31255 Finance and IT Professionals
Warning: The information on this page is indicative. The subject outline for a
particular session, location and mode of offering is the authoritative source
of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
Subject handbook information prior to 2024 is available in the Archives.
Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksRequisite(s): 31266 Introduction to Information Systems
Description
This mid-stage undergraduate subject provides skills in financial management that are essential to any IT professional working in business today. Students gain knowledge of financial principles and an understanding of reporting requirements which are necessary for the evaluation and design of auditable financial systems. In addition, students develop key competencies in the financial aspects of IT management, outsourcing and project management including budgeting, statement analysis, feasibility and risk management.
Subject learning objectives (SLOs)
Upon successful completion of this subject students should be able to:
| 1. | Demonstrate the basic principles and concepts used in Financial Management. (D.1) |
|---|---|
| 2. | Apply the principles of budgeting IT Projects through the setup and running of a business model. (D.1) |
| 3. | Construct appropriate documentation, for both oral and written presentation, while working in a team. (E.1) |
| 4. | Evaluate the risk and economic feasibility of IT projects. (B.1) |
| 5. | Analyse the benefits and costs of IT outsourcing, dividends pay-out, mergers and acquisitions. (D.1) |
Course intended learning outcomes (CILOs)
This subject also contributes specifically to the development of the following Course Intended Learning Outcomes (CILOs):
- Socially Responsible: FEIT graduates identify, engage, interpret and analyse stakeholder needs and cultural perspectives, establish priorities and goals, and identify constraints, uncertainties and risks (social, ethical, cultural, legislative, environmental, economics etc.) to define the system requirements. (B.1)
- Technically Proficient: FEIT graduates apply abstraction, mathematics and discipline fundamentals, software, tools and techniques to evaluate, implement and operate systems. (D.1)
- Collaborative and Communicative: FEIT graduates work as an effective member or leader of diverse teams, communicating effectively and operating within cross-disciplinary and cross-cultural contexts in the workplace. (E.1)
Teaching and learning strategies
The subject is taught through a blended learning approach that combines in-class activities and on-line learning activities. Face-to-face activities include a weekly 2-hour collaborative workshop. The workshop comprises of work integrated learning activities which revolve around the key aspects of setting up a small business. This is undertaken through a combination of theory, individual practical activities, and authentic interactive group activities and assessment items. On-line learning activities include practice activities such as online problem sets as well as readings and media watching in preparation for in-class activities.
Each student will be involved in groupwork to analyse the feasibility of a start-up business. These businesses will run as though they are 'live businesses'. Students have the responsibility to maintain their business in a professional manner for the entirety of the semester. There will be formative assessment tasks, to ensure that all students gain feedback on the given weekly tasks.
This subject is delivered into three modules and each module is composed of four topics. The idea behind modules is to construct knowledge and develop skills in a meaningful sequence. To start any business, we need to understand sources and uses of cashflows in addition to working capital management. This is the first module ‘financial planning’ which analyse firm’s financial statements, ration analysis and working capital management. The second module ‘value creation which is related to estimating net present value of even and uneven cashflows using different examples of income recipients, cash flow generation, loan amortisation, … etc. Module three ‘corporate control’ covers identifying sources of risk and return for risk-averse, risk-neutral and risk-seekers investors. Special topics of IT outsourcing, dividend pay-out, mergers and acquisitions are analysed.
Out of class activities: This subject requires students to actively engage in learning independently by utilizing the available subject material in order to develop mastery of key financial concepts required to develop strategic solutions in a financial analysis and valuation. Students are expected to read and attempt both the problems and the case studies before attending each workshop in order to actively participate in the discussion. In particular, for case studies students have to discuss their solutions in small groups, then submit the group-preferred response using audience response systems before the workshop leader provides the solutions and feedback. Lecture slides, practice questions and case studies are available to students via Canvas on a weekly basis.
In-class activities: The 2-hour collaborative workshop consists of a review of on-line core materials (pre-work is essential), topic presentations and interactive workshop comprising a mixture of discussions, activities, case studies and informal student presentations. The weekly workshop starts with short lecture explaining the major concepts using business scenarios to link theoretical concepts to practical application. Lecturer collects questions from the discussion forum prior to each workshop and discuss them with students during the workshop. Students may have an opportunity to raise further issues at the start of a workshop. Then interactive online questions will be answered by students using Kahoot -which is a game-based platform- to test students’ understanding. This is followed by a group work by analysing short problems and real-world case studies related to lecture material. This may include class discussion with the workshop leader acting as a facilitator to stimulate active learning through student interaction and peer discussion.
SPARKPLUS: Students are required to create and record a presentation of their analysis and findings. Each group will peer review and provide constructive feedback on 2 presentations. Peer assessment is to be submitted by each group member using the Self & Peer Review Resource Kit (SPARK) accessible via Canvas. Using the SPARK toolkit each student will answer a series of questions for each group member (including themselves) to rank performance in the presentation.
Online Problem Sets: Each week, students are provided with online practice problem sets via Canvas to test their understanding of the subject material. These problem sets include a detailed explanation of each answer and thus provide students with immediate feedback. Similar problem sets are also used for assessment, with the solutions and feedback released only after the submission deadline.
Discussion Board: This is a web-based resource that can be accessed via the Canvas course page. The discussion board is a forum that gives students the opportunity to interact with their peers as well as with teaching staff. Students are able to post questions and comments about the course material. A member of staff will moderate the Forum and will answer students’ questions when appropriate.
Canvas: It is a web-based tool used at UTS to provide online learning to students. Canvas is accessible by most web browsers, and provided you have access to an internet connection you can access Canvas anywhere. In the subject page, you will be able to:
- Download subject material (e.g. lecture notes, practice questions, case-studies, etc.);
- Access the Online Problem Sets;
- Interact with peers and teaching staff (via Discussion Board);
- Keep up to date (via Announcements).
It is expected that students browse the Canvas site of the subject on a regular basis (at least twice a week).
Content (topics)
Topics covered are:
- Analyse sources and uses of cash, profitability ratios and working capital management.
- Estimate present value and future value from different streams of cashflows
- Evaluate budgeting principles and cost estimation
- Identify risks and opportunities in relation to IT investment and outsourcing
- Determine the opportunities of mergers and acquisitions.
?
Assessment
Assessment task 1: Online Problem Sets
| Intent: | Online Problem Sets focus on financial management concepts and principles to which students must apply analytical skills and critical thinking of how finance influences businesses. They consist of a combination of multiple choice, numerical and case study questions. The aim of the Online Problem Sets is to help students develop study habits and address learning objectives of each week. |
|---|---|
| Objective(s): | This assessment task addresses the following subject learning objectives (SLOs): 1 and 2 This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs): D.1 |
| Type: | Quiz/test |
| Groupwork: | Individual |
| Weight: | 30% |
Assessment task 2: Group Assignment
| Intent: | Students are required to build a financial model to determine the financial health of an existing firm in addition to prepare another model for a start-up in order to determine its feasibility. |
|---|---|
| Objective(s): | This assessment task addresses the following subject learning objectives (SLOs): 1, 2, 3, 4 and 5 This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs): B.1, D.1 and E.1 |
| Type: | Portfolio |
| Groupwork: | Group, group assessed |
| Weight: | 30% |
Assessment task 3: Presentation and Screencast
| Intent: | Students have to present the analysis and evaluation of their case study in order to conclude the financial soundness of existing business and the feasibility of a start-up. |
|---|---|
| Objective(s): | This assessment task addresses the following subject learning objectives (SLOs): 2, 3 and 4 This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs): B.1, D.1 and E.1 |
| Type: | Presentation |
| Groupwork: | Group, group and individually assessed |
| Weight: | 30% |
Assessment task 4: Peer Review
| Intent: | Students are required to review the presentation of two other groups and assess them in order to give them constructive feedback. |
|---|---|
| Objective(s): | This assessment task addresses the following subject learning objectives (SLOs): 1, 2, 4 and 5 This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs): B.1 and D.1 |
| Type: | Report |
| Groupwork: | Group, individually assessed |
| Weight: | 10% |
Minimum requirements
In order to pass the subject, a student must achieve an overall mark of 50% or more.
Required texts
All detailed PowerPoint slides, practice questions and reading material will be provided on Canvas in pdf format.
Recommended texts
Ross, S., Christensen, M., Drew, M, & Bianchi, R. 2016, Fundamentals of corporate finance, 11th Edition, McGraw-Hill.
Brealey, RA, Myers, SC & Allen, F. 2014, Principles of corporate finance, 11th Edition, McGraw Hill, Sydney.
Berk, J., DeMazo, P., Harford, J. Ford, G. & Finch, N. 2011, Fundamentals of Corporate Finance, Pearson, Australia
Keown, A.J., Martin, J.D. & Petty, J.W. 2011, Foundations of Finance, 7th Edition, Pearson Prentice Hall, Boston
Gitman, L, Juchau, R & Flanagan, J 2011, Principles of Managerial Finance, 6th Edition, Pearson Addison Wesley.
Besley, S, Brigham, EF, Henry, D & Watanabe, T 2013, Corporate Finance: The Essentials, Cengage Learning.
Parrino, R., Kidwell, D & Bates, T. 2015, Fundamentals of Corporate Finance, 3rd Edition, John Wiley and Sons Australia, Milton.
Brigham, EF & Houston, JF 2009, Fundamentals of Financial Management, 12th Edition, Thomson/Southwestern.
Bishop, SR, Crapp, HR, Oliver, B & Twite, GJ 2004, Corporate finance, 5th Edition, Pearson/Prentice Hall, Sydney.
Peacock, R et al. 2003, Financial management, 3rd Edition, Prentice Hall, Sydney.
References
All seminar overheads will be available on Canvas.