Main Aim(s) of the Unit:

The course examines the theory and practice of corporate financial management, including decisions company managers make in relation to sources and uses of funds, disclosure and the valuation implications arising.  Where possible, topics will be considered in the context of the local financial environment and actual business practice.

Main Topics of Study:

The Construction of Financial Statements:

• Company Accounts
• Cash-Flow Statements

Using Accounting Information:

• Accounting Ratios
• Accounting Standards

Management Accounting:

• Marginal Costing
• Budgeting
• Capital Investment Appraisal

Sources of Business Finance:

• Long-term sources of finance
• Short-term sources of finance

Mergers and Takeovers:

• Reasons for Growth via Horizontal, Vertical, or Conglomerate Integration
• Financing of Growth
• The Construction of Basic Group Accounts

Capital Markets:

• The Function of Stock Exchanges
• Share & Bond Issues
• Rights & Bonus Issues

Learning Outcomes for the Unit

At the end of this Module, students will be able to:

1. Have gained an understanding of the main decision areas in corporate finance, the issues arising and the financial environment in which these decisions are made.
2. Demonstrate an understanding of the current treatment of investment and financing in situations of certainty and uncertainty, and have acquired the knowledge and skills to be able to apply a number of techniques to assist the decision making process.
3. Be able to analyse, interpret and evaluate financial information as discussed in the course and previous courses.
4. Have become acquainted with current issues and developments in the area of corporate financial management.

Learning and teaching methods/strategies used to enable the achievement of learning outcomes:

Learning takes place on a number of levels through lectures, class discussion including problem review and analysis.  Formal lectures provide a foundation of information on which the student builds through directed learning and self managed learning outside of the class.  The students are actively encouraged to form study groups to discuss course material which fosters a greater depth learning experience.

Assessment methods weighting which enable students to demonstrate the learning outcomes for the Unit:

Examination: 3 hours duration  100%

Indicative Reading for this Unit:

Main Text:
Finance & Accounting – R Giles (ICM)

Note:  There is no single textbook that covers the syllabus.  Finance and Accounting by Richard Giles can be used as a basic source book but must be supplemented by further reading from websites or textbooks such as Accounting for Non-Accounting Students (J R Dyson) and Business Accounting (F Wood).

Alternative texts & Further Reading:
Accounting for Non-Accounting Students - J R Dyson (Prentice Hall)
Frank Wood’s Business Accounting 2 – Wood & Sangster (Pitman)

Guideline for Teaching and Learning Time (10 hrs per credit)

Lectures / Seminars / Tutorials / Workshops: 50 hours
Tutorial support includes feedback on assignments and may vary by college according to local needs and wishes.

Directed learning: 50 hours
Advance reading and preparation / Class preparation / Background reading / Group study / Portfolio / Diary etc

Self managed learning: 100 hours
Working through the course text and completing assignments as required will take up the bulk of the learning time.  In addition students are expected to engage with the tutor and other students and to undertake further reading using the web and/or libraries.