ACCT07026 2022 Applied Finance
The aim of this module is to enable students to interpret the financial results of a developing company, distinguish between profitability and liquidity, appreciate the need for financial planning and report to management on business performance.
On completion of this module the learner will/should be able to;
Discuss the layout of financial statements and the terminology used.
Interpret the financial statements of a small business using ratio analysis
Discuss the crucial importance of cash to a business and prepare basic cash flow statement.
Apply the main principles of management accounting for planning, controlling and short term decision making.
Report to management on the financial performance of an organisation.
Teaching and Learning Strategies
This module will be delivered through a combination of lectures, tutorials and workshops. There will be an emphasis on the practical application of knowledge through the use of case studies. The students will use Microsoft Office, particularly Excel, to complete the practical element of the module.
Module Assessment Strategies
This subject will be assessed through a combination of practical activities and case studies.
Repeat assessments will be developed in accordance with the requirements of the module.
L01. Discuss the layout of financial statements and the terminology used.
- Users of accounting information and their needs
- Different legal structures for a business with a focus on limited companies
- Regulatory environment
- Terminology used in financial statements
- Income statement, cash flow statement and statement of financial position
L02. Interpret the financial statements of a small developing company using ratio analysis
- Calculate profitability, liquidity, efficiency and gearing ratios for a small company
- Analyse and interpret the ratios calculated
- Present results graphically
- Limitations of ratio analysis
L03. Discuss cash flow reports and the crucial importance of cash to a business
- Distinguish between profitability and liquidity
- Prepare and interpret a basic cash flow statement
- Discuss how a cash flow statement can help to identify cash flow problems
- Identify ways of improving cash flow
L04. Apply the main principles of management accounting for planning, controlling and short-term decision making.
- Explain the importance of financial planning
- Prepare projected financial statements for a sustainable business
- Interpret their significance for decision making purposes
- How to assess risk and uncertainty
- Budgetary control
L05. Report to management on the financial performance of an organisation.
- Critically appraise past business performance
- Make clear recommendations for improvement
- Highlight the need for a sustainable approach in the future
- Demonstrate a clear action plan
Coursework & Assessment Breakdown
|Title||Type||Form||Percent||Week||Learning Outcomes Assessed|
|1||Group Project Financial statements case study||Coursework Assessment||Group Project||50 %||Week 5||1,2,3,4,5|
|2||Individual assignment based on group case study||Coursework Assessment||Assignment||50 %||Week 7||2,3,4,5|
Full Time Mode Workload
|Lecture||Computer Laboratory||This module will be delivered for 6 hours per week over an 8 week period prior to work placement. Due to the practical nature of the module four of the six hours require a computer lab.||4||Weekly||4.00|
|Lecture||Flat Classroom||This module will be delivered for 6 hours per week over an 8 week period prior to work placement. Due to the practical nature of the module four of the six hours require a computer lab. The remaining two hours would be best suited by a flat classroom.||2||Weekly||2.00|
|Independent Learning||Not Specified||study and working on project||3||Weekly||3.00|
Required & Recommended Book List
2018-08 Accounting and Finance for Non-specialists Pearson Higher Education
ISBN 1292244011 ISBN-13 9781292244013
The 11th edition of this market-leading text offers an accessible, effective introduction to key accounting and finance topics. With a step-by-step approach and a focus on decision making, Accounting and Finance for Non-Specialists teaches you how to apply your learning to real-world business scenarios.