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Unit information: Fundamentals of Accounting and Finance 1 in 2016/17

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Unit name Fundamentals of Accounting and Finance 1
Unit code EFIM10005
Credit points 20
Level of study C/4
Teaching block(s) Teaching Block 1 (weeks 1 - 12)
Unit director Mr. Mike Davies
Open unit status Not open
Pre-requisites

A-Level Mathematics grade A (or equivalent)

Co-requisites

None

School/department School of Economics, Finance and Management
Faculty Faculty of Social Sciences and Law

Description

The unit provides a foundation to the fundamentals of financial accounting, management accounting and finance, all of which are required as a basis for more in-depth study of accounting and/or finance-related topics.

The aim is to provide students with a working knowledge of each area that is sufficient for more specialist study of any or all of the three components.

Intended learning outcomes

On completion of the unit students should be able to:

• compare and contrast the various types of business entity and their reporting requirements;

• explain the objective of financial statements and the concepts underlying their preparation, including the accruals concept;

• prepare and explain simple examples for a single entity of a Statement of Financial Position; a Statement of Comprehensive Income; and a Statement of Cash Flows;

• recall, define and explain the elements of financial statements, including specific items such as depreciation, bad debts, interest and dividends paid;

• evaluate the position and performance of a business using ratio analysis and other tools such as SWOT and PEST analyses;

• explain and perform calculations related to cost classification, cost-volume-profit analysis and cost apportionment;

• construct cash and other budgets;

• explain and identify costs that are, and are not, relevant to decision-making;

• carry out investment appraisals using net present value, internal rate of return, payback and accounting rate of return; and understand and describe the relative merits of these approaches

• incorporate expected values and sensitivity analysis into decisions.

Teaching details

20 hours lectures for whole cohort

10 hours of exercise lecture for groups of 50-60 students

10 one-hour classes for groups.

Assessment Details

Summative:

• 100% on 2.5 hour written exam at the end of the relevant teaching block.

Formative:

•Classes: worked exercises

•Exercise Lectures: worked exercises

All learning objectives are assessed by both summative and formative assessment

Reading and References

McLaney, E. and P. Atrill: Accounting, an Introduction, latest edition (Pearson)

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