Course Description
These modules introduce students to the fundamentals of financial and management accounting viewed from the perspective of the business manager. It focuses is on critical evaluation of accounting information contained in financial statements and application of key cost and management accounting techniques in daily business decisions. This unit adopts a managerial and analytical approach to the financial aspects of business management. After studying these modules students will learn the methods used in financial reporting and interpretation and applying these principles to business practice. Students will gain a better understanding and interpretation ability of a company’s cash-flows and profit, different classes of assets, liquidity positions, operating efficiency. Management accounting modules will equip students with an understanding of key costs and managerial accounting techniques used in costs control, costs management and planning.
Learning Outcomes
- Develop a high-level understanding of the accounting process and fundamental accounting principles that underpin the development of financial statements (e.g. accrual accounting vs. cash accounting, definition, recognition, measurement and disclosure of assets, liabilities, revenues, expenses; inventory models, provisions, depreciation; accounting for intangibles).
- Undertake research and interpret the concepts and role of working capital, sources of working capital, ratios and their uses. Also, understand and use the concept of job costing, process costing, activity-based costing, JIT inventory system, EOQ model, and the concept and application of standard costing.
- Apply techniques from cost and management accounting, in deciding upon alternative courses of action using CVP analysis, capital budgeting techniques, inventory management model.
- Analyse and critically evaluate financial performance and financial position of a business using information contained in financial statements; balance sheet, income statement, and cash flow statement.
- Critically analyse, evaluate and interpret the working capital position and working capital management of a business.
- Calculate and interpret different liquidity ratio, solvency ratio and operating efficiency ratio. Also, use standard costing, calculate variances and interpret them. Also, calculate and interpret EVA.