Thursday: Financial Accounting Session 1:09.00 - 11.00 Introduction Break 11.00 11.30 Session 2:11.30 13.

3.30 Financial Accounts Lunch 13.30 14.30 Session 3:14.30 16.30 Group Activity Preparation of final a/cs

Friday: Financial Analysis Session 1: 9.00 - 11.00 Company accounts Break 11.00 11.15 Session 2: 11.15 12.00 Financial Analysis Lunch 12.00 13.45 Session 3: 13.45 16.00 Group work Activity Saturday: Management Accounting Session 1: 9.00 - 11.00 Costing: Absorption Break 11.00 11.30 Session 2: 11.30 13.30 Costing: Marginal Lunch 13.30 14.30 Session 3: 14.30 16.30 Break-Even Analysis

Sunday: Budgeting /Investment Appraisal Session 1: 9.00 - 11.00 Budgeting Break 11.00 11.30 Session 2: 11.30 13.30 Group Activity Lunch 13.30 14.30 Session 3: 14.30 16.30 Investment Appraisal Monday: Working Capital & Financing Session 1: 9.00 - 11.00 Working Capital Break 11.00 11.30 Session 2: 11.30 13.30 Sources of Finance Lunch 13.30 14.30 Session 3: 14.30 16.30 Summary & Review

EXAM: 22nd March 2012 Outcomes 2 4 30% of module mark

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Revision Session: TBA Assignment: Outcome 1: Financial Analysis 70% of the module total

Develop ability to use financial information within the business framework Develop awareness of issues in financial reporting and corporate finance

Evaluate the performance of a company using various financial analytical tools (assignment) Analyse different patterns of cost behaviour and apply cost-volume-profit analysis to business decisions (exam) Select and apply relevant investment appraisal techniques (exam) Evaluate divisional performance using both financial and non-financial measures (exam)

Collecting financial information Analysing financial information Communicating financial information All the above needed by people making decisions and plans about the business as well as people who need to control the business

FINANCIAL

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MANAGEMENT
The application of the principles of
accounting and financial management to create, protect, preserve and increase value for the stakeholders of for profit and not for profit enterprises in the public and private sectors (CIMA Definition 2005)

Classification and recording of the monetary transactions of an entity in accordance with established concepts, principles, accounting standards and legal requirements and their presentation, by means of income statements, balance sheets and cash flow statements , during and at the end of an accounting period. (CIMA, Definition 2005)

Historic Holistic view Micro Macro Past Operational view Cost focus re business activity Future Used primarily by external stakeholders Used primarily by managers within the company

MANAGEMENT

FINANCIAL

Concerned with the ways in which funds for a business are raised and invested Identifying the main forms of finance available Analysing the costs/benefits of each form of finance Assessing the risks associated with each form of finance

Main users of financial information relating to a business

Owners

Customers

Competitors

Managers

Employees

Business organisation
Lenders Government

Suppliers

Investment analysts

Community representatives

The characteristics that influence the usefulness of accounting information

Materiality Cost/Benefit

Comparability

Relevance

Characteristics that make financial information useful

Understandability

Reliability

The accounting information system

Information identification

Information recording

Information analysis

Information reporting

MANAGEMENT Accounting meet the needs of managers FINANCIAL Accounting meet the accounting needs of all other users

Financial and Management Accounting

What are the major differences concerning the following? Nature of the reports produced

Level of detail

The existence of regulations

Reporting interval

Time horizon

Range and quality of information

Atrill Peter & McLaney Eddie. Accounting & Finance for Non-Specialists. 5th Edition Essex (UK),FT Prentice Hall, 2006 Dyson John. Accounting for Non-Accounting Students. Essex (UK), FT Prentice Hall, 2007 Brammer Janet, Cox David et al. Active Accounting. Worcester (UK) Osborne Publishing, 2003

Chapter 1 of Accounting & Finance for NonSpecialists (5th edition) Peter Atrill & Eddie McLaney Chapters 1 and 2 of Accounting for NonAccounting Students (7th edition) 2007 FT Prentice Hall John R. Dyson