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Module Guide www.anglia.ac.uk Finance for Decision Making Department: Accounting, Finance & Operations Management Module Code: MOD004051 Level: 7 Academic Year: 2017/8 Semester/Trimester/Session: TRI2 Module Guide Page 1 1. Key information, Introduction to the Module and Learning Outcomes 1.1 Key Information Module title: MOD004051 Finance for Decision Making Module Leader: Dr. Ying Wang Campus / Building / Room: Cambridge/Chelmsford / Lord Ashcroft Building / 3rd floor Extension: 2240 Email:
[email protected] Module Tutor: Dr. Colin Mang, Adrian Quick Email:
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[email protected] External Examiners DAP: Accounting, Finance & Operations Management Every module has a Module Definition Form (MDF) which is the officially validated record of the module. You can access the MDF for this module in three ways via: the Virtual Learning Environment (VLE) the My.Anglia Module Catalogue at www.anglia.ac.uk/modulecatalogue Anglia Ruskin’s module search engine facility at www.anglia.ac.uk/modules All modules delivered by Anglia Ruskin University at its main campuses in the UK and at Associate Colleges throughout the UK and overseas are governed by the Academic Regulations. You can view these at www.anglia.ac.uk/academicregs. An extract of the Academic Regulations, known as the Assessment Regulations, is available at this website too (all new students will have received a printed copy as part of their welcome pack). In the unlikely event of any discrepancy between the Academic Regulations and any other publication, including this module guide, the Academic Regulations, as the definitive document, take precedence over all other publications and will be applied in all cases. 1.2 Introduction to the Module Management decision making is a complex subject involving many variable factors. This module explores the financial element contained in decisions and the techniques that may be used to assist informed management decisions. It is assumed that the student has already acquired a knowledge of financial vocabulary, the mailto:
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[email protected] http://www.anglia.ac.uk/modulecatalogue http://www.anglia.ac.uk/modules http://www.anglia.ac.uk/academicregs Module Guide Page 2 concepts behind basic financial terminology and the financial statements. The module begins by considering the availability of financial information that may be relevant to decision making and how this fits with that needed for the informed decision. This is further developed to the type of decision and differing requirements, leading to a more bespoke deliverable information set that meets the context of the decision. In order to fulfil the requirements identified as necessary for the informed decision the module explores the financial techniques developed by financial and management accountants and how they may be used and applied. Finally consideration is given to the relevance and weighting of the financial element in the decision making process and how qualitative issues may be incorporated in the overall decision. The link to corporate governance best practice is also explored. The module is designed to be contextualised for students from different organisations and sectors, and for it to be delivered to students without practical management experience. One of the main focuses for the design of this module has been the further development of relevant employability and professional skills. Such skills are implicit in the learning outcomes. The module will be assessed by one written assignment, which will encourage students to reflect upon the theory and techniques that underpin financial management practice and to consider how accounting can inform decision making within an organisation. 1.3 Learning Outcomes This module, like all modules at Anglia Ruskin, is taught on the basis of achieving intended learning outcomes. On successful completion of the module, the student will be expected to be able to demonstrate the following: Knowledge and understanding Intellectual, practical, affective and transferable skills LO 1. Explore how financial information is provided and in what form for management decision making LO 2. Select, explain and apply accounting techniques to provide quantitative information for decision making LO 3. Critically assess information within the internal and external context of the required decision LO 4. Critically evaluate the role of financial information in the context of the whole organisation The assessment is based on meeting these learning outcomes, shown explicitly in section 4, where the assessment task is linked to these learning outcomes. Module Guide Page 3 2. Outline Delivery and Reading Lists @ Anglia 2.1 Outline Delivery The table below indicates how the module will be delivered. However, this schedule is indicative and may be subject to change. Week Topic Synopsis Student- managed Learning 1 Introduction to business finance and accounting This topic is an introduction into the role of accounting and financial management in the business. Students will be introduced to management accounting and the way that this information can be utilised by decision makers so as to support the decision making process. B&P (CH1), A&M (CH1) 2 Measuring and systems This topic builds upon the introductory topic by analysing into further detail the different types of financial statements and the limitation of their information. B&P (CH2), A&M (CH2) 3 Financial statement analysis Students will be introduced to the key financial ratio categories. Financial ratios will be explained in order for students to understand their meaning in the performance and control of the company. Furthermore, students will be introduced to the advantages and disadvantages of this technique. B&P (CH3), A&M (CH6) 4 Financial analysis: further consideration The objective of this session is to further develop an understanding of financial analysis and interpretation skills. It provides an overview of some other key forms of corporate financial communication and an introduction to some basic underlying theory. B&P (CH4), A&M (CH4) 5 Business planning (Assignment support) To provide an understanding of how budgeting fits into the business planning process, and the different approaches which may be taken to budgeting. Students would be able to understand the role of budgeting within the business planning process and distinguish and evaluate different approaches to budgeting. B&P (CH5), A&M (CH9) 6 Investment decisions Students will be introduced into the basic investment appraisal techniques. They should gain an understanding on how to perform an investment appraisal by using these techniques. B&P (CH9), A&M (CH10), W&H (CH6&CH7) 7 Risk and uncertainty in investment appraisals Risk and uncertainty will be considered in investment appraisal. Students will be able to use different techniques to consider risk and uncertainty in investment appraisal. B&P (CH9), A&M (CH10), W&H (CH6&CH7) 8 Financing a business and capital structure Various aspects of financing a business are examined, including sources of finance, short-term finance and long-term finance. Students will understand the sources of finance and advantages and disadvantages of different financing method. Students will be able to analyse leverage ratio and discuss the impact of capital structure in decision making process. A&M (CH11), W&H (CH3, CH4 and CH5) 9 Mergers and acquisitions Mergers and acquisitions (M&As) play a vital role in corporate finance. For many companies, mergers and acquisitions are a source of external growth when organic growth is not possible, whereas to other companies they represent a constant threat to W&H (CH11) Module Guide Page 4 Week Topic Synopsis Student- managed Learning their continuing independent existence. Students will gain an understanding of the justifications and motives behind M&As and why M&As fail in practice. 10 Mergers and acquisitions: further consideration (Assignment support) To consider the whole aspect of incorporating a target company into a business. Given the potential consequences of M&A activity to companies and their boards, directors have a stake in overseeing the transaction process from an early stage through to post-closing integration. A critical aspect of this oversight responsibility relates to the due diligence process. Students will identify key elements of due diligence, such as operational diligence, legal diligence, Financial and accounting diligence, tax and employee benefit diligence, etc. on the strategic objectives of the organisation. Students will also analyse the viability of a proposal, identify its strengths and weaknesses and give recommendation on it. D,R&D (SII, CH5) 11 Budgets & performance management To provide an understanding of the role of budgets, standards and variance analysis in performance evaluation. Students will cover the key points on how businesses can forecast their short-term financing needs. B&P (CH6), A&M (CH9) 12 Risk Management Exchange rate and interest rate risk management are of key importance to companies that operate internationally or that use debt finance. The need for hedging interest rate risk arises from the size and complexity of company borrowing. Students should gain a basic understanding on the importance of risk and uncertainty in organisations as well as develop the ability to select and evaluate appropriate risk management techniques according to the nature of the risk being faced. W&H (CH12) 2.2 Reading List and Learning Resources Core textbooks: Bamber, M., and Parry, S. (2014), Accounting & Finance for Managers, KoganPage, London. Watson, D., and Head, A. (2013), Corporate Finance, Pearson. Atrill, P., and McLaney, E. (2015), Accounting and Finance for non-specialists, Pearson Education. Das, B., Raskhit, D., and Debasish, S.S. (2009), Corporate Restructuring Merger, Acquisition and Other Forms, Himalaya Publishing House. The reading list and other learning resources for this module are available on Reading Lists at Anglia, you can access the reading list for this module, via this link: http://readinglists.anglia.ac.uk/lists/03732453-9CAC- 07ED-1A1B-AC6FB139D16B.html. http://readinglists.anglia.ac.uk/lists/03732453-9CAC-07ED-1A1B-AC6FB139D16B.html http://readinglists.anglia.ac.uk/lists/03732453-9CAC-07ED-1A1B-AC6FB139D16B.html Module Guide Page 5 3. Assessment on this Module The assessment for this module consists of one element with final submission date provided below. Element Type of assessment Word or time limit % of Total Mark