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WESLEYAN UNIVERSITY-PHILIPPINES

Cabanatuan City, Nueva Ecija


COLLEGE OF BUSINESS AND ACCOUNTANCY
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
Course Syllabus in Financial Management
First Semester, SY 2015-2016
Universi
ty Vision
Universi
ty
Mission
Universi
ty Goal
Universi
ty Core
Values

We envision Gods reign through Christian institution of learning inspired by Methodist tradition for the transformation of society.
To participate in the transformation of society through academic excellence and service sustained by Christian Values.
To this end, Wesleyan University-Philippines undergirds scholarship, character development and service with a lively faith in
God.
Competence, Character, Unity, Spirituality and Accountability

The College of Business and Accountancy adopts and supports the vision, mission and goals of the University. And to
CBA
contribute towards their attainment, the College has formulated its principle in preparing men and women in the manifold task
Guiding of citizenship; instilling in them the spirit of selfless service and dedication to the uplifting of the quality of human life;
Principle encouraging excellence and vision in all their endeavours, imbuing in them the need for an international outlook and inspiring
them with an abiding faith in God. Thus, its ultimate goal is the development of the people for the whole of life.
Vision Missio
Program Objectives and Purposes
n
1. To develop educated professionals who can face and meet the challenges of a dynamic business society in a global

economy;
2. To develop a business community of well-trained business leaders imbued with Christian and Filipino values that can

provide exemplary leadership and instil democratic processes towards nation building;
3. To develop and implement research-oriented curriculum that can provide opportunities in the practical application of

specialized training in business through apprenticeship;


4. To provide adequate opportunities for the exercise of socio-economic and moral obligations through community

outreach service;

5. To acquire and develop skills for self and corporate employment; and
6. To provide sufficient exposure to the realities of the work environment particularly in the use and application of

computer technology in business.


Course
Course Title
Course Code
Credit Units
Pre-requisite/Co-requisite
Number of Hours
Financial Analysis and
Informat
FM 2
3
Fin. 2 and Acctg. 2
3 hours per week
Reporting
ion

Course
Descripti
on

This course provides a broad framework for using financial statements and other SEC required regulatory disclosures in business analyses.
Emphasis is placed on developing a critical, general managers perspective for interpreting required financial disclosures, understanding the
types of financial information available in the public domain and their purposes, developing an appreciation of (some of) the inherent
ethical conflicts that may color managers and sell-side analysts disclosure, and formulating an approach to evaluating an enterprises
overall financial reporting and the implications of that analyses from the perspective of a potential shareholders or creditor. The course
objectives are reinforced through the course reading materials, assigned problems in class problem solving and discussions.
Student Outcomes and Relationship to Program Objectives and Purposes
Student Outcomes
Program Objectives and Purposes
1

Convey ideas clearly both oral and written in English and Filipino.

b
c

Apply the accounting concepts, assumptions and requirements of Financial Analysis and Reporting
in the field of business
Prepare, analyse, and evaluate reports, proposals and concept papers.

Apply the principles of the different forms of communication.

Develop the ability to access, retrieve and disseminate information using IT.

Perform quality work.

Explain the concepts and principles of good interpersonal relations.

Develop a wholesome personality.

Demonstrate leadership qualities, civic-mindedness and responsible citizenship.

Conduct environmental scanning.

Conduct feasibility study and other business research/plan.

Explain the concepts, approaches, and techniques of environmental conservation.

m Distinguish the countrys national development thrusts, concerns and socio-economic indicators.
n

Preserve and promote Filipino historical and cultural heritage (based on RA 7722)

Course Outcomes and Relationship to Student Outcomes


At the end of the unit, the students will be able to masters at least 75% of the lessons they are expected and show
the ability to:
1. Examine the underlying accounting concepts, assumptions and requirements set by the Framework on Preparation
of Financial Statements.
2. Display knowledge and understanding in the mechanics and procedures in preparing and presenting the financial
statements.
3. Review the relevance of Notes to Financial Statements and the disclosure requirements.
4. Apply the use of traditional tools in analyzing the operating performance of business relative to its liquidity,
profitability, growth, and leverage.
5. Develop and construct a valid and useful interpretation of financial statements based on analysis.
6. Research on the latest financial statements issued by the various companies and thoroughly discusses the
observations on a written report.
7. Produce a compilation of financial analysis using all traditional tools; make a valid interpretations and possible
decision/recommendation.
8. Evaluate and Interview a company that currently operates: examine the financial statements & create portfolio of
analysis interpretation.

Expect
ed
Teachi
ng

Topic/Content Outline

Intended Learning Outcomes (ILO)

Student Outcomes
I-Introduced P-Practiced
Demonstrative

D-

a b c d e f g h i j k l m n
I
I
I I
I P
I
P

I P

I P

I I I

Teaching
Learning
Activities
(TLAs)

OutcomesBased
Assessment
Methods

Time
Prelim
18
Hours

Orientation:
Vision, Mission, Goal, Core Values and
CBA Guiding Principles
Class Room Policies, Rules and
Regulations
Course Requirements
Grading System
Accounting: Its Nature and Concepts
1. Concept and nature of Accounting
2. Procedural Steps in the Accounting Cycle
3. Accounting in the Philippines
4. Framework for the Preparation of
Financial Statements
5. Purposes and Scope of the Framework
6. Financial Statements:
- Financial Position
- Comprehensive Income
- Changes in Equity
- Cash Flows
7. Notes and Disclosure of Accounting
Policies
8. Users of Financial Statements &
Information Needs
9. Objectives of Financial Statements
10. Underlying Assumptions
11. Qualitative Characteristics
12. Accounting Constraints
13. Elements of Financial Statements
14. Recognition of Elements of Financial
Statements
15. Measurement of the Elements
16. Concept of Capital

At the end of the orientation, the student should be


able to:
Understand the WU-P Vision and Mission.
Recognize the scope, purposes/uses and
Importance, context and scope of the course.
Identify the policies, rules and regulations, the
course requirements and Grading System.
After the completion of the topics the students can:
Describe the terminology used in concept and
nature of accounting.
Create an informative flowchart and identify the
procedural steps in the accounting cycle.
Review the development of accounting in the
Philippines.
Define the framework for the preparation of
financial statements.
Discuss the purposes and scope of the
framework.
Provide a handwritten sample of each financial
statement.
State all the users of financial statements and
explain the information needed respectively.
List and construct all the diagrams and figures
used for easy understanding of all topics
presented (computerized).
Recognize all the concepts provided and explain
the significance of the following:
- Underlying Assumptions
- Qualitative Characteristics
- Accounting Constraints
- Elements of Financial Statements

Class
Discussion
s
Collaborati
ve/
Interactive
Learning
Portfolio
Graphic
Organizer

Assignmen
t
Recitation
Written
Activity
And
Exercise
Prelim Quiz

- Recognition of Elements of Financial


Statements
- Measurement of the Elements
- Concept of Capital

Presentation of Financial Statements


17. Concept and Nature
18. Objective and Scope of PAS 1
19. Purpose and Components of Financial
Statements
20. Fair Presentation
21. Departure from the Compliance with
PFRS
22. Going Concern, Accrual Basis,
Consistency of Presentation, Materiality
and Aggregation
23. Offsetting and Comparative
information
24. Reporting Period, Disclosure of
Accounting Policies
25. Accounting Estimates and Errors

After the completion of the topics the students can:


Identify the Philippine Accounting Standards
(PAS) that sets the guidelines on the
presentation of financial statements.
Research and summarize the guidelines on the
presentation of financial statements provided by
PAS
Discuss the objectives and scope of PAS 1
Explain the requirements of fair presentation
and the reportorial requirements on department
from compliance with Philippine Financial
Reporting Standards
Describe the disclosure requirement, accounting
policies, and treatment of accounting errors.

Class
Discussion
s
Collaborati
ve/
Interactive
Learning
Portfolio
Research
Paper

Assignmen
t
Recitation
Written
Activity
and
Exercise
Prelim Quiz
Prelim
Examinatio
n

Midter
m
18
Hours

Statement of Financial Position


26. Concept and Nature
27. Recognition of Assets and Liabilities
28. Criteria for Recognition
29. Information to be Presented in the
Balance Sheet
30. Assets, Composition of Current Assets
31. Cash and Cash Equivalents
32. Financial Assets, Trade and other
Receivables
33. Inventories, Prepaid Expenses
34. Pro-forma of Current Asset Section
35. Composition of Non-Current assets
36. Property, Plant and Equipment
37. Long-term Investments
38. Intangibles and Other Current Assets
39. Pro-forma of Non-Current Assets
Section
40.
Liabilities, Pro-forma of the Liabilities
Section
41. Equity, Pro-forma of the
Shareholders Equity
42. Events after the Date of the Balance
Sheet
43. Summary of Measurement and
Presentation of some Accounting
Elements

After the completion of the topics the students can:


Discuss the concept, nature and criteria for
recognition of Assets and Liabilities
Create a list of information that is to be
presented in the balance sheet based on
students stock knowledge.
Distinguish the sections of statement of financial
position, and classify each item/content
according to nature and use.
- Assets
- Liabilities and
- Equity
Prepare the proper pro-forma of the statement
of financial position.
Research all the legit items/contents presented
in the balance sheet and compare to the
prepared list.
Discuss the events after the date of statement
of financial position.
Identify the authorization date for issuance of
statement of financial position; and
Describe the disclosure requirements of events
after the date of the statement of financial
position.
Solve
the
problems
provided
on
this
topic/content.

Statement of Comprehensive Income


44. Concept and Nature
45. Differences between Balance Sheet

After the completion of the topics the students can: Class


Discussion
Differentiate Balance Sheet and Income
s
Statement.
Create a list of information that is to be Collaborati

Assignmen
t
Recitation
Written

and Income Statement


46. Recognition of Income and Expenses
47. Determination of Profit
48. Capital Maintenance and Transaction
Approaches
49. Methods of Presenting Income
Statement
50. Nature of Expense Method
51. Function of Expense Method/Cost of
Sales Method
52. Disclosure of Information in Income
Statement

Statement of Changes in Equity and


Cash Flows
53.
Statement of Changes in Equity
54. Equity of the Shareholders
55. Statement of Cash Flows
56. Benefits of Cash Flows Statement
57. Presentation of the Cash Flows
Statement
58. Operating, Investing and Financing
Activities
59. Treatment of Dividends, Interests and
Taxes on Income and Non-Cash
Transactions
60. Cash Flows from Operating Activities
61. Direct and Indirect Methods
62. Investments in Subsidiaries,
Associates and Joint Ventures
63.
Acquisitions an d Disposals of
Subsidiaries and other Business

presented in the Income Statement based on


ve/
students stock knowledge.
Interactive
Prepare the proper pro-forma of the statement
Learning

Problem
of comprehensive income.
Analyze the methods of presenting Income
Solving

Research
statement
Paper
Distinguish the Nature Expense Method and
Portfolio
Function of Expense Method (provide samples).
Research all the legit items/contents presented
in the Income Statement and compare/validate
to the prepared list.
Solve
the
problems
provided
on
this
topic/content.

After the completion of the topics the students can:


Define the Statement of Changes in Equity.
Research the items that appear in the
Statement of Changes in Equity.
Describe the line items that are included in the
shareholders equity section.
Prepare a Statement of Changes in Equity.
Define Statement of Cash Flows.
State the benefits of Statement of Cash Flows.
Identify the cash flows that are classified as
operating, investing and financing activities.
Discuss the preference and alternative
treatments of interests, dividends and taxes on
income.
Recognize the cash flows from operating
activities using the direct and indirect method.
Prepare a Statement of Cash Flows

Activity
and
Exercise
Midterm
Quiz
Midterm
Examinatio
n


Notes to Financial Statements and
Disclosures
All the topics indicated on chapter six.

Finals
18
Hours

Analysis of Financial StatementsComparative Approach


64. Concept and Nature
65. Procedures in Analyzing Financial
Statements
66. Horizontal or Comparative Analysis
67. Vertical or Common-Size Analysis
68. Trend Analysis
69. Important Considerations FS Analysis
Analysis of Financial StatementsFinancial Mix Ratios
70. Concept and Nature
71. Liquidity Ratios
- Current Ratio
- Quick or Acid-Test Ratio
- Receivable Turnover
- Average Collection Period
- Inventory Turnover
- Average Sales Period
72.Solvency or Stability Ratios
- Debt Ratio
- Equity Ratio
- Debt to Equity Ratio
- Times Interest Earned
73.Profitability Ratios
- Gross Profit Rate
- Operating Profit Margin
- Net Profit Margin
- Return on Investments, Return on
Equity

Summarize the structure of presenting notes to


financial statements and disclosure
requirements.
Identify Notes compliance, policies and
standards of PFRS.

After the completion of the topics the students can:


Recall the objectives of the financial statement
and relate to the analysis concept.
Define the financial statement analysis.
State the procedures in analyzing financial
statements.
Describe horizontal or comparative analysis.
Discuss the procedures in vertical or commonsize analysis.
Identify the process of trend analysis.
Prepare a written report of a particular
company; evaluate using the comparative
approaches of financial statement analysis
respectively.

Define the financial mix ratio analysis.


Identify the four traditional tools of financial
ratios analysis.
Review the relevance of all the financial ratios
under to the four general categories of financial
ratio tools.
Discuss the qualitative factors in financial
statements analysis.
Solve the problems provided on this
topic/content.

Class
Discussion
s
Collaborati
ve/
Interactive
Learning
Case
Analysis
Written
Report
Portfolio

Assignmen
t
Recitation
Written
Activity
and
Exercise
Final Quiz
Final
Examinatio
n

74.Growth Ratios
- Earnings per Share
- Price-earnings Ratio
- Dividend-yield and pay-out Ratio
- Book Value per Share
- Qualitative Factors in analysis of FS

Analyze a situational case and decide using the


financial ratios analysis methods.
Assess certain company and prepare a written
report regarding the current condition of the
business using financial mix ratios.
Make an interpretation from the derived results
of analysis and recommend possible plan for the
development of operation.

54
Hours
Course Requirements:
1. The students are required to take three (3) major term examinations, namely: Preliminary, Mid-term/ Semi-Final and Final Term
Examinations on the dates scheduled.
2. Every topic in each major term shall be accumulated to compose a portion in the next term examination. This is to help students
recall and master the topics in this subject.
3. There shall be at least two (2) scheduled quizzes of sufficient length and competition type per major term. All students must take their
quizzes at the proper place and time (e.g. their official schedule for the subject). If a student fails to take any of such quizzes, a
special one may be given provided, however, that a formal, valid and written letter of excuse, duly signed by the Dean of the College
and/ or his guardian or parent be given immediately to the instructor.
4. The students should come to classes regularly. A fifteen-minute allowance is given to each student, after such he/ she will be marked
absent. There shall be demerits for each absence during any given term.
5. A seatwork is always given to students after any topic discussion.
6. Active participation from students is required during any topic discussion. Recitation shall always be announced and on-going during
any topic discussion.
7. Students should read and/ or solve assigned problem materials prior to class. Assignments will be submitted as scheduled. Past due
assignments will not be accepted.
Class Policy:
1. All students are expected to be academically honest. Cheating, lying and other forms of immoral and unethical behaviour will not be
tolerated. Any student found guilty of cheating in examinations or plagiarism in submitted course requirements will (at a minimum)
receive an F (or 5.00) or failure grade in the course. Plagiarism and cheating refer to use of authorized books, notes or otherwise
securing help in a test; copying tests, assignments, reports or term papers; representing the work of another person as ones own;

collaborating, without authority, with another student during an examination or in preparing academic works; signing another
students name on an attendance sheet; or otherwise practicing scholastic dishonesty.
2. Use of technology. Cell phones should be on silent mode or turned off while the session is in progress. Using laptops, notebook PCs,
smart phones and tablets shall be prohibited especially on departmental examination unless the instructor or professor is aware of the
purpose and permits the students request.

Business Administration:
Term Examinations
Quizzes
Seatworks, Boardworks, Recitations
Attendance, Assignments and other
outputs.
Total

Grading System
Accountancy and Accounting Technology:
40%
Term Examinations
60%
Quizzes
Seatworks, Boardworks,
60%
Recitations
40%
Attendance, Assignments and
other outputs.
100% (0=50%,
Total
100% (0=50%,
50=75%)
50=75%)

Always be reminded of the following specific rules


on each criterion:
a. Quizzes: A minimum of two (2) quizzes may be
given each grading period. Corrected papers
must be returned to the students.
b. Recitation/Exercises:
Grade
on
recitation/exercises
must
be
based
on
participation/involvement
in
the
learning
activities.
It
is
suggested
that
recitation/exercises must be given right after
completion of a particular subject matter or at
least once a week.
c. Assignment/Homework: The teacher must
assign topics for research. It must be returned
to the students.

WUP Table of Equivalence


Grade
1.00
1.25
1.50
1.75
2.00
2.25
2.50
2.75
3.00
5.00

Equivalent
98- above
96-97
93-95
90-92
87-89
84-86
81-83
78-80
75-78
below 75

Description
Excellent
Very Good
Very Good
Good
Good
Fair
Fair
Passed
Passed
Failed

Scoring Rubric for Essay Questions


Level of
Achievem
ent

General Presentation

Exemplary
(10 pts)

Provides a clear and thorough introduction and


background
Addresses the question
Presents arguments in a logical order
Uses acceptable style and grammar (no errors)

Quality
(8 pts)

Combination of above traits, but less


consistently represented (1-2 errors)
Same as above but less thorough, still accurate

Adequate
(6 pts)

Needs
Improveme
nt (4 pts)

Does not address the question explicitly, though


does so tangentially
States a somewhat relevant argument
Presents some arguments in a logical order
Uses adequate style and grammar (more than 2
errors)
Does not address the question
States no relevant arguments
Is not clearly or logically organized
Fails to use acceptable style and grammar

Reasoning, Argumentation
Demonstrates an accurate and
complete understanding of the
question
Uses several arguments and backs
arguments with examples, data
that support the conclusion
Uses only one argument and
example that supports conclusion
Demonstrates minimal
understanding of question, still
accurate
Uses a small subset of possible
ideas for support of the argument.
Does not demonstrate
understanding of the question,
inaccurate
Does not provide evidence to
support response to the question

No Answer
(0 pts)

TEXTBOOKS AND SUPPLEMENTARY READINGS


Financial Statements Preparation, Presentation, Analysis and Interpretation by Nick L. Aduana, C & E Publishing Inc., Latest Edition
Fundamentals of Financial Management (with industry based perspective) by Ma. Flordeliza Anastacio Ph. D., Roberto Dacanay and
Leonardo Aliling, Rex Bookstore,2014
Financial Management: An Introduction by Scott Smart and William Megginson, Cengage Learning ,2009
Financial and Managerial Accounting by Horngren, 2012
Principles of Managerial Finance by Lawrence J. Gitman, Chad J. Zutter.13th Ed., 2010

Business Finance Second Edition by Roberto G. Medina, Ph. D. Rex Bookstore, 2011
Prepared by:
Reviewed by:
MS. CLARISSA F. BLAS
Instructor

PROF. KATHLEEN ROSE L. YALUNG, CPA, MBA


Program Head, Accountancy

MS. MARY BERLY S.


MAGUEFLOR
Instructor

PROF. ANTONIO JOSE D. CELIS, MBA


Program Head, Business Administration

MR. KEVIN M. RIVERA


Instructor
MR. JAY BEE Q. SALVADOR
Instructor

Approved by:
DR. MARIA VICTORIA C. MONES
Dean, College of Business and
Accountancy