Module Information

Module Identifier
AB11220
Module Title
Accounting and Finance for Specialists
Academic Year
2019/2020
Co-ordinator
Semester
Semester 2
Co-Requisite
Reading List
Other Staff

Course Delivery

Delivery Type Delivery length / details
Lecture 20 x 2 Hour Lectures
Lecture 10 x 1 Hour Lectures
Seminar 10 x 1 Hour Seminars
 

Assessment

Assessment Type Assessment length / details Proportion
Semester Exam 2 Hours   60%
Semester Assessment Lab-based exercise  (1.5 hours)  40%
Supplementary Exam 2 Hours   60%
Supplementary Assessment Lab-based exercise  (1.5 hours)  40%

Learning Outcomes

On successful completion of this module students should be able to:

Demonstrate familiarity with basic book-keeping skills, and the preparation of accounts for sole traders and companies.

Demonstrate an understanding of financial accounting concepts, conventions, theory and practice.

Classify, estimate and allocate costs and overheads, and explain the relationships between cost, volume and profit.

Understand how budgets are used for planning and control.

Explain and apply appropriate models for security valuation and investment appraisal.

Describe, explain and illustrate the motives for merger and acquisition, and evaluate the possible benefits and costs.

Brief description

In the field of financial accounting, this module examines topics such as cash flow, inventory, and partnership accounting, and introduces financial accounting computer software. In management accounting, there is coverage of accounting for overheads, Cost Volume Profit Analysis, and the use of accounting data for decision making. In finance, the module examines valuation techniques, investment appraisal, and merger and acquisition.

Content

FINANCIAL ACCOUNTING

Double Entry Bookkeeping and Financial Statements
• Theory and practice of double-entry bookkeeping
• Accounting transactions
• Accounting adjustments
• T-account representation
• Trial balance
• Producing Financial Statements

Cash Flow
• Indirect and Direct Method
• Producing a cash flow statement

Case Study – ‘Accounting for a firm’
• Invoices and transactions
• Cash book
• Sales and purchase ledger and fixed asset register
• Journal entries
• Producing a trial balance and financial statements

SAGE
• Introduction to SAGE accounting software
• Recording transactions
• Producing financial statements

Partnership accounting
• Introduction of partnerships
• Profit sharing ratios
• Current and capital accounts
• Changes in partnership arrangements
• Preparing financial statements

Inventories
• What is inventory?
• Valuation of inventory – FIFO, LIFO and weighted average

MANAGEMENT ACCOUNTING

Overhead Absorption Rates
• Cost assignment , tracing and allocation
• Traditional costing systems
• Activity based costing (ABC)
• Absorption Costs vs Marginal Costs

Cost Volume Profit (CVP) Analysis
• Computations involving CVP and Break Even Point
• CVP Charts
• Margin of safety
• Multiple products analysis
• Limitations

Decision Making Techniques
• Special selling price decisions
• Outsourcing (make or buy) decisions
• Product-mix decisions
• Discontinuation decisions
• Normal pricing decisions

FINANCE

Bond and Security Valuation
• Valuation of financial instruments
• Valuation of bonds (perpetual, zero-coupon, coupon bonds with maturity)
• Valuation of shares (preference and ordinary)

Investment Appraisal
• The investment decision making process
• Methods of investment appraisal
• Non-discounted cash flow and discounted methods
• Issues in calculating and applying on investment appraisal techniques
Mergers and Acquisitions
• Factors contributing to M&A
• Specific motives for M&A
• Financing M&A
• Benefits of M&A
• Failures of M&A
• Defensive measures

Module Skills

Skills Type Skills details
Application of Number • Develop an easy familiarity with numerical data sources and numerical data • Apply numerical data to problem solving and decision making with care and accuracy • Assess the reasonableness of and interpret numerical solutions • Support assertions/arguments with appropriately developed and presented numerical data
Communication • Develop confidence in and clarity of oral communication via example class/tutorial participation • Develop clarity and focus of written communication via development of answers to tutorial questions • Develop and use appropriate subject-specific vocabulary in oral and written communication
Improving own Learning and Performance • Identify and distil the key issues covered by lectures and tutorials • Identify and use a range of learning resources • Investigate benefits of small group working on tutorial preparation • Structure study to accommodate intensive learning
Information Technology • Use spreadsheet software (Excel) to complete elements of the tutorial questions (e.g., for ease of tabulated numerical calculations, production of summary statistics, production of graphs, etc.) • Use of accounting software (SAGE) • Use a variety of electronic web- and library-based resources to review available information and retrieve pertinent information
Personal Development and Career planning • Identify a variety of potential career opportunities within the financial and professional services sector • Develop skills in financial analysis and decision making which are essential to the aspiring accountant/graduate
Problem solving • Identify the precise problem to be solved / decision to be made • Assess which costs are relevant, irrelevant, avoidable and unavoidable to the problem / decision
Research skills • Develop basic information accessing and researching skills • Properly reference/attribute information sources • Select the most pertinent information for retrieval • Retrieve information
Subject Specific Skills • Develop competence in understanding and appropriately applying introductory accounting techniques • Identify and use sources of accounting information • Understand, analyse, interpret and synthesize between financial accounting, management accounting and market-based financial information • Make well-based recommendations and decisions • Bring analysis and decision making skills to the service of the business – in strategising, marketing, operating, etc.
Team work Develop experience of team work and develop team working skills via small group working on tutorial preparation

Notes

This module is at CQFW Level 4