MBA YSJL

MBB7008M: ACCOUNTING AND

FINANCE FOR DECISION MAKING

Lecture 0: Introduction to Accounting

and Finance for Decision Making

Module Director(s): Dr Ovinda

Wijeyaratne
Lecturer(s): Dr Florence Barugahara
Dr Chai Stephanie
Dr Ghulam Mujtaba
#WeAreYSJ

@YorkStJohn

@YorkStJohnUniversity
 Objectives

1. Explain the requirements of the

course including:
• Module Introduction,
• The assessments,
• Using Moodle
• And the resources to support you through this
course
• Introducing Accounting and Finance

2. State the learning outcomes which

will be covered
Introductions and Ice-breaker

Lecturer introductions
Accounting and
Finance looks
interesting but
complicated

TEACHING TEAM
 Course Delivery
The understanding and study of accounting and finance in contemporary society requires to
accumulate and report on financial information about the performance, financial position,
and cash flows of a business.

The course will be delivered each week as follows:

1. Lecture (1.5hrs) – Large group

2. Seminar in smaller groups (2hrs) - This gives an opportunity for greater interaction
and feedback and assessment support.

Please attend and engage in both the lectures and seminars

 Learning Objective
We have four learning outcomes on this module, Accounting and Finance for Decision
Making. The course and the assessments have been designed to ensure that they have been
met.
They are as follows:
• LO.1 Master the various aspects of financial analysis;

• LO.2 Be able to determine the value, value creation and investment decisions of a firm;

• LO.3 Apply risk management techniques in a business to hedge risky projects;

• LO.4 Have an overall appreciation of the application of financial management theories to practice.
 Reading

•Can also view: Atrill and

McLaney 10th Ed or 9th Ed
•Books are available to read
online from our
Moodle Reading Link

03/26/2024 © O.wijeyaratne
 Course Schedule
W/C Week Lecture Key Dates

04/03/24 1 0 – Introduction to Accounting and Finance for Decision Making (this session (1.5 hours)
1 - Introduction to the Financial Statements

11/03/24 2 Financial Ratios- Profitability, Liquidity, Efficiency, Solvency and Investment Ratios
18/03/24 3 Non- Financial Information
25/03/24 4 Easter Break
01/04/24 5 Easter Break
08/04/24 6 Cash vs Profit, and introduction to the Accounting concepts 11/04/24
15/04/24 7 Investment Appraisal 1- Payback Period and ARR
22/04/24 8 Investment Appraisal 2- NPV and IRR
29/04/24 9 Sensitivity Analysis
06/05/24 10 Balance Scorecard
13/05/24 11 Foreign Exchange Risk and Dividend Policy
20/05/24 12 Assessment Support 30/05/24
 Assessments!!!

Assessments!!!!!
 Understanding Accounting
& Finance is a battle

Assessments
The assessment briefs are available on Moodle, and we will have
activities in the seminars to support you with your assessments.

There are two separate assessments both are individual, and they
are not connected to each other.
Assessment (include expected word length for written work and duration for examinations)

Type Description Weighting

Individual Report Business Report based on ratio analysis- Individual Report 1,750 words 50%

Individual Report Business Report based on case study Individual Report 1,750 words 50%
Business Report
Assessment •The show allows several entrepreneurs an opportunity to present their
varying business ideas (project) to a panel of five wealthy investors, the
Whether to invest "Dragons" of the show's title, and pitch for financial investment while offering
in a project or a stake of the company in return.

not?
 Your opportunity to
convenience potential
investors whether to
invest in a company
Moodle!!!
Module Handbook
Reading List
Resources to help
Conquered
Accounting
and Finance

On Moodle on the top menu under Student there are menu items for digital
training and study development.

Digital training
Can support you with the development of the recording of the presentation for
assessment 1.
The Digital Training Team provides support, teaching and training to staff and
students in most of the software and systems that are used day-to-day at the
University.

Study development
Is where you can access our study support services and resources. This could
include help on academic writing. They also include support on finding,
evaluating, and referencing resources and language skills.
Reading List
The reading list is available in Module Handbook
 Introduction to
Accounting and Finance
 Content/theories
Overview of the module
Working capital Investment
management Appraisal Economy
Depreciation
Solvency
Source of finance
Liquidity
Cash Movement

Price Profitability

Accruals

Income Statement
Balance Sheet
Cash Flow Statement
Investors
What is
Accounting?
• Accounting is concerned with
recording, analysing and
communicating financial
information.
• Much of the data is quantitative
• Is a basis for both decision
making and control purposes
Types of Accounting

Financial Management
Accounting Accounting
• The Income Statement
– (Profit and Loss Account) • Budgets (planning and controlling)
The financial
• The Balance Sheet statements • Cash flow forecasts
– (Statement of Financial Position) • Costing
• The Cash Flow Statement
• Pricing
• Plus:
• Decision making
– Auditors’ report
– Directors’ report • Capital project appraisals
– Notes to the accounts
– Environmental statement
Characteristics of Financial Information

Financial Management Accounting

Accounting

Level of detail Aggregated – high level Detailed

Regulations Yes No
Audience External Internal
Reporting interval Annual Whenever
Time orientation Historical Historic and future
Scope of information Financial Financial and non-financial
Quality of information Objective, auditable Subjective, assumption based
Accounting and Finance
Accounting
• Recording
• Summarising
• Reporting
• Financial information
• For decision making purposes

Finance
• Also, for decision making purposes
• Raise and invest funds
Main users of financial
information relating to a Owners Customers Competitors
business

Employees
Managers and their
representatives

Business

Lenders Government

Investment Community
Suppliers analysis representatives
JJB Sports goes into administration

JJB Sports collapses as Sports

At its height in 2007, shares in JJB traded Direct acquires 20 shops (1 Oct
for £25 each, having failed to find a buyer, 2012)
they are worth less than a penny on 27 Sep
2012

133 shop closures and 2,200 job

JJB chief Keith Jones steps
losses (1 Oct 2012)
down with immediate effect (27
July 2012)

owed £46m to lenders (9 Nov JJB Sports sale hit by HMRC

2012) tax investigation
(27 Sep 2012)

£30m to product
suppliers
(9 Nov 2012)
Business Financial Information
Debenhams to close all stores with 12,000 jobs at risk as Boohoo buys
brand—The Guardian

2019, Delisted from

stock market

2020, Liquidation

https://www.dailymail.co.uk/news/article-9005503/Debenhams-Looking-doors-close-final-time-242-year-history.html
 Conclusion of objectives

1. Explained the requirements of the course

including:
• Module Introduction,
• The assessments,
• Using Moodle
• And the resources to support you through this course
• Introducing Accounting and Finance.

2. Stated the learning outcomes which will be

covered
 Next steps

• Have a look and read through the main sections of the

recommended reading.

• This week Seminar: None

• Friday Lecture (08/03/24): Introduction to Financial

Statements