This module provides an introduction to the theory and practice of financial accounting and reporting, management accounting and finance. Both commercial and not-for-profit organisations will be considered. The content of the module is aimed primarily at managers and not accountants.
Financial reporting is the process of presenting financial (and other) information to a range of stakeholders in order to ensure appropriate accountability and stewardship. We will be examining the process of preparing the financial statements, and how profits may be manipulated from year to year, by judicious discretionary choice of accounting estimates, methods and disclosure. The differences between income smoothing, creative accounting and fraud will be highlighted, particularly in the light of recent accounting scandals (Enron, WorldCom, etc.). Students will be encouraged to consider the need for integrity and corporate governance in financial accounting and reporting, and the potential limitations of regulations and standards.
Management accounting is concerned with the preparation and presentation of accounting information to aid managers in their jobs of planning, decision making and control. New and traditional management accounting techniques are analysed in the context of a changing management context with its emphasis on strategy, sustainability and performance metrics. The use of budgeting as both a planning and control device is discussed, and the implications on motivation and efficiency considered. The concept of employee empowerment is introduced within the context of the Beyond Budgeting movement.
The finance section emphasises two of the major financial decisions, the investment decision and the financing decision - where the money comes from and how it is best used within the organisation.
To develop managers' understanding of (a) the theory and practice of external financial reporting by business organisations including the analysis and limitations of published financial reports, (b) the methods and limitations of costing and budgetary planning, (c) the principal theories of capital value and related investment decision-making.




