquired from personal interaction with research active educators, from year 1 accredited or validated against national or international standards (for relevant programs)	1-6
Critical thinking and problem solving steeped in research methods and rigor based on empirical evidence and the scientific approach to knowledge development demonstrated through appropriate and relevant assessment	1;3-6
Teamwork and communication skills developed from, with, and via the SGDE honed through assessment and practice throughout the program of studies encouraged and valued in all aspects of learning	3;5;6
Career and leadership readiness technology savvy professional and, where relevant, fully accredited forward thinking and well informed tested and validated by work based experiences	3-6
Intercultural and ethical competency adept at operating in other cultures comfortable with different nationalities and social contexts able to determine and contribute to desirable social outcomes demonstrated by study abroad or with an understanding of indigenous knowledges	1-3
Self-awareness and emotional intelligence a capacity for self-reflection and a willingness to engage in self-appraisal open to objective and constructive feedback from supervisors and peers able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate	1;3;5;6

Learning Resources

Required Resources

Text book:

Atrill, Peter, Eddie McLaney, David Harvey, Maurice Jenner. (2015), Accounting: an introduction. 6th Edition. Frenchs Forest NSW: Pearson Education Australia. ISBN: 9781486008797

(Please ensure that you obtain the Australian edition and not the NZ or International edition).
The previous Australian editions (3rd, 4th or 5th) will also be fine to use.

Recommended Resources

Titman, Sheridan, John D. Martin. 2008. Valuation: the art and science of corporate investment decisions. Boston: Pearson Education.

Project Finance Magazine. Complete package of news, analysis, comment and statistics. All seamlessly delivered through traditional and modern media channels. Subscription includes 10 print issues a year, industry sector tailored alerts delivered direct to mobile device or PC, weekly e-news alert, full access to Project Finance magazine online including fully searchable archive dating back to 1999. http://www.projectfinancemagazine.com/

Library Resources
The University of Adelaide’s Barr Smith Library provides a range of learning resources including texts, journals, periodicals, magazines, and access to online databases and information services. It also offers a virtual library which is accessible via the University’s website. Access to the Library's electronic resources.

Online Learning

MyUni is the University of Adelaide's online learning environment. It is used to support traditional face-to-face lectures, tutorials and workshops at the University. MyUni provides access to various features including announcements, course materials, discussion boards and assessments for each online course of study.

Learning & Teaching Modes

This course is offered in blended learning mode with the face-to-face component offered as intensives.

Workload

The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

As a guide, a 3 unit course comprises a total of 156 hours work (this includes face-to-face contact, any online components, and self directed study).

Learning Activities Summary

This is a draft schedule and session dates are a guide only. The timetable may be changed during the course delivery if necessary.

Intensive	Content	Readings
1	The Nature of Accounting	Atrill Chapter 1
	Introduction to Financial Statements	Atrill Chapter 2 & 3
2	Financial Statements: Cash Flow Statement	Atrill Chapter 6
	Analysis of Financial Statements	Atrill Chapter 8
3	Sources of Finance	Atrill Chapter 4 & 14
	Working Capital Analysis Budgeting & Planning	Atrill Chapter 13 Atrill Chapter 11
4	Cost concepts	Atrill Chapter 9 & 10
	Capital Investment decisions	Atrill Chapter 12

Specific Course Requirements

Students are requested to bring a basic calculator to class in addition to their textbook. The textbook is used extensively during intensive sessions, so ensure you obtain one. As indicated before, the 3rd, 4th, or 5th Australian edition of the prescribed text will suffice.

The University's policy on Assessment for Coursework Programs is based on the following four principles:

Assessment must encourage and reinforce learning.
Assessment must enable robust and fair judgements about student performance.
Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
Assessment must maintain academic standards.

Assessment Summary

An overview of the course assessment appears in the following Table. Details appear in the following section:

#	Assessment	Length	Weighting	Learning Outcomes
1	Income Statement & Balance Sheet	Reports and Notes	30%	1,2
2	Annual Report - Group Assignment	3000 words	30%	2,3
3	Project Evaluation Assignment	2500 words	30%	4,5,6
4	Workshop participation and team presentations	N/A	10%	1 to 6
	Total		100%

Assessment Related Requirements

Students should attend all classes in order to pass the course. There is considerable experiential learning in workshops during the intensive classes that build your knowledge and thus enable you to be successful in this course.

Course results are subject to moderation by the ECIC Board of Examiners

Assessment Detail

Assessment 1: Income Statement & Balance Sheet - Blue Sky Distribution Pty Ltd
Weighting: 30%
Submission Details: Online through MyUni in PDF format

Task:
Prepare an Income Statement and Balance Sheet from a list of balances provided to you as at 30 June 2018 for Blue Sky Distribution

Blue Sky Distribution Pty Ltd is a supplier of a range of printed material to businesses and organisations. The business is located in Thebarton, South Australia.

Prepare an Income Statement (P&L) which includes allocation of income and expenses, and a Balance Sheet for Blue Sky Distribution in vertical format for the period ended 30 June 2018. Prepare your work using an Excel spreadsheet.

Note that the list of account balances provided to you has been compiled by an office administrator for internal use only, and is not a Trial Balance (for those who have an accounting background or access to an advisor).

You may need to research the Income Statement and Balance Sheet layouts and adjustments from other sources other than the textbook; however, the wider references provided in your course material contain the relevant accounting information.

Scope:
This assignment will assess your understanding of the course topics 1-2

Length and Presentation:
You need to submit an Income Statement, Balance Sheet and Notes page in pdf format

Criteria by which your assignment will be marked:

FEATURE	WEIGHTING %
Produce an Income Statement (P&L) that contains all the revenue and expense items	30%
Produce a Balance Sheet that contains all the provided Asset, Liability and Equity items	30%
Notes - quality of explanatory text	15%
Format /layout, clear presentation and quality of response	15%
Work that comes to a logical answer (not necessarily examiners)	10%
Total	100%

Assessment 2: Annual Report - Financial Statement Analysis - Group assignment
Weighting: 30%
Submission Details: Online through MyUni in PDF

Task:
Obtain the annual report of a selected company. Company reports can usually be obtained from their website under the heading of “Investor Relations”.

Using the financial reports, you are to undertake an analysis of the cash flow, financial performance and financial position of the company, considering liquidity, gearing, profitability and operations management. Your focus should be advising a potential investor who is currently considering investing in the selected company. A separate analysis of the cash flow statement is required.

Concentrate in your analysis on the last two reporting years as this is the most current date. However, use five years data to graph major trends where meaningful for your analysis.

You should consider the performance of the company in the eyes of investors; that is, make recommendations as to the better investment opportunity based on your assessments of the performance of the company. Use comparative data from competitors, or industry averages to enhance your analysis, interpretation and recommendations.

Share performance details can be obtained from the website of the stock exchange where the company’s shares have been listed.

Scope:
This assignment will assess your understanding of the course topics 1 through 4

Length and Presentation:
Maximum 3,000 words. Please include a word count on the front page of your assignment.
Excess words will not be marked.

Criteria by which your assignment will be marked:

FEATURE	WEIGHTING %
Liquidity analysis and interpretation	15%
Gearing analysis and interpretation	15%
Profitability analysis and interpretation	15%
Analysis of statement of cash flows	15%
Potential shareholders’ perspective	10%
Comparison of form and content of financial reports	10%
Readability, bibliography, and referencing	10%
Presentation of report: Executive Summary, Conclusion, Tables, etc.	10%
Total	100%

Assessment 3: Project Evaluation Assignment
Weighting: 30%
Submission Details: Online through MyUni in PDF

Task:
You are required to submit a project report that describes and evaluates three project alternatives, using the project evaluation techniques discussed in this course. The project alternatives may be hypothetical. Assume you are writing a proposal to your Board of Directors.

Your analysis should include brief estimates of projected revenues and costs of productions and use Discounted Cash Flow analysis, using a justified discount rate to give Net Present Values of 3 alternatives of a capital investment project as well as determine the Internal Rate of Return. Description of the project alternatives should be less than 1 page.

Scope:
This assignment will assess your understanding of the course topics 1 through 9

Length and Presentation:
Maximum 2,500 words. Please include a word count on the front page of your assignment.
Excess words will not be marked

Criteria by which your assignment will be marked:

FEATURE	WEIGHTING %
Description of project	10%
Cost and benefits analysis	10%
Basis for selecting the cost of capital	5%
Evaluation of project with DCF methods	20%
Evaluation of risks	20%
Recommendations	15%
Readability, bibliography, and referencing	10%
Presentation of report: Executive Summary, Tables, etc.	10%
Total	100%

Assessment 4: Workshop participation and team presentations
Weighting: 10%
Details: As per lecturer’s request

Task: This assessment will assess your participation during the course. This may include presentations group discussions and contributions in peer learning activities.

Scope: Practical activities will be conducted in an interactive learning environment.

Length and Presentation: Not applicable

Criteria by which your assignment will be marked: Students are required to attend intensive classes and participate in class discussions and presentations.

Submission

All text based assignments must be submitted via MyUni.
Please refer to step by step instructions: MyUni Learning Centre

There are a few points to note about the submission of assignments:

Assignment Submission: Assignments should not be emailed to the instructor; they must be lodged via the MyUni Course site (unless specified to do both). Note that assignments may be processed via TURNITIN, which is an online plagiarism prevention tool.
Cover Sheet: Please include in the assignment a completed University of Adelaide Assessment Cover Sheet providing details of yourself and your team members (if applicable), your assignment, the course, date submitted, etc. as well as the declaration signed by you that this is your (your team’s) work. Note that the declaration on any electronically submitted assignment will be deemed to have the same authority as a signed declaration.
Backup Copy of Assignments: You are advised to keep a copy of your assignments in case the submitted copy goes missing. Please ensure that all assignment pages are numbered. If your assignment contains confidential information, you should discuss any concerns with the Course Lecturer prior to submission.
Extensions of Time: An application for Assessment Extension should be made well before the due date of the assignment to the Course Lecturer. Normally, extensions will only be granted for a maximum of two weeks from the original assignment submission date. Extensions will only be granted in cases of genuine medical, compassionate or extenuating circumstances.
Failure to submit: Failure to submit an assignment on time or by the agreed extension deadline may result in penalties and may incur a fail grade. Note that a late penalty of 5% of the total available marks for that assessment item will be incurred each day an assignment is handed in late (Unless otherwise stated in 'Assessment Related Requirements' or 'Assessment Detail' above). Assignments handed in after 14 days from the due submission date will fail even if a 100% mark is granted for the work.

Resubmission & Remarking
Resubmission of an assignment for remarking after reworking it to obtain a better mark will not normally be accepted. Approval for resubmission will only be granted on medical or compassionate grounds.

Course Grading

Grades for your performance in this course will be awarded in accordance with the following scheme:

M10 (Coursework Mark Scheme)
Grade	Mark	Description
FNS		Fail No Submission
F	1-49	Fail
P	50-64	Pass
C	65-74	Credit
D	75-84	Distinction
HD	85-100	High Distinction
CN		Continuing
NFE		No Formal Examination
RP		Result Pending

Further details of the grades/results can be obtained from Examinations.

Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

Final results for this course will be made available through Access Adelaide.

Student Feedback

The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
Student Support
Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
Fraud Awareness

Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.

Authorised by:	Deputy Vice-Chancellor and Vice-President (Academic)
Maintained by:	Course Outlines Administrator