Finance, Accounting & the Triple Bottom Line
Course Number
and Title
Instructors
MGT 554: Finance, Accounting & the Triple Bottom Line II
Kate Lancaster, PhD, CPA
kate.lancaster@bgi.edu
(H-BI) 206.780.1015, (H-MB) 805.772.7452
(M) 805.440.4618
Don Piper, MS Management
don.piper@bgi.edu
520-307-3446
Brian Setzler, MBA, CPA
brian.setzler.cpa@bgi.edu
(H) 503.287.1798 (M) 503.367.5631
Toni Smith, PhD, CPA
toni.smith@bgi.edu
(H) 603.659.5108, (M) 603.674.4196
Teaching
Assistants
Jake Bryant, MBA
jakebryant@gmail.com
206.973.0215
André Furin, MBA
drefur.bgi@gmail.com
404.310.4077
Mark Newell, MBA
marksnewell@gmail.com
206.261.1784
Course
Description
Completion of managerial accounting and introduction of entrepreneurial finance. Pro forma financial
statements, cost-benefit analysis, capital budgeting. Sustainability and investor expectations.
Course
Introduction
Managerial accounting is a set of tools and techniques primarily used inside the firm to manage costs
and support business decision-making.
Finance or corporate finance addresses the capital (that is, monetary) requirements of the business
and looks at issues like capital structure, capital budgeting, and the time value of money.
Triple bottom line accounting (environmental and sustainability accounting and reporting) is a
sub-discipline of accounting that addresses some of the unique challenges of using accounting
information to determine the environmental and social costs and benefits of a firm’s activities and
expenditures
Prerequisite(s)/Corequisite(s)
MGT 553 or permission of the instructor.
Instructional
Contact
Hours/Credits
3 credit hours
Learning
Objectives
Managerial Accounting
Analyze cost behavior, identify and quantify cost drivers, and perform cost estimation by product,
segment or activity.
Recognize and identify the elements of product cost and differentiate between product and period
costs.
Determine the cost of providing a good or service using various indirect cost allocation tools.
Develop spreadsheets and use several Excel tools to analyze cost/volume/profit relationships and
perform breakeven analysis.
Perform incremental analysis in various managerial decisions such as make-or-buy and sell-or
process- further.
Corporate Finance
Prepare a master operating budget, use this information to evaluate performance and identify
management implications.
Evaluate capital budgeting decisions, particularly those related to environmental issues using Excel
tools to calculate IRR, NPV, payback, and net cash flow.
Understand capital structuring options.
Become familiar with the business valuation process.
Understand how business risks affect financing and investing decisions.
Triple Bottom Line Accounting and Environmental and Social Accounting and Reporting
Discuss environmental accounting issues, including implications for reporting and decision-making.
Understand the inherent difficulties of addressing environmental issues within conventional
accounting frameworks.
Analyze environmental projects using accounting tools and methods.
Become familiar with examples of social and environmental decision models
Identify quantitative and qualitative measures for assessing an organization's ESR/triple bottom line
performance.
Instructional
Materials and
References
Books and Course Materials
Nemrow, N. (2006). Introduction to Accounting: The Language of Business, Lesson 14, Operational
Budgeting and Lesson 17, Capital Budgeting. (www.accountingthelanguageofbusiness.com)
Welch, N. (2008). Corporate Finance: An Introduction. Selected chapters are required (2, 4, 6, 12,
13, 14, 20). You may find other chapters interesting and helpful, depending on your interest. PrenticeHall, ISBN 0321277996. This textbook may be accessed for FREE at http://book.ivo-welch.info/. You
may also purchase parts of the book for $15-$18.
Harvard Business Online with Case Numbers
Abelli, H. (2007). Mountain Man Brewing Company: Bringing the Brand to Light. 2069.
Erold, A., F. Reinhardt, and M. Hyman. (2008). International Carbon Finance and EcoSecurities 9-208151.
Grasby E., and A. Smith. (2009). Try Recycling Inc. - The South London Expansion 909B02-PDFENG
Lassiter, J., J. Corcoran, M. Gazor, D. Hogarty, and A. Somers Jr. (2010) The Fox Islands Wind
Project. 810129-PDF-ENG
Narayanan V. R. Moore, and L. Brem. (2002) Cambridge Hospital Community Health Network: The
Primary Care Unit. 100054-PDF-ENG.
Phills J. Unitus (2007). Microfinance 2.0--Reinventing an Industry. S187A.
Reisen de Pinho, R. and R. Kaplan. (2007). Amanco: Developing the Sustainability Scorecard. 107038.
Sahlman, W., and E. Richardson. (2010). Venture Capital Valuation Problem Set. 807036-PDF-ENG.
Other Case Material, Available Through eReserves
Anonymous. Date unknown. Lasting Impressions.
Articles and Chapters, Available Through eReserves, except where noted
de Graaf, F. and A. Slager. (2009). Guidelines for Integrating Socially Responsible Investment in the
Investment Process. Journal of Investing Fall, Vol. 18 Issue 3, 70-78, 9 pages.
Figge, F., T. Hahn, S. Schaltegger, and M. Wagner. (2002). The Sustainability Balanced Scorecard –
linking sustainability management to business strategy. Business Strategy & the Environment Sep/Oct,
Vol. 11 Issue 5, 269-284. 16 pages.
Hawken, P. and The Natural Capital Institute. (2004). Socially Responsible Investing. Retrieved,
December 19, 2010 from http://www.naturalcapital.org/docs/SRI%20Report%2010-04_word.pdf. 40
pages.
Kreuze, J., and G. Newell. (1994). ABC and life-cycle costing for environmental expenditures.
Management Accounting, Feb, 75, 8, 38-42. 6 pages.
McGregor, R. (date unknown). Social and Ethical Accounting, Auditing, and Reporting. 6 pages.
McCluskey, A. (2010) Knowns and unknowns -- the challenges for long-term sustainability and
responsible investment. Keeping Good Companies Apr, Issue 3, 136-140, 5 pages.
Robinson, C. (1996). Can we reconcile finance with nature? International Review of Financial
Analysis, Vol. 5 Issue 3, 185-196. 11 pages.
Statman, M. (2003). The religions of social responsibility. Journal of Investing. ISSN# 1068-0896, Fall,
14-22. 9 pages.
Supplemental Resources
Anonymous. (1998). Snapshots of Environmental Cost Accounting A Report to: US EPA
Environmental Accounting Project. May. Retrieved, November 25, 2008 from
http://www.dep.state.pa.us/dep/deputate/pollprev/pdf/ALLSNAPS.pdf Provides numerous case
examples.
Anonymous. (2002). Toward a Sustainable Cement Industry: Adding Sustainability to Your Bottom
Line Sustainable Business Decision Framework User Manual for the Cement Industry. Battelle. The
Business of Innovation.
Anonymous. (2006). Investment Strategist: Understanding Risk. Stifel Nicolaus.
EPA. (1995). An Introduction to Environmental Accounting As A Business Management Tool: Key
Concepts And Terms. Retrieved, November 25, 2008 from
http://www.epa.gov/oppt/library/pubs/archive/acct-archive/resources.htm. 39 pages, skim.
Harrington, C. (2003). “Socially Responsible Investing” Online Publications of the Journal of
Accountancy. January. Retrieved, November 25, 2008 from http://www.aicpa.org/PUBS/JOFA
Course Material Information
Learning Resource Packet (you should already have this from your MGT 553 resources)
The Learning Resource Packet (LRP) is the document to be used as you watch the CD lectures and take
notes. Make sure you have the BGI-specific course pack, which is available for download at:
https://www.accountingthelanguageofbusiness.com/download/Learning%20Resource%20Packet%20(al
l%20PDFs)%20for%20BGI.pdf. You can freely print this document; however, it is 281 pages, which
can be very cumbersome to print. You may find it possible to use it electronically.
The LRP contains the following:
Lesson Notes for lessons 1-15, the Statement of Cash Flows, and lesson 17
Financial Practice Set and Solution
Sample Exams (the same questions are available in the Practice Problem Module)
Exam Review Topics
Instructional
Methods
The course will be taught using four integrated components: the course material as laid out in the CDs,
additional reading, case discussions, and application of concepts. Prior to each intensive, you will work
through assigned lessons on the “Introduction to Accounting” CD and complete the online quizzes
pertaining to the material. Also prior to the intensive, you are required to read and prepare the assigned
case(s), which will be discussed during the intensive. We will devote a short amount of time during
each intensive to respond to specific questions on the reading material. The majority of intensive time
will be devoted to case analysis and discussion. During the intensive, we will give you time to discuss
the case issues with your team members; then reconvene to discuss the case issues as a class. The
remaining time will be spent describing upcoming assignments.
Topical Outline
A breakdown of the course into its major topics with specific learning objectives, including instructor
and student activities that support those objectives.
Week
1 1/3-9
Topic
Syllabus,
Operational budget
2 1/10-16
Cost Allocation: Activity
Based Costing
Performance Evaluation:
Balanced Scorecard
Decision Making:
Operational Budget
Exam, Lessons 11-15
3 1/17-23
4 1/241/30
Pro forma
5 1/312/6
Capital budgeting
6 2/72/13
Capital Budgeting,
continued
Activities
Elluminate Session: Intro to class and
operating budgets
LOB 14 – Budgeting lesson (4:20:01)
Weekly quizzes
Readings: Figge et al, Krueze & Newell
Engage in Forum Discussion on Readings
Elluminate Session (Case Q&A, optional)
Intensive
Cases: Cambridge Hospital (full), Amanco
(partial)
Elluminate Session: (Exam Q&A, optional)
Exam (Lessons 11-15)
Elluminate Session : Pro forma
Welch, Chapter 20 - Pro Forma Financial
Statements, 37 pages
Weekly quizzes
Individual Assignment: High Country Biking
Elluminate Session : Capital Budgeting
LOB 17, NPV & IRR: Accounting for Time
lesson DO NOT PURCHASE
CALCULATOR, pay attention to the
concepts, we’ll learn how to do this using
Excel formulas (3:00:30) and/or Welch,
Chapter 2 - The Time Value of Money and
Net Present Value (28 pages) and Welch,
Chapter 4 - A First Encounter with Capital
Budgeting Rules (23 pages)
Weekly quizzes
Team Assignment: Pro forma
Elluminate Session (Case Q&A, optional)
Intensive
7 2/14-20
Capital Budgeting,
continued
Uncertainty and Risk
8 2/21-27
Business Valuation
SRI
9 2/283/6
TBL and SRI Fox Island
– SRI and Finance Topics
Capital Structure
SRI reporting
10 3/73/13
Microfinance
Capital Budgeting
Decision making
11 3/143/19
TBL and SRI
Assessment Criteria and Methods
of Evaluating Students
Cases: Mountain Man Brewing (full), Try
Recycling (partial and have the financials
entered into Excel)
Elluminate Session – Capital Structure
Welch, Chapter 12 – Capital Budgeting
Applications and Pitfalls (56 pages)
Welch, Chapter 6 – Uncertainty, Default, and
Risk (36 pages)
Weekly quizzes
Engage in Forum Discussion on Readings
Individual Assignment: Lasting Impressions,
Elluminate Session – Business Valuation
Welch, Chapter 13 – From Financial
Statements to Economic Cash Flows (46
pages)
Welch, Chapter 14 – Valuation from
Comparables and Some Financial Ratios (40
pages)
Weekly quizzes
Readings: Statman, Robinson
Engage in Forum Discussion on Readings
Elluminate Session – Capital Structure
Welch, Chapter 21 – Capital Structure
Dynamics (34 pages)
Weekly quizzes
Readings: McGregor, Hawken
Engage in Forum Discussion on Readings
Team Assignment: Fox Island
Sunday Elluminate Session (Case Q&A,
optional)
Elluminate Session - Microfinance
Intensive
Cases: Unitus Microfinance (full),
International Carbon (partial and have
assumptions captured in Excel)Bring
Venture Capital Valuation Problem Set to
intensive.
Elluminate Session: TBL
McCluskey, de Graaf
Engage in Forum Discussion on Readings
Basis for determination of final grade, along with grading scale if different
from what is published in the catalog.
Class Participation
4%
Quizzes
16%
Individual assignments
12%
Team assignments
20%
Case write-ups and discussion 24%
Individual exam
24%
100%
BGI Assignment Grading Scale
Exceptional Work 81% - 100%
Meets Expectations 80%
Unsatisfactory <80%
‘Meets Expectations’ is the minimum acceptable level required to pass the
course.
BGI Final Grading Scale
CR Credit (A through B)
NC No Credit (C through F)
I Incomplete
Policies
Please refer to the BGI Catalog for current academic policies regarding
attendance, grading, academic honesty, students with disabilities,
intellectual property and any other pertinent information.
Disclaimer
The content of this syllabus or course outline may change during the
quarter.
Date Syllabus Was Last Reviewed
Last modified 12/20/10