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Financial Management

Module description

Financial Management is designed to equip you with the necessary knowledge and skills to manage financial resources effectively within an organisation. The module emphasises developing a comprehensive understanding of financial decision-making and strategic management in the context of business operations. The course aims to build the skills required for financial analysis, investment appraisal, financial planning, and risk management, preparing you for senior roles in financial management.

Module aims - intentions of the module

The aim of the module is to develop your knowledge and skills expected of a finance manager responsible for the finance function of a business, in relation to investment, financing, and dividend policy decisions.

The role and purpose of the financial management function within a business is introduced to you. The economic environment in which management decisions are made is explored. The module includes the three key financial management decisions of investing, financing, and dividend policy. The module also looks at investing decisions, including investment in (and the management of) working capital and the appraisal of long-term investments.

You will learn how to make financing decisions, including examining the various sources of business finance, including dividend policy and how much finance can be raised from within the business. The module also looks at the cost of capital and other factors that influence the choice of the type of capital a business will raise. The principles underlying the valuation of business and financial assets, including the impact of cost of capital on the value of business, is covered. The final topic included is an introduction to, and examination of, risk and the main techniques employed in managing such risk.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

• 1. Discuss the role and purpose of the financial management function and analyse the impact of the economic environment on financial management such as competitors, stakeholders and market trends (K4)
• 2. Explain Strategic planning techniques that are used by organisations to analyse, develop, and implement strategy (K22)

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

• 3. Discuss and apply working capital management techniques including budgeting and forecasting and cash flow forecasts to manage revenue, expenditure and cash flow (K11 K13 S10 S11 S12 S13 S27)
• 4. Discuss investment appraisal and identify and evaluate the impact of different sources of finance on an organisation, including the nature and types of risk and recommend appropriate finance options. (S25)

ILO: Personal and key skills

On successfully completing the module you will be able to...

• 5. Be able to develop, communicate, and deliver operational plans that meet strategic objectives; being able to set targets and KPIs, manage resources, and monitor and measure outcomes to establish operations effectively, efficiently and economically (S22)
• 6. Be able to apply management accounting techniques to assist decision making within the organisation

Syllabus plan

This module will cover:

• The role and purpose of the financial management function
• The impact of the economic environment on financial management
• Working capital management techniques
• Effective investment appraisal
• Alternative sources of business finance
• The cost of capital and the factors which affect it
• Business and asset valuations
• Risk management techniques in business
• Employability and technology skills

Learning activities and teaching methods (given in hours of study time)

Details of learning activities and teaching methods

Formative assessment

Summative assessment (% of credit)

Details of summative assessment

Details of re-assessment (where required by referral or deferral)

Re-assessment notes

Deferral – if you have been deferred for any assessment you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.

Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of referral will be capped at 40%

Indicative learning resources - Basic reading

• ACCA Financial Management (FM) Study Text - Kaplan Publishing ISBN 978-1-83996-362-9 (printed)
• ACCA Financial Management: Course Book Paperback - BPP Learning Media ISBN- 978-1035513758

Indicative learning resources - Web based and electronic resources

•  ACCA Financial Management (FM) Study Text Kaplan Publishing 

Key words search

Financial Management