SGH and Ernst & YoungProgram in Management and Finance

List of subjects:

COMPULSORY SUBJECTSNumber of hours

(45 min)Semester 1

1. Accounting and Financial Reporting under International Financial Reporting Standards I

60

2. Cost and Management Accounting I 303. Accountant in Business 154. Polish Business Law 305. Polish Business Tax 30

Semester 26. Accounting and Financial Reporting under International

Financial Reporting Standards II60

7. Cost and Management Accounting II 608. External and Internal Audit 459. Financial Management 45

Semester 310. Advanced Financial Reporting under IFRS 6011. Strategic Business Planning and Analysis 3012. Corporate Governance 30

Semester 413. Advanced Financial Strategies 6014. Advanced Audit and Assurance 30

Total 585

1. Accounting and Financial Reporting under International Financial Reporting Standards IPreparation of financial statements for companies under International Financial Reporting Standards. Through case studies the various concepts and techniques will be introduced and gradually take students to an advanced level of accounting treatment of transactions.Accounting conventions, accounting concepts and double entry will be introduced, as well as skills required to develop the ability to evaluate and use accounting data.

Syllabusof the

program

2. Cost and Management Accounting IThe course emphasises the system of internal reporting through the application of costing and managerial information systems. The course introduces cost and management accounting techniques in a variety of situations and for a variety of reasons to solving business problems. It includes planning, control and decision-making situations first at a basic and then at an advanced level. Topics include cost accumulation, cost allocation, budgeting, standard costing with basic variance analysis, activity-based costing, various pricing techniques and performance measurement.

3. Accountant in BusinessThe course introduces students to the nature of organisations, their methods of working, the roles within them and the business environment within which they operate. Organisational structure, the role of the accountant and of other key business functions are explored, as well as, their contribution to the efficient and effective management of an organisation and its systems. Through case studies the various concepts and techniques will be introduced and will gradually take students to an advanced knowledge level.

4. Polish Business LawThe legal requirements for setting up a company will be examined. General principles and institutions of the law of obligations, with particular attention to contracts, will be covered in some detail. Consumer contracts will be specifically highlighted. The limited liability company (spółka z ograniczoną odpowiedzialnością – sp. z o.o.), the joint-stock company (spółka akcyjna – S.A.) and the meaning of separate legal personality and the lack of separate legal personality will be looked at in detail.The course will discuss capital and the financing of companies, the running of a company and company representation. The student will study the specific rules related to structural changes in a company, e.g. after a merger, or in cases of liquidation. Finally, this course outlines the principles which govern employment relationships, e.g. contract of employment versus contract to perform a specified task or customer order; types of employment contract; termination of employment contract; group redundancy.

SGH and Ernst & YoungProgram in Management and Finance

5. Polish Business TaxThis course focuses on the operation of the Polish tax system and on the computation of the tax liability of companies and individuals. The principles of VAT and the impact of social security contributions (ZUS) on employees and employers are also reviewed. • Corporations: scope of corporate income tax, taxable income,

calculation of the corporate income tax liability collection of the corporate income tax liability, Value Added Tax.

• Unincorporated entities: taxable income, calculation of the personal income tax liability, value added tax, social security contribution (ZUS).

• Employees: basic personal income tax computation, income from employment, collection of the personal income tax liability, social security contribution (ZUS).

• Tax planning: choice of business medium, commencement of a business, cessation of a business, acquisition of assets.

6. Accounting and Financial Reporting under International Financial Reporting Standards IIPreparation of more complex financial statements for companies and groups under International Financial Reporting Standards. Through case studies students will be taken to an advanced level of accounting treatment of complex transactions.Accounting conventions, accounting concepts and double entry will be revisited, as well as skills required to develop the ability to evaluate and use accounting data. During the course, advanced techniques such as statements of cash flows, deferred tax, group accounts, leasing, financial instruments and related party transactions will be covered. With this course students should be able to account for such complex transactions and to read and to understand a set of financial statements. Preparing financial statements for group companies; the treatment of non current assets and their depreciation; intangible assets – goodwill and negative goodwill; non-current assets held for sale and discontinued operations; liabilities – provisions, contingent liabilities and contingent assets; analysis and interpretation of financial statements (ratio analysis); revenue recognition; impairment of assets; financial instruments; earnings per share, taxation in financial statements; accounting for the substance of transactions; business combinations – associates and joint ventures; leases; related party disclosures; segment reporting.

7. Cost and Management Accounting IIThe course revisits cost and management accounting techniques in a variety of situations and for a variety of reasons in order to solve more complex business problems. It includes planning, control and decision-making situations at advanced and strategic level. Topics include cost accumulation, cost allocation, budgeting, standard costing with basic and advanced variance analysis, activity-based costing and activity based management, various pricing techniques including transfer pricing, just-in-time procedures, TQM, and performance measurement. Risk and uncertainty in decision-making is also discussed. The structural evolution of costing systems for management planning and control in business is also emphasised in this course.

8. External and Internal AuditThis course examines the design, installation and maintenance of appropriate processes. The aim is to develop knowledge and understanding of the audit process and its application in the context of the external regulatory framework and for business control and development. It focuses on the review and control of operations in an organisation. Professional ethics as they apply to accountants working in public practice and in business; the risk assessment and the response to assessed risks for external auditors; the role of internal audit in risk management and corporate governance; internal controls and substantive audit evidence are topics which are examined in detail.

9. Financial Management• Working Capital Management, Money Markets and Security

Analysis: This course examines the various working capital techniques which could be used to improve the management of receivables, payables, cash and inventories. This course also provides an overview of the major institutions and instruments of the money market. It covers in detail a variety of theories and techniques that are useful in the money market and, more generally, in the fixed income securities market. These include: pricing money market securities; analysing various investment and borrowing strategies; modelling interest rates and spreads; pricing repurchase agreements and futures contracts. Additionally, this topic

SGH and Ernst & YoungProgram in Management and Finance

looks at those financial factors determining the value of securities. The course analyses financial statements for appraising prospective earnings and dividends and the risks surrounding their achievement. Techniques for estimating the risk structure of companies are analysed and compared.

• Investment Decisions: A comprehensive study of investment theory: appraisal of domestic capital investment opportunities for profit and non-profit making organisations; use of appropriate investment appraisal methods and techniques (NPV, IRR, Payback, ARR) including the effects of taxation, inflation, risk and uncertainty.

• Foreign Exchange and Interest Rate Risk Management: Brief overview of the international financial markets, institutions, and instruments. Topics include the nature of foreign exchange risk and against interest foreign exchange risk hedging methods.

10. Advanced Financial Reporting under IFRSPreparation of financial statements for companies and groups in accordance with International Financial Reporting Standards. Discuss, appraise, advise and report on the financial position of groups and other entities. Evaluate the financial reporting framework and discuss the implications of changes in accounting regulation of financial reporting. Preparing financial statements for group companies; including group statements of cash flows; financial instruments; acquisition and disposal of subsidiaries, transactions between entities under common control; fair value adjustments; joint ventures; accounting for retirement benefit costs; share based payment; foreign currency and current developments in financial reporting.

11. Strategic Business Planning and AnalysisIn this course students exercise judgment and learn techniques in strategic business management to enable them to contribute to the formulation of business strategy, the development of products and services and the maintenance of quality throughout the organisation. In this advanced strategic planning we emphasise the importance of accountants in

strategy formulation, choice and implementation. The course examines the stakeholders’ conflicts of interests, ethical issues in strategic decisions and the importance of corporate social responsibility and corporate governance.

Topics to be examined include the identification of corporate objectives, strategic analysis, including internal and external reviews, strategy development, evaluation and implementation. Students will be able to identify and apply the principal concepts and ideas in the theory and practice of strategic management, to assess the strategic position, to determine strategic choice, and implement strategic action. The course will also look into the business processes and structural changes needed, into the coordination of knowledge systems and information technology and to the effective management of quality processes, projects, and people within financial and other resource constraints.

12. Corporate GovernanceThe whole area of governance within organisations in the broad context of the agency relationship is examined first. Then we explore the areas in internal review, control, and feedback to implement and support effective governance, including compliance issues related to decision-making and decision-support functions. The whole area of identifying, assessing, and controlling risk as a key aspect of responsible management is also examined. Finally, we discuss both personal and professional ethics, ethical frameworks – and professional values – as applied in the context of the accountant’s duties and as a guide to appropriate professional behaviour and conduct in a variety of situations.

The candidates will be able to apply relevant knowledge, skills and exercise professional judgment in carrying out the role of the accountant relating to governance, internal control, compliance and the management of risk within an organisation, in the context of a overall ethical framework.

SGH and Ernst & YoungProgram in Management and Finance

13. Advanced Financial Strategies• Investment Decisions: Emphasis is placed on optimal portfolio

selection; the determinants of expected rates of return in financial markets; and the evaluation of relevant empirical research. Much attention is devoted to the capital asset pricing model and the arbitrage pricing theory. Special topics such as performance evaluation and trading costs will also be covered.

• Foreign Exchange and Interest Rate Risk Management: This course examines international financial markets, institutions, and instruments undertaking simple arbitrage, speculation and risk management strategies. Topics include the nature of foreign exchange risk; the determination of spot and forward exchange rates and interest rates; the returns to foreign investments in external currency and in bond and stock markets; the management of foreign exchange risk with forward markets and foreign currency option markets; the dynamics of balance of payments with a focus on understanding international capital flows, country debt and exchange rate fluctuations. This course will emphasise financial risk management using external methods of hedging.

• Financial Planning for Mergers and Acquisitions This course discusses motivations and strategies; valuation; friendly and hostile purchases of business; sales of businesses; takeover defence; leveraged re-capitalisations and buyouts; legal, accounting and tax considerations from both a domestic and international perspective. The focus will be on identifying schemes for restructuring and the issues involved in the decision process.

• International Financial Decisions: This course primarily uses a case-approach to analyse a variety of decisions in the international financial environment.

14. Advanced Audit and AssuranceDuring the course the participants apply relevant knowledge, skills, and exercise professional judgment in analysing, evaluating, concluding and reporting on the assurance engagement and other audit and assurance issues in the context of best practice and current developments. They learn to assess risk and decide whether or not to accept potential clients, as well as, the issues involved in other assurance engagements, such as due diligence and the audit of prospective financial information.

SGH and Ernst & YoungProgram in Management and Finance

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SGH and Ernst & YoungProgram in Management and Finance