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Financial Management

  • Module code: BA7575
  • Year: 2018/9
  • Level: 7
  • Credits: 15
  • Pre-requisites: None
  • Co-requisites: None

Summary

This module will help you develop and enhance your critical understanding of a range of topical issues associated with financial management. You will do this by reviewing and analysing the position and performance of organisations as revealed in their financial statements and stock market indicators in the case of listed companies or key performance indicators in the case of not for profit organisations. In addition you will explore recent theoretical frameworks and empirical evidence concerning financial management issues to be found in the academic literature and then you will work to make sense of these in a practical context. You will engage with a broad range of issues, from financial reporting, through accounting for management decision making in the short and long term, to considerations of decision making in the context of responsible capitalism and accounting for and with sustainability issues.

Aims

  • To develop a critical knowledge and understanding of the core theories and concepts in the field of financial management
  • To critically explore issues of financial position and performance of organisations in the context of the prevailing economic, legal and regulatory framework
  • To examine financial decision-making and control processes in the long and short term.

Learning outcomes

On successful completion of the module, students will be able to:

  • demonstrate a critical understanding of modern finance models & theories and their application in an organisational context.
  • apply practical accounting and finance techniques to aid decision making and control.
  • critically evaluate organisational performance and financial position.
  • critically evaluate financial decision making and control processes and their implications for stakeholders.

Curriculum content

  • Financial and legal structures of different business entities, financial statements and accounting concepts and principles. International Financial Reporting Standards
  • Interpretation of an entities financial position and performance by critical examination of its published financial statements using trend and ratio analysis in relation to the underlying business events and financial environment.
  • The significance of the financial structures of different business entities and the different risks and returns relevant to the various finance providers.
  • Costing systems including the allocation and apportionment of overheads.
  • Cost Behaviour: fixed and variable costs. Break even analysis as a measure of risk and return.
  • Contribution analysis and operating statements. Maximising contribution from scarce resources.
  • Budgeting and human behaviour. Concept of variance analysis in the light of controllable and un-controllable revenues and costs.
  • Long term investment appraisal techniques as an aid to decision making: payback, net present value, internal rate of return.
  • Theories of the firm. Principal-agency theory. Agency cost.
  • Risk identification. Risk registers
  • Operation of capital markets. Efficient markets framework. Rationality of investors. Short-termism. Financial assets and liabilities; securitisation, special investment vehicles, derivatives, options, hedging.
  • Share valuation and value of assets using discounted cash flow and other valuation models

Teaching and learning strategy

This module will be taught using a variety of approaches combining: workshop-style sessions, tutor-led input, practical and experiential exercises and case studies, group discussions, presentations, and action learning sets.

Students are expected to read widely and incorporate references to academic literature and the financial press in their work. Canvas may be used to deliver materials, to present information on topical issues from the financial press and to invite student participation and contribution.

Breakdown of Teaching and Learning Hours

Definitive UNISTATS Category Indicative Description Hours
Scheduled learning and teaching Full time 40 Executive attendance 32
Guided independent study Full time 110 Executive attendance 118
Study abroad / placement
Total (number of credits x 10) Full time 150 Executive attendance 150
Total (number of credits x 10) 150

Assessment strategy

The summative assessment of this module will be via one or more written pieces of coursework, some of which may have linked presentations as part of their submission. One of the pieces of coursework will include a critical analysis of a major theoretical issue, or a practical issue from an organisation.

Formative assessment of learning outcomes will also be undertaken in relation to student contributions to class discussion, student presentations and contributions to discussion boards and study group interactions.

Mapping of Learning Outcomes to Assessment Strategy (Indicative)

Learning Outcome Assessment Strategy
1) Demonstrate a critical understanding of modern finance models & theories and their applications in an organisational context Summatively by coursework. Formatively by class discussions, contributions to discussion boards and students presentations.
2) Apply practical accounting and finance techniques to aid decision making and control Summatively by coursework. Formatively by class exercises and discussions.
3) Critically evaluate organisational performance and financial position Summatively by coursework. Formatively by class exercises and discussions.
4) Critically evaluate financial decision making and control processes and their implications for stakeholders Summatively by coursework. Formatively by class discussions, contributions to discussion boards.

Elements of Assessment

Description of Assessment Definitive UNISTATS Categories Percentage
Coursework 100%
100%
Total (to equal 100%) 100%

Achieving a pass

It IS a requirement that the major element of assessment is passed in order to achieve an overall pass for the module.

Bibliography core texts

There is no single core text assigned to this module. Students are encouraged to explore a range of texts for non-financial specialists. There are many of these in the Learning Resource Centre but only recent (published within 2 years of study) text book editions should be used.

Bibliography recommended reading

Deegan, C, Unerman, J Financial Accounting Theory McGraw Hill, latest edition

Drury, C. Management Accounting for Business. South-Western Centage learning, latest edition

Jones, M. (Ed) (2011) Creative Accounting, Fraud and International Accounting Scandals, Wiley

McLaney, E. (2011) Business Finance Theory and Practice (2011) , FT Prentice Hall.

Proctor, R. Managerial Accounting for Business Decisions. FT Prentice Hall, latest edition

Students will benefit from regular reading of the Financial press.

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