Module Description:
This subject introduces the student to the financial accounting and financial planning systems in use in companies. It includes an overview of the Accounting system and its stewardship and scorekeeping roles in the financial management of companies. It involves a conceptual rather than a detailed working approach to the accounting system.
Module aim
To enhance the management effectiveness of students, by providing them with a broad conceptual and an understanding of the principles, tools and methodologies used by financial advisors to help the firm an understanding of its financial objectives.
Introduction: Financial Control and Financial Management
The purpose and scope of Financial Accounting. Financial Accounting and the role of financial control. Financial control and the accounting system of firms. Generally accepted accounting principles and the process of accounting standard setting.
The Definition and Measurement of Profit
Outline of the Accounting Equation: the Accounting Model of the Firm. The Dual Aspect of Transactions. Nature of Debit and Credit Balances. How Transactions are recorded. The Ledger Accounts and Control Accounts. The Trial Balance. The Definition and Measurement of Profit. The Accrual/Matching Principle and its Applications, Adjustments, Depreciation. Profit and Loss computation.
Using the Outputs of the Accounting System:
The Profit and Loss; the Balance Sheet. Cash Flow Reporting and Forecasting. Analysis of the key figures in these statements. Ratio Analysis. The relationship between profit and cash flows. Evaluating Enterprise Financial Performance from data in these statements.
Financial Control and the Accounting System:
Control of Cash and Bank Balances. The impact of Value Added Tax. Debtor/Creditor analysis. Stock Reporting and Control. EDI and Stock/Delivery management.
A variety of methods will be used to achieve the module learning outcomes. These methods will consist of lectures, discussion, problem-solving exercises, readings, project work, and self-directed learning
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 60 |
| Other Assessment(s) | 40 |