module specification

AC5006 - Managerial Finance (2019/20)

Module specification Module approved to run in 2019/20
Module title Managerial Finance
Module level Intermediate (05)
Credit rating for module 30
School Guildhall School of Business and Law
Total study hours 300
 
210 hours Guided independent study
90 hours Scheduled learning & teaching activities
Assessment components
Type Weighting Qualifying mark Description
In-Course Test 20% 35 In-class test on aspects of quantitative analysis. 1-hour duration
Coursework 20% 35 One essay requiring independent review and research literature on efficient financial markets 2000-word limit.
Unseen Examination 60% 35 3-hour unseen exam on Management accounting and Finance
Running in 2019/20 No instances running in the year

Module summary

The module is a Level 5 30 credit core designed to introduce students to the basic theory of management accounting and finance and to apply the theory to the selection and management of financial investments.   As a prerequisite, students will be studying quantitative techniques that are essential for management accounting and finance.

Module aims to:

1. reinforce and extend the knowledge and general understanding of the role and application of quantitative methods in accounting and finance contexts
2. develop students’ skills in cost accounting systems, forecasting, planning and   control, decision making and performance measurement and evaluation.
3.  understand the basic theory of finance;
4.  develop the skills of valuing investment instruments;
5.  critically evaluate the conceptual frameworks for pricing securities;
6   undertake a written critical review of contemporary theories in finance

Syllabus

Apply various quantitative techniques such as statistical inference, correlation, linear regression and expected values to areas of accounting and finance. LO1

Students will critically evaluate and apply core decision-making techniques in management accounting to evaluate business performance. LO2

Critically evaluate the application of selected financial models in investment and financing decisions and do a literature review on capital markets efficiency.  LO3

Balance of independent study and scheduled teaching activity

Teaching will take the form of a 1.5-hour lecture and a 1.5-hour seminar programme.

Quantitative Methods
The lecture will be used to introduce new topics and themes in quantitative methods.
The seminars will be computer and class based and will require students to practise what has been learned in the lectures.

Management Accounting and Principles of Finance
The lecture will be used to introduce basic finance concepts and techniques.
The seminar programme will concentrate on problem solving exercises and interpretive skills. Questions will be pre-distributed to allow students to attempt answers in advance of the seminars

Learning outcomes

On completing the module students will be able to :

1.apply a variety of techniques in quantitative analysis to areas of accounting and finance and understand the assumptions and limitations of the techniques that are employed;
• 2. evaluate the nature and problems of costing methods and application of broad  performance measures to business entity.
• 3.  Examine the operation of capital markets and evaluate the various finance models underpinning the market performance for both investments and financial decisions.

Assessment strategy

Formal Assessment will comprise of in-class test (20%), individual coursework (20%) and written examination (60%).
The in-class test will require a demonstration of knowledge and the application of quantitative methods learned.
The individual coursework will require an independent review of research literature in the form of an essay.
The written examination will be a 3-hour closed book assessment. The examination questions will have a focus on specific sections of the syllabus but may cover more than one topic.
The management accounting and finance exam paper, by its very nature, consists predominantly of numerical questions which often require lengthy calculations. The duration of three hours for the examination is, therefore, justified in attempting to minimise students’ anxiety about time constraint and, thereby, enhance their chances of successfully completing the assessment.

Bibliography

QUANTITATIVE METHODS

Recommended Reading:
Oakshott L, Essential Quantitative Methods (Palgrave Business Briefing), 6th edition, 2016, published by Palgrave Macmillan, ISBN-13: 9781137518852
Swift L and Piff S, Quantitative Methods for Business, Management and Finance , 4th edition, 2014, published by Palgrave Macmillan, ISBN-13: 9781137376558

MANAGEMENT ACCOUNTING

Essential Reading:

Drury C, Management and Cost Accounting , 10th edition, 2018, published by Cengage Learning, ISBN-13: 9781473748873

Recommended Reading:
Arnold, J & Turley, S, Accounting for Management Decisions, 3rd edition, 1996, published by Pearson Education, ISBN-13: 9780133088182

PRINCIPLES OF FINANCE

Essential Reading:
Pilbeam K, Finance and Financial Markets, 3rd edition, 2010, published by Palgrave Macmillan, ISBN-13: 9780230233218

Recommended Reading:

Brealey, R, Myers, S & Allen, F, Principles of Corporate Finance, 12th edition, 2016, published by McGraw Hill, ISBN-13: 9781259144387

Elton, E, Gruber M, Brown S and Goetzmann W, Modern Portfolio Theory and Investment Analysis, 9th edition, 2014, published by John Wiley, ISBN-13: 9781118469941

Bailey R, The Economics of Financial Markets, 1st edition, 2005, published by Cambridge University Press, ISBN-13: 9780521612802

Journals: 

Library Journal Databases :  Academic Search Complete, Business Source Ultimate, Emerald Management, Science Direct

Websites:

Financial Reporting Council                   www.frc.org.uk
ICAEW                                                   www.icaew.com
ACCA                                                     www.accaglobal.com
ICAEW online journal                             www.accountancymagazine.com
Accountancy Age                                   www.accountanyage.com
Financial Times                                            www.ft.com


Electronic Databases:  FAME