NBS8122 : Accounting and Finance
- Offered for Year: 2019/20
- Module Leader(s): Dr Aly Salama
- Lecturer: Dr Simon Parry
- Owning School: Newcastle University Business School
- Teaching Location: Newcastle City Campus
|Semester 1 Credit Value:||10|
A fundamental part of successfully running a business is looking after its accounting statements and finances. Corporate finance is concerned with the efficient and effective management of the finances of an organisation in order to achieve its objectives. This involves raising (Financing Decisions), allocating (Investment Decisions) and controlling the resources (e.g. dividend decisions against retaining and reinvesting earnings). The primary objective of corporate managers is to create value with a view to maximising shareholders’ wealth, and that in this process; financial managers are entrusted with making various decisions. Managers should have a clear understanding of the essential aspects of financial and management accounting and principles and practices of modern finance to be effective in their jobs. Concepts, techniques for evaluating investment opportunities, and methods of strategic financial decision-making issues facing managers are the key factors that contribute to any business success.
The aim of this module is, therefore, to provide students with a critical appreciation of the financial tools of business management, in particular, the techniques of financial statement analysis and investment appraisal. In addition, it provides a critical evaluation of the factors affecting the financing mix of a firm and of the financial markets in which firms operate and gives insight into topical issues in the area.
• To enable students to understand the fundamental concepts of accounting, corporate annual report and the
importance of financial information,
• To enable students to understand the legal and regulatory structure of published financial statements, where to
look for information, and how to analyse and interpret financial statements,
• To enable students to evaluate a company’s financial condition from its published accounts, and
• To evaluate contemporary areas of reporting (e.g. social and environmental reporting).
• To enable students to understand the role that management accounting information plays in planning, control and
decision making in organisations.
• To enable students to understand the factors underlying the design and operation of management accounting
• To enable students to understand the principles of finance and its importance to organisations, and
• To understand and evaluate investment appraisal techniques.
Outline Of Syllabus
1) The structure and content of annual reports
2) Financial accounting statements
3) Financial statement analysis
4) Introduction to social and environmental reporting
5) Cost behaviour–fixed and variable costs
6) Cost-volume-profit analysis and information for decision making
7) Working capital management
8) Financial planning and control through budgeting
9) Overview of finance’s main functions and its importance to organizations
10) Introduction to capital markets and market efficiency
11) An overview of investment appraisal methods
12) Dividend policy
13) The cost of capital
|Scheduled Learning And Teaching Activities||Lecture||2||2:00||4:00||1 x revision session for Management and 1 x revision session for Accounting.|
|Guided Independent Study||Assessment preparation and completion||1||19:00||19:00||N/A|
|Scheduled Learning And Teaching Activities||Lecture||9||3:00||27:00||N/A|
|Guided Independent Study||Directed research and reading||1||25:00||25:00||N/A|
|Guided Independent Study||Independent study||1||25:00||25:00||N/A|
Teaching Rationale And Relationship
Lectures are used to introduce, explain and develop appropriate concepts and techniques; they also provide students with the opportunity to apply and develop abilities in an interactive environment involving group work.
The format of resits will be determined by the Board of Examiners
|Written exercise||1||M||50||2,000 words|
|Prob solv exercises||1||M||In-class revision exercises.|
Assessment Rationale And Relationship
50% Written Examination:
The closed book exam provides the means to assess student abilities and knowledge in management accounting and fundamentals of corporate finance.
Overall word limit 2,000 words maximum. The word count should include all the text (plus endnotes and footnotes), but exclude title page, contents page, acknowledgments, diagrams, tables, bibliography, and appendices.
To enable students to obtain, analyse and compare the financial reports and related information of two publicly quoted companies and express their findings in the form of a report to an identified user of accounting information.