Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Office of the Vice President for Academic Affairs
COLLEGE OF ACCOUNTANCY & FINANCE

COURSE SYLLABUS and LEARNING PLAN

COURSE TITLE : FINANCIAL MANAGEMENT

COURSE CODE : ACCO 20123

COURSE CREDIT : 3 UNITS

PRE-REQUISITE : ACCO 20043 Financial Accounting and Reporting 2

COURSE : This course is intended to help students understand relationship of accounting and finance in order to formulate appropriate financial strategies
DESCRIPTION that maximize shareholders’ wealth. The course will help students understand relationship between various items in the financial statements and
incoroporate these in actionable strategies that are beneficial for the organization. Students will understand the concepts of risk and return and
how this relates to capital management of the business. Students will learn various techiques and methodologies that financial managers need to
provide sustainable decision making support to the organization such as financial statement analysis, financial planning, working capital
management, cost of capital, leverage and capital budgeting.

Institutional Learning Outcomes Programs Outcomes Course Outcomes

1. Creative and Critical Thinking Students will be able to gain understanding the how Upon completion of the course, the students will be able
financial management works and design strategies on to:
how to maximize profit and wealth a. Describe financial management and its importance
2. Effective Communication Students will be able to articulate and describe the to business organization.
financial management activities both local and b. Understand financial statements and its
international setting that will aid them in making sound components and derive insights from these for
recommendation to their future clients and/or decision making
management. c. Determine methodologies to assess the risks
3. Strong Service Orientation Students will be able to create opportunities and involved in financial management and develop
package service offering. This course will enable them strategies to mitigate these
to explore alternatives and recommend best approach d. Describe the concept of maximization of
available for their future clients and/or management shareholders’ wealth and how can financial
4. Passion to Life-Long Learning Students will have a grasp on the fundamentals of managers contribute in the corporate growth
financial management and its play in a larger picture. e. Apply and relate the skills and knowledge obtained

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 This will open and encourage long term exploration in financial management, accounting and financial
and learning about the ins and outs of the subject. reporting to arrive at a holistic approach in solving
5. Sense of Personal and Professional Ethics Students must demonstrate a capable manager or an problems.
associate, at least, that is seen with objectivity and
integrity at all times.
6. Sense of Nationalism and Global Responsiveness Students must participate through contributing the
skills earned by allowing them to be part of contributors
of growth in the industry through the provision of
quality financial management.
7. Community Engagement Students must understand the relevance of the
services in the development of their communities,
particularly the advise that they can extend to the
stakeholders.
8. Adeptness in the Responsible Use of Technology Students must know how to the use of technology
made available to maximizing financial capabilities.
9. High Level of Leadership and Organization Skills Student is expected to form part of the leadership
team, advisory at the very least, of the firm they will
engage in the future and make strategic financial
directions. The maturity is expected to be further
demonstrated at all times.

DETAILED LEARNING PLAN

WEEK NO. OF RESOURCES/
TOPIC LEARNING OUTCOMES METHODLOGIES ASSESSMENT
NO. HOURS REFERENCES
Class Management The learner will:  Lecture and discussion  Copy of the syllabus  Summary of
 Introduction to the course  Have an appreciation of the  Manage expectation by  Student handbook student reflection
 Discussion of the syllabus coverage of the course sharing insights of the and expectation
1 1
 Classroom policies  Establish order in the class instructor and the students  Elect class
officers, prepare
seat plan.

2
 Introduction to Financial After the session the student is  Lecture Principles of Managerial  Recitation
Management expected to:  Case study Finance by Gitman and  Presentation
th
 Describe the concept of financial Zutter, 13 ed.  Quiz
 Definition and objectives of management and its importance in
financial management achieving corporate objectives
 Role of financial  Identify the roles of finance
management in business managers and how they influence
 Relationship of finance with other business functions
1 2 other relevant disciplines
 Legal forms of business
organization
 Finance organization and
career opportunities in
finance
 Interface between finance
and other functions

Financial Statements Analysis After the session, the learner must:  Lecture Principles of Managerial  Recitation
 Describe key components of  Case Study Finance by Gitman and  Presentation
 Components of Financial financial statements and understand
th
Zutter, 13 ed.  Quiz
Statements common terminologies found in
a. Statement of Profit or financial statements
Loss  Be able to identify relevant
b. Statement of Financial information from financial statements
Position that can be used for different
c. Statement of Changes analyses
in Cash Flows  Calculate and interpret financial
2–4 6 d. Statement of Changes ratios
in Owner’s Equity  Identify and describe the activities
e. Notes to Financial that affect cash flows of the business
and relate them to business
Statements
environment.
 Objectives of financial
 Interpret and analyze statement of
statements analysis cash flows
 Horizontal Analysis  Calculate free cash flows and
 Vertical Analysis described its relationship to business
 Ratio Analysis valuation
1. Liquidity ratios  Describe the effect of non-cash

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 2. Activity ratios transactions in making economic
3. Profitability ratios decision.
4. Debt ratios
5. Market ratios
 Analyzing cash flows
o Components
(Operating, Investing &
Financing activities)
o Free cash flows

Short-Term Financial Decisions After the session, the student is  Lecture Principles of Managerial  Recitation
 Net working capital expected to:  Case Study Finance by Gitman and  Quizzes or Long
th
 Cash conversion cycle  Identify components of working Zutter, 13 ed. Exams
 Cash management capital and why it is necessary to
o Funding strategies manage working capital
o Managing receipts and  Calculate, analyze and interpret
disbursements working capital financial indicators
 Receivables management  Identify what are the appropriate
o Credit management strategies that optimize net working
(policy, selection, terms, capital
monitoring)
5–6 6  Inventory management
o Inventory management
techniques (ABC, EOQ,
JIT)
o Computerized systems
 Current liabilities
management
o Spontaenous liabilities
o Accounts payable &
accruals management
 Unsecured source of short-
term loans

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 Financial Planning After the session, the learner is  Lecture Principles of Managerial  Recitation
 Definition of financial expected to:  Case Study Finance by Gitman and  Quizzes or Long
th
planning and its role in the  Describe the financial planning Zutter, 13 ed. Exams
business process of an organization and
 Benefits of financial planning recognize its importance in
achieving business objectives
 Distinction between strategic
 Identify steps in the budgeting
and operating plans
process and be able to prepare
 Financial planning process in budget based on business
an organization requirement
7–8 6  Type of budgetary systems
o Master budget, Static
budget, Flexible budget
o Zero-based budgeting
o Continuous budgeting
 Profit planning
 Cash planning
 Pro forma financial
statements
 Uncertainty in budgeting

8 3 MIDTERM DEPARTMENTAL EXAMINATION

Time Value of Money After the sessions, the student is  Lecture Principles of Managerial  Recitation
 Role and importance of time expected to:  Case Study Finance by Gitman and  Quizzes or Long
th
value of money in finance  Identify role of time value of money Zutter, 13 ed. Exams
 Future value and present in financial management
value  Calculate appropriate present value
o Single amount based on what is needed by the
o Annuities organization
o Mixed stream
9 – 11 9
 Compounding of interest
o Annual
o Semi-annual
o Quarterly
o Monthly
 Other applications of time
value of money

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 Risk and return After the sessions, the student is  Lecture Principles of Managerial  Recitation
 Definition and relationship expected to:  Case Study Finance by Gitman and  Quizzes or Long
th
between risk and return and  Describe relationship between risk Zutter, 13 ed. Exams
its importance to the and return and illustrate its
business importance in financial management
 Different perspectives on risk  Identify and explain strategies to
management (financial, mitigate risks to maximize return
enterprise, etc.)  Determine and interpret appropriate
 Nature and sources of risks discount rate which reflects
 Risk and return of assets uncertainty revolving the investment
o Single asset
o Portfolio
 Risk preferences
 Diversification and
correlation
 Capital Asset Pricing Model
Cost of capital After the sessions, the student is  Lecture  Textbook  Recitation
 Basic concept and sources expected to:  Case Study  Online References  Quizzes or Long
of capital  Describe cost of capital and its Exams
 Importance of cost of capital importance in financial management
for the organization  Identify relevant items affecting cost
 Cost of long-term debt of capital and calculate cost based
 Cost of preferred stock on business requirement
 Cost of common stock  Determine uses of weighted average
 Cost of retained earnings cost of capital in business decision
 Weighted Average Cost of making
Capital (WACC)
12 - 14 9
Leverage After the sessions, the student is  Lecture Principles of Managerial  Recitation
 Definition and types of expected to:  Case Study Finance by Gitman and  Quizzes or Long
th
leverage in business  Understand how capital structure Zutter, 13 ed. Exams
(operating and financial and leverage works and how this
leverage) influences business strategies
 Capital structure  Identify the optimal capital structure
 EBIT – EPS appraoch to of a business
capital structure
 Approaches in determining
the optimal capital structure

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 Capital budgeting After the sessions, the student is  Lecture Principles of Managerial  Recitation
 Definition and objectives of expected to:  Case Study Finance by Gitman and  Quizzes or Long
th
capital budgeting  Describe the objectives and process Zutter, 13 ed. Exams
 Mutual vs Independent of capital budgeting
projects  Identify relevant cash flows that
 Unlimited Funds vs Capital influence decision making in capital
budgeting
Rationing
 Evaluate acceptability of a proposed
 Capital budgeting process
investment based on the common
 Relevant cash flows in techniques used
capital budgeting  Identify the factors affecting capital
o Initial investment budgeting decisions.
15 – 17 9 o Operating cash flows
o Terminal cash flows
 Capital budgeting techniques
o Payback period
o Accounting rate of
return
o Net present value
o Profitability index
o Internal rate of return
o Economic value added
o

18 3 FINAL DEPARTMENTAL EXAMINATION

18 54

REFERENCES (Reading Materials)

 CIRC HF 4026 B75 2013, Brigham, Eugene F., Fundamentals of Financial Management, 2013
 CIRC HF 4026 R826 2015, Ross, Stephen A., Financial Management: principles and applications, 2015

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  CIRC HF 4910 S28 2015, Saunders, Anthony, Financial Markets and institutions, 2015

th
Gitman Lawrence J. and Zutter, Chad J., Principles of Managerial Finance, 13 edition. 2012

GRADING SYSTEM
Class Standing 70%
Quizzes 70%
Assignments, recitation 10%
Seatwork, files, notebook 10%
Attendance, right conduct 10%
Departmental examination 30%
Total 100%

st nd
Final Grade = (1 Grading Period + 2 Grading Period)
2

ATTENDANCE

The allowed number of absences for students enrolled in ACCO 20123 with once-a-week meeting is three (3). Request for excused absences or waiver of absences must be
presented upon reporting back to class. Special examinations will be allowed only in special cases, such as prolonged illness. It is the responsibility of the student to monitor
his/her own tardy incidents and absences that might accumulate leading to a grade of “FA,” (Failed due to Absences). It is also his/her responsibility to consult with the teacher,
chair or dean should his/her case be of special nature.

ACADEMIC HONESTY

All BSA and BSMA students are expected to be academically honest. Cheating, lying and other forms of immoral and unethical behavior will not be tolerated. Any student found
guilty of cheating in examinations will (at a minimum) receive a grade of 5.0 in the said test.

Prepared by the Committee on ACCO 20123 Revision:

HERBERT BARON ANDREW L. CACHERO MARVIN V. LASCANO OLIVIA C. AYUYAO EDITHA PERALTA
Member Member Chairman Member Member

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Reviewed by:

MARIETTA M. DOQUENIA GLORIA A. RANTE

Chairperson, Basic Accounting Chairperson, Higher Accounting

Recommending approval by:

LILIAN DE LA MERCED-LITONJUA
Dean

Approved by:

DR. MANUEL M. MUHI

Vice President for Academic Affairs
Student’s Copy

I have read the course syllabus and I understand that I have to comply with the requirements of the course and the expectations from me as a student of ACCO 20123 during the
First Semester of SY 2019-2020. I am fully aware of the consequences of non-compliance with the above-mentioned requirements and expectations.

Printed name and signature of student

Date

---------------------------------------------------------------------------------------------------------------------------
Teacher’s Copy

I have read the course syllabus and I understand that I have to comply with the requirements of the course and the expectations from me as a student of ACCO 20123 during the
First Semester of SY 2019-2020. I am fully aware of the consequences of non-compliance with the above-mentioned requirements and expectations.

Printed name and signature of student

Date
Effective School Year 2019-2020