| CODE | ACC5008 | |||||||||
| TITLE | Managerial Accounting and Finance | |||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | |||||||||
| MQF LEVEL | Not Applicable | |||||||||
| ECTS CREDITS | 5 | |||||||||
| DEPARTMENT | Accountancy | |||||||||
| DESCRIPTION | This study-unit will cover three related areas of financial accounting and reporting, management accounting and financial management as follows: As to the financial accounting and reporting part, the background to the regulatory framework applicable in Malta including GAPSE; the IASB Conceptual Framework for presentation and preparation of Financial Statements, the directors’ duty to account and the structure and content of financial statements; financial analysis tools , including the identification and inter-relationships of the components of an annual report, namely, management commentary, directors’ report, corporate governance report, independent auditors report, principal financial statements and notes to the accounts;review of the presentation of published financial statements including recent amendments passed by the IASB.; the measuring and reporting of cash flows. As to the management accounting part, the measurement of relevant costs and revenues for decision-making; activity-based costing: an alternative approach to full (absorption) costing; decision-making under conditions of risk and uncertainty; the budgeting process, this including the interrelationship and interlinking of individual budgets , the preparation of functional budgets for a typical manufacturing business, cash budgeting and master budgeting, the behavioural aspects of budgeting and beyond conventional budgeting; standard costing including this as a management control system, variance analysis. interpretation of variances and some problems related thereto, reconciliation of budgeted and actual profits for a standard variable costing system. As to the part financial management , investment appraisal techniques, including their strengths and limitations: payback period, net present value, accounting and internal rate of return, the profitability index, project appraisal applications such as capital rationing, ranking mutually exclusive projects, incremental cash flow analysis, replacement decisions,as well as the inclusion of inflation and taxation,investment strategy and process, post-audit reviews; enterprise value and equity value: net asset value, earnings-based valuation methods, discounted cash flow approach including free cash flow, shareholder value analysis. Study-unit Aims: The aims of this study-unit are to build on the foundations of the three basic areas of accountancy: - in financial accounting and reporting, by introducing financial accounting concepts, GAPSE or its international counterpart as well the analysis of annual corporate reports including cash flow statements; - in management accounting, here including decision theory, activity-based costing , budgeting and standard costing; - in financial management, here going beyond elements of financial theory towards more varied investment applications and process, strategy and valuation. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: Explain the basic provisions of GAPSE in related corporate entities, explain the process of interpreting simpler corporate financial reports; List the stages in the short-term budgeting process , describe the types of budgets, the standard costing system and its variances, as well as the activity-based costing approach, Compare different appraisal techniques, and distinguish different valuation methods. 2. Skills: By the end of the study-unit the student will be able to: Trace and discuss the financial performance and position of simpler corporate entities using interpretation techniques; Carry out short-term management accounting decisions under conditions of risk and uncertainty; Effect project appraisal applications under conditions of inflation and taxation, employ different methods to propose corporate valuations. Main Text/s and any supplementary readings: Main Texts Pike R and Neale B. Corporate Finance and Investment Decisions and Strategies. Prentice Hall, 2009* Norton,C.L. & Porter,G.A Introduction to Financial Accounting-2nd ed, Cengage Learning, South Western, 2008*, ISBN: 10:0-324-65874-5 Drury Colin, Management Accounting For Business, 4th edition, South-Western Cengage Learning, 2009* ISBN: 978-1-4080-1771-5 Additional Reading Reeve,J.M., Warren,C.S. & Duchac, J.E.(2007) Principles of Financial Accounting-10th edt, Southwestern, ISBN: 0-324-36608-6 J.C.Van Horne & J.M. Wachowicz- Fundamentals of Financial Management (Prentice-Hall) ISBN 978- 0273071363-0 * Used also in related study units , with new areas here being referred to. |
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| ADDITIONAL NOTES | Pre-requisite qualification: ACC4008 or equivalent | |||||||||
| STUDY-UNIT TYPE | Lecture | |||||||||
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| LECTURER/S | Peter J. Baldacchino Ivan Paul Grixti George M. Vella |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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