Business Finance for Accountants
| Module title | Business Finance for Accountants |
|---|---|
| Module code | BEA1010 |
| Academic year | 2024/5 |
| Credits | 15 |
| Module staff | Mr Aurel Kucani (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 300 |
|---|
Module description
Summary:
This module introduces you to the key concepts in finance, so that real world issues can be explored and discussed. Whilst the module assumes no previous mathematical experience, it does assume a fundamental understanding of accounts – therefore BEA1008 is a pre-requisite. It is also recommended to take this module if you wish to study Financial Management.
Additional Information:
Internationalisation
The content of this module is applicable worldwide and draws on examples from a diverse range of businesses.
Sustainability
The main text for this module has been customised for this module, comprising of work from several sources. All of the other resources for this module are available on the ELE (Exeter Learning Environment).
External Engagement
Occasionally there will be guest lectures from Professionals from local accounting firms.
The content of this module is informed by ICAEW (Institute of Chartered Accountants in England and Wales), ACCA (Association of Chartered Certified Accountants), and ICAS (Institute of Chartered Accountants in Scotland).
Employability
Material taught in this module is highly relevant to accounting and business-related jobs. The module also offers an opportunity for students to develop their numeracy and logical thinking skills.
Module aims - intentions of the module
The aim of this module is twofold:
a) To introduce students to the basic concepts within finance: key financial mathematics, investment appraisal techniques, working capital management, financial statement analysis, capital structure decisions, dividend policy decisions, personal financial management and risk management;
b) To expose students to real business issues and decisions that they may face as an accountant; as well as introducing them to other areas that they may consider for further investigation in the future.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. apply the mathematical skills needed to study financial management;
- 2. describe and illustrate alternative capital project appraisal techniques;
- 3. Demonstrate an understanding of the risk-return paradigm for investment analysis;
- 4. describe the role of the finance function;
- 5. describe the main features of the capital markets and the finance functions interaction with them;
- 6. describe how business plans are developed and generate forecast financial statements;
- 7. undertake the analysis and interpretation of financial statements;
- 8. discuss the factors involved in the management of working capital and calculate the effect of different strategies;
- 9. describe the advantages and disadvantages the main sources of internal and external finance;
- 10. calculate the weighted average cost of capital and understand its implications for capital structure;
- 11. discuss the determinants of dividend policy;
- 12. identify the main components of the risk management process and explain how it operates;
- 13. explain the main principles and models of business valuation;
- 14. describe and explain the Efficient Market Hypothesis.
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 15. identify and present appropriate information to assist management with determining the mix of funds from different sources and taking financial management decisions;
- 16. apply financial management concepts and practices to analyse simple business problems and recommend courses of action;
- 17. demonstrate an appreciation of the usefulness or otherwise of a range of financial management techniques.
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 18. demonstrate written communication skills;
- 19. demonstrate problem solving skills;
- 20. demonstrate an ability to undertake independent study and manage their time.
Syllabus plan
- The financial world and financial mathematics
- Time value of money and capital investment decisions
- Risk and Return
- Analysis and interpretation of financial statements
- Working capital management
- Financial planning and risk management
- Financing a business
- Cost of capital, capital structure and dividend policy
- Business valuation models and market efficiency
- Revision
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 32 | 118 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning and Teaching Activity | 20 | Lectures |
| Scheduled Learning and Teaching Activity | 2 | Revision |
| Scheduled Learning and Teaching Activity | 10 | Tutorial |
| Guided Independent Study | 118 | Reading and preparation for lectures, tutorials, and assessments |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Weekly problems and questions to aid discussion in tutorials | 2-3 hours for preparation; 1 hour in-class session | 1-20 | Tutor run-through of questions and suggested solutions |
| Tutorial discussion | 1 hour in-class session | 1-20 | In class feedback |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 0 | 100 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| In-Term Test | 20 | 1 hour | 1-7 and 15-20 | Mark awarded and suggested solutions |
| Written Examination | 80 | 2 hours | 1-20 | Mark awarded and suggested solutions |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| In-term test (20%) | In-term test (20%) (1 hour) | 1-7 & 15-20 | August/September Reassessment Period |
| Written Examination (80%) | Examination (80%) (2 hours) | 1-20 | August/September Reassessment Period |
Re-assessment notes
If you have been referred in this module overall, you will have the opportunity to take a second exam in the August/September re-assessment period, and this constitutes 100% of the module re-assessment.
If you have, due to genuine mitigating circumstances, missed the in-term test element of this module only, the written exam constitutes 100% of the module assessment.
If you have been deferred in the written exam (80%) only, you will have the opportunity to take a second exam in the August/September re-assessment period, and this constitutes 80% of the module assessment
If you have been deferred in both the in-term test (20%) element and the written exam (80%), you will have the opportunity to take a second exam in the August/September re-assessment period, and this constitutes 100% of the module assessment.
Indicative learning resources - Basic reading
BEA 1010 Business Finance for Accountants Custom Text, Harlow: Pearson Education Ltd.
Note this is taken from:
Atrill, P. (2014), Financial Management for Decision Makers, 7th ed., Harlow: Pearson Education Ltd (Chapters 1-3; and 6-10) Arnold, G. (2012), Essentials of Corporate Financial Management, 2nd revised ed., Harlow: Pearson Education Ltd (Chapter 1)
Watson, D. & Head, A. (2012) Corporate Finance, Principles & Practice, 6th revised ed. Harlow: Pearson Education Ltd. (Chapter 12)
Indicative learning resources - Web based and electronic resources
ELE – http://vle.exeter.ac.uk/course/view.php?id=2576
Indicative learning resources - Other resources
Directed reading, tutorial questions and further practice questions
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | This module is for Accounting students only |
| Module co-requisites | BEA1008 Introduction to Financial Accounting Non-requisites: Cannot be taken with BEE1024 Mathematics for Economists. |
| NQF level (module) | 4 |
| Available as distance learning? | No |
| Origin date | 17/03/2014 |
| Last revision date | 11/02/2021 |
