Accounting for management BA1020
This module provides an introduction to accounting. The module includes material on financial reporting, management accounting and finance.
It is suitable for two types of student:
- those who expect to become managers and who will therefore need to use accounting reports for decision-making
- those who intend to specialise in accounting later.
Topics covered
- Provides an introduction to the subject of accounting. The topic also explains that accounting is split into two distinct areas: financial and management accounting.
- Examines the main types of financial statements presented.
- Builds on our study of the basics of financial statements.
- Looks at the definition and measurement of liabilities.
- Studies the different types of income and expenses, and how they are presented in income statements.
- Examines the recording of transactions by double entry book-keeping.
- Cash flow statements, as prepared under IFRS.
- Rules on how to do accounting.
- Contents of an-nual reports, at the purpose of the audit report, and at the types of financial statements provided by companies.
- Interpreting balance sheets and income statements in a comparative way.
- How to choose between various possible courses of action, and how to make decisions when some inputs (e.g. specialised labour) is in restricted supply.
- Budgeting and master budgets.
- The system of standard costing.
- Spending on capital projects.
- Net present value and internal rate of return.
Learning outcomes
- Research accounting information using the library and company web pages
- Explain the importance of accounting information to business and society
- Prepare and explain the significance of the Profit and Loss Account, Balance Sheet and Cash Flow Statement
- Interpret financial accounting information - using ratio analysis
- Understand management accounting as a tool for planning, decision-making and control
- Describe the behaviour of costs
- Understand the relationships between costs, volume and profit
- Prepare budgets and construct a cash flow forecast
- Explain the management of working capital
- Demonstrate an ability to understand the fact that accounting information is constructed within variable social and institutional conditions
Assessment
This module is assessed by a three hour unseen written examination.
Essential reading
The following is provided as part of the course materials after you register:
- Accounting: an Introduction (McLaney & Atrill)
- Financial Accounting: An International Introduction (Alexander & Nobes)