22814 Accounting Information for Managers

Subject level: Postgraduate

Handbook description

This subject develops accounting knowledge and its application in the management of business activity. It integrates accounting with other aspects of managerial decisions including general management, finance, production, marketing and human resource decisions. The subject is divided into two parts, with the first part introducing students to the interpretation and analysis of financial statements and their practical applications. The second part focuses on management accounting issues including budgeting, variance analysis, cost allocations and internal performance measurement and reporting systems. Students are required to undertake a 'real-life' syndicate case study based on a listed public company.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. understand the regulatory environment controlling the presentation and information content of financial statements
2. interpret and analyse the results of business operations as disclosed in balance sheets, profit and loss statements and cash flow statements
3. develop financial performance indicators
4. understand management accounting tools for planning and controlling business operations, including budgeting, cost and costing concepts and variance analyses
5. interpret and develop performance measurement systems.

Contribution to graduate profile

This subject will develop accounting knowledge and its application in the management of business activity, and will integrate accounting with other aspects of managerial decision action, including general management, finance, production, marketing and human resource decisions. While the emphasis is on accounting issues, the small case studies and the syndicate exercise will require students to think about managerial decisions in a broader, real-life context, including all aspects of managing core business activity as well as long-term strategy within the organisation and other social issues such as corporate governance. This is achieved by requiring students to develop performance measurement systems based on relevant accounting/business indicators to map the progress of business operations.

Teaching and learning strategies

The subject will be taught in formal lecture and tutorial format. The tutorials will consist of problem solving and group discussions. Students are expected to use the internet and other resources to do their syndicate exercise, which is based on a listed public company.

Content

• The regulatory environment and financial statements
• Introduction to balance sheets, profit and loss statements and cash flow statements
• Financial analyses and key performance indicators
• Practical financial statement analysis
• The key differences between financial and management accounting
• Introduction to budgeting and different budgetary techniques
• Key management accounting cost concepts including fixed and variable costs, direct and indirect costs and issues in cost allocation
• Cost allocation techniques and variance analysis
• Performance measurement systems: the good, the bad and the ugly

Assessment

Assessment item 1: Mid-semester Exam (Individual)

Assessment item 2: Syndicate Case Study (Group)

Assessment item 3: Final Exam (Individual)

Required text(s)

Anthony, RN, Hawkins, DF and Merchant, KA (2007) Accounting Text and Cases, 12th edn, McGraw Hill

Indicative references

Horngren, CT, Foster G and Datar SM (2007), Cost Accounting: A Managerial Emphasis, 12th edn, Prentice Hall

Penman, SH (2004), Financial Statement Analysis and Security Valuation, McGraw Hill.

Any first course book on financial and management accounting would be suitable reference for background information.