Module overview
The module is designed to provide an introduction to financial accounting, corporate finance and financial management of organisations. This module is intended for students from any academic discipline who have an interest in accounting and finance as an adjunct to their principle area of study.
This module is not available to Students taking Modules: MANG1001 Financial Accounting 1, MANG1002 Management Accounting 1 or MANG1004 Introduction to Accounting and Financial Control.
Aims and Objectives
Learning Outcomes
Subject Specific Intellectual and Research Skills
Having successfully completed this module you will be able to:
- appraise the role financial strategy within the business model of a firm.
- evaluate the competing theories on the roles of dividend policy and the debt-equity mix in the determination of firm value;
- evaluate the processes by which the value of both real and financial assets can be estimated;
- understand the role of accounting information in the collection, collation, decision making and analysis of business performance;
Knowledge and Understanding
Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:
- the assumptions underlying the preparation, interpretation and analysis of the Income Statement, Balance Sheet and Cash Flow Statement;
- financial strategy including capital structure, dividend policy and corporate governance of firms.
- the importance of capital structure and dividend policy decisions;
- cost analysis in the context of short and long term decision making and the use of discounted cash flow analysis;
- the purpose, limitations, layout and presentation of financial statements;
Transferable and Generic Skills
Having successfully completed this module you will be able to:
- benefit from improved skills in learning, problem solving, numeracy, written communication and self management.
Syllabus
Business Environment; Forms of business organisation; Introduction to accounting: information systems, the use of the Accounting Equation.; Accounting conventions and their use in the preparation of financial statements; Accruals, Prepayments and Depreciation The analysis and interpretation of financial statements using ratios; Financial planning and control. Dividend Payout policy and Capital Structure.; The valuation and appraisal of real and financial assets using DCF techniques and short term appraisal techniques, Financial strategy and Corporate Governance. Risk and return, cost of capital, agency theory.
Learning and Teaching
Teaching and learning methods
Lectures, weekly classes and 6-7 hours of private study per week, including reading, use of websites and working computational problems.
| Type | Hours |
|---|---|
| Revision | 16 |
| Completion of assessment task | 20 |
| Wider reading or practice | 20 |
| Tutorial | 12 |
| Preparation for scheduled sessions | 30 |
| Follow-up work | 30 |
| Lecture | 22 |
| Total study time | 150 |
Resources & Reading list
General Resources
Other Resources. You are advised to read widely on the financial and business environment. The following resources may be useful: Quality daily and Sunday papers (in particular, the Financial Times). Nexis UK. This is a web-based service giving key business news and financial information on listed companies, and 250,000 unlisted companies in the UK. It is accessible from the library’s homepage. FAME. A web-based service covering 2.8 million UK and Irish companies and other businesses. It is also accessible through the library, as above. Company websites. These are likely to include copies of the annual report, investor information press releases etc. R. Vaitilingam (2005) The “Financial Times” Guide to Using the Financial Pages, 5thedition, FT Prentice Hall. ISBN 0 273 65263X. R. Hussey (ed.) (2005) Oxford Dictionary of Accounting, 2nd edition, OUP. ISBN 0 19 2806270.
Journal Articles
Trigeorgis, L. (2005). 'Making use of real Options simple: An overview and applications in flexible modular decision making. The Engineering Economist, 50(1), pp. 25 – 53.
Brounen, D, Jong Abe de and Koedijk, K (2006). Capital structure policies in Europe: Survey evidence. Journal of Banking & Finance, 30(5), pp. 1409-1442.
Textbooks
Atrill, P. and McLaney, E (2017). Accounting and Finance for Non-specialists. FT Prentice Hall.
Atrill, P. (2011). Financial Management for Decision Makers. FT Prentice Hall.
McLaney, E. (2011). Business Finance: Theory and Practice. FT Prentice Hall.
Gowthorpe, C. (2011). Business Accounting and Finance. Cengage Learning.
Watson, D. and Head, A. (2010). Corporate Finance: Principles and Practice. FT Prentice Hall.
Assessment
Formative
This is how we’ll give you feedback as you are learning. It is not a formal test or exam.
Problem solving
- Assessment Type: Formative
- Feedback: Formative feedback will be provided during the lecture and classes on the students’ performance in problem solving exercises and multiple choice questions.
- Final Assessment: No
- Group Work: No
Summative
This is how we’ll formally assess what you have learned in this module.
| Method | Percentage contribution |
|---|---|
| Examination | 100% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
| Method | Percentage contribution |
|---|---|
| Written assessment | 100% |
Repeat
An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.
| Method | Percentage contribution |
|---|---|
| Written assessment | 100% |
Repeat Information
Repeat type: Internal & External