Program Director Contact Details:
Innovation and Entrepreneurship (PG)
Name: Prof Paul Steffens
Phone: +61 8 8313 7512
Email: paul.steffens@adelaide.edu.au

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Teaching Staff:

Term 1 and Term 3 Online
Name: Dr Anton Jordaan

Short Bio:
After attaining a Bachelor of Commerce degree in Accounting, he completed an Honours degree in Accounting, a Master of Commerce degree in Business Management, a MBA degree with an Entrepreneurship focus, and a Master of Advanced Business Practice degree. He completed a PhD in Entrepreneurship at The University of Adelaide and is a member of CPA Australia.

Email: anton.jordaan@adelaide.edu.au

Monday 10th July to Sunday 17th September 2017

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.

Text book:
Atrill, P., McLaney, E., Harvey, D. & Jenner, M. (2014). Accounting: an introduction (6th Ed). Frenchs Forest NSW: Pearson Education Australia.

Make sure you obtain the Australian edition (The 4th or 5th edition will also suffice)

Other useful texts and references are:
Atrill, P. 2009. Management Accounting for Decision Makers. FT Prentice Hall. 6^th Edition

Dagwell, R.,Wines, G.,Lambert, C. 2012. Corporate Accounting in Australia. Pearson Australia.

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.

LEARN is the University of Adelaide’s platform for dedicated online delivery. LEARN is a customised version of Moodle, and houses all course requirements including the course profile, announcements, additional course materials (beyond the prescribed text), assessment items, discussion forums, grading, feedback, links to various university and course resources, an internal website email system, a technical assistance facility, etc. LEARN is only accessible once the URL and a password have been provided to the student on enrolment. Students are given access to the course prior to the start date to familiarise themselves with the operational aspects and functionality of the website. 

This course is offered in online mode.

As a guide, a 3 unit course comprises a total of 156 hours work.

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

Week	Content	Readings	Activites
1	Building skills in understanding the reasons for compiling accounting information and to develop an understanding of the potential uses of the outputs generated by this information system. Overview of two financial statements: the profit and loss (income statement/ statement of financial performance) and the balance sheet/statement of financial position.	Online Lessons Chapters 1,4,5,7	Class Discussion
2	Taking a closer look at two key components of the financial statements, being the balance sheet (also known as the statement of financial position) and the income statement (ststement of financial performance).	Online Lessons   Chapters 2 and 3	Class Discussion Watch video: "The Accounting Equation" http://www.youtube.com/watch?v=SRf_M1NRru4&feature=player_embedded Submit: Accounting Transactions Analysis
3	Continuation of week 2, with focus on the statement of financial performance	Online Lessons Chapters 2 and 3	Class Discussion Submit: Asset Analysis Activity
4	Initially in this topic the cash flow statement is considered. Some time is spent developing skills in reading the statement.	Online Lessons   Chapter 6	Class Discussion Watch video: Statements of Cash Flows http://tv.opentuition.com/video/118/Statements-of-Cash-Flows-part-1-ACCA-F3 Submit: Assessment 1: Printers Pty Ltd.
5	Analysis and interpretation of financial reports, common size comparisons; liquidity ratios, leverage and capital structure ratios, profitability ratios and trend analysis. You will spend some time in this topic developing the ability to analyse and interpret all of the general purpose financial statements.	Online Lessons   Chapter 7	Class Discussion Watch video: http://www.youtube.com/watch?v=3lqYLpUenms&feature=related Submit: Learning Activity
6	We start the unit by differentiating between internal and external sources of finance. At the completion of this unit, you should have gained a better understanding of the options when seeking funding for a business and the appropriateness of each of these alternatives; identify links between the three major accounting reports, and reviewing the annual report of a company.	Online Lessons   Chapters 2 & 14	Class Discussion Watch video: "Sources of Finance" http://www.youtube.com/watch?v=-OLb47idpqg Submit: Financing Plans Analysis Activity
7	Becoming familiar with the concept of working capital and related management and analytical techniques. Cash or liquidity management is concerned with ensuring the availability of funds needed to meet day-to-day operations.	Online Lessons   Chapter 13	Class Discussion Watch video: "Cash is King: Managing Working Capital" http://www.youtube.com/watch?&v=PU6Wb9clz588&feature=related Submit: A2: Annual Report Financial Statement and Analysis Assignment.
8	Management accounting/cost accounting. We will investigate: fixed and variable costs, classification of costs, introduction to activity based costing (ABC), job-costing and process costing. Control systems, cost allocation, profit centres, contribution approach, break-even analysis and measuring responsibility centre profits. ABC for projects.	Online Lessons   Chapters 9 & 10	Class Discussion Watch videos: "Costing Part 1" http://www.youtube.com/watch?&v=2cbbWOnH42Y "Breakeven Analysis" http://www.youtube.com/watch?v=Y22_AC6BN9Y "Breakeven Charts" http://www.youtube.com/watch?&v=TLOo2mY6FIw Submit: Cost Analysis Activity
9	Managerial accounting and one which is important to all functional areas in the business. Budgeting is an activity that most business managers take very seriously, and part of this interest is that most will have their performance measured against this budget by the end of the period.	Online Lessons   Chapters 11	Class Discussion Submit: Reflective Activity Watch video: "Budgeting Process – 10 Cash Budgets E13" http://www.youtube.com/watch?v=PvL-WxJ3_kM
10	Capital investment decision-making. We will explore how businesses make decisions when considering new investments in plant, machinery, buildings or other long-term assets. The principles applied by businesses are the same as those you might apply in the acquisition of assets as an individual.	Online Lessons Chapters 12	Class Discussion Watch video: "FA 8 8 Present Value" http://www.youtube.com/watch?&v=6oCPsXb74FQ FA 8 9 Net Present Value Example" http://www.youtube.com/watch?&v=2sXYobpdsUA Submit: A3: Project Evaluation Assignment

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

#	Assessment	Length	Weighting	Due Date	Learning Outcomes
1	Income Statement and Balance Sheet for Minuteman Printers Pty Ltd	Reports + Notes	20%	Day 7 of Week 4	1-2
2	Annual Report Financial Statement and Analysis (Group assignment)	3000 Words	25%	Day 7 of Week 7	1-3
3	Project Evaluation Assignment	2000 Words	25%	Day 7 of Week 10	4-6
4	Application assignments	200 to 300 Words	15%	Day 7 of Weeks 2,3,5,6,8 & 9	1-6
5	Discussion Forum Participation	N/A	15%	Days 3-7 of each week	1-6
	Total		100%

Students must check all discussion forums weekly and to actively participate in and contribute to any ongoing online discussion threads.

Students must complete all course assessment requirements.

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

Appropriate use of the Internet in assignments

The purpose of this message is to assist students with appropriate use of the material they have accessed on the Internet in assignments. The Internet is a wonderful source of information and sometimes students are not aware of how to use it properly. For example, a recent case had over 70% of words copied from over 20 other sources. Furthermore, many students think this is the appropriate use of the Internet.

IT IS NOT.

There is a hierarchy of penalties, the lowest of which is the loss of some assignment marks and the student’s name being placed on the Faculty’s Academic Dishonesty Register for six months. This only occurs if it is believed that this occurred through error. The second level penalty is more significant which is loss of all marks for the assignment and being placed on the University’s Academic Dishonesty Register for the remainder of their time at the University. Even higher penalties can involve the University deciding the student should not graduate.

Appropriate use of the Internet is to include all directly copying of sections of other reports in ‘inverted commas’, as a quotation, and note the source of the quote. To include a group of words without use of inverted commas and without noting where the words came from is an example of academic dishonesty.

Students may not be aware that the University has use of an international database called Turnitin in which all direct use of other material can be traced.

On a more positive note students need to understand the points made in any paper they access on the Internet and integrate these thoughts into their argument rather than just copying large passages. Of course this takes more work but this is what tertiary education requires and, in the end, make students into better thinkers and more able to express their ideas in their assignments.

Assessment 1: Income Statement and Balance Sheet for Minuteman Printers Pty Ltd
Weighting: 20%
Due Date: Day 7 of Week 4
Submission Details: Via Drop Box in PDF in LEARN

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

Task:
Prepare an Income Statement and Balance Sheet as at 30 June 2014 for Minuteman Printers Pty Ltd
Minuteman Printers 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 Minuteman Printers in vertical format for the period ended 30 June 2014. Prepare your work on excel using a spreadsheet.

Note these accounts are for internal reporting 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.

You are provided with the following balances extracted from Minuteman’s General Ledger:

Accounts payable (creditors)	217,500
Accounts receivable (debtors)	272,000
Advertising expense	17,000
Allowance for doubtful debts	30,600
Amortisation of goodwill	7,000
Amortisation of R&D	10,000
Asset revaluation reserve	140,000
Bad debts expense	19,000
Carrying amount of delivery vehicle sold	20,000
Cash at Bank	135,000
Cost of Goods Sold	2,165,100
Current income tax liability	128,610
Depreciation of motor vehicles	62,000
Depreciation of office furniture	33,000
Design Services rendered to clients	185,000
Freight In	11,075
Freight Out	22,000
General reserve	275,000
Goodwill (at cost)	108,000
Gross proceeds on sale of delivery vehicle	31,000
GST compliance fee	22,800
Accumulated amortisation – goodwill	7,000
Accumulated amortisation – R&D	10,000
GST owing to ATO	28,800
Income tax expense for the current year	128,610
Depreciation of retail store equipment	8,000
Depreciation of retail store	25,000
Insurance expense	42,000
Interest expense	4,200
Interest payable	1,500
Inventory	415,000
Land (cost)	300,000
Mortgage loan payable	202,500
Motor vehicles (at cost)	436,000
Office furniture (at cost)	72,000
Prepaid Insurance	8,500
Prepaid Rent	6,500
Provision for ordinary dividend	80,000
Provision for preference dividend	40,000
Rates expense	15,000
Rent expense	36,200
Rental from sub-lease agreement	12,000
Research & Development (R&D) costs	80,000
Retail store (at fair value)	925,000
Retained Income (after dividends and reserve transfer at 30.6.2013)	130,000
Salaries - Administrative staff	354,000
Salaries payable	31,000
Sales commissions marketing staff	406,000
Sales discount allowed	15,000
Sales (turnover)	3,550,075
Sales staff vehicle expenses	38,000
Share issue costs	27,000
Store equipment (at cost)	93,000
Accumulated depreciation – motor vehicles	180,000
Accumulated depreciation – office furniture	38,000
Accumulated depreciation – retail store equipment	27,000
Accumulated depreciation – retail store	25,000
Preference share capital (400,000 shares issued at $2 each)
Ordinary share capital (300,000 shares issued at $1 each)

Length and Presentation:
You need to submit an Income Statement, Balance Sheet and basic 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 to the IS and BS: Quality of explanatory text	15%
Work that has no errors, appropriate layout, clear presentation	15%
Quality of response, “read me” presentation	10%
Total	100%

Assessment 2: Annual Report - Financial Statement Analysis - Group assignment
Weighting: 25%
Due Date: Day 7 of Week 7
Submission Details: Via Drop Box in PDF in LEARN
Group size: Group sizes are limited to 2 students per group.

Scope:
This assignment will assess your understanding of the course topics 5 - 7

Task:
Obtain the annual report of a company operating in the same industry as the one you are involved with (although same industry selection is preferable, it is not essential). Company reports of listed companies can usually be obtained from their web site 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 from the perspective of advising a potential investor in the 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. Share performance details can be obtained from the web site of the stock exchange where the company's shares have been listed. Where share price data is used, state the date of the share price you are using and the source of data for the price.

Good financial analysis would require you to compare and contrast your selected company with a major competitor, or with the industry as a whole.

You may use any of the techniques and ratios discussed in the course. Comment on the results of your analysis. There is no need to include the financial statements in your report as they are usually available on a web site

The company to be analysed must be approved by the lecturer before commencing the project (do not select construction companies, banks or insurance companies).

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	12%
Gearing	12%
Profitability	12%
Analysis of cash flow statement	10%
Operations management	12%
Potential shareholders’ perspective	12%
Comparison of form and content	10%
Readability, bibliography, and referencing	10%
Presentation of report: Executive Summary, Conclusion, Tables, etc.	10%
Total	100%

Assessment 3: Project Evaluation Assignment
Weighting: 25%
Due Date: Day 7 of Week 10
Submission Details: Via Drop Box in PDF in LEARN

Scope:
This assignment will assess your understanding of the course topics 8- 10

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.

The layout and content should include:

1. Prepare a clear definition of the objectives of the project and, where practical, this should be related to the current strategies of the organisation.
2. The formulation of options to achieve the objectives (e.g. set up a manufacturing plant at locations in countries A, B, or C). Three investment alternatives should be compared.
3. A formulation of the detailed costs and benefits of the options.
4. Calculate the cost of capital (debt / equity).
5. Evaluate each option using DCF techniques (use a minimum period of 5 years and justify the discount rate used).
6. Evaluation of the risks of the project.
7. Recommendation of the most economic option and discussion of any non-financial factors relevant to your decision.

The assignment report should be brief and to the point.

Suggested format for your report:
To ensure adequate coverage of the topic the following format is suggested for your report:

• Executive summary
• Table of contents
• Introduction (not more than one page for introducing the project)
• Discussion of options
• Cost of capital assumptions and calculations (debt/equity costs)
• Description of the costs and benefits of the project
• Evaluation of the project – e.g. DCF calculations to give NPV and IRR
• Evaluation of the risks of the project
• Recommendations
• Bibliography

Length and Presentation:
Maximum 2,000 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
Description of project	10%
Cost and benefits	10%
Basis for selecting the cost of capital	5%
Evaluation of project with DCF methods	15%
Evaluation of risks	20%
Recommendations	20%
Readability, bibliography, and referencing	10%
Presentation of report: Executive Summary, Tables, etc.	10%
Total	100%

Assessment 4: Application assignments
Weighting: 15%
Due Date: Day 7 of Weeks 2,3,5,6,8
Submission Details: See relevant weeks in course. Via Drop Box in PDF in LEARN

Task:
Complete a 300 to 400 word response to the assignment prompts contained in the course page. The assignment asks you to apply concepts learned in the week to various situations, problems, or work-related deliverables.

Scope:
This exercise will assess your knowledge, understanding and application of the relevant material covered.

Length and Presentation:
300-400 words.

Criteria by which your assignment will be marked:

Feature	Weighting
Demonstrated understanding of and ability to transfer or apply concepts covered in the course to this topic	100%
Total	100%

Assessment 5: Discussion participation
Weighting: 5%
Due Date: Days 3 – 7 of each week
Submission Details: Weekly discussion participation in the discussion forums

Task:
Respond to the discussion prompts and questions by the due dates outlined in the assignment. You should expect to post an initial response and then follow up responses and inputs to the posts of your classmates and faculty.

Scope:
This exercise will assess your knowledge, understanding and application of the relevant material covered. 

Length and Presentation:
As is appropriate - at least 200 words.

Criteria by which your assignment will be marked:

Feature	Weighting
Demonstrated critical thinking, quality/depth of analysis, including applications in practice in your posting	50%
Generated substantive (at least 100 words) constructive feedback or meaningful inputs to the discussion (on your posting and classmates’ postings)	25%
Demonstrated quality of writing and concise language choice	25%
Total	100%

All text based assignments must be submitted via Drop Box in LEARN

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

• Assignment Submission:  Assignments should be lodged via Drop Box in the LEARN system. Please refer to individual assignment tasks for specific submission details relevant to each task. Note that assignments may be processed via TURNITIN, which is an online plagiarism prevention tool.
• Cover Sheet:  Please submit, separate to your assignment, the 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:  Any request for an extension of time for the submission of an assignment 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 extenuating circumstances and proof, such as a doctor’s certificate, may be required.
• 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.