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Section One Sketching the Background

1.1. Introduction: the field of Accountancy

Accounting plays a pivotal role for successful operation of business in the todays competitive environment. It provides a crucial service by supplying the information to the stake holders: customers, shareholders, government, creditors, and public at large. The accounting information enables users to make reasoned choice among alternative uses of scarce resources and informed judgment in the business and economic activities. The central role of Accounting todays society makes it interesting discipline of study, not just for those interested in a career of business, but also for anyone interested in the way that business influences and structure our lives in society. In Ethiopia, there is vast scope for many companies and the financial markets to flourish in the future. There is a great need for accounting professionals and hence the employment opportunity will be coming up. To effectively manage these endeavors, the country needs specialists who should possess sound knowledge of accounting and finance. Keeping in mind the future directions and the existing demand for accounting and finance functions, Ambo University has opened department of accounting since 1999 E.C. under the then Faculty of Business & Economics which is know College of Business and Economics after BPR has launched.

1.2. The background of the department


The department of Accounting was founded in 1999 E.C (2006/7) under the then Faculty of Business and Economics; currently named College of Business and Economics after BPR implementation in the university. The department has started with the 60 students and grown into what is now biggest concentration of around 500 students (both at Ambo main campus and Wolliso branch). Accounting, a distinctively modern department prides itself on its friendliness and diversity, providing a community and a home to student from different ethnic group in the country. It has an exceptional body of students committed both to developing their academic studies and to making the most of school experience.

1.2.1. The Vision and Mission of the Department


The Department of Accounting aspires to provide sustainable quality education innovatively responsive to rapidly changing environments, thereby produce competent and vibrant manpower that exercise exemplary role in rendering service to customers in the area of accountancy and finance. It is Accounting departments mission to maintain and ensure compliance with the provision of continual quality, cost effective education within the faculty, while offering education in regular and distance programs at undergraduate levels, and timely, need based and duly supervised short term trainings and consultancy services in a professional and innovative manner so as to address the need of customers.

1.2.2.

Objectives of the curriculum

The program aims at developing all-rounded and responsible citizens who are capable to preserve professionalism to enhance the well being of the country. This through developing graduates having adequate knowledge and skills that are capable to handle current and future accounting, auditing and finance practices in both private and public institutions. Besides it is the objective of the program to develop the competence and creativity of graduates to enable them establish and run their own professional firms and render public accounting services, undertake researches in the accounting and finance related themes and provide proactive and reactive consultancy and training services to clienteles. Specifically, the department intends to: enable the student to have profound understanding of accountancy and finance, relevant technology and ethics to exercise exemplary citizenship while rendering professional service undertake research to pinpoint and resolve practical problems and enhance the standards of profession support efforts of organizations in designing, adapting, and/or improving their accounting system through short term training and consultancy service and act in response to the countrys requirements for high level accountants, auditors, and financial managers

Section Two

The Program Structure and Profile


2.1. The program profile
The department currently provides bachelor of art degree in Accounting in regular and Continued Education Programs (extension, summer and distance programs).

2.2. The graduate profile


Generally, graduates of Bachelor of Arts Degree in Accounting: Are expected to assume broad based functional and professional responsibilities in every sector and in any form of institutions: for profit and not for profit or in rendering professional services and, Performs duties and responsibilities along with bearing accountability in practice, keeping ethical and professional standards and being transparent as well. Specifically, the Graduate of Accounting will be able to: Work as accounts officer, audit officer, financial manager, and marketing officer to be developed. Design and run for all types of organizations systems of modern financial accounting, that begins with systematic analysis and recording of financial events and end with reporting and interpretation of financial reports, by employing Generally Accepted Accounting Principles, governmental regulations, and managerial policies. Design and run modern system of cost accounting that would enable organizations determine and control the costs of their goods and services. Perform financial planning and analysis: estimate risk, return, Value of firms investment, securities and etc Actively participate in auditing work, both internal and external auditor. at

any institutions: for profit and not for-profit, with the managerial and leadership skills

Assist planning process by preparing budgets, measuring/ analyzing performances vis-vis budgets and make predictions Plan for governmental revenues, public sector expenditures and play key role in public financial administration Develop projects, plan for acquisition of projects fund and their disbursements, develop schedules, design monitoring and evaluation schemes, and manage the whole process; Manage current assets, short-term credits, and long-term credits of a firm (in line with sound theories & concepts and through applying appropriate tools, techniques, and models);

Analyze and design short-term and long-term investment projects for all types of organizations. Assess the amount of tax to be paid by the taxpayers, prepare tax return files, determine the tax liabilities and record the tax collection systematically. Serve as specialists and experts in financial institutions (specially banks and insurance firms), execute professional services required in real estates and investment institutions and serve as security analysts in the available financial markets;

Participate in identification of accounting, auditing, and finance related problems and researching for pragmatic solutions. Render public accounting service. Work as instructors in Universities and Colleges with the accounting knowledge to be acquired.

2.3. Program Requirements 2.3.1. Admission Requirements

The admission to both Regular and CEP program of the department of Accounting is accepted and processed in accordance with the requirement of the current (which has been endorsed since July, 2004) Ambo University Legislation-Article 39 to Article 45, where all regular students assigned by Ethiopian Ministry of Education (MOE) to Ambo University, College of Business and Economics have an equal right of being admitted to the program and .where there might also be possibility to admit a student based on the criteria proposed by the College Academic Commission,

Affirmative action, special admissions and transfers in accordance with the provision of the university legislation..

2.3.2.
Accounting:

Graduation Requirements

All of the following lists are compulsory in order to graduate in Bachelor of Art(BA) Degree in
Graduate are required to take 121 credit hours Minimum of 2.00 CGPA No F and/or Incomplete (I) grades in any subject. A successful completion of Senior Essay project work with a minimum grade C

2.3.3.

Degree Nomenclature

The Degree Nomenclature is Bachelor of Art Degree in Accounting with the Equivalent Amharic translation of; .

2.3.4.

Duration of the Study

This refers the maximum period (length of time) for which a particular batch of students admitted to a program stays in the University before graduation under normal circumstances. In accordance with guidelines issued by Ministry of Education and University Legislation, a batch admitted regular program stay on study for six semesters (where a semester is logically equivalent to 16 weeks learning period). Whereas a batch admitted to the CEP program stays for a maximum of ten semesters (which include three summer semesters) for weekend CEP program or evening program students and five summer semesters for summer program students.

Section 3 The Curriculum Reviewed: A slight detail


3.1. Rationale for reviewing the current curriculum
In this era, environments especially business environments have become highly dynamic and are changing at the fastest rate. Since it is affected by these changes in economic, social and political environments, the field of study of Accountancy and finance must be responsive enough. The education system should therefore play a vital role in incessantly producing graduates who can cope up with this dynamic environment of Accounting & Finance and who can demonstrate fundamental research skills. In Ethiopia context too, the changes in overall economic environments, the expansion of businesses almost in all sectors (Manufacturing, Service giving, Financial, Merchandising, Constructions, etc) and the increased role of NGOs and Not-for-profit organizations in the past few years and the emphasis to the related quality information and informed decisions has escalated the demand for well educated and qualified graduates of Accounting and Finance more than ever. In addition the demand of the government to realize (as a national policy) transparency, accountability and efficiency of public sectors financial management calls for the graduates equipped with the knowledge and contemporary skills of public financial administrations. The curriculum for the program should therefore, serves as a rung in the ladder towards the achievements of these endeavors. The curriculum must be designed in such a way that produces graduates who meet or exceed the minimum standards for knowledge and proficiency (as stated in graduate profile), who are able to recognize, evaluate and solve problems, who posses communication and management skills and who adapt to different organization settings and dynamic business environments. Nevertheless, the external current need assessments, the comparison with other Universities curriculum and internal evaluation made by the department curriculum review committee reveal that the prevailing curriculum has drawbacks and needs revision/modifications. In accordance with the national curriculum review policy and as per the power vested on it by the University legislation & Higher Institutions Proclamation and to alleviate the anomalies of the

existing curriculum, the department of Accounting and Finance has decided to undertake this curriculum review and proposed the new curriculum for approval.

3.2. The Proposed Modification to the current Curriculum 3.2.1. Justification for the modification
As Judy Mickimm (2007) noted, curriculum define the learning that is expected to take place during a course of study in terms of knowledge, skills and attitudes that leads to the production of graduates who meet the minimum standard of graduate profile, the external demand and market requirements. With respect to external demand and market requirements, an attempt was made by the committee for curriculum review to undertake the external need assessment. In addition, the need assessments made by different universities of the country have been benchmarked. Based on these it is generally concluded that there exist a gap. The assessments signify that the number and variety of the vacant posts (vacancies) for Accounting and Finance graduates are increasing. The divergence of skill requirements, job duties, etc for different vacancy positions still seems to urge the modification of the current curriculum (for example addition of some courses and modification of the syllabus for others). Moreover, the committee has received a number of comments/feedbacks from the previous graduates of the department who are at job on the relevance of the curriculum for their career success, career development and job opportunities(via mails, telephones and informal contacts). The feedback still, helped the committee to go for the modification. An attempt was also made to gather information from the students (both junior and perspective graduates), staffs and other professionals, which is also used as an input in the course of the review process. More interestingly, the department has gone through the internal evaluation of the curriculum by its council. The result of the evaluation process and need assessment suggest that the current curriculum has the following drawbacks/gaps and need substantial modifications: It fails to meet the minimum standards of the graduate profile and the objective of the program. It fails to clearly specify the main teaching, learning and assessment methods and fail to sufficiently provide an indication of the learning resources required(for example references, demonstration materials, etc) to support the effective delivery of the course. The majority of the syllabuses do not possess the features that are required by the policy of active learning and continuous assessment. It has unnecessary proliferation and duplication of topics/syllabus in different courses

The content and descriptions of the majority of the courses lack uniformity, quality, . consistency, relevance and in general not well updated in such a way that addresses the current issues and current market demands The courses which are very essential in order to satisfy the graduate profile are not incorporated and hence need to be added. Some existing courses which are not relevant or less relevant than excluded once for the program/graduate profile are found unimportant and need to be deleted from the curriculum. For some major courses the credit hours allotted are found highly insufficient to cover all the course contents and needs serious attention. Some courses which need practical sessions, demonstration and tutorial sessions are not assigned appropriate tutorial/lab hours. The curriculum does not clearly specify the course codes or numbering (for some courses) and some course titles needs modification.

The curriculum does not clearly specify course sequencing and the course pre-requisite requirements are not clearly and consistently designed. The committee has considered these as substantial problems and agreed to redesign the course sequencing and the prerequisites requirement.

3.2.2. Summary of the major modifications


It is clearly evident from the above that the modifications to the existing curriculum are mandatory. The substantive changes can be generalized as: addition of new courses, deletion of existing courses, changes in course titles, descriptions and contents, change in course prerequisites, change in the Credit hours/Lab. hours and course numbers, change in course sequencing/distribution of courses across the semesters. The following table summarizes the major changes with respect to proposed course additions, deletion and change in course naming and credit hours. Note that the other changes/modifications are generally incorporated under part 3.4 & 3.5 of this section, Section 4 and Section 5 of the proposed curriculum. Deleted courses
Current Name Health and physical education I Health and physical education II Code HPE 201 HPE 202 Credit Hrs no no Name Deleted Deleted Proposed Code Credit Hrs Lab/tu torial hrs

Added Courses

Current
Cre dit Hrs

Proposed Cre dit Hrs 3 3 3 Lab/ tutor ial hrs no no no

Name Not available Microeconomics

Code

Econ 221

Name Money Banking Principles and Practice Microeconomics I Microeconomics II

Code Acct 326 Econ 221 Econ 222

Change in course names, credit hours Current


Cr ed it Hr s 3 3 4 4 4 3 3 3 Proposed Cr ed it Hr s 3 3 4 4 4 4 3 3 1 Lab /tut oria l hrs 1 1 1 1 2

Name Principles of Accounting I Principles of Accounting II Financial Accounting I Financial Accounting II Advanced Accounting Government and NFP Accounting Public Finance & Tax Accounting Accounting Information system

Code ACCT 211 ACCT 212 ACCT 311 ACCT 312 ACCT 411 ACCT 412 ACCT 324 ACCT 433

Name Principles of Accounting I Principles of Accounting I Financial Accounting I Financial Accounting II Advanced Accounting Government and NFP Accounting Public Finance & Taxation Accounting Information system

Code ACCT 211 ACCT 212 ACCT 311 ACCT 312 ACCT 411 ACCT 443 ACCT 324 ACCT 433

Table ---------, major changes to the previous curriculum; courses added, courses deleted, change in credit hours

Section 4 The General Strategy, Resources and the Quality Assurance


4.1. The Teaching Learning Strategy
In accordance with the overall University Learning/teaching direction and Policy the learning teaching strategy shall be flexibly designed. For the sake of immediate implementation of this curriculum, active Learning-teaching methodology will be used in all learning and teaching process. For each course, the detailed course specific methodology is provided on course outline together with the course content and description.

4.2. The Assessment method


Continuous assessment method of evaluation, containing different evaluation package such as: Class participation and attendance, assignment, quiz, mid- term exam, final exam, project work and/or term paper, practical visit reports, etcwill be applied. The specific evaluation scheme is indicated on each courses outline.

4.3. The Resource Requirement 4.3.1. Teaching and Research staff Requirements (Composition)
In Addition to the administrative support staffs that might be requested by the department and assigned by the concerned body, the teaching and research staffs requirement to smoothly run the program shall be planned each year and determined by the department based on the work load allocation. The following table depicts human resources requirements with different professional mixes. Qualification PhD and above Masters Graduate assistants Percentage 25% 70% 5%

Total 100% Table------, Staff requirement in terms of qualification mix

4.3.2. Materials and facilities requirements


To run the program effectively the following material resource is required. Fixed resources: Rooms: equal to the number of batches and sections Computer lab and training room: 1
LCDs:3 Laptop:3

Desktop computer: for all professors and lecturers Accounting soft-wares: Peachtree, QuickBooks, etc: 1 Original CD each and other to be determined up on demand Supplies: chalk, writing pads, flipcharts, gowns, White board markers and erasers, pens and pencils and etcwill be availed as required by the department.

4.3.2. The quality Assurance


In order to meet the stakeholders need, involvement of external professionals and employers in curriculum design, evaluation and review process is taken in to account. To enhance educational quality, descriptions of program, monitoring and review mechanisms are developed, for instance, Course outlines are prepared in advance by the concerned teachers and evaluated by the respective department staff/ council and supplied to the students at the beginning of each semester. The course aims and objectives are clearly described and are known to students; the appropriate balance of theory and practice for each subject is taken in to account and based on the balance, teaching learning and assessment methods, variety and level of innovation will be implemented. Practice regarding academic advice and tutorial support are encouraged. The extent of evaluation of approaches to teaching and learning and its consequence are decided at the department. The assessment policy and procedures and the criteria for marking sure that students are graded fairly are applied consistently. The system of communicating the assessment policy and procedures is designed properly.

The appropriateness of mechanisms to ensure that assessment methods for each course in each program are balanced (e.g. between continuous and end of course, formative and summative), are matched to the learning outcomes and are applied appropriately. The extent of attrition rate, the dropout rate and the reason for these and the system of who to take action to minimize such events is developed. The graduation rate, the employment rate and the action to be taken to maximize such rates are developed. The links with employers to collect feedback on graduates is established. The academic staffs are supposed to actively participate in research and outreach activities. The number and nature of research projects are classified based on the thematic areas in the department. The organizations and individuals benefiting from outreach and community services are identified. The national and international links will be established with academic institutions. At the end of the program, students submit their project report; successfully defending it and passing an oral examination is an academic requirement.

Section 5 The Curriculum: The detail description


5.3. Course coding policy and pre-requisite chart 5.3.1. Course Coding Policy
All the courses offered in the program (both regular and CEP) are coded/numbered so that a course is uniquely identified from others. The coding involves the representation of a course by using both letters and the number. For all courses offered by the department (major courses) the code begins with four letters-Acct (to represent the Accounting department) followed by a three-digit number. For Example for the course Principles of Accounting I, the course code would be Acct 211. The codes of supporting/supplemental courses and basic foundation courses offered by other departments are directly taken from the respective departments to which the courses belong. Conventionally, the Department Council decided that the first digit for the courses offered in first year shall be 2 , in the second year shall be 3 and in the third year shall be 4. The last digit of the courses offered in semester-I of any year shall be odd numbered and the last digit of the courses offered in semester-II of any year of study shall be even numbered. The second digits of the codes are simply used to facilitate the coding process, to ensure the uniqueness of the code for a course and used to facilitate the proper arrangement of the courses. The codes of supporting/supplemental courses and basic foundation courses offered by other departments are directly taken from the respective departments to which the courses belong.

5.3.2. Pre-requisite chart


The term pre-requisite here is used to describe the compulsory course requirements where a student is obligated to successfully pass in one or more course/s, designated as pre-requisite course, in order to register for the other successive course/s. The following table presents the list of interrelated courses where one is pre-requisite for the others. Note that the law of transitivity shall work here. For example if one course is pre-requisite for the second course and the second course is pre-requisite for the third course, the first is automatically pre-requisite for the third course too. (see also the annexed diagram) Major Courses which have pre-requisite Pre-requisite

N Course title o . Principles of Accounting II Financial Accounting I Financial Accounting II Advanced Accounting Auditing I Auditing II Cost and Management Accounting I Cost and Management Accounting II Financial Management I Financial Management II Government and NFP Accounting Financial Institutions and Market Accounting Information System Business research methods Mathematics for Management

Code Acct 212 Acct 311 Acct 312 Acct 411 Acct 413 Acct 414 Acct 313 Acct 314 Acct 321 Acct 322 Acct 443 Acct 423 Acct 434 Acct 431

Course title Principles of Accounting I Principles of Accounting II Financial Accounting I Financial Accounting II Financial Accounting II Auditing I Principles of Accounting II Cost and Management Accounting I Principles of Accounting II Financial Management I Principles of Accounting II Public Finance and Taxation Financial Management II Money, Banking Principles and Practices Introduction to computers and its application Financial Accounting I Statistics for Management Operations Research Operations Management Micro Economics II Communicative English skill Introduction to Management

Code Acct 211 Acct 212 Acct 311 Acct 312 Acct 312 Acct 413 Acct 212 Acct 313 Acct 212 Acct 321 Acct 212 Acct 324 Acct 322 Acct 326 CS 201 Acct 311 MGMT 242 MGMT 481 MGMT 472 Econ 222 EnLa 201 MGMT 211

MGMT 231 Operations Research MGMT 481 Micro Economics I Econ 221 Basic Writing skill EnLa 202 Business and Administrative MGMT Communication 212

5.4. List of course and distribution of courses across the semesters 5.4.1. List of courses
It is proposed for the new curriculum that the course requirements are classified in to three areas:
Major courses: are core courses mainly offered by the department Cross department/Supportive courses: are courses which are essential and complements

the core courses and mainly offered by sister departments in the College of Business and Economics

General foundation courses: are basic courses which aimed at developing the analytical,

communicative and writing skills, enhancing the professional ethics/behavior and the computer skills of the students.

Complete list of courses offered in the program Major courses No . Course Title 1 Principles of accounting I 2 Principles of accounting II 3 Financial Accounting I 4 Financial Accounting II 5 Cost and Management Accounting I 6 Cost and Management Accounting II 7 Financial Management I 8 Financial Management II 9 Risk Management and Insurance 10 Public Finance and Taxation 11 Business Research Methods 12 Money, Banking principles and practices 13 Financial Institutions and Markets 14 Advanced Accounting 15 Project Analysis and Management 16 Auditing I 17 Auditing II 18 Government and NFP Accounting 19 Accounting Information System 20 Research Project Course code Acct 211 Acct 212 Acct 311 Acct 312 Acct 313 Acct 314 Acct 321 Acct 322 Acct 332 Acct 324 Acct 344 Acct 326 Acct 423 Acct 411 Acct 433 Acct 413 Acct 414 Acct 443 Acct 434 Acct 432 Lab/Tuto Hrs 1 1 1 1

CRHRs 3 3 4 4 3 3 3 3 3 3 3 3 3 4 3 3 3 4 3 3

Remark

Table---------, List of Major courses together with their credit hours

Cross department /support courses No . 1 2 3 4 5 Course Title Micro Economics I Micro Economics II Macro Economics II Mathematics for Management Statistics for Management Course code Econ 221 Econ 222 Econ 231 MGMT 231 MGMT 242 CRHR s 3 3 3 3 3 Lab/Tu t Hrs Remark

1 1

6 Introduction to Management MGMT 211 7 Administrative and Business Communication MGMT 212 Entrepreneurship and Small Business 8 Management MGMT 412 9 Principles of Marketing MKTM 201 10 Business Law Law depart 11 Operations Research MGMT 481 12 Business policy and Strategic Management MGMT 462 13 Operations Management MGMT 472 General Foundation courses 1 Communicative English Skills EnLa 201 2 Basic Writing Skills EnLa 202 3 Introduction to computer and its application Sc 201 4 Introduction to Logic Phil 201 5 General Psychology Psyc 201 6 Civics and Ethics CvEt 201

3 3 3 3 3 3 3 3 3 3 2 3 3 3

Table---------, List of Cross departmental and general foundation courses together with their credit hours

5.4.2. Distribution of courses across the semester-I (Regular Program) Year I Semester I
S.No. 1 2 3 4 5 6 Course Code
Acct 211 MGMT 231 MGMT 211 Sc 201 EnLa 201 Econ 221

Course title
Principles of accounting I

Mathematics for Management Introduction to Management


Introduction to computer and its application Communicative English School Micro Economics I

Total

Credit Hours 3 3 3 2 3 3 18

Year I Semester II
S.No. 1 2 3 4 5 6 7 Course Code
Acct 212 MGMT 242 Psyc 201 CvEt 201 EnLa 202 Phil 201 Econ 222

Course title
Principles of accounting II

Statistics for Management


General Psychology Civics and Ethics Basic Writing Skills Introduction to logic Micro Economics II

Total

Credit Hours 3 3 3 3 3 3 3 21

Year II Semester I
S.No. 1 2 3 4 5 6 7 Course Code
Acct 311 Acct 313 Acct 321 MGMT 212 MKTM 201 Econ 231

Course title

Credit Hours 4 Cost and Management Accounting I 3 Financial Management I 3 Administrative and Business Communication 3 Principles of Marketing 3 Business Law 3 Macro Economics I 3 Total 22
Financial Accounting I

Year II Semester II
S.No. 1 2 3 4 5 6 7 Course Code
Acct 312 Acct 314 Acct 322 Acct 332 Acct 324 Acct 326 Acct 344

Course title
Financial Accounting II

Cost and Management Accounting II


Financial Management II Risk Management and Insurance Public Finance and Taxation Money, Banking principles and Practice Business Research methods

Total

Credit Hours 4 3 3 3 3 3 3 22

Year III Semester I


S.No. 1 2 3 4 5 6 Course Code
Acct 411 Acct 423 Acct 433 Acct 413 Acct 443 MGMT 481

Course title
Advanced Accounting

Financial Institutions and Market


Project Analysis and Management Auditing I Government and Not for profit Accounting Operations Research

Total

Credit Hours 4 3 3 3 4 3 20

Year III Semester II


S.No. 1 2 3 4 5 Course Code
Acct 432 Acct 434 MGMT 412 Acct 414 MGMT 462

Course title
Research Project

Accounting Information System

Entrepreneurship and Small Management Auditing II Business Policy and Strategic Management

Credit Hours 3 3 Business 3 3 3

MGMT 472

Operations Management

Total

3 19

5.4.2. Distribution of courses across the semester-II (CEP Program) Year I Semester I
S.No. 1 2 3 4 5 Course Code
Acct 211 MGMT 231 MGMT 211 Sc 201 EnLa 201

Course title
Principles of accounting I

Mathematics for Management Introduction to Management


Introduction to computer and its application Communicative English School

Total

Credit Hours 3 3 3 2 3 14

Year I Semester II
S.No. 1 2 3 4 5 Course Code
Acct 212 MGMT 242 EnLa 202 Phil 201 Econ 222

Course title
Principles of accounting II

Statistics for Management


Basic Writing Skills Introduction to logic Micro Economics I

Total

Credit Hours 3 3 3 3 3 15

Year I Semester III (Summer)


S.No. 1 2 Course Code
Psyc 201 Econ 221

Course title
General Psychology Micro Economics II Total

Credit Hours 3 3 6

Year II Semester I
S.No. 1 2 3 4 Course Code
Acct 311 Acct 313 Acct 321 MGMT 212

Course title

Credit Hours 4 Cost and Management Accounting I 3 Financial Management I 3 Administrative and Business Communication 3 Total 13
Financial Accounting I

Year II Semester II
S.No. 1 2 3 4 5 Course Code
Acct 312 Acct 314 Acct 322 Acct 324 Acct 332

Course title
Financial Accounting II

Cost and Management Accounting II


Financial Management II Public Finance And Taxation Risk Management and Insurance

Total

Credit Hours 4 3 3 3 3 16

Year II Semester III(summer)


S.No. 1 2 Course Code
CvEt 201 Econ 231

Course title
Civics and Ethics

Macro Economics Total

Credit Hours 3 3 6

Year III Semester I


S.No. 1 2 3 4 5 Course Code
Acct 411 Acct 433 Acct 413 Acct 326 MGMT 481

Course title
Advanced Accounting Project Analysis and Management Auditing I Money, Banking principles and Practice Operations Research

Total

Credit Hours 4 3 3 3 3 16

Year III Semester II


S.No. 1 2 3 4 5 Course Code
Acct 344 Acct 434 Acct 414 MKTM 201

Course title
Business Research Methods

Accounting Information System


Business Law Auditing II Principles of Marketing

Total

Credit Hours 3 3 3 3 3 15

Year III Semester III(Summer)


S.No. 1 2 Course Code
MGMT 462 MGMT 412

Course title

Credit Hours Business Policy and Strategic Management 3 Entrepreneurship and Small Business 3
Management

Total

Year IV Semester I
S.No. 1 2 3 4 Course Code Acct 423
Acct 432 Acct 432 MGMT 472

Course title Financial Institutions and Markets


Government and Not for Profit Accounting Research Project Operations Management

Total

Credit Hours 3 4 3 3 13

Section 6 Course Descriptions: the Content and specific course method for major courses
This section presents all the detail description with respect to the specific major courses in the program. The course content, methodologies relating to the teaching/learning process, the assessment methods, the required specific materials (including texts and other references) and grading skim for all 20 major courses are incorporated here.
Course Code Course Title Program Credit Hours Course Description
Acct 211 PRINCIPLES OF ACCOUNTING- I

BA Degree in Accounting 3 The first part of the course introduces accounting concepts, techniques and Generally Accepted Accounting Principles and their applications. Explain the conceptual foundation and features of accounting in real business with illustrations. Topics include: Studies on accounting evolution; importance of fundamental principles of accounting (GAAP) and procedures; the Accounting cycle for a merchandising and service business enterprises; introduction to deferrals and accruals; principles for accounting systems design; accounting for cash, temporary investments, receivables and short term payables. After the accomplishment of this course students will be able to; Define Accounting, Understand why accounting is said to be the language of business Go through and accomplish the accounting cycle understand the concept of accounting for merchandising enterprise understand the internal control over cash Note the accounting system for receivables, temporary investments and payables No pre-requisite Core

Course Objective

Prerequisites Status of the Course

Teaching and Learning Methods Evaluation Scheme

Lecture, Assignment, Case Study, Industry visit Continuous Assessment 70% and Final Exam 30%

COURSE CONTENT BASIC STRUCTURE OF ACCOUNTING CHAPTER-ONE: Accounting Principles and Practices 6:00 hrs 1.1. Evolution of Accounting 1.2. Accounting: The language of Business. 1.3. Characteristics of Accounting information & its users. 1.4. Profession of Accounting 1.5. Accounting principles and concepts. 1.6. The distinction between Book - keeping and Accounting 1.7. Business transactions and the Accounting Equation. 1.8. Accounting statements. CHAPTER-TWO: The Accounting Cycle. 9:00 hrs 2.1. The use of accounts for recording transactions. 2.2. Rules of Debits and Credits. 2.3. Classifications of accounts. 2.4. Sequence and numbering of ledger accounts. 2.5. Recording transactions in a journal 2.6. Posting the journal. 2.7. The trial balance, its uses and limitations. 2.8. Adjustments 2.9. Worksheet for financial statements 2.10. Preparation of financial statements. 2.11. Journalizing and posting adjusting and closing entries. CHAPTER-THREE: Accounting for a Merchandising Enterprise. 8:00 hrs 3.1. Purchasing and selling procedures. 3.2. Accounting for purchases. 3.3. Accounting for sales 3.4. Trade discounts, credit terms and cash discounts, transportation costs and sales taxes. 3.5. Periodic reporting 3.6. Merchandise inventory adjustments. 3.7. Adjustments for Deferrals and Accruals. 3.8. Worksheet for a merchandising enterprise 3.9. Financial statements for a merchandising enterprise. 3.10. Completion of the accounting cycle. 3.11. Journalizing and posting reversing entries. CHAPTER-FOUR: ACCOUNTING SYSTEMS AND INTERNAL CONTROL

4. Accounting systems design

3:00hrs

4.1. Principles of accounting systems. 4.2. Accounting system installation and revision

4.3. Internal control. 4.4. Guide lines to strong internal control CHAPTER-FIVE: CASH

6:00hrs

5.1. Control over cash. 5.2. Internal control on cash receipts. 5.3. Internal control of cash payments 5.4. The voucher system. 5.5. Purchase discount 5.6. Petty cash and other cash funds. CHAPTER-SIX: Receivables, Temporary Investments, and Payables 6.1. Classification of receivables and payables. 6.2. Determination of interest and due date. 6.3. Notes receivable and interest income. 6.4. Discounting notes receivable. 6.5. Accounting for Uncollectible. 6.6. Temporary investments. 6.7. Notes payables. 6.8. Discounting notes payable. 6.9. Liability for leases. 6.10. Contingent liabilities

7hrs

TEXT BOOK: Fess and Warren, Accounting Principles. South Western Publishing Company, 16th. REFERENCES: 1. Meigs Walter B.: Accounting, The basis for Business Decisions, 6th ed.; McGraw Hill international Book Co. 2. Kermit D. Larsen: Fundamental Accounting Principles: 12th ed.; Richard Irwin Inc., 1990. 3. Carison- Heintz- Carson: College Accounting: 11th ed. 4. Hermanson,Edwards and Salmon son : Accounting Principles , 4th-7th ed.Richard D.Irwin Inc.1989 5. Weygandt: Accounting Principles: 1999

Course Code Course Title Program Credit Hours Course Description

Acct 212
PRINCIPLES OF ACCOUNTING- II

BA Degree in Accounting 3 This part deals with further application of fundamental accounting principles on elements of financial statements of business enterprises, which includes accounting for: Merchandise inventory, plant assets, Natural resource and intangible assets, payroll Accounting, Accounting for partnerships and corporations, introduction to accounting for manufacturing enterprises and Accounting for branches and Home office. Accounting for Partnership businesses is discussed by referring to the provisions of the commercial code of Ethiopia, (1960): After completion of this course, students are expected to: Describe accounting for inventories, noncurrent assets and payroll related liabilities; Distinguish and illustrate the basic accounting concepts and principles; Explain how managerial accounting concepts and principles are applied to manufacturing firms; Describe and illustrate the accounting for departments and branches. Furthermore, this course makes students eligible for subsequent higher accounting courses.

Course Objective

Prerequisites Status of the Course Teaching and Learning Methods Evaluation Scheme

Acct 211

Core Lecture, Assignment, Case Study, Industry visit Continuous Assessment 70% and Final Exam 30%

COURSE OUTLINE Chapter -One: Inventories 8hrs

1.1. Importance of inventories 1.2. Inventory system and valuation methods 1.2.1. Determining actual quantity 1.2.2. Determining cost of inventory under periodic and perpetual system

1.3. Departures from cost valuation 1.4. Estimation of cost of inventory Chapter-Two: Plant assets and Intangible assets

10 hrs

2.1. Nature of plant assets 2.2. Acquisition cost of plant assets 2.3. Nature of and accounting for depreciation 2.4. Changes in estimates and revision of periodic depreciation 2.5. Capital and revenue expenditure 2.6. Disposal of plant asset 2.7. Depletion of natural resources 2.8. Intangible assets and amortization 2.9. Reporting depreciation expense plant assets, intangible assets in the financial statements Chapter-Three: Payroll accounting (a reading material to be given) 3 hrs 3.1. Definition and importance 3.2. Payroll records and components 3.3. The Ethiopian payroll system 3.4. Nature of earnings 3.5. Nature of deductions 3.6. Preparation of payroll register Chapter-Four: Accounting concepts and principles 4.1. Historical development and influential organizations 4.2. Basic accounting concepts and principles Chapter- Five: Accounting for a partnership 5.1. Characteristics 5.2. Formation 5.3. Division of net income or net loss 5.4. Dissolution 5.5. Liquidation Chapter-Six: Corporations - Organization and Operation 6.1. Characteristics 6.2. Classes of stock 6.3. Issuing capital stock 6.4. Treasury stock 6.5. Equity per share 6.6. Organization costs Chapter-Seven: Introduction to Manufacturing and cost systems

2 hrs

6hrs

4hrs

2 hrs

7.1. Concepts of cost and expense 7.2. Inventories of manufacturing enterprise 7.3. General and cost accounting systems for manufacturing operations 7.4. Accounting for job order costing system 7.5. Accounting for process costing system Chapter-Eight: Departments and Branches 3 hrs 8.1. Centralized and decentralized operation 8.2. Types of decentralized operations

8.3. Responsibility accounting for 8.4. Cost centers 8.5. Profit centers 8.6. Investment centers 8.7. Branch accounting (under decentralized system) 8.7.1. Underlying principles of decentralized branch accounting 8.7.2. Illustration of decentralized branch accounting 8.8. Financial statement for Head Office and Branch Basic Text Book: Fees and Warren, Accounting principles; Southwestern Publishing Company, 16th ed, USA.

REFERENCE BOOKS 1. 2. 3. 4. 5. Fees and Warren; Principles of Accounting, 11th - 17th ed., USA Kermite D. Larson, Fundamentals of Accounting Principles,12th ed., USA Meigs and Meigs, Accounting: The basis for business decisions,3rd - 8th ed., USA Keith and Stephens, Accounting principles, 2nd ed. 1986, USA Harmanson, Edwardsand Maher, 5th ed., 1992 USA.

Course Title Course No.: Program Credit Hours

Cost and Management Accounting I Acct 313 BA Degree in Accounting 3

COURSE DESCRIPTION

The course deals with basic concepts in Cost and Management accounting. It especially centres on product costing. It deals with cost accumulation and cost assignment to products. The course also let the learners with the use of such cost accounting information for managerial functions of planning, controlling and decision-making. After completing this course, students will be able to:
Differentiate between Management Accounting, and Financial Accounting. The student will also be able to identify the importance of Cost Accounting to Managerial and Financial Accounting. Describe the different cost terminologies and the basis of the taxonomy of these cost terms. Describe basic product costing systems: Job order and process costing systems. Describe the accounting treatment for spoilage, rework, and scrap Describe joint cost allocation, and by product costing. Acct 212 Core Lecture ,Assignment, Case Study, Industry visit Continuous Assessment -70% and Final Exam-30%

COURSE OBJECTI VES

Prerequisites Status of the Course Teaching and Learning Methods Evaluation Scheme

COURSE CONTENTS

Chapter 1: Fundamentals of Cost Accounting

(3 hours)

Definition of Cost accounting and Managements accounting. Management accounting Vs Financial accounting Relationship of cost accounting with financial accounting and management accounting.

Chapter 2: Basic cost terms and concepts (6 Hours)


Concepts and classifications of cost General cost classifications Product Vs Period Costs Cost classification for predicting cost behaviour Cost Classification for Assigning Costs to Cost Object Cost Classification for Decision Making (Economic Characteristics of costs) Cost Classification on Financial Statements

Chapter 3: Product costing systems (24 Hours)


3.1 Job order costing

Features of job order costing Cost accumulation in job order costing Measuring Direct Materials Job Cost Sheet Measuring Direct Labor Application of Manufacturing Overhead Illustration on job order costing 3.2 Process costing Features of process costing Cost accumulation in process costing Equivalent Units Weighted average costing method First in- First out costing method Standard Costing method of process costing Illustration on process costing

Chapter 4: Accounting for spoilage, defective units and scrap (7 Hours)


Terminology Process costing and spoilage Job costing and spoilage Defective units

Chapter 5: Cost allocation: Joint products and by products (8 Hours)


Nature of joint and by products Joint cost allocation Accounting for Byproducts By products or scrap in job order costing.

Reference Books: 1. 2. 3. 4. 5. 6. Cost Accounting, Managerial Emphasis, Horengren, 10th Or 9th Edition Introduction to Management Accounting, Horngren, 12th Edition Cost Accounting, Theory And Applications, Fischer Frank Cost and Management Accounting, Samir Kumar Advanced Management Accounting, 3rd ed., Robert S. Kaplan Management Accounting Principles and application, Hugh Coombs, David,

Hobbs, and Ellis Jenkins 7. Management Accounting, third revised edition, I.M. Pandey

Course Title Course No.:

Cost and Management Accounting II Acct 314

Program Credit Hours

BA Degree in Accounting 3 This course gives more emphasis on the role of cost accounting in the managerial decisions of manufacturing organization. The course introduces the relevant costs that are considered in decision making and piecing of products manufactured. Other topics included are the master budget and flexible budget,

COURSE DESCRIPTION

COURSE OBJECTI VES

At the end of this course, students will be able to: o o o o o Explain the importance of cost- volume- profit analysis; Describe the benefit of budgeting and its application; Prepare a master budget; Apply, relevant costing to different decisions; Explain the methods of pricing.

Prerequisites Status of the Course Teaching and Learning Methods Evaluation Scheme

Cost & Management Accounting I Core Lecture ,Assignment, Case Study, Industry visit Continuous Assessment -70% and Final Exam-30%

Course Contents Chapter 1: Cost- Volume- profit analysis (9 Hours)

CVP assumptions and Terminology. Essential of CVP analysis The breakeven point - Equation method - Contribution margin method - Graph method CVP analysis and making decisions. Cost planning and CVP CVP analysis is service Nonprofit organizations

Chapter 2: Master Budget and Responsibility Accounting. (12 Hours)


Budgets and the budgeting cycle Advantages of budgets Types of budgets - Illustration of master budget and other types of budget Sales or revenue budget Production budget Direct making usage budget Direct making purchase budget DML budget MOH budget Ending inventory budget Cost of goods sold Research and development budget Marketing cost budget Customer service budget Administration budget Income statement budget

Chapter 3: Flexible budgets, Variances, and management control. (10Hours)


The use of variances Static budgets and Flexible budgets. Variances - Price variances - Efficiency variances - Fixed overhead cost variances

Chapter 4: Measuring Mix and Yield. (3 Hours)


Sales variances Sales volume variance Sales Mix Variance Market-size and market-share variance. - Input variances - Direct materials Mix and Yield Variances - Direct Labor mix and Yield variances.

Chapter 5: Decision making and relevant information (12 hours)


Information and the decision process.

Chapter 6: Pricing decisions and cost management (3 Hours)


Reference Books: 1. Cost Accounting, Managerial Emphasis, Horengren, 10th Or 9th Edition 2. Introduction to Management Accounting, Horngren, 12th Edition 3. Cost Accounting, Theory And Applications, Fischer Frank 4. Cost and Management Accounting, Samir Kumar 5. Advanced Management Accounting, 3rd ed., Robert S. Kaplan 6. Management Accounting Principles and application, Hugh Coombs, David, Hobbs, and Ellis Jenkins 8. Management Accounting, third revised edition, I.M. Pandey Major influence on pricing decisions Costing and pricing for the short run and long run. Cost plus target rate of return on investment

The meaning of relevance Illustration of relevance choosing output levels Make versus buy Special order decisions Product Mix decisions Scarce resource decisions

Course Title Course No.:

Money, Banking Principles and Practice Acct 326

Program Credit Hours Course Information Instructors Information

BA Degree in Accounting 3 Academic Year_________________ Study Year III Sem. I

Meeting Days_______________ Time_____________ Room________ Name ________________ Consultation Dates_________________ Time______________ Addresses: Office____________ Phone_____________ Mail_______

COURSE DESCRIPTION

This courses gives emphasis to issues such as; concept of Money and the functions, roles and defects of money; the banking systems(evolution, operation, types, roles and scope); the supply of money and monetary policy; the banking practices and procedures. The course also acquaints students with the knowledge of monetary policies and foreign currency management, exchange rates and the factors that affect the exchange rates. In addition, the course deals with the credit management in commercial banks and the legal framework within which the financial systems (specially banking system) in Ethiopia operates.

COURSE OBJECTIV ES

Up on the completion of the course the student will attain the following objectives: Define money, understand its functions/roles and its defects

Understand the creation of money and money supply theory Understand the monetary policy Analyze the relationship between monetary policy and inflation, interest rates and exchange rates Understand the history of banking system and the roles of banks Differentiate the banking institutions from other financial institutions

Distinguish between commercial banks and central banks Describe the development of banking systems in Ethiopia Explain the Banking services in general and banking services in Ethiopia Understand and appreciate innovative banking and new financial services Explain the laws and regulation of banking system in Ethiopia Prerequisites Status of the Course Teaching and Learning Methods Acct 212 Major

Lecture/Class room contact ,Assignment/tutorial, Case Study, Term Papers (In group or individual), Visiting banks or other financial institutions /acquiring practical experience from banks is must Continuous Assessment -60% ( Tests, Quizzes, Assignments and term papers, practical visit reports) and Final Exam-40%

Assessment

COURSE CONTENTS

Chapter One: Money and its functions: an introduction


1.1.Definition of Money and near money

(10 Hrs)

1.2.The Historical background/evolution of money 1.3.The functions/significance of money 1.4.Types/classification of money 1.5.The defects of money 1.6.The characteristics of good money

Chapter Two: The Supply of Money and Monetary Policy (13 Hrs)
2.1. Determinants of Demand and supply of money 2.2. The creation of Money and money supply theory 2.3. The monetary Policy and related issues 2.3.1. Introduction 2.3.2. The goal of monetary policy 2.3.3. The tool of monetary policy 2.3.4. Bank reserves: bases and other measures of reserve 2.4. Inflations and deflation 2.5. Interest rates and exchange rates

Chapter Three: Overview of Banking System and its role in the Economy
(13 Hrs) 3.1. A sketch of Banking History 3.2. Differentiating Banks from Other Financial Institutions 3.3. Types of banks and their functions 3.4. The Role of Banking System in the economy 3.4.1. The role of Commercial Banks 3.4.2. The roles Central Banks/National Banks 3.5. The Assets and Liabilities of Banks 3.6. The bank Assets and Liabilities Management: Traditional Vs Modern Approaches 3.7. The Bank operations and Services

3.7.1. The Principles of banking operations 3.7.2. The banking practices and Service Deposit, saving mobilization and transaction services Lending services and credit system Trade and international Banking services Other Banking services

Chapter Four: Banking System, regulations and Practices in Ethiopia


(12 Hrs) 4.1. The development of banking system in Ethiopia 4.2. Types of banks operating in Ethiopia 4.3. Banking Regulation, Legal and Institutional Framework of Banking system in Ethiopia 4.4. The role of the national Bank of Ethiopia 4.5. Reviewing the current banking practices in Ethiopia (of all banks) Vis--vis: Lending and credit services International and trade services Personal banking services and transaction services Transfers, payments and FOREX services Other services

Chapter Five: Innovative Banking and New Financial Services


5.1. Merchant Banks 5.2. Investment Banks and Mutual Funds 5.3. Negotiable instruments 5.4. Endorsing, crossing and factoring 5.5. The use and operation of cards

(12 Hrs)

5.6. E-Banking, Call Center banking, SMS Banking and Universal Banking 5.7. The ATM Banking: history, mechanisms of ATM operation, and the safety issues

Text Books: Thomas Mayor, James S. Dusenberry & Robert Z.Aliber, Money, Banking and the Economy, W.W. Norton &Company, New York. London, 1981 and Tadesse kenea, Banking and Finance, Ambo University, 2004 Additional references: 1. H R Machiraju , Modern Commercial banking Vikas Publishing House Pvt Ltd, 2003 2. Saunders, Anthony and Walter Ingo, Universal Banking in the United States, Oxford university Press, New York, 1984 3. Tobin, James, "Commercial Banks and Creation of Money", Irwin Inc. 4. Fraser, Donald, R.Gup, Benton, James W. Commercial Banking ,West Publishing Company, New Delhi, 1995 5. National Bank Of Ethiopia, Directives on Banking Businesses, insurance Businesses and micro Finance businesses, found on web sites of national Bank of Ethiopia(www.nbe.gov.et) 6. EFDRE's Proclamations on Banking Businesses, Establishment of NBE, Insurance Business and Microfinance, Banking Regulations, Other Provisions 7. All other books on Financial Institutions, banking and money 8. Web sites of All commercial Banks in Ethiopia

Course Title Course No.:

Public Finance and Taxation Acct 324

Program Credit Hours Course Information Instructors Information

BA Degree in Accounting 4 Academic Year_________________ Study Year III Sem. I

Meeting Days_______________ Time_____________ Room________ Name ________________ Consultation Dates_________________ Time______________ Addresses: Office____________ Phone_____________ Mail_______

COURSE DESCRIPTION

The study of Public Finance is closely related to the activities of the Public sector including government organs and commercial undertakings. The course addresses the issues relating to the importance of Public Finance in the Economy, the elements of public finance, budget functions and procedures , fiscal Policy and its roles, fiscal federalism and how fiscal functions & revenue raising powers be divided among the level of government(Ethiopian context). The course further focuses on acquainting the learners with the knowledge of the Tax systems & principles of taxation, different types of taxes chosen together with their incidences, tax assessments & computations and tax planning & tax evasion. In addition the course covers the tax regulations and Administration (Ethiopian Experience).

COURSE OBJECTI VES

Up on the completion of the course the student will achieve the following objectives:

Understand the nature of goods and services produced and supplied in the economy and how their production be efficiently financed Define public finance and explain its scope Differentiate between public finance and private finance Know the concept of fiscal policy and its role in the economic development Understand and evaluate tools of Public finance, budget systems, policies and its financing Understand and analyze the FDREs fiscal federalism, revenue and finance systems including budget transfers/allocation, revenue sharing and deficit financing Understand the taxation systems, principles(canons) and policies in general Determine/compute different tax revenues from various types of taxes Understand and analyze the tax systems, laws, regulations and tax administrations in Ethiopia

Prerequisites Status of the Course Teaching and Learning Methods

Financial Accounting I and Macro Economics I Major

Lecture/Class room contact ,Assignment/tutorial, Case Study, Term Papers (In group or individual) Continuous Assessment -70% ( Tests, Quizzes, Assignments and term papers) and Final Exam-30%

Assessment

COURSE CONTENTS

Chapter One: Chapter One: Sketching the background: An Introduction to Public Finance and Taxation (10 Hrs)
1.7.The Nature and classification of goods and services: Private Vs Public 1.8.The meaning and scope of Public Finance goods

1.9.Private Vs Public finance 1.10. The role/function of modern government: justifying the need for public finance 1.11. Introduction to fiscal Policy and its role in economic development

Chapter Two: Budget, its financing and the Overview of Fiscal Federalism (13 Hrs)
2.1. Introduction: Budget meaning and its Function 2.2. Budget classifications and Approaches to Public Budgeting (Self study) 2.3. Overview of Intergovernmental Fiscal Relations in Ethiopia (Fiscal Federalism) 2.3.1. Introduction 2.3.2. Expenditure Responsibilities and Revenue sharing in Ethiopia. 2.3.3. Fiscal imbalances in Ethiopia 2.3.4. Correcting the imbalances: Budget transfers in Ethiopia 2.4. The budget Process in Ethiopia 2.5. Budget deficit and its financing

Chapter Three: Taxation: Basics


3.1. The meaning of Tax and historical evolution of the Tax system 3.2. Historical development of tax System in Ethiopia 3.3. General characteristics and Objectives of Taxation 3.4. Principles of taxation/canon of taxation/ 3.5. Some Common tax related issues and Concepts 3.5.1. Tax planning, tax avoidance and tax evasion 3.5.2. Tax impacts, tax incidence and tax shifting 3.5.3. Tax assessment: meaning and methods 3.6. Different types of taxes 3.7. The effects of Taxation

(13 Hrs)

Chapter Four: Tax regulations, Several Types of taxes and their Administration: Current Ethiopian Experience (12 Hrs)
4.1. An Introduction

4.2. Direct Taxes in Ethiopia:

4.2.1. 4.2.2. 4.2.3.

Employment Income Tax Business Profit Tax Other Direct Taxes

4.3. Indirect Taxes in Ethiopia

4.3.1. 4.3.2. 4.3.3. 4.3.4.

Value Added tax Excise taxes Turnover Taxes Others

4.4. Further on Tax Administration in Ethiopia

4.4.1. 4.4.2. 4.4.3.

Category of tax Payers Tax payment and return filing systems in Ethiopia Penalties for non-compliance

References:
1. Musgrave, R. & Musgrave, P. (1989). Public Finance in Theory and Practice. 5th ed., Singapore: McGraw-Hill. 2. Solomon Negussie, (2008), Fiscal Federalism in the Ethiopian Ethnic-based Federal System, Revised Edition, Netherlands: Wolf Legal Publisher (WLP) 3. Backhaus, J. & Wagner, R. (2004). Handbook of Public Finance. Boston: Kluwer Academic Publishers. 4. 5. Bhatia, H. (2003). Public Finance. New Delhi: Vikas Publishing Company. Bhatia, H. (2006). Public Finance. 25th Edition, New Delhi: Vikas Publishing Company.

6. Gupta, A. (2001). Public Finance and Taxation. Anmol Publications Pvt. Ltd., New Delhi. 7. Holcombe, Randall G. (1996). Public finance: Government revenues and expenditures in the United States economy. Minneapolis/St. Paul, MN: West Publishing. 8. Holcombe, Randall G. (2004). Taxation, Production, and Redistribution. In Backhaus, J. & Wagner, R. Handbook of Public Finance. Boston: Kluwer Academic Publishers.

9. Hyman, David N. (2005). Public finance: A contemporary application of theory to policy. 8th ed., USA: South-Western, Thomson Learning. 10. Parameswaran, R. (2005). Public Finance and Taxation: A Study Material. Addis Ababa University.

Course Code Course Title Program Credit Hours Course Description

Acct 332 Risk Management and Insurance BA Degree in Accounting 3 Risk affects every aspect of an organization. The effects of risk are not confined within any predictable boundaries; a single event can easily influence several areas of an organization at once, producing consequences far beyond the immediate impact. The pervasiveness and complexity of risk presents strong challenges to managers, one of the most important being the coordination of risk management across areas within the organization. It deals with: the nature and management of pure risks, insurance and reinsurance; risk concepts, classification of risks, management of pure risks through various risk handling tools, industrial safety, general principles of insurance and major classes of insurance, reinsurance and development & regulation of the insurance industry in Ethiopia.

Course Objective

After the completion this course the students will be able to: Know basic concepts of risk Explain the basic classification of risk Understand insurance Industry in Ethiopia Explain the nature and application of reinsurance The course is intended to enable students to identify and measure business loss exposures. It also discusses how to select among the major tools of risk management and quip students with ways of measuring, if not eliminating, exposures to loss or risk and the ability to analyze various class of insurance contracts
No pre-requisite Core Lecture, Assignment, Case Study, Industry visit Continuous Assessment 70% and Final Exam 30%

Prerequisites Status of the Course Teaching and Learning Methods Evaluation Scheme

COURSE OUTLINE CHAPTER ONE RISK AND RELATED TOPICS 1.1. Risk defined 1.2. Risk Vs uncertainty 1.3. Risk and probability 1.4. Risk, peril and hazard 1.5. Classification of risk CHAPTER TWO-THE RISK MANAGEMENT 2.1. Risk management defined 2.2. Objectives of risk management 2.3. Steps in risk management process 2.3.1. Risk identification 2.3.2. Risk measurement 2.3.3. Selecting the appropriate tools of risk management 2.3.4. Risk administration CHAPTER THREE INSURANCE 3.1. Insurance Defined 3.2. Basic characteristics of insurance 3.3. Fundamentals of insurable risk 3.4. Insurance and gambling compared 3.5. Insurance and Speculation compared. 3.6. Benefits and costs of insurance 3.6.1 Benefits of insurance to the society 3.6.2 Cost of insurance to society CHAPTER FOUR- LEGAL PRINCIPLE OF INSURACE CONTRACT 4.1. Principle of indemnity 4.2. Principle of insurable interest (6 hours) (6 hours) (9 hours) (3 hours)

4.3. Principle of subrogation 4.4. Principle of utmost good faith 4.5. Principle of contribution 4.6. Doctrine of proximate cause CHAPTER FIVE-LIFE AND HEALTH INSURANCE (12 hours) 5.1.1 Underwriting life insurance 5.1.2. Types of life insurance polices 5.1.3. Premium determination 5.1.4. Workers compensation insurance 5.1.5. Personal accident insurance CHAPTER SIX- NON-LIFE INSURANCE 6.1.1. Motor insurance 6.1.2. Burglary and house keeping insurance 6.1.3. Fire and lighting insurance 6.1.4. Marine insurance 6.1.5. Aviation insurance 6.1.6. Liability insurance 6.1.7. Pecuniary insurance 6.1.8. Fidelity guarantee insurance 6.1.9. Engineering insurance CHAPTER SEVEN-RE-INSURANCE 7.1. Meaning of Re-insurance 7.2. Reason for Re-insurance 7.3. Types of Re-insurance CHAPTER EIGHT-THE INSURANCE BUSINESS IN ETHIOPIA (6 hours) 8.1. Development of insurance in Ethiopia 8.2. Regulation of insurance companies 8.2.1. Proclamation No.68/1975 (3 hours) (12 hours)

8.2.2. Proclamation No.86/1994

Text:
Teklegiorgis Assefa (2004), Risk Management and Insurance, Mega Printing PLC, Mekelle university. Hailu zeleke, Risk and insurance note, lecturer, AAU.

References:
George E. Rejda, principles of Risk Management and Insurance, 6th ed. 1998,Addison-wesley. C.Arthur Williams jr. and Richard M. Heins. Risk Management and Insurance , 4th ed, 1981 Mc Graw-Hill Joel Bessis, Risk management in Banking, 2nd, 1998, wiley. Hailu Zeleke, Insurance in Ethiopia, AAU.

Course Code Course Title Program Credit Hours Course Description

Acct 413 Auditing- I BA Degree in Accounting 3 This course is designed in such a way that student can be able to explore the underlying theories, procedures and practices surrounding auditors responsibilities in examining and reporting about financial statements of business enterprises. The course basically deals with the way how evidences are collected so as to be used in the process of evaluating whether or not financial statements present fairly the financial position, operational result and cash flows of the company. Moreover, the course also deals with the process of collecting and evaluating evidences to determine whether business enterprise safeguards assets, maintain data integrity, achieves organizational goals effectively and

consumes resources efficiently. Course Objective Upon completion of this course, the student will be able to:

Understand the purpose and scope of auditing Identify and differentiate the types of audits and auditors Understand and appreciate code of professional conducts for auditors Describe auditing principles and tools Describe the basics of internal control Differentiate internal auditing from external audit Distinguish the different types of audit reports, their parts, and the accompanying audit opinion

Prerequisites Status of the Course Teaching and Learning Methods Evaluation Scheme Course Content Chapter I: Introduction 1.1. 1.2. 1.3
1. 4.

Discuss about fraud in auditing FINANCIAL ACCOUNTING-II Core Lecture, Assignment, Case Study, Industry visit Continuous Assessment 70% and Final Exam 30%

7hrs

Historical evolution and development of auditing Definitions and terminology Difference between Auditing and Accounting The nature, purpose and scope of audit Types of audits and auditors 7hrs

1.5.

Chapter II: The Auditing Profession 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. Professional ethics Characteristics of a profession Rules of professional conduct

Due care (Skill, diligence and expeditiousness) Independence, objectivity and integrity The professional duty of confidentiality

2.7. 2.8. 2.9. 2.10. 2.11. 2.12.

Legal liability and responsibility Truth and fairness Materiality and the auditor Appointment, remuneration and removal of auditors Client acceptance procedures Engagement letters

Chapter III: Auditing Principles and Tools 8hrs 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. Auditing principles and standards Auditing procedures and techniques Audit approaches Financial statement assertions Audit objectives Audit planning Audit program 4hr

Chapter IV: Internal Control 4.1. 4.2. 4.3 4.3. Definition of internal control

Type and Principles of internal control system Components of internal control Internal control and external audits 5 hrs

Chapter V: Audit Evidence 5.1 Nature of Evidence 5.2 Audit Evidence decision 5.3 Persuasiveness of Evidence 5.4 Types of Audit Evidence 5.5 Types of analytical procedure 5.6 Audit working papers Chapter VI: Audit Report 6.1. 6.2. Types of audit reports Part of audit reports

6hrs

6.3. 6.4. 6.5. References

Audit opinion The standard unqualified audit report Departure from standard unqualified audit report

Text: Arens & Loebbecke, Auditing, An Integrated Approach 7th ed. Prentice Hall Intl:

Konrath, Larry, Auditing Concepts & Applications: A Risk Analysis Approach, 4th ed. South western College USA, 1999 Guy, Dan M. etal, Auditing, 4th ed. The Dryden Press, Florida Meigs, Whittinton, Peny and Meigs, Principles of Auditing, 9th ed. Irwin Publishing co.1989 USA. David N.Richiute, Auditing Concepts and Standards. South -Western Publishing co.1982 USA. Willingtom and Carmichael, Auditing Concepts and Methods. 2nd ed. 1975 USA. Whittington & Pany, Principles of Auditing, 11th edition, Irwin, 1995 Shekhar, Auditing, Vikas Publishing House, 2003 Walter B. Meigs & etal., Principles of Auditing, 9th edition, 1989 Johannes Kinfu, Auditing-Introduction to Principles and Practices, FBE, AAU D.R. Carmichael & etal, Auditing Concepts and Methods, 5th edition, 1989 Alvin A. Arens & etal., Auditing an Integrated Approach, 5th edition, 1991 ACCA Text Books on Audit Framework and Audit Assurance and Internal

JOURNALS, PERIODICALS AND MAGAZINES 1. 2. 3. 4. 5. 6. 7. Journal of Accounting Research, University of Chicago Journal of accountancy AICPA edition Interned auditing, Warren, Grham, & Lammont Publication The Accounting Review The Ethiopian Journal of Auditing and Accountancy Journal on Accounting and Public Policy Various Proclamations, orders and other legal provisions that affects Accounting and auditing practices in Ethiopia.

Course Code Course Title Program Credit Hours Course Description

Acct 414 Auditing- II BA Degree in Accounting 3 This course is the second course in auditing which is designed to enable students to practically apply audit and its underlying concept to provide opinion of the financial statements. The courses enable learner to design appropriate audit strategies to gather and evaluate information in relation to financial statement assertions and ancillary audit engagements. The course also introduces IT auditing, operational auditing and government auditing. In addition it will provide to the students of accounting to study and comment on the development of audit profession in Ethiopia and current practices and developments in their profession globally. The course includes audit process and consideration in designing an audit, audit of financial statements, EDP audit, and audit in Ethiopia and current issues and practice in the auditing. The aim of this course is to ensure that students can exercise judgment and apply techniques in the analysis of matters to the provision of audit of financial statement and other audits. In addition, students can understand & comment on

Course Objective

the profession of auditing in Ethiopia and current practice and development in the profession globally. Upon completion of this course students are able to: Prerequisites Status of the Course Teaching and Learning Methods Evaluation Scheme Acct 413 Core Lecture, Assignment, Case Study, Industry visit Continuous Assessment 70% and Final Exam 30% Demonstrate ability to conduct audit within appropriate professional, ethical and statutory frame works. Identify and describe the work required to meet the objective of audit assignments. Gather and evaluate audit evidences that satisfy the audit objectives Evaluate findings and results of audit and draft, internal control memorandum ( ICM) and suitable reports on assignment Assesses the development of audit profession in Ethiopian and comment on its current status Understand current issues and developments relating to auditing and related services Identify and understand national and international professional bodies that have been contributed for the development of accounting audit Understand EDP auditing, Operational auditing and management auditing

Course Content CHAPTER 1: AUDIT SAMPLING


1.1 Audit Tests 1.2 Audit sampling in General 1.3 Audit sampling for test of control and substantive test of transactions 1.3.1 1.3.2 Application of Non Statistical Audit Sampling Methods Application of Statistical Audit Sampling Methods

8hrs

1.4 Audit Sampling for Test of Detail Balances 1.4.1 1.4.2 Application of Non Statistical Audit Sampling Methods Application of Statistical Audit Sampling

1.5 Sampling and None sampling Errors

CHAPTER 2: FINANCIAL STATEMENT AUDIT


2.1. Audit of Current Asset

15hrs

2.1.1. Audit of cash and cash equivalent 2.1.2. Audit of Receivables 2.1.3. Audit of Inventories & cost of goods sold 2.1.4. Audit of other current assets 2.2. Audit of Non current asset 2.2.1. Audit of plant asset & depression 2.2.2. Audit of Intangible assets 2.3. Audit of liabilities 2.3.1. Audit of A/P and purchase 2.3.2. Audit of other liabilities 2.4. Audit of capital (owners equity) 2.5 2.6 2.7 Audit of Revenue accounts Audit of Expense accounts Completing the audit process 4hrs

CHAPTER 3: Auditing and Information Technology

3.1. Manual Accounting System Vs Electronic Data processing (EDP) 3.2 Meaning and objectives of IT audit 3.3 Internal control in EDP 3.4 Areas and growth of IT auditing 3.5. How the objective audit change with the change in data processing method CHAPTER 4: INTERNAL, OPERATIONAL AND MANAGEMENT AUDITING 4hrs 4.1 Internal Financial Auditing 4.2 Operational Auditing 4.3 Management Auditing

CHAPTER 5: AUDITING IN ETHIOPIA


5.1. Historical Development of Audit in Ethiopia 5.2Bodies related to audit in Ethiopia

3hrs

5.2.1. Role of office of auditors General Powers, duties and responsibilities 5.2.2. Role of audit Service Corporation powers, duties and responsibilities 5.2.3. Role of Inspection department, Ministry of Finance and Inland Revenue 5.2.4. Role of private auditors 5.3. Special proclamation, directives and orders issued by the government related to audit practice in Ethiopia 5.3.1Commercial code of Ethiopia 1960 5.3.2. Proclamation 163/1977 and 25/1992 Text Arens & Loebbecke, Auditing, An Integrated Approach 7th ed. Prentice Hall Intl: References Konrath, Larry, Auditing Concepts & Applications: A Risk Analysis Approach, 4th ed. south western College USA, 1999 Guy, Dan M. etal, Auditing, 4th Ed the Dryden Press, Florida Meigs, Whittington, Penny and Meigs, Principles of Auditing, 9th ed. Irwin Publishing Co1989 USA David N.Richiute, Auditing Concepts and Standards South -Western Publishing co.1982 USA Whittington and Carmichael, Auditing Concepts and Methods 2nd ed. 1975 USA` Whittington & Pany, Principles of Auditing, 11th edition, Irwin, 1995 Shekhar, Auditing, Vikas Publishing House, 2003 Walter B. Meigs & etal., Principles of Auditing, 9th edition, 1989 Johannes Kinfu, Auditing-Introduction to Principles and Practices, FBE, AAU D.R. Carmichael & etal, Auditing Concepts and Methods, 5th edition, 1989 Alvin A. Arens & etal., Auditing an Integrated Approach, 5th edition, 1991 ACCA Text Books on Audit Framework and Audit Assurance and Internal Review Commercial code of Ethiopia Income tax proclamation

Useful

Journals & periodicals: Journal of Ethiopian accounting society Journal of AICPA Accounting Journals Journal of the Federal Auditors General Journal & periodicals of FIRA

Useful websites http://www.aicpa.org, American institute of Certified public accountants http://www.acca.global.com, chartered certified Accountants Association (UK) http://www.ifac.org, International Federation of Accountants http://www.theiia.org, Institute of Internal auditors Accounting Information System Acct 434

Course Title Course No.:

Program Credit Hours Course Information

BA Degree in Accounting 3 Academic Year_________________ Study Year III Sem. I

Meeting Days_______________ Time_____________ Room________ Instructors Information Name ________________ Consultation Dates_________________ Time______________ Addresses: Office____________ Phone_____________ Mail_______

COURSE DESCRIPTION

To be successful in pursuing an accounting, any accounting professional must today possess a basic knowledge of computer based information systems and understand the role of information systems in contemporary business organizations. The course is, therefore, designed to equip students with the knowledge, techniques and methodologies used to design and develop information system in general and Accounting Information System in particular. It discusses about the major business processes and the basic transaction cycles, collection and processing of data about the business activities, fundamental concepts of database systems and AIS database modeling techniques, an over view of system analysis and development and an overview of e-business & e commerce.

COURSE OBJECTI VES

After completion of this course, students will be able to:

Analyze, document and evaluate business activities performed by firms within major transaction Develop skill in Documenting Accounting Information System and skills in accounting software packages Develop working knowledge about database applications and models Understand the model, techniques, and tools for Accounting Information System Analysis and design Understand the concept of E-Business and E-commerce

Prerequisites Status of the Course Teaching and Learning Methods

Introduction to Computer and its Application Major

Lecture/Class room contact , Lab sessions, Assignment/tutorial, Case Study, Term Papers (In group or individual)

Assessment

Continuous Assessment -70% ( tests, quizzes, assignments and term papers) and Final Exam-30%

COURSE CONTENTS

Chapter One: Accounting Information System: An Overview (6 HRS)


1.1.Introduction: What is and Why AIS? 1.2.The scope of AIS 1.3.The role of AIS in Value chain

Chapter Two: Overview of Business Process and Organizing AIS Data (10 HRS)

2.1. Business Process and Events 2.2. Transaction Processing: Documents and Procedures - Organizing data - Types of files and data 2.3. Information output: Providing Information for Decision making

Chapter Three: Database Systems and the Relational Databases (12 HRS)
3.1. Database systems 3.2. Database Design Process 3.3. The REA data model 3.4. Database System and the future of Accounting

Chapter Four: The system Development Process

(12 HRS)

4.1. Introduction to System Development and Documentation Tools and Techniques 4.2. Introduction to system development process: System development life cycle 4.3. Accounting Information System Strategies 4.4. Business Process Re-Engineering (BPR): Design and Implementation

Chapter Five: Transaction Cycle and Accounting Application (Self study; 2HRS)
5.1. The revenue Cycle 5.2 The Expenditure Cycle 5.3. The production Cycle 5.4. The Payroll Cycle 5.5. General ledger and Reporting Systems

Chapter Six: E- Business and E-commerce


6.1. Overview 6.2. Framework of E-Business 6.3. E-Business models 6.4. Infrastructure for E-Business

(6 HRS)

6.5. Procedure for internet shopping

Text Book: Romney and Steinbast, 2008, Accounting Information System, 11th Edition, Pearson Prentice Hall Inc, USA References: 1. Bodner and Hopwood, 1998, Accounting Information System, 7th Edition 2. A. Hall, 1998, Accounting Information System, 2nd Edition, West Publishing Company

3. Jones Rama, 2003, Accounting Information System: A business Process Approach 4. Whiten J.L, Bentley L.D; Dottman, , 2000, System Analysis and Design Methods 5. Bower, Schlosser, Newman, 1989, Computer-Oriented Accounting Information System, South western Publishing Company

Course Title Course No.:

Advanced Accounting Acct 411

Program Credit Hours Course Information

BA Degree in Accounting 4 Academic Year_________________ Study Year III Sem. I

Meeting Days_______________ Time_____________ Room________ Instructors Information Name ________________ Consultation Dates_________________ Time______________ Addresses: Office____________ Phone_____________ Mail_______

COURSE DESCRIPTION

Advanced Accounting gives due attention to the modern advanced financial accounting issues such as accounting methods and principles for joint venture businesses, accounting principles and methods for agencies and branches, accounting principles and methods for installment contract sales, accounting and reporting issues related business combination and foreign transactions. Moreover, in this course, some accounting issues for public enterprises in Ethiopia and accounting for privatization of public enterprises (Emphasizing Ethiopian context) are discussed.

COURSE OBJECTI VES

After completion of this course, students will be able to:

Understand the overview of accounting for joint ventures in general and accounting for Public Enterprises(focusing on public enterprises in Ethiopia) Record, analyze and report financial information of enterprises with sales agencies and branches Understand the concept of business combinations and the preparation of consolidated financial statements Differentiate installment and consignment sales from ordinary sales and explain how revenues are recognized from such sales Understand and account for foreign currency transactions and translations and reporting the operating results of foreign subsidiaries

Prerequisites Status of the Course Teaching and Learning Methods

Financial Accounting II Major

Lecture/Class room contact ,Assignment/tutorial, Case Study, Term Papers (In group or individual) Continuous Assessment -70% and Final Exam-30%

Assessment

COURSE CONTENTS

Chapter One: Over view of accounting for joint ventures and Public enterprises (10 Hrs)
1.1.Accounting for joint ventures Nature of Joint Venture Businesses Back ground of JVs Accounting for investment in JV Businesses

1.2.Accounting for public enterprises in Ethiopia Overview of Procl. 25/1992 and other related provisions

Accounting for the Formation for the operation, Dissolution and

Accounting liquidation

Privatization of Public Enterprises Illustrations

Chapter Two: Accounting for Sales Agencies and principal; Branches and Head office (10 Hrs)
2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. Characteristics and principles Distinguishing between Agencies, Branches and Divisions Accounting for Operation of Branches Reciprocal accounts and their reconciliations Billing of merchandises to branches Transaction between branches Combined Financial statements

Chapter Three: Installment and Consignment contracts (self study)


3.1. Installment Sales ( 4 Hrs, summary)

3.2.Consignment sales

Chapter Four: Business Combinations (Mergers and Acquisitions)


4.1.Introduction Definitions Motives Types of business combinations 4.2.Methods of Arranging business combinations 4.3.Accounting Methods and procedures for Business Combinations

(10 Hrs)

Chapter Five: Consolidations


5.1.Introduction

(8 Hrs)

5.2.Consolidated Financial Statement :Wholly owned subsidiary 5.3.Consolidated Financial Statement : Partially Owned subsidiary

Chapter six: Reporting operating results of foreign subsidiaries and foreign currency transactions and translations (6 Hrs)
6.1. Introduction Definition of terms Meaning of exchange rates and types of exchange rates Meaning of foreign currency and functional currency Transaction exposures, translation exposures and economic exposures 6.2. Accounting for Foreign Currency Transaction Foreign Currency Transaction meaning Accounting principles and methods for foreign currency transactions 6.3. Foreign Currency Translations Rationale for Foreign Currency Translation Methods and Procedures of Foreign Currency Translation
Text: E.John Larson (2003), Modern advanced accounting, 9th edition, McGrawHill, NY References: 1.

Larson and Mosich, Advanced accounting, 2nd to 11th edition Richard E.Baker et al, Advanced Accounting, McGrawHill, USA, 1999 Hoyle, schaefer, & Doupink, Advanced accounting 6th ed . 2001

2.
3. 4. 5.

Beams,Anthony, Bettinghaus & Smith, Advanced Accounting, 11th Edition, Pearson Education, Inc. Pearson Prentice Hall, USA, 2012. Richard Lewis and Devid Pendril, Advanced Financial Accounting,7th Edition, FT Prentice Hall- Financial Times, United Kingdom, 2004 6. EFDR Proclamation No. 25/1992, Public Enterprises Proclamation and Others

7.

Simons, Advanced Accounting (On consignment and installment contract

sales)

Course Title: Financial Management I Credit Hours: 3

Course Code: Acct 321 Pre-requisite: Acct 212

Course objectives:
This course is designed to provide students with a general understanding of financial management. In this course students will explore the role of the financial manager in the firm, while focusing on providing the tools necessary to successfully perform the job. Underlying financial management concepts are taught while stressing the problem-solving skills & decision-making activities inherent in the finance function. Determine appropriate working capital management techniques for a firm.

Chapter

Topic

Part I
1

Introduction An Overview of Financial Management

The nature and scope of financial management Financial Markets and Institutions Financial institutions Cash flows to and form the firm Primary markets vs. Secondary markets Money markets vs. Capital markets Financial management decisions Goal of the firm Possible goals The goal of the firm and financial management Interest rates Basic forms of business organizations

Evaluation of Financial Performance


Why evaluate performance? Choosing a benchmark for evaluation Ratio Analysis Short term solvency or liquidity measures Long-term solvency measures Asset Management or turnover measures Profitability Measures Problems with financial statement analysis

Financial Forecasting
Overview of financial forecasting Forecasting growth rates and outside financing Forecasting external financing needs Financial statement forecasting: the percentage of sales method

Part II 3

Fundamental Concepts in Financial Management The time value of money

Why money has a time value? Future Value of a single amount Present value of a single amount Future value of annuity Present value of annuity Perpetuities Determining the discount rate The effect of compounding periods: Effective annual rate and the nominal rate Components of the discount rate

Risk and Return: The Basics


Understanding and Measuring Risk: Stand alone risk Probability distributions Measures of Central tendency Measures of dispersion Types of Risks Cash flow risk Reinvestment rate risk Interest rate risk Default or Credit risk Purchasing Power risk Market Risk

Valuation of Financial Assets


Definitions of value The basic valuation model Bond valuation Bond Values Finding the yield to maturity Bonds that pay interest more than once in a year Common Stock Valuation Common stock cash flows Basic Common stock valuation model Common stock valuation for different holding periods One period valuation model two period valuation model indefinite period valuation model Common stock valuation under different dividend growth rate assumptions Zero growth Constant growth Variable growth Preferred stock valuation

Working Capital Management Managing Current Assets


Working capital terminologies Alternative current asset investment policies Cash management Managing inventory Receivables management

Financing of Current Asset

Alternative current asset financing policies Advantage and disadvantage of short-term financing Sources of short-term financing (Accruals, Accounts Payable, Short-term Bank Loan, and Commercial Papers)

References:

1. Gitman, L.J., Principles of Managerial Finance, 7th edition, Harper Collins, 1994 2. Nevue, R.P., Fundamentals of Managerial Finance, 2nd edition, South-Western Publishing Co., 3. 4. 5. 6. 7.
Ohio, 1985 Petty & et. A., Basic Financial Management, 6th edition, Prentice-Hall, Inc., 1993 Ross, S.A., Westerfield, and Jordan, Fundamentals of Corporate Finance, 2nd edition, Richard D. IrwinInc.,1993 Weston, J.F., and Brigham, E.F., Essentials of Managerial Finance, 7th edition, The Dryden Press, Illinois, 1985 Yaregal Abegaz, Fundamental of Financial Management, 1st edition, ASE, 2007 N.B. Any book dealing with financial management might be relevant

Course Title: Financial Management II Credit Hours: 3

Course Code: Acct 322 Pre-requisite: Acct 321

Course objectives:
A successful completion of this course enables students to: Identify the elements of the cost of capital and determine projects cost of capital Demonstrate knowledge of the concept of optimum capital structure that maximizes firms value and the controversy over the relevance of capital structure policy Appreciate theories over firms dividend policy in maximizing firms value Familiar with the overview of investment decisions and portfolio management Alert with the recent issues in the dynamic financial management environment
Chapter Topic

Long Term Investments decisions (Capital budgeting decisions)

The capital budgeting decision process Steps in the process Basic terminologies Cash flows The rational for the use of cash flows The cash flow after-tax (CFAT) Types of cash flows Cash flow worksheet Capital budgeting techniques Discounted and non-discounted decision criteria and rules under Accept-reject decisions Mutually exclusive decisions Capital rationing decisions Methods for incorporating risk in to capital budgeting Risk adjusted discount rate Certainty Equivalents Sensitivity and Scenario analysis

Cost of Capital
The meaning of cost of capital The components of the cost of capital The cost of debt and preferred stock The cost of common equity capital The cost of retained earnings and new common stock The meaning and use of the weighted average cost of capital (WACC) Adjusting cost of capital for project risk

Capital Structure Policy and Leverage


The capital structure question Factors that influence capital structure decisions Business and Financial Risk Business risk and operating leverage Financial risk and financial leverage Determining the optimal capital structure EBIT/EPS analysis The effect of capital structure on stock price and the cost of capital The theory of capital structure Modigliani and Miller (M&M) Propositions I and II with no taxes Modigliani and Miller (M&M) Propositions I and II with taxes Trade-off theory (Static Trade-off Hypothesis) Signaling theory Using debt financing to constrain managers

Dividends and Dividends Policy


Dividend theories Establishing the dividend policy in practice Factors influencing dividend policy Other factors related to cash dividends: Stock dividends and stock splits Stock repurchases

Investment Decisions and Portfolio Management: Over view


Portfolios Portfolio weights Portfolio expected returns Portfolio risk Diversification and portfolio risk The principle of diversification Diversification and unsystematic risk Diversification and systematic risk Measuring systematic risk Portfolio betas Risk and the required rate of return CAPM The security market line

5
Evaluation: References:

International Financial Management

1. S.A. Ross, R.W. Westerfield, and B.D. Jordan, Fundamentals of Corporate Finance, 2nd edition, Richard D. Irwin. Inc., 1993, USA. 2. E. F. Brigham and J. F. Houston, Fundamentals of Financial Management, 2nd edition, Harcourt Brace Company, 1999, USA. 3. C.F. Lee, J.E. Finnerty, and E.A. Norton, Foundations of Financial Management, special edition, West Publishing Company, 1997, USA. 4. Raymound P. Neveu, Fundamentals of Managerial Finance, 2nd edition, South-Western Publishing Co.,1985, USA.

Course Title: Government and Not For- Profit Accounting Course Code: Acct 342 Credit Hours: 3 Pre Requisite: Acct 212 Academic Year---------Semester-------------Instructor_______ Course Description This course provides students with basic understanding of governmental accounting principles; budgeting and budgetary control principles; enable students to analyze and prepare various funds financial statements emphasizing revenues and expenditures of governments and not for profit organizations. Topics include: distinction between profits and not for profit entities; Principles of Accounting for governmental and Not-for -profit organizations; government Budgeting and budgetary control principles (Ethiopian government budgeting system and the relationship between Regional and Federal government budgets); Revenues and expenditures, expendable and non expendable funds, accounting for not-forprofits organizations are discussed.

objectives Course After completing this course, the students will be able to: Distinguish between for profit and not for profit entities Discuss governmental accounting principles Discuss budgeting and budgetary process Describe general fund, special revenue fund, debt service fund, capital project fund, enterprise fund and internal service fund. Discuss fixed asset and long term debt accout groups Explain different fiduciary fund types Discuss accounting for not for profit organizations
Course Contents CHAPTER ONE: INTRODUCTION 4hrs

Nature and characteristics of for profit and not for profit units and their accounting Similarities and differences between governmental and commercial (business) accounting and reporting CHAPTER TWO: GOVERNMENTAL ACCOUNTING PRINCIPLES---6hrs Fund-defined The Rationale for Fund Accounting Types of Funds Basis of Accounting Valuation of Fixed Assets Depreciation of Fixed Assets Budgetary Accounting Financial reporting

Classification & Terminology


CHAPTER THREE: BUDGETING AND BUDGETARY CONTROL -----7Hrs Definitions Functions of a Budget Governmental budgeting vs. FP budgeting Uses of Budget Classifications of budgets Approaches to Budgeting The Budget Process in Ethiopia

The Budgetary Process at the Federal Level The Budgetary Process at the Federal Level CHAPTER FOUR: GENERAL FUND AND SPECIAL REVENUE FUNDS------ 7 hrs Proprietary accounts Budgets and budgetary account Recording budgets Accounting for revenues encumbrances & expenditures Terminology and classification for governmental fund budget and accounts

Inter-fund transactions and transfer Illustrative transactions and transfer CHAPTER FIVE: CAPITAL PROJECT, DEBT SRVICE & PERMANENT FUNDS-- 8 hrs Capital project founds Debt service funds Permanent funds CHAPTER SIX: PROPRIETARY NON EXPENDABLE FUNDS----

5hrs

Internal service funds Enterprise funds CHAPTER SEVEN: FIXED ASSET AND LONG TERM DEBT ACCOUNTS -- 4hrs General fixed asset accounts Long-term debt accounts CHAPTER EIGHT: FIDUICIARY FUNDS -----3hrs Pension trust fund Private trust Fund Investment trust Fund Agency fund CHAPTER NINE: ACCOUNTING FOR NOT-FOR-PROFIT ORGANIZATION--4hrs Funds used by NGOs Accounting for Restricted and unrestricted fund Health care entities welfare organization Other non-profit organizations Text: Leon E. Hay and Eart R. Wilson, Accounting for Governmental and Non-profit entities 9th Ed, 1995

Teaching methods The following teaching methods will be employed in the delivery of the course: Lecture Group discussions Case studies Evaluation Scheme Quiz, case evaluation and presentations, group discussion, assignments, tests70%, final exam 30%
7. References: 1. Patricia P Douglas, Governmental & Non profit accounting, Theory and practice, 2nd Ed, 1993 3. E. John Larsen, Modern Advanced Accounting 7th Ed, 1997 4. Copley P. & Engstrom J., 2007, Essentials of Accounting for government and NFP organizations, 8th ed., New York, McGraw Hill Companies Inc.

5. Hay L. & Weilson E., 1995, Accounting for Government and non profit entities, 10th ed. USA,Irwin/McGraw Hill companies

6. Larson J., 2003, Modern advanced accounting, 9th ed. New York, McGraw Hill/Irwin 7. Razik J. & Hosch G., 2000, Introduction to government and NFP accounting, 4th ed. New York, prentice Hall. 8. Douglas P., 1993, Government & non profit accounting, Theory and practice, 2nd ed. 9. The constitution of FDRE. Proclamation No. 1/1995 Proclamation No.17/1997 Proclamation No.15/1999.