An introductory Accounting and Finance module for non-financial managers. It is designed to provide non-
accounting/finance students with a foundation in both Financial and Management Accounting.
The module is run over two semesters. The first semester covers financial accounting; which aims to introduce
students to accounting in respect of the recording of financial transactions, reporting these transactions in
financial statements, and the analysis and interpretation thereof.
The second semester covers Management Accounting. The purpose of management accounting is to assist
management in financial planning, controlling and making decisions by providing the relevant financial and
non-financial information. As such, students will develop a knowledge of and appreciation of the purposes for
which costs are used and applied for various purposes. They will gain an understanding of cost behaviour and
apply overhead analysis techniques in order to determine accurate product/service costs. They will conduct
analysis for decision making purposes and learn how budgets are used for financial planning, control and
performance evaluation purposes.
Context of Finance/Accounting
Introduction to organisations and their management. The nature, scope and form of financial and non-
financial objectives. The relationship between financial management, management accounting and financial
accounting. Purpose of financial accounting. The characteristics of useful financial information. The various
forms of business structure. Sources of finance and the consequences of using each source.
Financial statements:
The users of financial statements and their uses of that information. Introduction to the terminology used in
the primary financial statements. Comprehension of financial statements, the Income Statement, Balance
Sheet and Cashflow statement. The concept of realised profit and the distribution of profits. Difference
between profits and cash. The significance of fundamental accounting concepts, bases and policies. The
regulatory framework within which financial statements are prepared and used. Identifying the limitations of
financial information.
Financial Analysis and Interpretation
Preparation of relevant financial measures of performance (Ratios analysis) to interpretation of the financial
performance and position of an organisation in terms of profitability, liquidity, gearing (risk) and efficiency.
Management of Working Capital
Traditional and modern approaches to financing working capital. Cash conversion cycle
The role and the operation of the treasury function and working capital ratios. The management and control
of cash: cash forecasts/ cash budgets.
Investment Appraisal
Payback, Discounted Payback, Net Present Value, Internal Rate of Return and accounting rate of return.
Project appraisal under risk: probabilities; sensitivity analysis; simulation. Capital rationing. Weighted average
cost of capital.
Management Accounting
The role of the Management accountant and the difference between management and financial accounting.
Cost Terms and Concepts
Fundamental Management Accounting concepts and terminology including Direct/indirect costs, fixed,
variable, hybrid costs, etc.
Accounting for overheads
Objectives of primary costing techniques and their application – Full costing and ABC costing application.
Determination of product/service costs, including cost plus pricing.
Information for Management decision making
Marginal costing compared with absorption costing. Cost volume profit analysis and break-even as a short-
range decision-making tool; contribution theory and margin of safety. The concept of opportunity and
relevant costs.
Budgeting and Budgetary Control Purposes of budgeting; the role of the budget committee and the budget manual. Types of budgets; the master budget, cash budgets, ZBB. Preparation of functional budgets for operating and non-operating functions. Identification of the key budget factor and budget period.
Financial Management
Financial Management and Control
Lectures based approach using written material, textbooks, research articles and various media sources
including using web-based data sources. This will be supported by tutorials and lab work using up to date
software.
Formative project-based work will contribute to the development of technical and communication skills and
will focus on the key concepts and principles of Finance and Accounting.
The module will be delivered over 24 weeks (48 hours) and will require an additional 152 hours self-directed
learning encompassing pre/post class readings, during module assignment and exam preparation.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 60 |
| Other Assessment(s) | 40 |