الوصف |
Objectives:
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Explain the nature and role of financial statements and their interpretation
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Use the language of accounting and finance to communicate effectively with financial professionals
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Review the financial performance and financial position of an organisation using the appropriate financial ratio and break-even analysis techniques
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Use budgetary control to compare actual against planned performance and to identify corrective actions
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Evaluate investment projects using DCF and other appraisal methods
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Appreciate the important role of strategic accounting in business performance improvement
Outlines:
A Strategic View of the Business Environment
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The business environment
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The uses and purpose of accounting
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Users of accounting and financial information
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Accounting terminology
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Cash versus profit
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Profit and profitability
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The structure of the balance sheet
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The income statement – financial performance
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What is profit?
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The structure of the income statement
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The links between the income statement and the balance sheet
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Accounting conventions
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The published annual report
The Financial Statements and Financial Analysis
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The cash flow statement
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What is included in the cash flow statement?
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Why is cash flow so important?
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The structure of the cash flow statement
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The links between the cash flow statement, profit and loss account and balance sheet
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Interpreting the annual report
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The key elements of published reports and accounts
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Ratio analysis: profitability; efficiency; liquidity; investment; cash flow; the Dupont system
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Cash versus profit as a measure of performance, EBITDA and
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Predicting business failure – the Altman Z-score
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Sources of financial information
Budgeting and Break-even Analysis
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Management accounting
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Cost behaviour
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The overhead problem, traditional versus activity-based absorption
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Cost/volume/profit (CVP)analysis
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Break-even analysis
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The impact of cost structure changes
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Limitations of CVP analysis
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Purposes of budgeting
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The budget process, including activity based budgeting
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Uncertainty and risk – worst and best outcomes
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Motivation and the behavioural aspects of budgeting
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Problems in budgeting
Budgetary Control, DCF and Capital Investment Appraisal
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Budgetary control
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Standard costing
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Flexed budgets and variance analysis
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Types of variances and the reasons they occur
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Planning and operational variances
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Investment decisions
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Time value of money
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Appraisal techniques
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The effect of inflation
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Free cash flows
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Capital rationing and control of capital investment projects
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Risk and uncertainty and decision-making – sensitivity analysis
Financing the Business and Strategic Accounting
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Financing the business
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Financing principles, including short-term versus long-term, and debt versus equity (gearing)
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Sources and types of finance
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The cost of capital, cost of equity (Ke), and cost of debt (Kd)
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Weighted average cost of capital (WACC)
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Capital Asset Pricing Model (CAPM)
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Strategic management accounting
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The effect of competitive strategy, and how to gain competitive advantage
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Competitor information and strategic positioning
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Cost of debt and equity capital
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The disadvantages of traditional cost analysis
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The balanced scorecard and critical success factors
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Economic value added
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Benchmarking
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