Financial Management for Agricultural Companies

Financial Accounting

The teaching of the course is based on recent research materials and experience gained through practice. The pedagogy of the course is strongly interactive. It aims for substantial student participation and learning based on know-how. Teaching methods include discussion and analysis of real cases. Emphasis is placed on helping students relate concepts, ideas and theories to real practice.

Classes are theoretical-practical, and attendance (and active participation) in classes is optional, although strongly advised

To provide students with the basic principles of Financial Management and the essential foundations for defining company control, investment, financing and profit distribution policies for agricultural companies.
In addition to topics related to the creation of value in a company, the aim is for the student to be able to obtain critical thinking and scientific skills to carry out research in this area.

On completion of the course, students should be able to:
1. Understand current theoretical and practical aspects in order to be able to apply business techniques to real situations;
2. Understand and be familiar with a company’s financing and control decisions;
3. Know how to carry out a scientific research plan in the field of the main topics.

1. Introduction
1.1 Concept and scope of financial management
1.2 The evolution of financial management
1.3 Corporate governance
1.4 Agency theory
1.5 Markets and financial instruments

2. Financial analysis and the financial function
2.1 Reading financial statements
2.2 The financial function of a company
2.3 Business cycles and a company’s financial decisions
2.4 Financial equilibrium, profitability, flows, productivity

3. Financing policy
3.1. The importance of capital structure
3.2 The main sources of medium and long-term finance

4. Profit distribution and growth policy
4.1. The different forms of profit distribution
4.2 Main determinants of profit distribution policy

5. Cash management
5.1 Basic principles of cash management
5.2 Managing working capital requirements
5.3 The main sources of short-term finance

6. Medium and long-term financial planning
6.1 Functions of medium and long-term financial planning
6.2 Stages of the medium and long-term financial planning process
6.3 Drawing up financial planning documents

Attendance (and active participation) in class, although strongly advised, is optional.

In terms of assessment, to be carried out in accordance with the 2nd cycle regulations, students have the following two options (1 and 2):

1. Final assessment: an individual written test (exam), with an expected duration of 120 minutes. Students who obtain a mark of 10 or more will pass.

2. Continuous assessment - the aim is to offer students the following alternatives (A and B):

A - Completion of 2 (two) tests with a combined weighting of 30%; Resolution of 2 (two) practical cases with a combined weighting of 60%; Critical review of a scientific article with a weighting of 10%;

B - Resolution of 2 (two) practical cases with a joint weighting of 60%; Literature review work with a weighting of 40%.

With regard to the assessment components included in alternatives A and B, students must obtain a mark of 8 (eight) or more in each component.

In any of the assessment methods (1 and 2), which require a pass mark of at least 10 (ten), a mark of more than 16 (sixteen) implies an oral exam. Failure to attend the oral exam will result in a final mark of 16 (sixteen).

NAO