School of Management, Unit Catalogue 2007/08 |
MN10248 Introduction to accounting & finance (Elec Eng / Maths) |
| Credits: 6 |
| Level: Certificate |
| Semester: 1 |
| Assessment: CW 30%, EX 70% |
| Requisites: |
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Aims: The module aims to test the students' ability to:
* Explain the conceptual and regulatory framework of accounting * Apply and understand double entry & incomplete records techniques * Prepare a set of accounts from basic financial data * Apply interpretative techniques to published financial statements. * Explain the basic concepts and processes used to determine product and service costs. * Explain absorption cost, marginal cost, ABC and relevant cost concepts. * Apply CVP analysis and interpret the results. * Explain the role of budgets and standard costing within organisations. * Prepare and interpret budgets, standard costs and variance statements. * Apply investment appraisal techniques. * Analyse the financing options for business entities. Learning Outcomes: Students will understand how accounting and financial management serves the purpose of developing and operating a business. They will acquire a broad knowledge of the different dimensions of financial management and accounting and an introductory working knowledge of basic tools of financial analysis and practice. Skills: Financial data manipulation and interpretation. Analytical and communication skills in relation to financial information. Coursework to demonstrate practical analytical skills and foster inter-group communication and time management skills. Content: (a) Financial planning and control * The financial dimension of businesses and other organisations * Financing asset acquisition and an introduction to the cost of capital * Estimating costs for planned activities : fixed and variable costs; direct and indirect costs; basic elements of product cost * Preparation of cash budgets - including spreadsheet modelling and sensitivity tests * Annual budgeting, profit planning, liquidity control and longer term financial projections, * Preparation of budgets and projected Profit and Loss Accounts and Balance Sheets * Controlling operations and cost control (b) Reporting results in financial terms * Reporting performance and financial results to higher levels in the organisation: cost centre reports, profit centre reports, investment centre reports * Reporting the results to shareholders and other outside parties: preparation of final accounts, structure and interpretation of final accounts, underlying concepts (going concern, prudence, materiality, etc.) * Measures of performance in the financial press: share prices, earnings per share, p/e ratios, assessing the quality of earnings announcements, etc. * Outline of the role of company law, the accounting profession and Accounting Standards in controlling the content of published information * Outline of complications created by going international / global for investment analysis, financing the business, financial control and financial reporting. |