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ACCT08038 2022 Financial Analysis and Interpretation

General Details

Full Title
Financial Analysis and Interpretation
Transcript Title
Financial Analysis and Interpr
Code
ACCT08038
Attendance
N/A %
Subject Area
ACCT - 0411 Accounting & Taxation
Department
BUS - Business
Level
08 - Level 8
Credit
10 - 10 Credits
Duration
Semester
Fee
€
Start Term
2022 - Full Academic Year 2022-23
End Term
9999 - The End of Time
Author(s)
Catherine Kennedy, Kerry Dolan, Caroline McNulty
Programme Membership
SG_BINSL_H08 202200 Bachelor of Arts (Honours) in Insurance Practice (Life) (Apprenticeship) SG_BINSU_H08 202200 Bachelor of Arts (Honours) in Insurance Practice (General) SG_BINSL_H08 202400 Bachelor of Arts (Honours) in Insurance Practice (Life) (Apprenticeship) SG_BINSU_H08 202400 Bachelor of Arts (Honours) in Insurance Practice (General)
Description

The aim of this module is to enable students to interpret the financial results of a small business, distinguish between profitability and liquidity and appreciate the need for financial planning; and to develop an understanding of the financial management methods used in appraising capital investment options and assessing appropriate sources of finance.

Learning Outcomes

On completion of this module the learner will/should be able to;

1.

Interpret the financial statements of a limited company using ratio analysis and report on financial performance.

2.

Discuss the crucial importance of cash to a business and prepare basic calculations to assist in the management of working capital.

3.

Apply the main techniques used in the appraisal of capital expenditure decisions and interpret the results.

4.

Identify the principle sources of finance available to a business and appraise the suitability of the different sources in the context of a company/ organisations financial requirements.

5.

Discuss the different layout of financial statements, terminology and KPIs used in Insurance related industry.

6.

Consider sustainability issues in all financial management decisions e.g. Capital investment, sources of finance, KPIs to be measured, shareholder expectations, sustainable finance.

Teaching and Learning Strategies

Online lectures and question practice.  Occasional use guest lecture (if available).

Ongoing practice of questions and moodle quizzes e.g. WIRIS, to encourage students to engage with and keep up to date with material.  These are practice for continuous assessments, reinforce the process involved in calculations, encourage student engagement and scaffold in preparation for the final exam.

Module Assessment Strategies

Individual Written Exam for end of semester exam.

Continuous assessments will be individual moodle quizzes X 2 e.g. WIRIS 

Repeat Assessments

Individual Written Exam for end of semester exam.

Continuous assessments will be moodle quiz e.g. WIRIS

Indicative Syllabus

LO No. 1: Interpret the financial statements of a limited company using ratio analysis and report on financial performance

Introduction to financial statements e.g. Statement of Profit or Loss and Statement of Financial Position

Users of financial statements and their information requirements.

Calculate ratios e.g. profitability, liquidity, efficiency, write report commenting on financial performance.

Generating a reasonable return-v- maximising return.

LO No. 2: Discuss the crucial importance of cash to a business and prepare basic calculations to assist in the management of working capital.

Managing inventory, trade receivables, trade payables, cash and calculate operating cash cycle.

LO No. 3: Apply the main techniques used in the appraisal of capital expenditure decisions and interpret the results.

Characteristics of capital investment decisions.

Calculate and discuss advantages/disadvantages of Accounting Rate of Return, Payback Period and Net Present Value.

Evaluate two competing projects

Discuss Internal Rate of Return, sustainable projects and capital projects in the media and how they are managed.  Project Post Audit.

LO No. 4: Identify the principle sources of finance available to a business and appraise the suitability of the different sources in the context of a company/ organisations financial requirements.

Differentiate between short term, medium term and long term sources of finance

Internal and external sources of finance

Sustainable finance.

LO No. 5: Discuss the different layout of financial statements, terminology and KPIs used in Insurance related industry.

Insurance intermediary accounts (brokers) and insurance company accounts.

Terminology e.g. gross written premium, outward insurance premium, net earned premium, net investment return, claims incurred net of reinsurance, underwriting result, provision for unearned premiums etc

Key Performance Indicators

LO No. 6: Consider sustainability issues in all financial management decisions e.g. Capital investment, sources of finance, KPIs to be measured, shareholder expectations, sustainable finance.

UN Sustainable Development Goals

Incorporating Environmental, Social and Governance (ESG) to all business decisions

ESG reporting by companies

Risks for companies and in particular insurance companies

Sustainable finance

 

 

 

 

 

 

 

Coursework & Assessment Breakdown

Coursework & Continuous Assessment
20 %
End of Semester / Year Formal Exam
80 %

Coursework Assessment

Title Type Form Percent Week Learning Outcomes Assessed
1 Continuous Assessment Moodle Quiz e.g. WIRIS Coursework Assessment Closed Book Exam 10 % Week 6 1,2
2 Continuous Assessment Moodle Quiz e.g. WIRIS Coursework Assessment Closed Book Exam 10 % Week 11 3,4
             

End of Semester / Year Assessment

Title Type Form Percent Week Learning Outcomes Assessed
1 Final Exam Final Exam Closed Book Exam 80 % Week 13 1,2,3,4,5,6
             
             

Full Time Mode Workload


Type Location Description Hours Frequency Avg Workload
Lecture Online On line lectures 2.5 Weekly 2.50
Tutorial Offsite Facility Off site tutorial 3 Twice Per Semester 0.40
Independent Learning Online Practice Quizzes (e.g. WIRIS) to reinforce material covered in class 1.5 Weekly 1.50
Independent Learning Offsite Facility Independent Learning (review material covered in class, practice questions, research topics) 2.5 Weekly 2.50
Total Full Time Average Weekly Learner Contact Time 2.90 Hours

Required & Recommended Book List

Recommended Reading
2019-10-28 Financial Management for Decision Makers 9th Edition
ISBN 1292311436 ISBN-13 9781292311432

Now in its ninth edition, Financial Management for Decision Makers provides students with a unique focus on the practical application of financial management and its role in decision making. Covering topics such as financial planning, making capital investment decisions, and financing a small business, it provides an ideal introduction to the world of financial management. New to this edition: A new chapter on international aspects of financial management, which explores the benefits and problems associated with internationalisation and the management of foreign exchange risk Updated explanations throughout including greater coverage of behavioural finance and share valuation methods Increased number of activities, giving more opportunities to engage with the key concepts Updated Real World examples, which provide connections between the theory and practice of financial decision making This text is ideal for undergraduates from a non-accounting or non-finance discipline taking an introductory module in financial management. It is also suitable for postgraduate students enrolled on certificate and diploma courses in financial management, as well as those enrolled on Diploma in Management Studies and MBA programmes. The text can also be used by finance and accounting students as a foundation for further study. Visit www.pearsoned.co.uk/atrill to gain access to a suite of resources which accompany this text: For instructors: Solution's manual, and PowerPoint slides For students: Opportunities to practise and additional support given through a companion website Peter Atrill is a freelance academic who has worked with leading institutions in the UK, Europe and SE Asia. He was formerly the Head of Business and Management and Head of Accounting and Law at Plymouth Business School, Plymouth University.

Module Resources

Non ISBN Literary Resources

Financial Management for Decision Makers by Peter Atrill 9th edition Pearson.

 

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URL Resources
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Additional Information