The University of Southampton
Courses

MANG6225 Accounting and Finance for Actuarial Science

Module Overview

The module is designed to provide an introduction to financial accounting, corporate finance and financial management of organisations. It aims to introduce you to the nature of financial statements and how to interpret them, to the nature and sources of finance available to businesses, and to elements of corporate finance and financial management. This module is intended for students from any academic discipline who have an interest in accounting and finance as an adjunct to their principle area of study.

Aims and Objectives

Module Aims

This module aims to introduce you to the nature of financial statements and how to interpret them, to the nature and sources of finance available to businesses, and to elements of corporate finance and financial management.

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • The assumptions underlying the preparation, interpretation and analysis of the Income Statement, Financial position statement and Cash Flow Statement.
  • The purpose, limitations, layout and presentation of financial statements.
  • The importance of capital structure and dividend policy decisions.
  • Cost analysis in the context of short and long term decision making and the use of discounted cash flow analysis.
  • Financial strategy including capital structure, dividend policy and corporate governance of firms.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Benefit from improved skills in learning, problem solving, numeracy, written communication and self- management.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Understand the role of accounting information in the collection, collation, decision making and analysis of business performance.
  • Evaluate the processes by which the value of both real and financial assets can be estimated.
  • Evaluate the competing theories on the roles of dividend policy and the debt-equity mix in the determination of firm value.
  • Appraise the role financial strategy within the business model of a firm.
  • Apply real options capital investment appraisal to simple examples.
  • Show awareness of the different sources of business finance and the range of financial instruments, and how they are incorporated in a business’s capital structure.

Syllabus

• Introduction to accounting and finance • Measuring and reporting financial position • Measuring and reporting financial performance • Measuring and reporting cash flows • Interpreting financial statements. Ratio analysis and non-financial indicators • Analysing Accounts for limited companies • Accounting for decision making • Introduction to Investment Appraisal: NPV and Relevant Cost. The Strategic context • Cost of capital and Capital structure • Liquidity/working capital management • Financing and dividend policy

Learning and Teaching

Teaching and learning methods

Learning activities include Lectures There will be one double session per week. The lecture will be used to introduce and outline topics and give a structure for students own work. Classes There will be one per week. The work for the classes will be set in advance for the students to prepare in order to facilitate a good discussion in the classes. Individual work In addition to work for lectures and classes, students need to spend 6 - 7 hours per week on further reading, and on working through computational examples in order to develop a good understanding of underlying principles and to gain practice at applying them.

TypeHours
Independent Study116
Teaching34
Total study time150

Resources & Reading list

Brounen, D, Jong Abe de and Koedijk, K (2006). Capital structure policies in Europe: Survey evidence. Journal of Banking & Finance. ,30 , pp. 1409-1442.

Quality daily and Sunday papers (in particular, the Financial Times). Newspapers

The “Financial Times” Guide to Using the Financial Pages. 

Nexis UK. This is a web-based service giving key business news and financial information on listed companies, and 250,000 unlisted companies in the UK. It is accessible from the library’s homepage

Oxford Dictionary of Accounting. 

Watson, D. and Head, A (2010). Corporate Finance: Principles and Practice. 

Atrill, P. (2011). Financial Management for Decision Makers. 

Gowthorpe, C (2011). Business Accounting and Finance. 

McLaney, E (2011). Business Finance: Theory and Practice. 

Trigeorgis, L (2005). 'Making use of real Options simple: An overview and applications in flexible modular decision making. The Engineering Economist. ,50 , pp. 25 – 53.

Company websites. These are likely to include copies of the annual report, investor information press releases etc

Atrill, P. and McLaney, E. (2013). ‘Accounting and Finance for Non-specialists’. 

FAME. A web-based service covering 2.8 million UK and Irish companies and other businesses. It is also accessible through the library, as above

Assessment

Formative

Set exercises - non-exam

Summative

MethodPercentage contribution
Examination  (3 hours) 80%
Multiple choice Test 20%

Repeat

MethodPercentage contribution
Examination  (3 hours) 100%

Referral

MethodPercentage contribution
Examination  (3 hours) 100%
Share this module Facebook Google+ Twitter Weibo

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×