UCL School of Management

Module Fact Sheet

MSIN0115: Accounting and Finance

Level
Masters, level 7
Prerequisites
None
Eligibility
MBA students only
Terms
1,2
Delivery method
For full-time students 8 x 3 hour sessions over two weeks. Part-time students 8 x 3 hour sessions over two weekends.
Assessment
Individual coursework – exercises (2 problem sets) 25%
Individual essay 25%
In-class test 25%
In-class test 25%
Previous Module Code
MSINGC01

Course overview

The content of this module provides the essentials of accounting and finance any manager should understand  when working in a business, be the manager employed or a business owner. It has a role as a standalone module but also provides an underpinning for any subsequent studies in subsequent finance-related  studies.

The Accounting element of this module provides an introduction to core accounting principles and their applications both internal and external to business organisations. The Finance element  of the module considers a range of major strategic financial issues of importance to managers, helping them to make better financial decisions and communicate and work with Finance and Treasury departments, and financial analysts.  It covers issues concerned with the raising of finance and its investment. Aims of the module:

The Accounting element  of this module aims to develop students’ ability to read and interpret financial statements and associated financial data, based upon an understanding of the theoretical underpinnings of the construction of core financial statements. It also enables students to deploy a range of models and frameworks for using accounting information in investment and managerial decision-making.

The Finance element of this module aims to provide students with a theoretical and practical understanding of corporate strategic and managerial finance. The focus is on learning through the analysis of corporate finance in companies that illustrate theoretical concepts and frameworks.

Learning outcomes

By successful completion of the module, students should be able to:

·         Apply theoretical financial frameworks and principles in constructing income and cash flow statements, and balance sheets

o   Understand and interpret accounting information using financial ratios.

·         Make use of a range of techniques for costing products and services, and for budgeting, planning and control.

·         Appreciate the lack of certainty in accounting figures and the problems of choosing among equally logical and consistent accounting techniques.

o   Understand and apply core capital investment principles for longer term financial decisions

·         Identify and understand the characteristics of potential sources of finance

o   Understand the complexities within the determination of cost of capital, and in so doing develop an in-depth, applied understanding of the Capital Asset Pricing Model (CAPM) and related financial asset pricing techniques and their issues, including risk free rate, equity premium, capital structure (debt-to-equity) planning, and other issues relating to Beta (ß).

·         Examine the issue of developing an Optimal Capital Structure (OCS) while applying the most appropriate of OCS techniques to a specific company‘s situation.

·         Develop integrated financial plans that seek to balance different liquidity and performance objectives of company managers and funding requirements.

·         Critically evaluate literature on Initial Public Offerings

·         Appreciate and describe key managerial finance issues and methods adopted by leading companies

Assessment summary

Individual coursework – exercises (2 problem sets) 25%- relating to the Accounting element

Individual essay 25%- relating to the Finance element

In-class test 25%- relating to the Accounting element

In-class test 25%- relating to the Finance element

Current students should refer to Moodle for specific details of the current year’s assessment.

Essential reading

Course 1: Accounting

Accounting and Finance for Non-Specialists, 10/E

Peter Atrill and Eddie McLaney

ISBN-10: 1292135603 • ISBN-13: 9781292135601

2017 • Pearson

Published 04 Jan 2017

Course 2: Finance

Corporate Finance: Principles and Practice, 7/E

Denzil Watson and Antony Head

ISBN-10: 1292103035 • ISBN-13: 9781292103037

2016 • Pearson Higher Education

Published 15 Jun 2016

Past versions of this module

MSINGC01 17/18

Last updated Friday, 17 August 2018