Author : Maurice Brown Building: : DL400 : Date :

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1 Course code : MBIB-FBP-16 Academic year : Term : Block A/C Obligatory course : Yes Variant : Full Time Type of course : Conceptual course Programme leader : Maurice Brown Course Link : 16/default.aspx Author : Maurice Brown Building: : DL400 : maurice.brown@hu.nl Date : Hogeschool Utrecht: University of Applied Sciences Utrecht Utrecht, 2011 This material is subject to copyright. Copies for own or internal use are permitted. Financial Planning and Budgeting International Business and Management Studies Main Phase Hogeschool Utrecht: Univer Utrecht, 2007 This material is subject to cop Copies for own or internal use

2 Contents 1. Course Description 3 2. Course Goals and Learning Objectives 4 3. Place in the Curriculum and Related Courses 5 4. Study Burden 6 5. Pre-requisites 7 6. Exemption Possibilities 8 7. Competencies 9 8. Didactic Forms Assessment Course Material and Literature Course Evaluation 14 2/13

3 1 Course Description Financial Planning and Budgeting is a second year course required by all second year students following the Finance Tack/Stream IBMS course of the University of Applied Sciences, Utrecht. The course builds on the foundation of subject material covered in Finance and Managerial Accounting 2. The course will advance your understanding of the role of the Budgeting and forecasting process. The budgeting process provides managers of organizations the opportunity to match their organizational goals with the resources necessary to accomplish those goals. Budgeting empowers all in the organization to understand organizational goals in terms of their responsibilities and be held accountable for budget plans and results since they can be compared. Budgeting is synonymous with managing an organization. Budgets are plans of action based on forecasted transactions, activities, and events. The concepts of understandability and comparability underlie the power of budgeting. Budgeting enhances understandability, since managers and employees will understand their organizational roles and responsibilities based on how the budget links the organization s strategic plans to its annual plans. Because the budget expresses these plans and objectives in concrete monetary terms, managers and employees are able to understand and act in ways that will achieve them. Budgeting enhances comparability, since budget-to-actual comparisons give managers and employees a means of monitoring the results of their actions. During class, theory and calculations will be complimented with real life discussions and situations from the international business world, with input from you the student, driving the arguments and class discussion forward. The course will make Finance understandable and applicable to you, as an entrepreneur starting your own business or working within and existing company and will be applicable in a future career role as a Financial Business/Marketing Analyst or a Financial/Product/Business Unit Controller. 3/13

4 2 Course Goals and Learning Objectives 1. Identify, describe and construct the basic components of budgeting, managements role and apply guidelines for preparing budgets. 2. Prepare and calculate a sales, production, materials, purchase, labour overhead cash budget, Income Statement and Balance Sheet budget. 4/13

5 3 Place in the Curriculum and Related Courses To further your basic knowledge and understanding of this course, there is a strong link with the 2 nd year Finance course given in the main phase 1. The course will focus primary on the Chapter 20 related to budgeting from your current text book, Needles et al. You will apply concepts learnt from this course to create a complete financial budgeting forecast. 5/13

6 4 Study Burden Below is an estimate of the time an average student should spend on study and class preparation for the entire module (7 weeks) Total Workload: 140 Hours (5EC s) Break down: Class Contact Hours 30 hours Readings (Chapter, Company annual report) 14 hours Problem Solving/homework (3 hours per week) 21 hours Budgeting Forecast Assignment 60 hours Reading of Newspapers 2.5 hours Reading outside literature on Finance 2.5 hours Preparation of Final Budget Assignment 10 hours 6/13

7 5 Pre-requisites A basic knowledge of financial accounting, cost accounting is advised. All students should have had the foundation course Finance and Managerial Accounting 1 and 2 or its equivalent. Keeping informed on current financial events, by reading financial publications, such as the Wall Street Journal, The Financial Times or the Economist and financial programs on CNN or CNBC, will assist in the comprehension of course concepts by making it relevant to real world events. 7/13

8 6 Exemption Possibilities There are no exemption possibilities without permission of the Exam Board 8/13

9 7 Competencies This course contributes to the development of the following competences: I.1 International Business Awareness (Level 2) You are aware of recent international developments in specific regions. II.3 International Strategic Vision Development (Level 2) Is able to access the consequences of an international strategy for the evaluation of management options. III.8 International Finance and Accounting (Level 2) The ability to translate more complex financial activities into journal entries and prepare a balance sheet and profit & loss account. Capable of preparing a budget for a department of an organization The ability to prepare cost calculations involving indirect cost and to understand the Able to perform calculations regarding working capital management The ability to prepare a liquidity prognosis and ratio-analyses and to access the value of an investment proposal. V.4 Business Research Methods (Level 2) Has the ability to work in a more complex situation and to systematically execute a research, report on the findings and to translate them into useful conclusions. Has the ability to use theory concepts and the ability to translate these concepts into an information need. V.5 Business Research Methods (Level 2) The ability to independently make a realistic and effective planning and to determine the required time, actions, tools and priorities in relation to the activities of others. 9/13

10 8 Didactic Forms This course will utilize class lectures, class participation, and a case assignment using a computer. The class will meet for tutorial sessions of 360 minutes per week for seven weeks. Each week will be devoted to a Lecture discussing theory taken from the Chapter on Budgeting from your text books and working on questions to be provided via the SharePoint site. Tutorial sessions will spent working on creating a Budgeting forecast based on your chosen company. Students will be required to work in teams of two. The same team for both Lecture and Tutorial Assignments. Students will require their text books, a calculator and laptop computer for all classes The course will tie in concepts that are relevant to actual business practices. We will also discuss financial events and news from the current financial world that elaborates the week s topic. Therefore, preparation, attendance and participation are essential. 10/13

11 9 Assessment Type of Assessment Weghing Min. Mark Final Budgeting Report 100% 5.5 Assignment Weekly Lecture and Tutorial Assignments - Pass/Fail Tutorial Presentation Pass/Fail Total Combined Grade 100% 5.5 The Final Budgeting Report Assignment, representing 100% of the final block grade. The minimum passing grade is 5.5. There is a Re-sit possibility for the assignment in the following Block. ASSIGNMENTS NOT HANDED IN AT THE TIME AND DATE SPECIFIED WILL BE FAILED. Student Teams ae expected to also complete and meet deadlines for weekly Lecture questions AND weekly Tutorial Budgeting Assignments. The weekly Lecture and Tutorial Assignments will be checked and monitored and given a Pass/Fail for each Lecture and Tutorial Assignment. Groups are also expected to take part in at least 1 Budget Presentation during the course of the Assignment/Block and will also be assessed. An accumulation of two Fails in total, regardless be it Lecture or Tutorial Assignment by any one Team or Individual of a Team, will lead to the Final Budgeting Assignment being a FAIL for the current Block and classified as the Re-sit assignment, OR a special Re-sit assignment will be given. The Re-sit assignment grade with be then posted in the Block following, course completion. Students who cheat or plagiarize from others or from Internet sources will receive a failing grade Plagiarism- The Concise Oxford Dictionary defines this as taking, using or passing off the thoughts, writings, inventions, etc. of another person as one s own. This is a very serious offence. It includes: 1. Handing in the same (or very similar) assignments as other past or present (teams of) students; 2. Copying text or ideas from books, the Internet, etc. without proper source citation:; 3. Copying answers from other students during examinations; and 4. Allowing other students to copy your assignments or examination answers. Please make sure you use footnotes correctly and a bibliography correctly to cite sources so that the lecturer can check which sources you used and how you used them. Do not just copy large amounts of information from sources, even when you have used inverted commas e.g. text. 11/13

12 Cases of fraud are treated very seriously. Lecturers and examination invigilators refer all cases to the Exam Board. 10 Course Material and Literature BOOK ( Required ) Title: Financial and Managerial Accounting Principles Author(s): Powers, Needles, Crosson: HU Edtion ISBN: Edition: 10th Publisher : South- Western / Cengage Learning 12/13

13 11 Course Evaluation Evaluation of the course and exam will take place at the end of the block by the IBMS Management. 13/13