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Level 6 Diploma in Business Management

Off-Balance Sheet Financing and Risk Management

BM604 · Financial Decision Making — Week 9 of 16

CourseBM604
Week9 of 16
SemesterII
TutorOnline in the course chat

This week’s topics

Off-Balance Sheet Financing and Risk Management

  1. Operating leases versus capital lease arrangements
  2. Special Purpose Entities and asset securitisation
  3. Non-recourse factoring and supplier financing
  4. Disclosure requirements and financial transparency risks
  5. Discounted Cash Flow Further Aspects, Lease versus Buy - ACCA Financial Management (FM)
  6. Corporate Disclosure

What you will be able to do

  • 3.4 Explain the possible benefits and drawbacks of off-balance sheet financing.

Activity

Start with this week’s 2 videos, then: Seminar, guided reading and a short written task: explain the possible benefits and drawbacks of off-balance sheet financing.

Study materials

Videos

  • Discounted Cash Flow Further Aspects, Lease versus Buy - ACCA Financial Management (FM) · YouTube · OpenTuition · 29 min · for registered students
  • Corporate Disclosure · YouTube · Dr Yannis · 33 min · for registered students
  • Webcast: Supplier Finance Arrangements · YouTube · IFRS Foundation · 17 min · for registered students
  • Supplier Finance Arrangements: What is being proposed (second webcast) · YouTube · IFRS Foundation · 9 min · for registered students

Further resources

  • MIT 15.535 Business Analysis Using Financial Statements, lecture notes: Off Balance Sheet Activities: the Enron Debacle · PDF · Other, slides · for registered students
  • Intermediate Financial Accounting Vol. 2, Lyryx 2021-A, ch. 17: Leases · PDF · Other, textbook chapter; pp. 193–242 · for registered students
  • Transparency, Financial Accounting Information, and Corporate Governance · PDF · Reading, article · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
MidtermWeek 10
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Admitted students ask questions on this week’s page in the student portal: an AI assistant trained on the course answers first, and during the course’s timetabled classes Connect to your tutor brings your tutor into the chat, who may start a call if needed.

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Course plan
  • Week 1: Strategic Business Decision Making and Financial Drivers
  • Week 2: Business Risk Assessment in Financial Decisions
  • Week 3: Accounting Foundations and Expenditure Classification
  • Week 4: Structure and Interpretation of Final Accounts
  • Week 5: Financial Performance Metrics and Long-Term Sustainability
  • Week 6: Sources and Selection of Business Finance
  • Week 7: Capital Expenditure Appraisal Techniques
  • Midterm: Midterm evaluation
  • Week 9: Off-Balance Sheet Financing and Risk Management
  • Week 10: Ownership Structures, Governance and Agency Dynamics
  • Week 11: Ethics, Governance Controls and Financial Accountability
  • Week 12: Applying Financial Decision Making in practice: case studies
  • Week 13: Assignment workshop: research, planning and referencing
  • Week 14: Assignment workshop: drafting, feedback and improvement
  • Week 15: Review and coursework completion
  • Final: Final assessment and submission
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