FAR EASTERN UNIVERSITY-MANILA

Vision
Guided by the core values of Fortitude, Excellence and Uprightness, Far Eastern University aims to be a university of choice in Asia.

Mission
Committed to the highest intellectual, moral and cultural standards, it strives to produce principled and competent graduates. It nurtures a
service-oriented and environment conscious community which seeks to contribute to the advancement of the global society.

Quality Policy Far Eastern University is committed to providing quality educational services. Each person is expected to do the job right the
first time with the intention of consistently satisfying the requirement of our students, other members of FEU community, and external
parties. Under any given circumstances we shall adhere to all the requirements and standards for continuous improvement and
effectiveness of the quality management systems.

INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Vision
Far Eastern University – Institute of Accounts, Business and Finance (IABF) envisions itself to be the preferred business school in Asia.

Mission
The Institute of Accounts, Business and Finance is committed to produce principled and competent business graduates, espousing
Fortitude, Excellence and Uprightness. IABF will promote community engaged, service-oriented individuals who will shape and build strong
organization in the future.

DEPARTMENT OF ACCOUNTANCY

Vision
Guided by the core values (Fortitude, Excellence and Uprightness) of a true-blooded Tamaraw, the Accountancy Program of FEU– IABF
envisions itself as a Center of Excellence in Accountancy Education.

Mission
It commits to develop future responsible accounting professionals through holistic accountancy curriculum, extensive and innovative
delivery of instruction, competent and highly qualified faculty, state-of-the-art facilities, industry and community-based researches, practical-
based student apprenticeship program and extensive community.
Program Learning Outcomes (PLO)

A graduate of BS in Accountancy and BS Internal Auditing should be able to:

1. Analyze business transactions in accordance with the appropriate accounting and auditing standards, taxation and business laws.
2. Prepare financial statements and other-related reports in accordance with applicable accounting and auditing standards, taxation
and business laws.
3. Utilize appropriate accounting/auditing information systems in managing business transactions.
4. Identify the features of various business processes of global, e-commerce and emerging markets.
5. Develop a strategic business plan using the management concepts and principles holistically.
6. Interpret the business environment through the use of various financial and management analysis.
7. Evaluate accounting-related topics and contemporary issues through written inquiry and investigation.
8. Apply relevant auditing standards to financial statements audit for reliable communication of results to stakeholders.
9. Act with integrity, objectivity, professional competence and due care, confidentiality and professional behavior in accordance with
Code of Ethics.
10. Prepare income tax returns and other business documents in compliance with regulatory requirements.
11. Pass the licensure examination and global certifications.
12. Demonstrate leadership and interpersonal skills through collaborative work.
13. Communicate effectively in a variety of domain including writing, speaking, listening and reading in the context of accounting and
business.
14. Adapt to changing environment by responding positively to challenges.
15. Manifest the FEU core values - Fortitude, Excellence and Uprightness.

Course Title : FINANCIAL MANAGEMENT

Course Code : ACT 1108
Credits : Three (3) units / Five (5) hours
Prerequisite : ACT 1105
Description : This course is intended to introduce the learners the about the nature, purpose, scope and functions of financial
management and how it differs from the accounting perspective. This course also covers the financial analysis (interpreting and analyzing
financial statements for indications of business performance and assessing information weaknesses in financial statements). it includes time
value of money, financial planning and operational budgeting, and working capital management (cash, receivable, inventory, short-term
financing).
Course Learning Outcomes (CLO):

At the end of this course, the learner is expected to:

1. Distinguish the function of accounting from Finance function
2. Discuss the considerations in financial analysis
3. Describe the different techniques of analyzing the financial statements
4. Evaluate and discuss financial statement analysis of a particular company
5. Illustrate the cash conversion cycle
6. Enumerate the components of working capital
7. Explain the working capital management
8. Define interest rates
9. Differentiate nominal and effective interest rates
10. Define risks and returns
11. Evaluate and classify risks and returns
12. Differentiate stand alone and portfolio risks
13. Differentiate actual, expected and required rates of return
14. Evaluate a security market line
15. Define and classify bonds

COURSE LEARNING OUTCOMES IN RELATION TO PROGRAM LEARNING OUTCOMES

Course Learning Outcomes (CLO) Program Learning Outcomes
(PLO)
CLO1 Understand the basic concepts of financial 4, 9, 11, 15
management and primary roles of financial
managers
CLO2 Discuss the considerations in financial analysis 1, 4, 5, 6, 9, 11, 15

CLO3 Describe the different techniques of analyzing 1,2, 4, 5, 6, 9, 11, 15

the financial statements
CLO4 Evaluate and discuss financial statement 1,2, 4, 5, 6, 9, 11, 13, 15
analysis of a particular company
Illustrate the cash conversion cycle 1, 3, 4, 5, 6, 7, 9, 11, 15
CLO5
CLO6 Enumerate the components of working capital 1,3, 4, 5, 9, 11, 15
CLO7 Explain the working capital management 1,3, 4, 5, 9, 11, 15
CLO8 Define interest rates 1,3, 4, 5, 9, 11, 15
CLO9 Differentiate nominal and effective interest rates 1,3, 4, 5, 9, 11, 15
CLO10 Define risks and returns 1,3, 4, 5, 9, 11, 15
 CLO11 Evaluate and classify risks and returns 1,3, 4, 5, 9, 11, 15
CLO12 Differentiate stand alone and portfolio risks 1,3, 4, 5, 9, 11, 15
CLO13 Differentiate actual, expected and required rates 1,3, 4, 5, 9, 11, 15
of return
CLO14 Evaluate a security market line 1,3, 4, 5, 6, 9, 11, 15
CLO15 Define and classify bonds 1,3, 4, 5, 9, 11, 15

Time Frame Lesson/Topics Course Strategy/Methodology/ Student Output Formative

Week/Day Learning Activities Assessment
Outcomes

Administrative Matters  CLO1  Faculty-  Students’  Pre-test

 Course Orientation facilitated Feedback
and Policies, Discussion  Post-test
Standards, Guidelines  Case Study
(PSG) Discussion  Concept  Recitation
Mapping
 Board
1  INTRODUCTION TO  Brainstorming Work
FINANCIAL
MANAGEMENT  Case analysis
 Overview of Financial
Management
 Objectives and
Financial Manager’s
Responsibilities

 Managerial Incentives  CLO1  Faculty-  Outline or  Pre-test

to Maximize facilitated concept
Shareholder Wealth discussion Mapping of the  Post-test
Assigned
 Financial  Concept Readings  Recitation
2-3 Environment: Market, Mapping
Institutions, Interest  Case Study  Board
Rates and Taxes  Brainstorming Work
 Time Value of Money
 Boardwork
  Provide
Illustrative
Problems

 Case Analysis

 ANALYSIS OF  CLO2  Faculty-  Outline or  Pre-test

FINANCIAL  CLO3 facilitated concept
 CLO4 discussion Mapping of the  Post-test
STATEMENTS Assigned
 Financial Statements  Concept Readings  Recitation
and Report Mapping
4-5  Ratio Analysis  Case Study  Board
 Common Size  Brainstorming Work
Analysis
 Percentage Change  Boardwork
Analysis
 Provide
 Market Value Added Illustrative
(MVA) and Economic Problems
Value Analysis (EVA)
 Case Analysis

6-8 WORKING CAPITAL  CLO5

MANAGEMENT AND  CLO6
FINANCING  CLO7

 Current Assets
Management
 Cash Management
- Nature of cash
and cash flow
- Various Sources
of cash receipts
and payments
(including
regular
/exceptional
revenue/capital
receipts and
payments, and
drawings)
- Difference
between the
cash flow
accounting and
accruals
accounting
- Cash flow
pattern of
different types of
organization
- Importance of
cash flow
management
and its impact on
liquidity and
company
survival
(calculation of
ratios is not
required)
- Basic treasury
Functions
 - Cash handling
procedures
- Guidelines and
legislation in
relation to the
management of
cash balances in
public sector
organizations
- Trends in the
economic and
financial
environment can
affect
management of
cash balances
 Inventory
Management
- Types of
Inventory Costs
- Importance of
Inventory
Management
- Ways of
Managing
Inventory
- Economic Order
Quantity
- Re-order Point
- Safety Stock
- Just-in-Time
- Two-Bin
  Receivable
Management
- Trade Credit
- Credit Policy
- Credit Terms
- Credit Standards
- Sources of
Credit
Information
- Collection Policy
- Evaluating
Receivable
Management

9 MIDTERM EXAMINATION

 Short Term  CLO5  Faculty- Outline or  Pre-test

Financing  CLO6 facilitated concept
10-11 - Stretching of  CLO7 discussion Mapping of the  Post-test
Payables Assigned
- Sources of  Concept Readings  Recitation
Short-term Mapping Case Study
Financing  Board
- Short-term Bank  Brainstorming Work
Loans
- Accounts  Provide
Payable (Trade Illustrative
Credit) Problems
- Inventory
Financing  Case Analysis
- Receivable
Financing
  Interest Rates  CLO8
 Definition of Interest  CLO9
Rates
12-13 - Nominal Interest
Rate
- Effective Interest
Rate
 Components of
Nominal Interest
Rates

 Investments CLO10, CLO11,

 Definition of CLO12, CLO13,
Investment CLO14
 Definition of Returns
- Expected Rate
14-15 of Return
- Required Rate
of Return
- Actual Rate of
Return
- Market Rate of
Return
 Definition of Risks
- Stand-Alone
Risk
- Portfolio Risk
 Capital Asset Pricing
Model
 Security Market Line
 Bond Valuation CLO15
16-17  Characteristics of
bonds
 Parties in bonds
transaction
 Types of bonds
  Bond Price
Computation
 Yield to Maturity
 Yield to Call

18 FINAL DEPARTMENTAL EXAMINATION SUBMISSION OF REFLECTIVE ESSAY

validating LEARNING OUTCOMES ACQUIRED

Required E-book
Essentials of Financial Management, by Eugene F. Brigham, Joel F. Houston, Hsu Jun-ming, Kong Yoon Kee, 4t ed.

INSTRUCTIONAL MATERIALS/RESOURCES:
1. PowerPoint
2. Multi-Media Projector
3. Bloomberg
4. LMS (e.g. Canvas)
5. Courseware Materials. This can be downloaded from the e-learning facility (http://elearning.feutech.edu.ph)
6. Laboratory Manuals. This can be downloaded from the e-learning facility (http://elearning.feutech.edu.ph)

Suggested Readings and References

Brealey, Myers, Marcus. Fundamentals of Corporate Finance, 7th Edition. McGraw-Hill. 2011
www.google.com

CLASSROOM POLICIES:

It is the responsibility of the learner to come to each class prepared. He/she is also expected to take all examinations on the scheduled date.
He/she should read the assigned problems prior to class discussion. He/she is expected to attend each class and participate actively in the
discussions.

FEU ACADEMIC DISHONESTY:

All Research, Accounting, Auditing, Law and Taxation 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 or plagiarizing in submitted course
requirements will (at a minimum) receive a Failing Grade in the course/subject. Cheating and Plagiarism refer to the use of unauthorized
books, notes, securing help in a test, copying test, assignments, reports or term papers, collaborating without authority with another student
during an examination or in preparing academic work, signing another student’s name on an attendance sheet, representing the work of
another person as one’s own; and other activities manifesting the practice of scholastic dishonesty.

POLICY ON ABSENCES:

The students are allowed only 20% of the total number of hours in a semester for absences. Hence, the allowed number of absences for a
student enrolled in a 3-unit subject or 6-unit subject is a maximum of six (6) absences during regular semester. Request for excused absences
or waiver of absences must be presented prior to occurrence of absence or immediately upon reporting back to class, whichever is applicable.
Special examinations will be given 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 the grade of 5.00 or F. It is also his/her responsibility to consult with the
concerned faculty Member, Assistant Program Head, Program Head, Dean should his/her case be of special nature.

Note: Always refer to the Student Handbook for academic policies. POLICY ON NON-SOLICITATION OF FUNDS

All official fees of the University are collected through the Cash Department. Students should not pay any additional fees such as those for
tickets, entrance fees, transportation fees, hand-outs, readings, quizzes or tests to any faculty or staff member of the University.

POLICY ON STUDENT DATA PRIVACY ACT:

In compliance with the Act and for ensuring highest level of data security and confidentiality in the access of student’s personal
data/information, student should not be allowed by the faculty to check other students’ test papers. Faculty concerned should not
announce the individual grades of the students before the class, disclose student information, student records and other “student-
generated content” in any media, and any other similar acts that will jeopardize the interest of an identified individual student.

COURSE REQUIREMENTS:

Assignments, Quizzes, Practice Set, Major Exams GRADING SYSTEM Computation of Periodic Grades

GRADING SYSTEM:

Computation of Periodic Grades

I. Computation of 1st Preliminary Grade: Midterm Grade (MG)

Formative Assessment (FA)

Class Participation (Homework, Practice Tests, Recitation, Pre-test) 20%
Quizzes 30%
Summative Assessment (SA) - Major Departmental Exam 50%
1st PRELIMINARY GRADE 100%
II. Computation of 2nd Preliminary Grade

Formative Assessment (FA)

Class Participation (Homework, Practice Tests, Recitation, Pre-test) 20%
Quizzes 30%
Summative Assessment (SA) - Major Departmental Exam 50%
2nd PRELIMINARY GRADE 100%

III. FINAL GRADE = 1st PG (50%) + 2nd PG (50%)

IV. FINAL LETTER GRADE QUALITY POINT RANGE

GRADE
91 - 100 A 4.0 3.80 – 4.0
85 - 90 B+ 3.5 3.30 – 3.79
79 - 84 B 3.0 2.80 – 3.29
72 - 78 C+ 2.5 2.30 – 2.79
66 - 71 C 2.0 1.80 – 2.29
60 - 65 D+ 1.5 1.30 – 1.79
50 - 59 D 1.0 1.0 – 1.29
F .99 and lower

V. ACADEMIC HONORS

• SEMESTRAL HONORS (DEAN’S LIST)

The Deans’ lister must have a semestral QPA of between 3.35 and 3.50 for second honors and between 3.51 – 4.00for
first honors. To qualify for the Dean’s List, a student must have no failing grades including NSTP and WRP and no
disciplinary case during the particular semester.

• LATIN HONORS
To qualify for Latin Honors, a student must have no major disciplinary case and no failing marks. Failures in NSTP
and WRP will also disqualify the student from the Latin Honor award.

QPA
Summa Cum Laude With the highest honors 3.80 – 4.00
 Magna Cum Laude With high honors 3.60 – 3.79
Cum Laude With honors 3.40 – 3.59

VI. REQUIRED ANNUAL QUALITY POINT AVERAGE (QPA REQUIREMENT)

FOR PROMOTION TO UNIVERSITY BSA BSIA

2nd year 1.2 1.2 1.2
3rd year 1.5 1.6 1.5
4th year 1.8 2.0 1.8
To graduate 2.0 2.4 2.0

VII. CONSULTATION HOURS

DAY/s TIME ROOM

Faculty Consultation Room

DATE OF EFFECTIVITY: August, 2018

Prepared By: Reviewed and Recommended By: Approved By:

LADY DIANE C. MADRID RAMIL N. BALDRES EARL JOSEPH M. BORGONA

APH – Accountancy PH – Accountancy/Internal Auditing Dean - IABF