Module Information
Module Identifier
AB11220
Module Title
Accounting and Finance for Specialists
Academic Year
2021/2022
Co-ordinator
Semester
Semester 2
Co-Requisite
Other Staff
Course Delivery
Assessment
Due to Covid-19 students should refer to the module Blackboard pages for assessment details
| Assessment Type | Assessment length / details | Proportion |
|---|---|---|
| Semester Assessment | On-line class test | 20% |
| Semester Assessment | Lab-based assessment (1.5 hours) | 20% |
| Semester Exam | 2 Hours | 60% |
| Supplementary Assessment | On-line class test | 20% |
| Supplementary Assessment | Lab-based assessment (1.5 hours) | 20% |
| Supplementary Exam | 2 Hours (Students must take elements of assessment equivalent to those that led to failure of the module.) | 60% |
Learning Outcomes
On successful completion of this module students should be able to:
Demonstrate familiarity with basic book-keeping skills, and the preparation of accounts for sole traders and companies.
Demonstrate an understanding of financial accounting concepts, conventions, theory and practice.
Classify, estimate and allocate costs and overheads, and explain the relationships between cost, volume and profit.
Understand how budgets are used for planning and control.
Explain and apply appropriate models for security valuation and investment appraisal.
Describe, explain and illustrate the motives for merger and acquisition, and evaluate the possible benefits and costs.
Brief description
In the field of financial accounting, this module examines topics such as cash flow, inventory, and partnership accounting, and introduces financial accounting computer software. In management accounting, there is coverage of accounting for overheads, Cost Volume Profit Analysis, and the use of accounting data for decision making. In finance, the module examines valuation techniques, investment appraisal, and merger and acquisition.
Content
FINANCIAL ACCOUNTING
Double Entry Bookkeeping and Financial Statements
• Theory and practice of double-entry bookkeeping
• Accounting transactions
• Accounting adjustments
• T-account representation
• Trial balance
• Producing Financial Statements
Cash Flow
• Indirect and Direct Method
• Producing a cash flow statement
Case Study – ‘Accounting for a firm’
• Invoices and transactions
• Cash book
• Sales and purchase ledger and fixed asset register
• Journal entries
• Producing a trial balance and financial statements
SAGE
• Introduction to SAGE accounting software
• Recording transactions
• Producing financial statements
Partnership accounting
• Introduction of partnerships
• Profit sharing ratios
• Current and capital accounts
• Changes in partnership arrangements
• Preparing financial statements
Inventories
• What is inventory?
• Valuation of inventory – FIFO, LIFO and weighted average
MANAGEMENT ACCOUNTING
Overhead Absorption Rates
• Cost assignment , tracing and allocation
• Traditional costing systems
• Activity based costing (ABC)
• Absorption Costs vs Marginal Costs
Cost Volume Profit (CVP) Analysis
• Computations involving CVP and Break Even Point
• CVP Charts
• Margin of safety
• Multiple products analysis
• Limitations
Decision Making Techniques
• Special selling price decisions
• Outsourcing (make or buy) decisions
• Product-mix decisions
• Discontinuation decisions
• Normal pricing decisions
FINANCE
Bond and Security Valuation
• Valuation of financial instruments
• Valuation of bonds (perpetual, zero-coupon, coupon bonds with maturity)
• Valuation of shares (preference and ordinary)
Investment Appraisal
• The investment decision making process
• Methods of investment appraisal
• Non-discounted cash flow and discounted methods
• Issues in calculating and applying on investment appraisal techniques
Mergers and Acquisitions
• Factors contributing to M&A
• Specific motives for M&A
• Financing M&A
• Benefits of M&A
• Failures of M&A
• Defensive measures
Double Entry Bookkeeping and Financial Statements
• Theory and practice of double-entry bookkeeping
• Accounting transactions
• Accounting adjustments
• T-account representation
• Trial balance
• Producing Financial Statements
Cash Flow
• Indirect and Direct Method
• Producing a cash flow statement
Case Study – ‘Accounting for a firm’
• Invoices and transactions
• Cash book
• Sales and purchase ledger and fixed asset register
• Journal entries
• Producing a trial balance and financial statements
SAGE
• Introduction to SAGE accounting software
• Recording transactions
• Producing financial statements
Partnership accounting
• Introduction of partnerships
• Profit sharing ratios
• Current and capital accounts
• Changes in partnership arrangements
• Preparing financial statements
Inventories
• What is inventory?
• Valuation of inventory – FIFO, LIFO and weighted average
MANAGEMENT ACCOUNTING
Overhead Absorption Rates
• Cost assignment , tracing and allocation
• Traditional costing systems
• Activity based costing (ABC)
• Absorption Costs vs Marginal Costs
Cost Volume Profit (CVP) Analysis
• Computations involving CVP and Break Even Point
• CVP Charts
• Margin of safety
• Multiple products analysis
• Limitations
Decision Making Techniques
• Special selling price decisions
• Outsourcing (make or buy) decisions
• Product-mix decisions
• Discontinuation decisions
• Normal pricing decisions
FINANCE
Bond and Security Valuation
• Valuation of financial instruments
• Valuation of bonds (perpetual, zero-coupon, coupon bonds with maturity)
• Valuation of shares (preference and ordinary)
Investment Appraisal
• The investment decision making process
• Methods of investment appraisal
• Non-discounted cash flow and discounted methods
• Issues in calculating and applying on investment appraisal techniques
Mergers and Acquisitions
• Factors contributing to M&A
• Specific motives for M&A
• Financing M&A
• Benefits of M&A
• Failures of M&A
• Defensive measures
Module Skills
| Skills Type | Skills details |
|---|---|
| Application of Number | • Develop an easy familiarity with numerical data sources and numerical data • Apply numerical data to problem solving and decision making with care and accuracy • Assess the reasonableness of and interpret numerical solutions • Support assertions/arguments with appropriately developed and presented numerical data |
| Communication | • Develop confidence in and clarity of oral communication via example class/tutorial participation • Develop clarity and focus of written communication via development of answers to tutorial questions • Develop and use appropriate subject-specific vocabulary in oral and written communication |
| Improving own Learning and Performance | • Identify and distil the key issues covered by lectures and tutorials • Identify and use a range of learning resources • Investigate benefits of small group working on tutorial preparation • Structure study to accommodate intensive learning |
| Information Technology | • Use spreadsheet software (Excel) to complete elements of the tutorial questions (e.g., for ease of tabulated numerical calculations, production of summary statistics, production of graphs, etc.) • Use of accounting software (SAGE) • Use a variety of electronic web- and library-based resources to review available information and retrieve pertinent information |
| Personal Development and Career planning | • Identify a variety of potential career opportunities within the financial and professional services sector • Develop skills in financial analysis and decision making which are essential to the aspiring accountant/graduate |
| Problem solving | • Identify the precise problem to be solved / decision to be made • Assess which costs are relevant, irrelevant, avoidable and unavoidable to the problem / decision |
| Research skills | • Develop basic information accessing and researching skills • Properly reference/attribute information sources • Select the most pertinent information for retrieval • Retrieve information |
| Subject Specific Skills | • Develop competence in understanding and appropriately applying introductory accounting techniques • Identify and use sources of accounting information • Understand, analyse, interpret and synthesize between financial accounting, management accounting and market-based financial information • Make well-based recommendations and decisions • Bring analysis and decision making skills to the service of the business – in strategising, marketing, operating, etc. |
| Team work | Develop experience of team work and develop team working skills via small group working on tutorial preparation |
Notes
This module is at CQFW Level 4