module specification

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
 
210 hours Assessment Preparation / Delivery
90 hours Scheduled learning & teaching activities
Assessment components
Type Weighting Qualifying mark Description
In-Course Test 15% 35 An in-class test each on Management accounting 1hour and Finance 1hour
Coursework 15% 35 Report, essay or case study 2000-word limit
Unseen Examination 70% 35 3-hour unseen exam on Management accounting and Finance
Running in 2020/21
Period Campus Day Time Module Leader
Year North Friday Afternoon
Year North Friday Morning

Module summary

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.

Syllabus

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.

Learning outcomes

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;

Assessment strategy

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.

Bibliography

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

CORPORATE FINANCE

Essential Reading:

Arnold, G, Corporate Financial Management, 5th edition, 2013, published by Pearson Education, ISBN-13: 9780273758839

Recommended Reading:

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

Ross, S, Westerfield, R & Jaffe, J, Corporate Finance: Core Principles and Applications,
4th edition, 2014, published by McGraw Hill, ISBN-13: 9780077861650

Chew J, The New Corporate Finance, 3rd edition, 1999, published by McGraw Hill,
ISBN-13: 9780072339734

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