Financial Accounting and Financial Management

Course Overview

This course provides an introductory understanding of the principles of financial accounting and financial management. It is designed for students seeking foundational knowledge in accounting, including the analysis and interpretation of financial statements, cost concepts, budgeting, and the evaluation of financial information for decision-making.

• Course Code: ACYB01

• Credit Points: 6

• Mode of Delivery: Blended learning

• Duration: 13 weeks

• Final Exam: Pass/Fail

Subject Description

The course aims to develop students' ability to understand and apply accounting and financial management principles. Students will learn to interpret financial statements, analyze business information, and use accounting data for organizational decision-making. The course also covers cost concepts, budgeting, and the implications of time value of money in investment decisions.

Program Learning Outcomes (PLO)

• PLO 1: Critically examine accounting theories and practices in the field of Business Analytics.

• PLO 2: Communicate complex disciplinary information and practical insights effectively in both written and oral formats.

• PLO 3: Design independent solutions to business analytics problems.

• PLO 4: Critically analyze and apply principles of ethics, sustainability, and responsible decision making in relevant contexts.

Learning Outcomes

• LO1: Explain the nature of accounting and financial management information and reports that provide information on the performance and financial status of organizations.

• LO2: Analyze and interpret the accounting and business information of various organizations to support decision-making.

• LO3: Demonstrate the application of cost concepts and techniques for planning and control and other decisions in an organization.

• LO4: Examine the implications of the time value of money and long-term investment decisions.

• LO5: Evaluate and analyze the key accounting and financial management issues of an organization, including social and environmental impacts and communication to various audiences.

Subject Schedule

Key Topics and Academic Context

Introduction to Accounting and Financial Management

Accounting is the process of recording, summarizing, and reporting financial transactions to provide useful information for decision-making. Financial management involves planning, organizing, directing, and controlling financial activities such as procurement and utilization of funds.

• Key Point: Accounting provides the foundation for understanding the financial health of an organization.

• Key Point: Financial management uses accounting information to make strategic decisions.

• Example: Preparing a balance sheet to assess a company's assets and liabilities.

Financial Statements and Cash Flow

Financial statements are formal records of the financial activities of an entity. The main financial statements include the balance sheet, income statement, and cash flow statement.

• Key Point: The balance sheet shows the financial position at a specific point in time.

• Key Point: The income statement reports profitability over a period.

• Key Point: The cash flow statement tracks the movement of cash in and out of the business.

• Formula:

• Example: Analyzing cash flow to determine if a company can meet its short-term obligations.

Analysing and Interpreting Financial Statements

Financial statement analysis involves evaluating financial data to assess an organization's performance and financial health. Common techniques include ratio analysis, trend analysis, and comparative analysis.

• Key Point: Ratio analysis helps compare different aspects of financial performance.

• Formula:

• Example: Using the debt-to-equity ratio to assess financial leverage.

Corporate Social Responsibility and Sustainability

Corporate social responsibility (CSR) refers to the ethical obligation of businesses to contribute positively to society and minimize negative impacts. Sustainability in accounting involves reporting on social and environmental performance alongside financial results.

• Key Point: CSR reporting is increasingly important for stakeholders.

• Example: Disclosing carbon emissions in annual reports.

Decision Making

Accounting information supports decision-making by providing relevant financial data. Decision-making techniques include cost-benefit analysis, break-even analysis, and budgeting.

• Key Point: Accurate financial data is essential for effective decision-making.

• Formula:

• Example: Deciding whether to launch a new product based on projected costs and revenues.

Working Capital Management

Working capital management involves managing short-term assets and liabilities to ensure a company can meet its operational needs.

• Key Point: Efficient working capital management improves liquidity and profitability.

• Formula:

• Example: Managing inventory levels to avoid stockouts or excess stock.

Cost Concepts for Products and Services

Cost accounting involves determining the cost of products and services to support pricing, budgeting, and profitability analysis.

• Key Point: Understanding fixed and variable costs is crucial for cost control.

• Formula:

• Example: Calculating the cost per unit for a manufacturing process.

Budgeting

Budgeting is the process of creating a financial plan for a defined period. It helps organizations allocate resources, set goals, and monitor performance.

• Key Point: Budgets are used to forecast revenues, expenses, and cash flows.

• Example: Preparing an annual budget for a department.

Financial Statement Analysis Project

Students are required to analyze the financial statements of a selected company, compare with industry benchmarks, and provide recommendations for stakeholders.

• Key Point: Analysis includes both financial and non-financial data.

• Example: Recommending investment decisions based on financial ratios and market trends.

Assessment Tasks

Supporting Materials

• Required Text: Atrill, P. & McLaney, E.J. (2022). Accounting and Finance for Non-specialists, 13th edition, Pearson Education.

• Recommended Reading: Block, S., Hirt, G. & Danielsen, B. (2023). Foundations of Financial Management, 16th edition, McGraw-Hill.

• Additional Resources: Online articles, videos, podcasts, and the university's Learning Management System (LMS).

Academic Integrity and Policies

• All assignments must be submitted via Turnitin for plagiarism checking.

• Students must adhere to university policies on academic integrity, referencing, and attendance.

• Late submissions incur penalties as per university guidelines.

Sustainability

• Students are encouraged to minimize the use of plastic and synthetic materials in submissions.

• Double-sided printing and minimal use of colored ink are recommended to reduce environmental impact.

Summary Table: Key Accounting Formulas

Additional info: The syllabus also includes university policies on academic integrity, referencing, and sustainability, which are essential for responsible conduct in financial accounting studies.