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Unit information: Finance and Accounting for Management in 2016/17

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Unit name Finance and Accounting for Management
Unit code ECONM1015
Credit points 15
Level of study M/7
Teaching block(s) Teaching Block 1 (weeks 1 - 12)
Unit director Ms. Spencer
Open unit status Not open
Pre-requisites

None

Co-requisites

None

School/department School of Accounting and Finance
Faculty Faculty of Social Sciences and Law

Description

This unit is designed to give students from the MSc in Management programme a thorough grounding in the fundamentals of Finance and Accounting. The following key areas in accounting will be covered: understanding and interpretation of the financial statements, short-run decision-making including opportunity costs and relevant costs, breakeven and cost-volume profit analysis. The following areas of finance will be covered: discounting, investment appraisal, cost of capital, portfoloio diversification, financing decisions and the role of the stock market.

Intended learning outcomes

On successful completion of this unit a student will be able to:

  • demonstrate an ability to understand the structure of, and to interpret , balance sheets, income and cash flow statements, including a knowledge of key performance indicators;
  • understand cost concepts, information systems and quantitative techniques for internal control and short run decision-making;
  • demonstrate understanding of the principles of investment appraisal, including knowledge of the basic financial mathematics;
  • solve financial problems such as the calculation of the cost of equity using the Capital Asset Pricing Model and the weighted average cost of capital.

Teaching details

Lectures and classes. 25 hours in total, typically 18 hours of lectures and 7 hours of classes. First term courses are crucial in establishing the basis for more advanced options in the second term. Hence, a relatively intensive course for students who may have no previous experience in finance and accounting.

Assessment Details

Summative assessment will be by 3 hour exam in January

Regular formative assessment is undertaken during the course using exercises that allow students to practice computational skills and interpretation of results obtained. Summative assessment by 3-hour examination will include questions that test computational skills, ability to construct and interpret financial information and understanding of key concepts in accounting and finance. Students may be asked to calculate appropriate ratios, assess investment proposals, construct and interpret company accounts, explain key finance theories such as the capital asset pricing models and the weighted average cost of capital.

Reading and References

Core Text:

  • Proctor, R (2012), Management Accounting: decision-making and performance management, fourth edition.
  • Atrill, P & McLaney, E (2011) Accounting & Finance for Non-Specialists, 7th Edition, FT Prentice Hall (ISBN:0-273-74596-4)

Other Texts:

  • Pike & Neale (2009), Corporate finance and investment, 6th Edition, FT Prentice Hall, (an electronic version of this book is available from the library website)

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