Schedule: 29.10.2018 - 10.12.2018
Teacher in charge (valid 01.08.2018-31.07.2020):
Assistant professor Emma-Riikka Myllymäki and Professor of Practice Jari Melgin
Contact information for the course (applies in this implementation):
Questions about the course should be asked
- During the lectures
- In the course website (in MyCourses) --> General
Instructors' contact information:
- Emma-Riikka Myllymäki, firstname.lastname@example.org, office G3.08, office hours by appointment
- Jari Melgin, email@example.com, office H3.35, office hours by appointment
Teaching Period (valid 01.08.2018-31.07.2020):
2018-2019: II (Fall 2018), Töölö Campus
2019-2020: II (Fall 2019), Otaniemi Campus
Learning Outcomes (valid 01.08.2018-31.07.2020):
After completing the course, students will have knowledge needed in analyzing cash flow information from the perspective of an outside stakeholder. Moreover, students will have knowledge of balance sheet forecasting, liquidity planning and the basics of cash management from the perspective of a company management. Students will also be familiar with the research on cash flows.
Content (valid 01.08.2018-31.07.2020):
The purpose of cash flow analyses; cash flow statement as a part of financial statements; cash flow -based ratios; financial statement users' perspective on cash flow information; the strengths and weaknesses of cash flow information in financial statement analysis; the connection between balance sheet and strategic liquidity planning and short term working capital and cash management; research on cash flows.
Assessment Methods and Criteria (valid 01.08.2018-31.07.2020):
1. Exam (60 points) (60%)
2. Exercises (40 points) (40%)
To pass the course, student must obtain:
a) at least 30 points from the exam, and
b) at least 50 points from the whole course (exam + exercises).
Elaboration of the evaluation criteria and methods, and acquainting students with the evaluation (applies in this implementation):
Workload (valid 01.08.2018-31.07.2020):
- Participation in lectures and in-class exercises, 24 h
- Self-directed studying incl. preparation for the lectures, exercises, and exam, 132 h
- Exam, 4 h
Study Material (valid 01.08.2018-31.07.2020):
Readings announced at the beginning of the course.
Details on the course materials (applies in this implementation):
- IAS 7 Statement of Cash Flows.
- Mackenzie, B., Njikizana, T., Coetsee, D., Chamboko, R.,
Colyvas, B., Hanekom, B., & Selbst, E. Wiley
IFRS 2014: Interpretation and Application of International Financial Reporting
Standards. E-book. Chapter 6: Statement of Cash Flows.
- Scott, W.R. 2015. Financial
Accounting Theory. 7th edition. Chapter 11: Earnings management.
- Jury, T.D.H. 2012. Cash
flow analyses and forecasting: the definitive guide to understanding and using
published cash flow data. E-book.
- Hales, J., and S. F. Orpurt. 2013. A review of academic
research on the reporting of cash flows from operations. Accounting Horizons, 27(3): 539-578.
- Dickinson, V. 2011. Cash flow patterns as a proxy for firm
life cycle. The Accounting Review 86
- Orpurt, S. F., and Y. Zang. 2009. Do Direct Cash Flow
Disclosures Help Predict Future Operating Cash Flows and Earnings? The Accounting Review 84 (3): 893-935.
- Nwaeze, E. T., S. S. M. Yang, and Q. J. Yin. 2006. Accounting
Information and CEO Compensation: The Role of Cash Flow from Operations in the
Presence of Earnings. Contemporary
Accounting Research 23 (1): 227-265.
- Lee, L. F. 2012. Incentives to Inflate Reported Cash from
Operations Using Classification and Timing. The
Accounting Review 87 (1): 1-33.
- Baños-Caballero, S., P. J. García-Teruel, & P.
Martínez-Solano. 2010. Working Capital Management in SMEs. Accounting & Finance 50: 511-527.
Potentially also other articles as defined by the lecturers
- List of readings
- Lecture slides
during the lectures and exercises
- NB! The exam may
include questions from the reading material that are not covered during the
lectures. The exam may include questions from the lectures that are not covered
in the reading material.
Substitutes for Courses (valid 01.08.2018-31.07.2020):
22C00900 Kassavirta Analyysit.
Course Homepage (valid 01.08.2018-31.07.2020):
Prerequisites (valid 01.08.2018-31.07.2020):
Introduction to Accounting (22A00100), Introduction to Financial Accounting (22C00100), Financial Accounting (22C00400) and Capstone BSc (22C99904), or comparable courses at another University.
Grading Scale (valid 01.08.2018-31.07.2020):
Registration for Courses (valid 01.08.2018-31.07.2020):
Via WebOodi. Please see WebOodi for the registration dates.
Further Information (valid 01.08.2018-31.07.2020):
Maximum amount of students accepted to the course is 60. Attendance on the first lecture is mandatory.
Additional information for the course (applies in this implementation):
Five (5) exercises in total, and the exercises are discussed in the
classes. Active class participation is expected.
The solutions to the exercises are prepared in a group
(preferably 3 group members) or individually.
The course participants form
the groups themselves.
The group itself takes the
responsibility of ensuring equally distributed workload.
Details on the schedule (applies in this implementation):