AC6007 - Financial Management (2020/21)
|Module specification||Module approved to run in 2020/21|
|Module title||Financial Management|
|Module level||Honours (06)|
|Credit rating for module||30|
|School||Guildhall School of Business and Law|
|Total study hours||300|
|Running in 2020/21||
The module is a Level 6 30 credit core module which is concerned with the strategic, long-run decisions facing the firm. Specifically it deals with the Income Statement, in terms of revenue earning and cost reducing, and the Statement of Financial Position, in terms of raising finance and capital investment.
It therefore focuses on the strategic aspects of management accounting and will explore and critically
evaluate management accounting techniques encountered in previous management accounting modules as well as developing students’ knowledge and critical understanding of the theoretical models, analytical methods and practical aspects of corporate financial decision making in a competitive business environment and a dynamic capital market.
Module aims :
1. 1. To apply knowledge, understanding and skills from a strategic standpoint and thereby providing an appropriate foundation for higher studies.
2. 2. To evaluate financial and non-financial evidence including arguments and assumptions in order to reach objective conclusions.
3. 3. To develop students’ knowledge and critical understanding of the theoretical models, analytical methods and practical aspects of financial decision making and management accounting in competitive business environments and dynamic capital markets.
4. 4. To display the accountant’s need to remain innovative and play a pivotal part in the management of change in organisations, which is increasingly becoming a corporate requirement. It also encourages accountants to remind themselves of their ethical and social responsibilities; this is apposite in the light of the continuing series of corporate scandals that has often implicated accountants.
Students will be able to apply decision-making tools and recommend strategies for the management of the financial resources of organisations in the efficient and effective way. LO1
To evaluate the potential economic value added to an organisation using advanced investment appraisal techniques, incorporating inflation, taxation and probabilities. LO2
Students will be able to examine and critically analyse the various sources of finance, appropriate financial strategies and risk management techniques in a complex business environment. 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.
The lecture will be used to explain the key issues of the topics and themes in management accounting and corporate finance.
The seminar programme will concentrate on problem-solving exercises and analyses of relevant cases. Questions will be pre-distributed to allow students to attempt answers in advance of the seminar.
On completing the module students will be able to :
1. 1. analyse and critically evaluating relevant literature that provides the conceptual underpinnings of corporate financial decision making demonstrate a critical awareness of how corporate strategies provide the basis for determining appropriate financial strategies, costing, pricing and policies for a company;
2. 2. use quantitative models and independent judgement to analyse financial decisions and recommend feasible options that managers can implement, thereby appreciating the role of the accountant in capital investment decisions and strategic planning process;
3. 3. apply theoretical concepts and relevant empirical evidence to justify, recommend and defend appropriate, financing, dividend policies, and other management accounting solutions for firms in different industries, types of organisational situations and problems, and at different stages of their life cycle;
Formal Assessment will comprise of individual coursework (15%), in-class tests (15%) and written examination (70%).
The coursework will require a demonstration of ability to evaluate capital investment proposal and critically assess a firm’s business success factors.
The in-class tests will examine students’ continuing engagement with the course material in management accounting and corporate finance.
The written examination will be a 3-hour closed book assessment. The examination questions will test students’ knowledge and understanding of the subject matter of management accounting and corporate finance, as well as the cognitive skills of analysis, synthesis and evaluation.
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Arnold, J & Turley, S, Accounting for Management Decisions, 3rd edition, 1996, published by Pearson Education, ISBN-13: 9780133088182
Arnold, G, Corporate Financial Management, 5th edition, 2013, published by Pearson Education, ISBN-13: 9780273758839
Pike, R, Neale, B & Linsley, P, Corporate Finance and Investment: Decisions and Strategies, 8th edition, 2015, published by Pearson Education, ISBN-13: 9781292064062
Brealey, R, Myers, S & Allen, F, Principles of Corporate Finance, 12th edition, 2016, published by McGraw Hill, ISBN-13: 9781259144387
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Library Journal Databases : Academic Search Complete, Business Source Ultimate, Emerald Management, Science Direct
Financial Reporting Council www.frc.org.uk
ICAEW online journal www.accountancymagazine.com
Accountancy Age www.accountanyage.com
Financial Times www.ft.com
Electronic Databases: FAME