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2020/2021

Economic and Financial Planning

Code: 102365 ECTS Credits: 6
Degree Type Year Semester
2501572 Business Administration and Management OT 4 0
2501573 Economics OT 3 2
2501573 Economics OT 4 0
The proposed teaching and assessment methodology that appear in the guide may be subject to changes as a result of the restrictions to face-to-face class attendance imposed by the health authorities.

Contact

Name:
Immaculada Vilardell Riera
Email:
Immaculada.Vilardell@uab.cat

Use of Languages

Principal working language:
catalan (cat)
Some groups entirely in English:
No
Some groups entirely in Catalan:
Yes
Some groups entirely in Spanish:
No

Prerequisites

This course is part of the Accounting field. To make the most of the Economic and Financial Planning subject it is advisable to have acquired previously the knowledge of the Introduction to Accounting and Cost Accounting.

Objectives and Contextualisation

This course is a continuation of the financial accounting and cost accounting related subjects. It falls within the area of economic analysis and it is dedicated to economic amd financial planning process; the break even analysis and the simulation-based optimization plans; to economic viability and financial adjustments and, also, to analise the differences between actual and economic budget. Therefore, the aim of this subject is to introduce student in economic and financial planning process and its usefulness for business management.

 

Competences

    Business Administration and Management
  • Evaluate the usefulness of accounting information for decision-making of different users.
  • Generate and transmit the appropriate accounting information at all times to the information needs of different users.
  • Select and generate the information necessary for each problem, analyse it and take decisions based on that information.
  • Use of the available information technology and adaptation to new technological environments.
    Economics
  • Apply theoretical knowledge of finances to improve relations with sources of financing, identifying the different forms of financing and the advantages and disadvantages for the company and the providers.
  • Generate and transmit the information necessary for taking decisions at company headquarters level.
  • Select and generate the information necessary for each problem, analyse it and take decisions based on that information.
  • Use of the available information technology and adaptation to new technological environments.

Learning Outcomes

  1. Assess the usefulness of compatibility for potential users.
  2. Demonstrate ethical behavior in the preparation of financial statements.
  3. Demonstrate ethical behaviour in the preparation of financial statements.
  4. Develop information relating to a system of management accounting.
  5. Identify decisions that can be taken through the analysis and interpretation of accounting information.
  6. Identify the decisions that can be made on the basis of accounting information.
  7. Know the accounting information systems to support the management and functions of the same in the management of organizations.
  8. Recognise the qualitative variables that can influence decision-making based on the financial statements.
  9. Select and generate the information needed for each problem, analyse it and make decisions based on this information.
  10. Use available information technology and be able to adapt to new technological settings.
  11. Using the tools of financial planning and budgeting of an organization

Content

1. INTEGRATED BUDGET SYSTEM      
    1.1.  Economic and financial budgets
    1.2.  Types of plans
    1.3.  Economic and financial planning process
    1.4.  The annual operating plan
 
2. ACTIVITY PLAN AND BUDGET
    2.1.  The sales budget
    2.2.  Production and materials purchases budgets
    2.3.  The operating costs budget
    2.4.  Discretionary expenses
    2.5.  The profit budged
 
3. BREAK EVEN ANALYSIS  AND SIMULATION OF PROFIT ANALYSIS
    3.1.  Break even analysis model
    3.2.  Break even analysis with multiple products
    3.3.  Break even analysis and simulation
 
4. FINANCIAL PLANNING
    4.1.  The relationship between economic and financial planning
    4.2.  Ex-ante financial equilibrium of a company
    4.3.  Calculating the expected cash-flow
    4.4.  The adjustment process to otain the financial equilibrium

5. PROFIT VARIANCE ANALYSIS
    5.1.  Tools for analysis
    5.2.  Sales variances
    5.3.  Variance between the actual profit and budgeted profit
    5.4.  Performance evaluation: variance analysis
 

Methodology

Theoretical classes:
The contents of the course will be taught by the teacher in the form of lectures, based in the indicated book in the bibliography. If necessary, additional material used for the presentation of topics will be available to students in the Virtual Campus, prior to the start of each of them. The purpose of making available this material is to allow students to follow more comfortably the sessions.

Practical classes:
Will be combined with the theory, without any scheduled sessions in this case. These classes will be devoted to the exercise resolution and case review, whose statements will be available to students in the Virtual Campus in advance. Some of them will be done in the computer rooms.

Tutorship:
Individual tutoring will be done for students that demand it. The purpose of these sessions is to answer questions, comment or review concepts and exercises. They correspond to the student to take the initiative to raise issues for discussion. The tutoring sessions are in person and will not be done by email. The teacher's tutoring schedule is Monday from 4 to 6 pm and Tuesday from 11 am to 13 pm.

Activities

Title Hours ECTS Learning Outcomes
Type: Directed      
Class sessions (practice) 13 0.52 4, 5, 9, 11, 10
Class sessions (theory) 33 1.32 7, 5, 8
Type: Supervised      
Supervision and monotoring 7.5 0.3 9
Type: Autonomous      
Personal study 93 3.72 7, 4, 5, 9, 11, 10

Assessment

Student evaluation will be done continuously from the following evidence:

  •    Periodic delivery by students (individually or in group) of solved exercises. The exercises will be proposed, evaluated and corrected by the teacher. Later will be discussed in class. The group will have a maximum of two students and group changes are not allowed during the course. With the exercise qualifications an average mark will be calculated and weighted 10% in the final mark.
  • The evaluation of te synthessis work weights 20% of the final grade. this work must be delivered between May 3 and 7, 2020.
  •  Two mid-term exams will be performed during the course. These tests consist of theoretical questions and practical exercises related to the topics covered in each case. In its implementation will not be allowed to consult any material. With the qualifications of the two tests an average will be calculated, weighting each one 35% for the final grade.

The course can only be assessed by the evaluation system described above. A student who has participated in two of the past evaluation activities is considered part of the continuous assessment. Thus, a student will be considered as “NO AVALUABLE” when only participated in an evaluation activity. Non-participation in any of these activities will be graded with a zero in the concerned activity, with effects in the final grade, unless the student documentary justifies the causes which have prevented participate in that activity.

Calendar of evaluation activities
The date of the two mid-terml exams are scheduled in the assessment calendar of the Faculty. The datesof the evaluation activities (midterm exams, exercises in the classroom, assignments, ...) will be announced wellin advance during the semester.

 "The dates of evaluation activities cannot be modified, unless there is an exceptional and duly justified reason why an evaluation activity cannot be carried out. In this case, the degree coordinator will contact both the teaching staff and the affected student, and a new date will be scheduled within the same academic period to make up for the missed evaluation activity." Section 1 of Article 115. Calendar of evaluation activities (Academic Regulations UAB). Students of the Faculty of Economics and Business, who in accordance with the previous paragraph need to change an evaluation activity date must process the request by filling out an Application for exams' reschedule https://eformularis.uab.cat/group/deganat_feie/application-for-exams-reschedule

Grade revision process
After all grading activities have ended, students will be informed of the date and way in which the course grades will be published. Students will be also be informed of the procedure, place, date and time of grade revision following University regulations.

Retake Process
"To be eligible to participate in the retake process, it is required for students to have been previously been evaluated for at least two thirds of the total evaluation activities of the subject." Section 3 of Article 112 ter. The recovery (UAB Academic Regulations). Additionally, it is required that the student to have achieved an average grade of the subject between 3.5 and 4.9.

Student who have missed, or has obtaineda score lower than 3,5 on one of the two partial exams, he or she will be allowed to repeat that particular test. also Students who have obtanined a score lower than 3,5 on each examen and student who after averaging the grade components obtains a final grade between 3.5 and 4,9, will beoffered a retake. Students who take this exam and pass, will get a grade of 5 for the subject. If the student does not pass the retake, the overall numerical grade for the course will be the score that had been obtained before the retake. The date of the retake exam will be posted in the calendar of evaluation activities of the Faculty on Friday, July 3, 2020 at 18 p.m.

Irregularities in evaluation activities
In spite of other disciplinary measures deemed appropriate, and in accordance with current academic regulations, "in the case that the student makes any irregularity that could lead to a significant variation in the grade of an evaluation activity, it will be graded with a 0, regardless of the disciplinary process that can be instructed. In case of various irregularities occur in the evaluation of the same subject, the final grade of this subject will be 0". Section 10 of Article 116. Results of the evaluation. (UAB AcademicRegulations).

Assessment Activities

Title Weighting Hours ECTS Learning Outcomes
Final work 20% 0 0 5, 9, 11, 10
Mid-term examns 70% 3.5 0.14 7, 4, 5, 8, 9, 11
Participation, exercises and monitoring 10% 0 0 7, 2, 4, 5, 6, 8, 9, 11, 10

Bibliography

Basic:

Vergés, J. (1998), La Planificació Econòmica i Financera de l´Empresa. Elaboració i utilització de previsions com a base de la gestió. Servei de Publicacions de la UAB. 2a. edició. You can also consult this text at: http://gent.uab.cat/jverges/

Complementary:

Hongren, C.T., Datar, S.M i Rajan, M.V.  (2012), Contabilidad de Costos. Un enfoque gerencial. Editorial Pearson Educación, 14a edició.  In particular chapters 6 to 9.