Veidlapa Nr. M-3 (8)
Study Course Description
Fundamentals of Finance
Course Code
LSPA_509
Branch of Science
Economics and Business
ECTS
5.00
Target Audience
Business Management; Management Science; Sports Science; Sports Trainer
LQF
Level 6
Study Type And Form
Full-Time; Part-Time
Study Course Implementer
Course Supervisor
Anželika Berķe-Berga
Structure Unit Manager
Uģis Ciematnieks
Structural Unit
Department of Sports Theory
Contacts
LSPA, Brīvības gatve 333, Riga, LV-1006
About Study Course
Objective
After completion of the course, the student is able to understand and apply the basic principles of company finances in the context of sports organisations and coaching practice: read and interpret financial statements, analyse cash flows, calculate basic financial indicators, prepare and evaluate a simple budget and financial plan, and make and justify basic financial decisions.
Preliminary Knowledge
Understanding basic economic concepts (revenues, costs, profits, taxes), basic mathematical skills (interest calculations, ratios), the ability to work with tabulated data (e.g. Excel) at the level of simple calculations and tables, and the competence to plan and monitor their professional practices independently.
Learning Outcomes
Knowledge
1.1) Describe and explain the structure and significance of the basic financial statements (balance sheet, profit or loss statement, cash flow statement) in sports organisations. 2) Identify and name key financial indicators (profitability, liquidity, activity, debt/capital). Related tests: participation in lectures/seminars; examination. Achievement criteria: give a correct indication of ≥ 80%; explain the structure of the accounts orally/in writing.
Skills
1.1) Calculate basic financial metrics and make a cash flow forecast using Excel for a specific sports company or project. 2) Establish a simple budget and investment calculation (discounting, NPV) based on real data. Related tests: ongoing work/project; seminar work. Achievement criteria: accuracy of calculations ≥ 80% in Excel table; budget with NPV ≥ 0.
Competences
1.1) Analyse and interpret financial reporting data in assessing the financial health and risks of a sports organisation. 2) Assess the viability of investment projects by justifying the decision with indicators. Related tests: Project presentation; exam. Achievement criteria: in the analysis ≥ 3 risks; justifies the investment decision with ≥ 2 indicators.
Assessment
Individual work
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Title
|
% from total grade
|
Grade
|
|---|---|---|
|
1.
Individual work |
30.00% from total grade
|
10 points
|
|
Project job task: Choose a real sports organization in Latvia (for example, a sports club, federation or your training practice as AN IQ). Analyse its publicly available financial data (balance sheet, profit/loss account, cash flow) for the last 2 years, calculate 5 key indicators (profitability, liquidity, debt/capital, rotation, cash flow forecast), create a simple budget for the coming year and evaluate one investment project (e.g. acquisition of equipment). The results shall be submitted in the Excel file + 2-3 pages in the report + 5 min individual oral defence at the seminar. Volume breakdown: data collection and Reporting Research: 6-8 ac.st. Index calculations Excel: 6-8 ac.st. Budget/forecast development: 4 ac. Writing a report and preparing a defence: 2-4 ac.st. Evaluation criteria: (1) accuracy and completeness of data (2) accuracy of calculations of indicators (3) budgetary/forecast logic (4) analysis and conclusions (5) defence (including answers to questions). |
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Examination
|
Title
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% from total grade
|
Grade
|
|---|---|---|
|
1.
Examination |
-
|
10 points
|
|
The exam (40 per cent weight in the overall rating) will take place on the Moodle platform as an open test with 3 practical tasks in the context of sport: 1) to calculate 3-5 financial indicators from the balance sheet and profit statement of a given sports club, analysing liquidity or solvency risks; 2) to make a cash flow forecast and evaluate the investment project (e.g. acquisition of equipment); 3) compare the KPI figures of two sports organisations and suggest which grant to grant on the basis of 2-3 arguments. Evaluation: accuracy of calculations: 30%; depth of analysis: 30%; justification of decisions: 20%; comments on test: 20%. Assessment of the achievements of the learning outcomes (determination of the final assessment) will take place by performing individual calculations, group work, developing a project based on financial analysis of a practical nature, presenting and commenting on the results of the project and group work. At the end of the course, students write exam work. 1. Participation in lectures (attendance) – 10% 2. Participation and quality of work in seminars – 20% 3. Permanent work (project work) – 30% 5. Exam - 40% |
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Study Course Theme Plan
FULL-TIME
Part 1
-
Lecture
|
Modality
|
Location
|
Contact hours
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|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Introduction. The operating environment and key principles of the business. Budgeting. Value of money in time. Current value, future value.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Introduction. The operating environment and key principles of the business. Budgeting. Value of money in time. Current value, future value.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
NPV, IRR. Cash flow, its valuation methods. Annuity.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
NPV, IRR. Cash flow, its valuation methods. Annuity.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Changes in the value of money over time. Cash flow scoring with variable elements. Annuity assessment. Tasks.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Net present value. Internal rate of return – creating tables using Excel, formulae (NPV, IRR), discounted cash flow schedules.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Net present value. Internal rate of return – creating tables using Excel, formulae (NPV, IRR), discounted cash flow schedules.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Analysis of financial statements. Sources of financing for the company. The company’s capital, its structure. Financing of assets. Fixed assets. Current assets.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Analysis of financial statements. Sources of financing for the company. The company’s capital, its structure. Financing of assets. Fixed assets. Current assets.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Profit & Loss statement. Profit and profitability of the company. Cash flow, its valuation.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Company reports, their planning calculations. Processing data using Excel, calculating reporting positions, developing a forecast.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Company reports, their planning calculations. Processing data using Excel, calculating reporting positions, developing a forecast.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Financial analysis of the company. Financial indicator groups. Profitability and activity indicators.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Evaluation of the financial situation of the undertaking. Liquidity, capital and investor performance. “Du Pont” analysis. WACC rate.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Evaluation of the financial situation of the undertaking. Liquidity, capital and investor performance. “Du Pont” analysis. WACC rate.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Financial analysis of the company. Financial indicator groups. Profitability and activity indicators. Horizontal and vertical analysis of reports. Create formulas in an Excel environment; calculate the proportions of horizontal and vertical analysis.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Financial analysis of the company. Financial indicator groups. Profitability and activity indicators. Horizontal and vertical analysis of reports. Create formulas in an Excel environment; calculate the proportions of horizontal and vertical analysis.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Budgets. Discounted cash flow for investment projects.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Evaluation of project alternatives.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
WACC rate. Budgets. Discounted cash flow for investment projects. Cash flow planning – creating tables and formulas using Excel; drawing up, discounting, calculating an NPV value.
|
-
Test
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Presentation of project task results
|
Total ECTS (Creditpoints):
5.00
Contact hours:
40 Academic Hours
Final Examination:
Exam (Oral)
PART-TIME
Part 1
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Introduction. The operating environment and key principles of the business. Budgeting. Value of money in time. Current value, future value.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
NPV, IRR. Cash flow, its valuation methods. Annuity.
|
|
Changes in the value of money over time. Cash flow scoring with variable elements. Annuity assessment. Tasks.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Net present value. Internal rate of return – creating tables using Excel, formulae (NPV, IRR), discounted cash flow schedules.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Analysis of financial statements. Sources of financing for the company. The company’s capital, its structure. Financing of assets. Fixed assets. Current assets.
|
|
Profit & Loss statement. Profit and profitability of the company. Cash flow, its valuation.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Company reports, their planning calculations. Processing data using Excel, calculating reporting positions, developing a forecast.
|
|
Financial analysis of the company. Financial indicator groups. Profitability and activity indicators.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Evaluation of the financial situation of the undertaking. Liquidity, capital and investor performance. “Du Pont” analysis. WACC rate.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Financial analysis of the company. Financial indicator groups. Profitability and activity indicators. Horizontal and vertical analysis of reports. Create formulas in an Excel environment; calculate the proportions of horizontal and vertical analysis.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Budgets. Discounted cash flow for investment projects.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Evaluation of project alternatives.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
WACC rate. Budgets. Discounted cash flow for investment projects. Cash flow planning – creating tables and formulas using Excel; drawing up, discounting, calculating an NPV value.
|
-
Test
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Presentation of project task results
|
Total ECTS (Creditpoints):
5.00
Contact hours:
20 Academic Hours
Final Examination:
Exam (Oral)
Bibliography
Required Reading
1.
Brealey A. B., Myers S. C., Allen F. Principles of Corporate Finance. 14th Ed., 2023, 986 p.
2.
Brealey R. A., Myers S. C., Marcus A. J. Fundamentals of Corporate Finance. 11th Ed., 2022, 726 p.
3.
Ross S. A., Westerfield R. W., Jordan B. D. Essentials of Corporate Finance. 11th Ed., 2023, 656 p.