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
Who needs accounting?
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
A systematic approach to financial reporting: the accounting equation
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
Financial statements from the accounting equation
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
Ensuring the quality of financial statements
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
Accounting information for service businesses
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
Accounting information for trading businesses
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
III. Recognition in financial statements
Published financial statements
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
Fixed assets
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
Current assets
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
Liabilities due within one year
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
Provisions and Long-Term Liabilities
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
Ownership interest
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
Ratio analysis
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
Analysis of corporate performance
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
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
Management Accounting
Functions of management accounting
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
Classification of costs
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
Product costs: materials, labor and overheads
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
Job costing
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
Process costing
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
III. Decision making
Breakeven analysis and short-term decision making
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
Preparing a budget
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
Standard costs
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
Performance evaluation and feedback reporting
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
Capital budgeting
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
Business strategy and management accounting
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
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:
Fees
The Fee for the seminar, including instruction materials, documentation, lunch, coffee/tea breaks & snack is: