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.
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
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.
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