DETAILED SYLLABUS

Business Valuation

1. Information about the study program

1.1 University / Babes-Bolyai University
1.2 Faculty / Faculty of Economics and Business Administration
1.3 Department / Accounting and Audit
1.4 Field of study / Management
1.5 Program level (bachelor or master) / Bachelor
1.6 Study program / Qualification / Management

2. Information about the subject

2.1 Subject title / Business Valuation
2.2 Course activities professor / Dan Dacian Cuzdriorean-Vladu, Assistant Professor
2.3 Seminar activities professor / Dan Dacian Cuzdriorean-Vladu, Assistant Professor ()
2.4 Year of study / 3 / 2.5 Semester / 2 / 2.6 Type of assessment / Written Exam / 2.7 Subject regime / Optional

3. Total estimated time (teaching hours per semester)

3.1 Number of hours per week / 4 / out of which: 3.2 course / 2 / 3.3 seminar/laboratory / 1
3.4 Total number of hours in the curriculum / 36 / out of which: 3.5 course / 24 / 3.6 seminar/laboratory / 12
Time distribution / Hours
Study based on textbook, course support, references and notes / 17
Additional documentation in the library, through specialized databases and field activities / 4
Preparing seminars/laboratories, essays, portfolios and reports / 10
Tutoring / 5
Assessment (examinations) / 3
Others activities ......
3.7 Total hours for individual study / 39
3.8 Total hours per semester / 75
3.9 Number of credits / 3

4. Preconditions (if necessary)

4.1 Curriculum / The course requires knowledge of basic elements, provided by the courses from previous years to Bachelor level from various fields such as: accounting, financial analysis, law, financial mathematics, management / marketing.
4.2 Skills / Acquiring knowledge and skills required by courses referred to preconditions related to curriculum.

5. Conditions (if necessary)

5.1. For course development / Projector
5.2. For seminar / laboratory development / Not applicable

6. Acquired specific competences

Professional competences / ·  PC1 – Operative achievement in the financial-accounting activity of companies, public entities and other non-profit organization
·  PC2 – The application of techniques and procedures related to the operative recording applied in the financial and management accounting
·  PC3 – Fulfillment the tasks applied in the audit and financial control
·  PC4 – Participation to the development and implementation of software for financial accounting field
·  PC5 – Preparation of financial statements , synthetic documents, reports to various bodies and analyzes, synthesis, forecasts and economic valuation
·  PC6 – Management assistance in the decision making
Transversal competences / Apply the doctrine and professional ethics in performing complex and interdisciplinary tasks

7. Subject objectives (arising from the acquired specific competences)

7.1 Subject’s general objective / Learning the concepts, methods and specific procedures, professional regulation and practical arrangement for business valuation.
7.2 Specific objectives / ·  Initiation the diagnosis of economic environment and business, develop the hypotheses and scenarios for the evolution of the business and establish, on this basis, its market value (liquidated value, continuous operation value);
·  Applying the knowledge acquired in the courses such as accounting, financial analysis, law, financial mathematics, management/marketing, Business ethics – due to the interdisciplinary character of Business Valuation;
·  Easier access to the Business Valuation profession.

8. Contents

8.1 Course / Teaching methods / Observations
Introduction in Business Valuation (Value and valuation; Regulation of valuation practice) 1 course / Interactive, using the projector, discussion of course topics and establish the keywords, providing examples, output of useful practical application for the following courses, presentation of current application on the slides and comments. / It is recommended that these contents to be made in order of their presentation.
It is recommended that the studies to be based on a minimal bibliography, indicated for each contents.
It is recommended discussions for each theoretical contents and applications discussed.
Valuation objective (Users; Specific concepts; Classification; Methodological approaches; Stages of implementation; Valuation conclusions and Business Valuation report; Value and price) 1 course
Business diagnosis (Coordinated of the global business diagnosis; Microeconomic diagnosis) 2 courses
The asset based approach (Cost approach) (The framework of the asset based approach; Estimating the value of company; Estimating the value of equity) 2 courses
The income approach (Income approach: significance and determination methods; Methodology; The income approach determining for the significant shareholdings; The income approach determining for minority shareholdings) 3 courses
Goodwill (Introducing the concept; Valuation methods) 1 course
The market approach – Comparative approach (Basis of the market approach; Business valuation stages through comparative approach) 2 courses
References:
1)  Deaconu A., Diagnosticul și evaluarea întreprinderii, suport de curs, FSEGA, 2014-2015
2)  Hitchner, J., Financial Valuation. Application and Models, John Wiley & Sons Inc., New Jersey, 2003
3)  Koller, T., Goedhart, M., Wessels, D., Valuation – Measuring and Managing the Value of Companies, John Wiley & Sons Inc., New Jersey, 2010
4)  Laro, D si Pratt, S., Business valuation and taxes. Procedure, Law and Perspective, John Wiley & Sons Inc., New Jersey, 2003
5)  Palepu, K.G., Healy, P.M., Bernard, V.L., Peek, E, Business Analysis and Valuation. IFRS Edition, Text and cases, Thomson Learning, London, 2007,
6)  Palepu, K.G., Healy, P.M., Business Analysis and Valuation. Using Financial Statements, Thomson South-West, Canada, 2008
7)  International Valuation Standards Committee, IVS, 2011
8.2 Seminar/laboratory / Teaching methods / Observations
Introduction in Business Valuation / Use the case study book which contents resolved and unresolved case studies; resolve case studies to seminar, comments, independent or team requirements for solving. / Highlight the concepts discussed at the course and correlation with the case studies.
Valuation – specific terms
Business valuation report
Case study – Valuation Diagnosis
Case study – Asset based approach (cost approach)
Case study – Income approach
Case study – Goodwill
Case study – Market approach (comparative approach)

9. Corroboration / validation of the subject’s content in relation to the expectations coming from representatives of the epistemic community, of the professional associations and of the representative employers in the program’s field.

·  This subject is included in the certification offered by the Association of Chartered Certified Accountants (ACCA);
·  The course represents the accumulation of knowledge in the field of Business Valuation. From this perspective, the course helps the master students for access to the National ANEVAR, at present UNEVAR and prepares them for the courses required for access to the other two professional bodies: The Bodies of Experts and Licensed Accountants of Romania (CECCAR) and Chamber of Financial Auditors of Romania (CAFR). Also, Business Valuation, through its technical content, practical application (study cases) involved and the students’ assessment, contribute to professional and transversal competencies assessed on the labor market by the employers.

10. Assessment (examination)

Type of activity / 10.1 Assessment criteria / 10.2 Assessment methods / 10.3 Weight in the final grade
10.4 Course / The content and the form of report, the identification and exploitation of bibliographic sources, the support of the public report, the manner of assuming the role within the team, answers to questions. / Project developed by up to 5 people on topics established by the teacher, specifying the size and structure of the report, the minimal bibliography, with additional guidance request by the student / 0,4
Marking from 1 to 10. / Written exams with multiple choice questions, open questions, study cases / 0,4
10.5 Seminar/laboratory / Active implication in the seminar / Resolve case studies / 0,2
10.6 Minimum performance standard
•  It is necessary to obtain a minimum grade of 5 (five) in order to pass this subject;
•  The grades being granted are between 1 (one) and 10 (ten);
•  Students must approach each element (question, problem) within the exam sheet;
•  The exam is written and takes approximately 120 minutes;
•  Prepare a project to demonstrate for a subject from the course, the acquiring of the minimal elements regarding the concepts, principles and approaches which are based the business valuation practices;

Date of filling Signature of the course professor Signature of the seminar professor 23.01.2015 Dan Dacian Cuzdriorean-Vladu, Assistant Professor Dan Dacian Cuzdriorean-Vladu, Assistant Professor

Date of approval by the department Head of department’s signature

28.01.2015 Adriana Tiron-Tudor, Professor

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NOTE: This document represents an informal translation performed by the faculty.