ACC125 Rural Financial Management (8)

CSU Discipline Area: Accounting (ACCOU)

Duration: One session

Abstract:

Students are introduced to the procedures used in evaluating and analysing the financial operation of sole proprietorship rural production businesses. Financial and management accounting techniques are used and performance indicators derived and applied to financial results. The subject has been designed to be adaptable to the needs of students irrespective of the industry with which they most closely affiliate.

+ Subject Availability Modes and Locations

No offerings have been identified for this subject in 2013.Continuing students should consult the SAL for current offering details prior to contacting their course coordinator: ACC125

Where differences exist between the handbook and the SAL, the SAL should be taken as containing the correct subject offering details.

Enrolment restrictions:

The subject is restricted to students enrolled in courses originating from Rural Management on the Orange campus. Other students should consult with their Course Co-ordinator prior to seeking enrolment.
Not available to students who have completed RMBU1133.

Objectives:

Upon successful completion of this subject, students should:

Be able to:
* Identify the financial resources and the management goals as they relate to a specified business.

* Explain the meaning of, and discuss the relationship between, the following financial terms: assets, liabilities, equity, income, and expenses.

* Explain the purpose of, discuss the relationship between, and derive the following financial reports: cash flow statements, trading accounts, enterprise schedules, gross margins and enterprise contributions, depreciation schedules, profit and loss statements, and balance sheets.

* Utilise the above financial reports to analyse and monitor the cash and profit position of the business.

* Given information regarding financial transactions, analyse the effect of such transactions on the financial performance and position of a business.

* Utilise financial performance indicators to analyse the profitability, liquidity and long term stability of the business.
Construct and utilise computerised spreadsheets suitable for the elementary evaluation and analysis of a business's financial performance.

*Identify and assess the sensitivity of specific financial and physical performance variables which may require the attention of management.

*Derive enterprise gross margin budgets and whole farm cash flow budgets, and discuss this role and importance in the management of rural businesses.

Syllabus:

The subject will cover the following topics:

Management goals.
Balance sheets.
Trading accounts.
Enterprise inventory schedules.
Cashflow statements.
Depreciation schedules.
Profit and loss statements.
Gross margin statements and enterprise contributions.
Financial performance indicators.
Financial performance analysis, including benchmarking analysis.
Spreadsheet applications.
Gross margin budgeting.
Cash flow budgeting.
Variance analysis for financial control.
Sensitivity assessment.

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