MBA in Financial and Management Accounting

MBA in Financial and Management Accounting

Introduction


Running any type of organization—whether it be manufacturing, merchandising, service, non-profit, or government—would practically be impossible without an understanding of financial and managerial accounting principles. This course introduces students to these important principles. In the financial component of the course, students take a detailed look at the three traditional accounting statements:
• balance sheet
• income statement
• cash flow statement
In the managerial component of the course, students look at how management accounting information is used by managers in their planning and control activities.
By the end of the course, should be able to do the following:
• describe the topics, concepts, tools, and practices of accounting
• outline the information that accountants produce
• use accounting information for planning, operating, investing, financing, and management control decisions


Who Should Attend?


• This financial training course will benefit managers, executives, budget holders and mid-career professionals who may not have the relevant financial experience or qualification.

 

Outline:

 

Financial Accounting

 

  1.         A conceptual framework: setting the scene


Who needs accounting?

  • Learning outcomes

o   Introduction

o   The development of a conceptual framework

o   The Statement of Principles

o   Types of business entity

o   Users and their information needs

o   General purpose or specific purpose financial statements?

o   Stewards and agents

o   Who needs financial statements?

o   Summary

  • Further discussions
  • Test your understanding
  • Application
  • Problem solving and evaluation
  • Activities for study groups


A systematic approach to financial reporting: the accounting equation

  • Learning outcomes

o   Introduction

o   The accounting equation

o   Defining assets

o   Examples of assets

o   Recognition of assets

o   Defining liabilities

o   Examples of liabilities

o   Recognition of liabilities

o   Defining the ownership interest

o   Recognition

o   Changes in the ownership interest

o   Assurance for users of financial statements

o   Summary

  • Further discussions
  • Test your understanding
  • Application
  • Problem solving and evaluation
  • Activities for study groups
  • Supplement: Debit and credit bookkeeping
  • Test your understanding

 

Financial statements from the accounting equation

  • Learning outcomes

o   Introduction

o   The accounting period

o   The balance sheet

o   The profit and loss account

o   The cash flow statement

o   Usefulness of financial statements

o   Summary

  • Test your understanding
  • Application
  • Activities for study groups
  • Supplement: Using the accounting equation to analyze transaction
  • Test your understanding

Ensuring the quality of financial statements

  • Learning outcomes

o   Introduction

o   Qualitative characteristics of financial statements

o   Measurement in financial statements

o   Views on prudence

o   Regulation of financial reporting

o   Reviewing published financial statements

o   Summary

  • Further reading
  • Test your understanding
  • Application
  • Problem solving and evaluation
  • Activities for study groups

 

 

  1.         Reporting the transactions of a business

 

 

Accounting information for service businesses

  • Learning outcomes

o   Introduction

o   Analyzing transactions using the accounting equation

o   Illustration of accounting for a service business

o   A process for summarizing the transactions: a spreadsheet

o   Financial statements as a means of communication

o   Summary

  • Test your understanding
  • Application
  • Supplement: Recording transactions in ledger accounts: a service business
  • Test your understanding

 

Accounting information for trading businesses

  • Learning outcomes

o   Introduction

o   Goods purchased for resale

o   Manufacturing goods for resale

o   Illustration of accounting for a trading business

o   A process for summarizing the transactions: a spreadsheet

o   Financial statements of Steven Jones, wholesaler

o   Summary

  • Test your understanding
  • Application
  • Supplement: Recording transactions in ledger accounts: a trading business
  • Test your understanding

 

   III.        Recognition in financial statements

 

Published financial statements

  • Learning outcomes

o   Introduction

o   International influences

o   The Statement of Principles

o   Balance sheet

o   Profit and loss account

o   Cash flow statement

o   Group structure of companies

o   Group financial statements

o   Beyond the annual report

o   Summary

  • Further discussions
  • Test your understanding
  • Application
  • Problem solving and evaluation
  • Activities for study groups
  • Supplement: Balance sheet format 1. As prescribed by the Companies Act 1985

 

Fixed assets

  • Learning outcomes

o   Introduction

o   Definitions

o   Recognition

o   Users' needs for information

o   Information provided in the financial statements

o   Usefulness of published information

o   Depreciation: an explanation of its nature

o   Reporting fixed assets and depreciation in financial statements

o   Summary

  • Further discussions
  • Test your understanding
  • Application
  • Problem solving and evaluation
  • Activities for study groups
  • Supplement: Recording fixed assets and depreciation
  • Test your understanding

Current assets

  • Learning outcomes

o   Introduction

o   Definitions

o   The working capital cycle

o   Recognition

o   Users' needs for information

o   Information provided in the financial statements

o   Measurement and recording

o   Stocks of raw materials and finished goods

o   Debtors

o   Prepayments

o   Revenue recognition

o   Summary

  • Test your understanding
  • Application
  • Problem solving and evaluation
  • Activities for study groups
  • Supplement: Bookkeeping entries for
  • bad and doubtful debts:
  • prepayments
  • Test your understanding

Liabilities due within one year

  • Learning outcomes

o   Introduction

o   Definitions

o   Recognition

o   Users' needs for information

o   Information provided in the financial statements

o   Measurement and recording

o   Accruals and the matching concept

o   Liabilities for taxation

o   Summary

  • Test your understanding
  • Application
  • Problem solving and evaluation
  • Activities for study groups
  • Supplement: Bookkeeping entries for accruals
  • Test your understanding

 

Provisions and Long-Term Liabilities

  • Learning outcomes

o   Introduction

o   Users' needs for information

o   Information provided in the financial statements

o   Provisions for liabilities and charges

o   Deferred income

o   Long-term liabilities

o   Summary

  • Test your understanding
  • Application
  • Problem solving and evaluation
  • Activities for study groups
  • Supplement: Bookkeeping entries for provisions and deferred income
  • Test your understanding

Ownership interest

  • Learning outcomes

o   Introduction

o   Definition and recognition

o   Presentation of ownership interest

o   Additional primary financial statements

o   Users' needs for information

o   Information provided in the financial statements

o   Dividends

o   Issue of further shares on the Stock Exchange

o   Summary

  • Test your understanding
  • Application
  • Problem solving and evaluation
  • Activities for study groups
  • Supplement: A spreadsheet for adjustment to a trial balance at the end of the accounting period
  • Test your understanding

 

  1.         Performance analysis

 

Ratio analysis

  • Learning outcomes

o   Introduction

o   Systematic approach to ratio analysis

o   Investors' views on risk and return

o   Pyramid of ratios

o   Use and limitations of ratio analysis

o   Worked example of ratio analysis

o   Summary

  • Test your understanding
  • Application

Analysis of corporate performance

  • Learning outcomes

o   Introduction

o   Operating and Financial Review

o   Other guidance in analysis

o   Linking ratios to the cash flow statement

o   Segmental information

o   Summary

  • Test your understanding
  • Application
  • Problem solving and evaluation
  • Activities for study groups

  1.         Current developments

Developing issues in financial reporting

Learning outcomes

o   Introduction

o   International harmonization and convergence

o   Dynamic nature of the true and fair view

o   Measurement of value

o   Off-balance-sheet finance

o   Related parties

o   Social and environmental disclosures

o   The reporting cycle

o   Summary financial statements

o   Corporate governance

o   Financial Reporting Review Panel

o   How valid is the stakeholder model9

o   Summary

  • Further discussions
  • Test your understanding
  • Activity for study groups
  • Notes and reference

 

Management Accounting

  1.         Setting the scene and defining the basic tools of management accounting

Functions of management accounting

  • Learning outcomes

o   Introduction

o   Meeting the needs of internal users

o   Management functions

o   Role of management accounting

o   Judgments and decisions: case study illustrations

o   Terminology of management accounting

o   Summary

  • Further discussions
  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation

Classification of costs

  • Learning outcomes

o   Definition of a cost

o   The need for cost classification

o   The meaning of 'activity'

o   Variable costs and fixed costs

o   Direct costs and indirect costs

o   Product costs and period costs

o   Cost classification for planning, decision making and control

o   Cost coding

o   Cost selection and reporting

o   Summary

  • Further discussions
  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation

Product costs: materials, labor and overheads

  • Learning outcomes

o   Introduction

o   Accounting for materials costs

o   Accounting for labor costs

o   Production overheads: traditional approach

o   Production overheads: activity-based costing (ABC)

o   Comparing traditional approach and ABC

o   Summary

  • Further discussions
  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation

 

  1.         Product costs and stock valuation

Job costing

  • Learning outcomes

o   Introduction

o   Job cost records: an illustration

o   Job costing: applying the accounting equation to transactions

o   Absorption costing and variable costing

o   Moving forward

o   Summary

  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation

Process costing

  • Learning outcomes

o   Introduction

o   Allocation of costs to products in a process industry

o   Joint product costs and by-products

o   Decisions on joint products: sell or process further

o   Summary

  • Further discussions
  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation

 

    III.        Decision making

Breakeven analysis and short-term decision making

  • Learning outcomes

o   Introduction

o   Cost behavior: fixed and variable costs

o   Breakeven analysis

o   Using breakeven analysis

o   Limitations of breakeven analysis

o   Applications of contribution analysis

o   Short-term decision making

o   Pricing decisions

o   Summary

  • Further discussions
  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation

 

  1.         Planning and control

Preparing a budget

  • Learning outcomes

o   Purpose and nature of a budget system

o   Administration of the budgetary process

o   The benefits of budgeting

o   Problems of budgeting

o   Public service organizations

o   Practical example - development of a budget 643

o   Shorter budget periods

o   Summary

  • Further discussions
  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation

Standard costs

  • Learning outcomes

o   Introduction

o   Purpose of using standard costs

o   The level of output to be used in setting standards 669

o   The control process

o   Direct materials cost variance

o   Direct labor cost variance

o   Variable overhead cost variance

o   Fixed overhead expenditure variance

o   Case study: Lincoln Ltd

o   Investigating variances

o   Flexible budgets and variance analysis

o   Case study: Jerald Ltd

o   Is variance analysis, based on standard costs, a useful exercise?

o   A broader view of applications of variance analysis

o   Summary

  • Further discussions
  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation


Performance evaluation and feedback reporting

  • Learning outcomes

o   Introduction

o   Preparing performance reports

o   Performance evaluation

o   Benchmarking

o   Non-financial performance measures

o   The Balanced Scorecard

o   Management use of performance measurement

o   Summary

  • Further discussions
  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation

 

 

  1.         Capital budgeting and business strategy

Capital budgeting

  • Learning outcomes

o   Purpose of capital budgeting

o   Payback method

o   Accounting rate of return

o   Net present value method

o   Internal rate of return

o   Mutually exclusive projects

o   Which methods are used in practice?

o   Control of investment projects: authorization and review

o   Advanced manufacturing technologies

o   Summary

  • Further discussions
  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation
  • Supplement: Table of discount factors

 

 

Business strategy and management accounting

  • Learning outcomes

o   Introduction

o   Strategic management accounting

o   The just-in-time approach

o   Value chain analysis

o   Total quality management and cost of quality

o   Business process re-engineering

o   E-business and e-commerce

o   Summary

  • Further discussions
  • Test your understanding
  • Cases for study groups
  • Application
  • Problem solving and evaluation

Certificates

A Certificate of Completion will be issued to those who attend & successfully complete the programme.

Schedule

  08:30 – 10:15 First Session

 10:15 – 10:30 Coffee Break

10:30 – 12:15 Second Session

 12:15 – 12:30 Coffee Break

12:30 – 14:00 Third Session

 14:00 – 15:00 Lunch

Training Methodology:

This interactive training course includes the following training methodologies as a percentage of the total tuition hours:

  • 30% Lectures, Concepts, Role Play
  • 30% Workshops & Work Presentations, Techniques
  • 20% Based on Case Studies & Practical Exercises
  • 20% Videos, Software & General Discussions
  • Pre and Post Test

Fees

 The Fee for the seminar, including instruction materials, documentation, lunch, coffee/tea breaks & snack is: