HD and Dean's List Full Course Notes

Description

HD and Dean's List Extensive Complete Course Notes. Covering every topic and lecture for the whole term. Topics covered: Week 1 (Introduction to Financial Management): Three disciplines of financial management (accounting, finance, tax), users of financial information (internal and external), the three key financial statements (balance sheet, income statement, cash flow statement), the accounting equation, accrual vs cash accounting, annual reports. Week 2 (Measuring and Evaluating Financial Position and Performance): Link between income statement and balance sheet via retained profits, retained profit formula, current vs non-current classification of assets and liabilities, income statement format with worked examples, all-cash vs all-credit transaction comparisons. Week 3 (Recording Business Transactions Part 1): Transaction analysis using the expanded accounting equation, double entry accounting, debits and credits, the DEALOR mnemonic, journal entries for common transactions, straight-line and accelerated depreciation, accumulated depreciation as a contra-asset. Week 4 (Recording Business Transactions Part 2): Four types of accrual accounting adjustments (unearned revenue, prepayments, accrued revenue, accrued expenses), worked examples for each adjustment type, earnings management techniques and motivations, Generally Accepted Accounting Principles (GAAP), the AASB Conceptual Framework. Week 5 (Audit and Internal Control): Financial reporting quality, agency theory and the principal-agent problem, external audit purpose and the four types of audit opinion (unmodified, qualified, adverse, disclaimer), five threats to auditor independence under APES 110, five fundamental principles of professional accountants, five components of an internal control system (COSO framework), preventive vs detective controls, segregation of duties. Week 7 (Financial Statement Analysis): Purpose and limitations of ratio analysis, four categories of ratios (profitability, activity, liquidity, financial structure), formulas and interpretation for ROA, ROE, gross margin, profit margin, EPS, asset turnover, inventory turnover, days in inventory, debtors turnover, days in debtors, payables turnover, current ratio, quick ratio, debt-to-equity, debt-to-asset, leverage ratio, DuPont analysis (ROE decomposition), valuation ratios (dividend yield, P/E ratio), Woolworths case study. Week 8 (Cash Flow Management and Valuation): Cash flow statement in depth (operating, investing and financing activities), working capital management, net working capital, cash conversion cycle, book value vs market value, market capitalisation, enterprise value, comparable (multiples) valuation, equity multiples (P/E, P/B, P/S) and EV multiples (EV/EBITDA, EV/EBIT, EV/Revenue), worked valuation example using IGA, Woolworths and Coles. Week 9 (Free Cash Flow Estimation): Accounting cash flow vs finance free cash flow, incremental cash flows, net working capital in the context of FCF, terminal cash flows and after-tax salvage value, two FCF formulas (Formula 1 from EBIT and Formula 2 highlighting the depreciation tax shield), comprehensive 5-year worked example, introduction to discounted cash flow (DCF) valuation.