Code
MUFE ACC 3403
Level
L3
Field
Comptabilité, contrôle de gestion
Language
Anglais/English
ECTS Credits
3
Class hours
18
Program Manager(s)
Educational team
Introduction to the module
This is a fundamental course in accounting and finance.
It studies how to read the 4 most important financial statements of a firm: Balance Sheet, Income Statement, Statement of Cash Flow and Statement of Changes in Equity.
It presents then some commonly used indicators and techniques to analyse the financial situation of a firm.
Learning goals/Programme objectives
- LG2 Having the ability to manage uncertainty and complexity with accuracy and rigor
- LG3 Having the foundations of responsible and sustainable management
Learning objectives/Intended learning outcomes
- 2.1 - Identify and analyze in depth problems, causes and impacts
- 2.2 - Explore solutions, decisions, and their relative and absolute impacts
- 2.3 - Identify optimal solution(s) and priorities toward implementation
- 2.4 - Implement a plan, prepare for changes, and measure the success of actions with regard to strategy and stakeholder
- 3.1 - Understand and employ basic concepts, knowledge and theories related to the discipline
- 3.2 - Apply discipline knowledge appropriately and effectively
- 3.4 - Select and employ judiciously appropriate techniques and tools within the discipline
Rubrics
In this course, we will study how to:
- Scan the financial situation of a firm – Who owns the firm? How much assets does it have? How much profit did it make last year? Is it short of cash?
- Interpret and analyse the results of financial statements - Is the firm over-indebted? How to improve its efficiency? If the firm is not financially healthy, what are the issues?
It can equip you with fundamental competences to navigate in massive financial data and make management decisions with concrete evidences.
Content : structure and schedule
0 Preparation
0.1 Course Outline
0.2 Learning Objectives
0.3 Evaluation
0.4 Class Policies
0.5 Exam Policies
0.6 References
Chapter 1 Introduction
1.1 How does a firm work?
1.2 Purpose (Why?)
1.3 Users (For whom?)
1.4 Components (What?)
1.5 GAAP vs. IFRS (Where?)
Chapter 2 Balance Sheet
2.1 Balance Sheet Structure
2.2 Assets
2.3 Liabilities
2.4 Equity
Chapter 3 Income Statement
3.1 Income Statement Structure
3.2 Revenue and Expenses
3.3 Gains & Losses
3.4 Income Statement Breakdown
Chapter 4 Statement of Cash Flow
4.1 Purpose
4.2 Operating Activities
4.3 Investing Activities
4.4 Financing Activities
4.5 Statement of Cash Flow Structure
Chapter 5 Statement of Changes in Equity(SOCIE)
5.1 Key components
5.2 SOCIE vs. Balance Sheet Equity
Chapter 6 Ratio Analysis
6.1 Principles
6.2 Common-size Financial Statements
6.3 Liquidity Ratios
6.4 Efficiency (Activity) Ratios
6.5 Leverage Ratios
6.6 Profitability Ratios
6.7 Market (Valuation) Ratios
Chapter 7 DuPont Analysis
7.1 ROE Decomposition
7.2 Interpretation
Chapter 8 ESG Statement
8.1 Regulatory Context
8.2 ESG Pillar
Sustainable Development Goals
Goal 9: Industry, innovation and infrastructure
Learning delivery
synchrone
Pedagogical methods
Lecture + In-class Exercises
Real world data analysis and examples are an integral part of the course.
Exercise: Solve problem sets after each topic in class and at home if needed.
Evaluation and grading system and catch up exams
Attendance is mandatory for the course.
The final grade of this class consists of:
- 30% Mid-term exam.
- 30% Group project: 2 students per group
- 40% Final exam.
- Bonus points according to the attendance and participation to class discussion
- Resit exam (2h) in case of failing. The resit exam will stand alone for the final grade and will be limited to 12.
Module Policies
Professor-Student Communication
● The professor will contact the students through their school email address (IMT-BS/TSP) and the Moodle portal. No communication via personal email addresses will take place. It is the student responsibility to regularly check their IMT-BS/TSP mailbox.
● Students can communicate with the professor by emailing him/her to his institutional address. If necessary, it is possible to meet the professor in his office during office-hours or by appointment.
Students with accommodation needs
If a student has a disability that will prevent from completing the described work or require any kind of accommodation, he may inform the program director (with supporting documents) as soon as possible. Also, students are encouraged to discuss it with the professor.
Class behavior
● Out of courtesy for the professor and classmates, all mobile phones, electronic games or other devices that generate sound should be turned off during class.
● Students should avoid disruptive and disrespectful behavior such as: arriving late, leaving early, careless behavior (e.g. sleeping, reading a non-course material, using vulgar language, over-speaking, eating, drinking, etc.). A warning may be given on the first infraction of these rules. Repeated violators will be penalized and may face expulsion from the class and/or other disciplinary proceedings.
● The tolerated delay is 5 minutes. Attendance will be declared on Moodle during these 5 minutes via a QR code provided by the teacher at each course start.
● Student should arrive on time for exams and other assessments. No one will be allowed to enter the classroom once the first person has finished the exam and left the room. There is absolutely no exception to this rule. No student can continue to take an exam once the time is up. No student may leave the room during an examination unless he / she has finished and handed over all the documents.
● In the case of remote learning, the student must keep his camera on unless instructed otherwise by the professor.
Honor code
IMT-BS is committed to a policy of honesty in the academic community. Conduct that compromises this policy may result in academic and / or disciplinary sanctions. Students must refrain from cheating, lying, plagiarizing and stealing. This includes completing your own original work and giving credit to any other person whose ideas and printed materials (including those from the Internet) are paraphrased or quoted directly. Any student who violates or helps another student violate academic behavior standards will be penalized according to IMT-BS rules.
Keywords
Financial Statement, Balance Sheet, Income Statement, Statement of Cash Flow, Ratio Analysis, Dupont Analysis, ESG
Prerequisites
Basic skills in Mathmatics