SFU 1491 Credit Management

APPLIES TO ACADEMIC YEAR 2013/2014

SFU 1491 Credit Management


Responsible for the course
Emanuel Blattner

Department
Department of Accounting - Auditing and Law

Term
According to study plan

ECTS Credits
7,5

Language of instruction
Norwegian

Introduction


    Learning outcome
    Acquired knowledge
    After taking the course, the students shall be able to explain key concepts and give an account of the tools used in credit policy, financial consequences of credit management, credit conditions and portfolio theory I credit management.

    Examples of concepts that students shall be able to explain: cash flow, statement of income and profit, balance sheet, economic indicators in credit management, working capital management and its influence on cash flow, customer ratings an portfolio theory in credit management.

    Acquired skills
    After taking the course, the students shall be able to (a) apply knowledge (i.e. concepts and skills) in analyses and discussions on credit management problems, (b) distinguish between relevant and irrelevant information, and (c) give written answers to questions so that the readers understand the applied methods and conclusions.
    Examples:
      • Financial statement analyses
      • Calculation of economic indicators
      • Risk assessment analysis of companies
      • Elaborate customer ratings
      • Analyse the process of credit worthy
      • Apply portfolio theory on credit management problems

    Reflection
    After taking the course, the students shall be able to ask critical questions and reflect on crucial assumptions and theories within the credit management field.

    Prerequisites
    The same as the program

    Compulsory reading
    Books:
    Eklund, Trond, Knut Knudsen. 2011. Regnskapsanalyse : aktiv bruk av regnskap. 8. utg. Gyldendal akademisk

    Recommended reading
    Books:
    Eklund, Trond og Knut Knutsen. 2011. Hjelper til Regnskapsanalyse med årsoppgjør. 5. utg. Gyldendal akademisk

    Course outline
    Financial consequences of credit management:
      • Cash-flow and profit
      • ROCE
      • Targets for cash flow
      • Working capital management
      • Loss analysis

    Credit policy and organization structure:
      • Investment-policy in credit management
      • Credit policy in accordance to credit management roles

    Risk management:
      • Credit risk portfolio management
      • How to use credit ratings
      • Data analysis of credit risk

    Computer-based tools
    Excel spread-sheets are used during the course. In addition computermodels for estimating risk are used.

    Learning process and workload
    The course will include lectures, case studies and home assignments.

    The students are required to solve three mandatory home assignments during the course.

    The home assignments must be solved by groups of three or less students and must be passed to obtain a final grade in the course.

    Recommended use of hours:
    Activity
    Use of hours
    Lectures
    35
    Assignments
    65
    Reading literature
    97
    Final exam
    3
    Total use of hours recommended
    200

    Exact deadlines for handout and delivery of home assignments will be given when the course starts.


    Examination
    The grade is based on successful completion of the home assignments which are graded pass/fail, and a four hour individual written exam.

    Examination code(s)
    - SFU 14912 Mandatory Home Assignment 1. Pass/fail.
    - SFU 14913 Mandatory Home Assignment 2. Pass/fail.
    - SFU 14914 Mandatory Home Assignment 3. Pass/fail.
    - SFU 14911 Written exam, counts 100% to obtain final grade in SFU 1491, Credit Management, 7,5 credits.

    Both home assignments and written exam must be passed to obtain final grade.

    Examination support materials
    Calculator TEXAS INSTRUMENTS BA II Plus™ only is allowed.
    Exam aids at written examiniations are explained under exam information in our web-based Student handbook. Please note use of calculator and dictionary. http://www.bi.edu/studenthandbook/examaids

    Re-sit examination
    Make up examinations are held in the next ordinary course.

    Additional information

    Semester

    Oversettelser