module specification

The module introduces you to financial decision making principles and financial analysis of business performance with examples from Events, Leisure, Tourism, Culture and the broader Creative Industries sector.

The module starts by looking at the role of financial statements in a business and explores how they capture the value of a business.  You will develop an overview understanding of fundamental accounting/finance concepts and principles and techniques in relation to financial statements analysis. You will also explore issues of management accounting techniques and examine their use in financial management decision making.  You will also discover the key sources of finance for business and understand how to determine the most appropriate financing strategy for a business.

Finally, you will explore links between finance, corporate governance, strategic financial decision making, company value and transactions, using different cases in the context of Events, Leisure, Tourism, Culture and the broader Creative Industries, to illuminate understanding.

Aims of the module:
1. To enable students to develop an overview understanding of financial decision making principles through examples from Events, Leisure, Tourism, Culture and the broader Creative Industries sector.
2. To enable students to critically understand the value and usefulness of financial statements; by focusing on fundamental concepts, principles and techniques in relation to financial statements analysis, through the application of appropriate examples, tools and procedures.
3. To identify issues of financial management and accounting techniques, and how results from such analysis may support the development, measurement and management of decision-making in the context of Events, Leisure, Tourism, Culture and the broader Creative Industries sector.
4. To identify and evaluate links between accounting, financial statement analysis, corporate accounts and financial management strategies, in the context of Events, Leisure, Tourism, Culture and the broader Creative Industries.

No pre-requisites; available for Study Abroad: YES

1. Introduction to accounting and finance, the difference between financial reporting and management accounting and the uses and users of financial information.
2. Understanding the structure and purpose of financial statements, how transactions are recorded and the purpose of business (shareholder and stakeholder theories).
3. The importance of cash management in business. 
4. Introduction to company issues, including agency theory and corporate governance.
5. Qualitative analysis of financial performance; trend analysis and use of, and limitations of, financial ratios. Interpretation of qualitative measures.
6. Understanding cost types and cost behaviour. Contribution analysis, ROI, break-even, CVP analysis. Application of metrics for effective planning, e.g. cost per acquisition, customer lifetime value, sales volume, growth analysis. Industry specific analytics.
7. Preparation of budgets and forecasts.  Full costing and Activity Based Costing and impact on pricing decisions.
8. Capital investment decision making, including cash flow forecasts, time value of money and financial decision making models (NPV, ARR, IRR and Payback Period)
9. Cost of capital, sources of finance and associated costs/benefits, and related issues. Operation of the stock market.
10. Managing working capital. Determining appropriate levels of working capital and understanding the cash cycle of a business
11. Principles of valuation of a business, introduction to mergers and acquisitions and distributions.
12. Principles of taxation of businesses and individuals; taxation of employment and self-employment, including international examples.
13. Introduction to charity accounting and tax issues.

The learning and teaching strategy for this module involves an approach using a variety of teaching and learning tools, such as blended learning (via the use of VLE), experiential learning, students’ responsibilities and opportunities for reflective learning, professional and personal development, and the like.

The module will be delivered over a 12 week period consisting of 3 hours of face-to-face contact each week. Key principles, theories, models and concepts of accounting and finance will be introduced via the use of seminars, tutorials, case study analysis, question and answer sessions, group discussions, group work and student-led activities (such as reflective peer-discussions), and so forth.

Teaching materials will be accessible via our VLE (WebLearn). Students should individually and/or in their respective teams, prepare for all sessions and assignments in advance of each session. Students will be supported on key issues in relation to preparation for class activities, case studies analysis and group work. Students will be responsible for initiating requests for help to ensure they complete timely all pre-sessional and follow-up activities and reading.

The module draws on a wide-range of academic research and professional examples. It introduces core concepts and encourages students to develop a critical, analytical approach to problem solving professional issues, related to Finance concepts in the Events, Leisure, Tourism, Culture and the broader Creative Industries sector. Students will have the opportunity to develop an awareness of different theoretical and practical angles so that the complexity of accounting and finance issues and work is explored as rigorously as possible.

To ensure a positive and productive student learning experience the programme blends class-based workshops, seminars and case-study group work with self-directed learning, VLE activities (including reflective commentary) and presentations. Classroom sessions will be supported by web-based materials and recommended pre and follow-up-readings. Internal and external guest speakers will be involved in delivering content, where possible and appropriate, to enable students to obtain a greater overall understanding of the role of Accounting and Finance in Events, Leisure, Tourism, Culture and the broader Creative Industries sector.

Students will be required to prepare for all activities that they need to undertake to support their learning and the module sessions. They should also engage in additional individual academic and practitioner-based research, learning and reading, including for example, independent research through academic journals and other university resources.

Digital literacy development
The learning, teaching and assessment strategy for this module will enable students to develop their capabilities in digital literacy and information handling appropriate to professional/master’s level study as outlined in the Open University Digital and Information Literacy Framework (DILF: available to view at

https://www.open.ac.uk/libraryservices/pages/dilframework/)

1. Critically understand, evaluate and apply accounting and finance principles through selected relevant examples.
2. Interrogate and interpret business performance and financial position using financial statement analysis, and researching annual reports, company announcements, financial databases and media and other information sources.
3. Demonstrate an understanding and use of the appropriate analytical techniques to be applied to decision making involving the raising of finance, the use of funds for investment projects and the distribution of funds to investors. Use quantitative models and independent judgement to analyse financial decisions and recommend feasible options that managers can implement.
4. Communicate financial information, analysis and issues clearly and concisely.  Critically understand, identify and evaluate how financial management strategies may support the development, measurement and management of decision making in the context of Events, Leisure, Tourism, Culture and the broader Creative Industries sector.

This module will be assessed through two assessment components.

A group report (in small groups no more than 3 students) of 2,500 words, which will illustrate the understanding, evaluation and application of finance principles, in the context of Events, Leisure, Tourism, Culture and the broader Creative Industries sector. This should cover the value and usefulness of accounting and financial statements, fundamental accounting and finance concepts, principles and techniques in relation to financial statements analysis. It should also demonstrate the ability to use and critically explain appropriate examples, tools and procedures. [Assesses LO1, LO2, LO4].

A two-hour in-class test will assess student ability to critically understand and apply accounting and finance concepts, models and techniques, and appreciate how results from such analysis may support strategic management decision making in the broader Creative Industries sector. [Assesses LO3, LO4].

Formative feedback will be through submission of an outline (in week 4) and a draft (in week 6), which identifies components and issues (also based on the relevant academic literature), before having to plan, research, write and submit their final group report. Short feedback will be available within a week, thus enabling the identification of further learning needs and seeking clarifications in advance of the submission of the report in week 9.

Textbooks:

Core Textbooks:

Atrill, P. and McLaney, E. (2019) Accounting and Finance for Non-Specialists, 11th Edition, Harlow: Pearson Education Limited.

O'Donoghue, D. (2014) Financial Accounting for the Hospitality, Tourism, Leisure and Event Sectors, Orpen Press. 

Other Literature:

Brealey, R. A., Myers, S. C. and Allen, F. (2020) Principles of Corporate Finance, 13th Edition, McGraw Hill Education.

Black, G. (2016) Introduction to Accounting and Finance, 2nd Edition, Harlow: Pearson Education Limited.

Bamber, M. and Parry, S. (2014) Accounting and Finance for Managers, London, UK: Kogan Page Limited.

Atkinson, H., Jones, T., Lorenz, A. and Harris, P. (2012) Strategic Managerial Accounting: Hospitality, Tourism & Events Applications, 6th Edition, Goodfellow Publishers.

Chadwick, L. (2002) Essential Finance and Accounting for Managers, Harlow: Pearson Education Limited.

DeMello, J (2018) Cases in Finance, 3rd Edition, Maidenhead: McGraw-Hill.

Drury, C. (2018) Management and Cost Accounting, 10th Edition, Andover: Cengage Learning.

Grossman, T. and Livingstone, J. L. (2009) The Portable MBA in Finance and Accounting, 4th Edition, New Jersey: Wiley and Sons.

Koller, T., Goedhart, M. and Wessels, D. (2015) Valuation: Measuring and Managing the Value of Companies, 6th Edition, Hoboken: John Wiley & Sons.

McLaney, E. and Atrill, P. (2019) Accounting and Finance: An Introduction, 9th Edition, Harlow: Pearson Education Limited.

Palepu, K G, Healey, P. M and Bernard, V. L. (2013) Business Analysis and Valuation: Using Financial Statements, Text and Cases, Cengage Learning.

Journals:
Administrative Science Quarterly
Accounting and Business Research
Accounting, Auditing and Accountability Journal
British Accounting Review
CMA Management
Corporate Finance
European Financial Management
Financial Accountability and Management
Harvard Management Review
Harvard Business Review
International Small Business Journal
Journal of Applied Corporate Finance
Journal of Management Studies
Management Accounting Research
Review of Financial Studies
The European Accounting Review
The McKinsey Quarterly
The Treasurer

Websites:
The Economist: https://www.economist.com/
Financial Times: http://www.ft.com
Wall street Journal: https://www.wsj.com/europe

Other resources:
Chartered Institute of Management Accountants: https://www.cimaglobal.com/
Institute of Chartered Accountants in England and Wales: https://www.icaew.com/
Association of Chartered Certified Accountants: https://www.accaglobal.com/uk/en.html
Chartered Institute of Public Finance and Accountancy: https://www.cipfa.org/
Institute of Financial Accountants: https://www.ifa.org.uk/
Financial Conduct Authority: https://www.fca.org.uk/
Bank of England Quarterly Bulletin: https://www.bankofengland.co.uk/quarterly-bulletin/quarterly-bulletins
As available via the university Library Services and the SCONUL Access Scheme