Accounting

Module overview

Accounting based reporting systems can provide powerful inputs into corporate decision making processes. The overall aim of this module is to provide an understanding of the processes and assumptions underlying the generation of accounting data and an appreciation of the techniques available to utilise the outputs of an accounting system. These issues will be examined in the context of internal and external decision makers.

Learning Outcomes

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• Write effectively for business purposes;

• Interpret and analyse quantitative data related to business issues, using appropriate financial and/or statistical skills and models to solve problems.

• Manage individual tasks, personal resources and time effectively;

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• Interpret financial statements and show how a business measures and manages it performance;

• Identify, analyse and interpret quantitative and qualitative data in an appropriate way;

• Use appropriate quantitative, qualitative data, financial and non-financial data and techniques to make appropriate management decisions.

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• Budgeting and costing systems as a means of encouraging and evaluating managers’ actions;

• Combining financial and non-financial data in evaluating managerial and corporate performance.

• The processes involved in adapting financial reporting practices to a multinational setting;

• The purpose, underlying assumptions and limitations of key corporate financial reporting documents including the income statement, balance sheet and cash flow statement;

Syllabus

• The form of financial reporting – balance sheet, income statement and cash flow statements

• Issues in preparing financial reports – measurement and recognition with particular reference to knowledge based assets and other intangibles, economic substance over form, accounting for groups and changes in exchange rates

• Regulation of financial reporting – financial reporting incentives, earnings management, economic substance over form, activities of IASB’s including IASB-FASB convergence project

• Univariate and multivariate ratio techniques, relationship between accounting income and equity market value and equity valuation models

• Role of budgets and potential conflicts, process of budgeting, divisional performance evaluation, responsibility centres, divisional performance in control and evaluation decisions.

• Balanced scorecard - quantification of organisational goals, identification of perspectives and corresponding metrics, ensuring accountability for KPIs or other indicators.

• Costing, breakeven, relevant costs, relevant revenues and investment appraisal methods, in order to allocate resources effectively.

Teaching and learning methods

Teaching methods include

• Lectures

• Informal group work sessions

• Presentations

• Student led mini-debates.

Learning activities include

• Exercises on interpretation of financial reports and costing analysis

• Evaluation of live company using accounting and non-accounting data sources, requiring preparation of report and presentation

• Private study – directed reading and analytical activities

Formative

This is how we’ll give you feedback as you are learning. It is not a formal test or exam.

In-class formative opportunities

• Assessment Type: Formative

• Feedback: Computational exercises, case studies and in-class presentations by students are a regular part of the module, and allow students to obtain feedback on their work. There is a mock exam just prior to the examination to provide final guidance and written feedback.

• Final Assessment: No

• Group Work: No