The University of Southampton
Courses

MANG6320 Accounting for Corporate Performance

Module Overview

Accounting systems provide useful inputs in the decision-making processes of organisations. The overall aim of this module is to provide an understanding of how accounting processes and techniques are implicated in the management of organisations, be it at the board, strategic or tactical levels. This module will hence focus on how organizations are controlled and managed from the point of view of internal and external decision- makers, and the issues are considered in the context of business enterprises. The module builds on the fundamentals of accounting and the various management modules to develop the student’s awareness of contemporary issues emerging at the intersection of accounting and management.

Aims and Objectives

Module Aims

Specifically, the aims of the module are: • to provide an understanding of the role of accounting within the mainstream corporate governance framework and in delivering accountability to stakeholders. • to provide an understanding of how management accounting techniques may be used to evaluate performance and strategic priorities.

Learning Outcomes

Knowledge and Understanding

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

  • identify the key concepts and theories in corporate governance audit and accountability; discuss the development of major corporate governance initiatives;
  • critically evaluate the role of corporate governance mechanisms and how accounting systems are implicated in such mechanisms (e.g. executive remuneration);
  • Explain and evaluate the alternative conventions of income measurement and valuation and how these may influence the outputs from financial statements.
  • explain and evaluate the use of corporate social reporting as a mechanism of stakeholder accountability
  • explain and evaluate the different approaches to management control;
  • apply, and assess the effectiveness of, a selected number of management accounting practices aimed at supporting planning, strategy and performance evaluation activities.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • identify, analyse and interpret appropriate quantitative and qualitative data in a decision making context
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • search and summarise information from different sources,
  • prepare a report
  • work as a part of a team, and
  • use appropriate communication skills.
Subject Specific Practical Skills

Having successfully completed this module you will be able to:

  • critically evaluate the role and effectiveness of corporate governance mechanisms and the role of accounting in the corporate accountability process,
  • critically assess the role of accounting information and techniques in the management of business organisations

Syllabus

• Theories and concepts of corporate governance and accountability • Major mechanisms of corporate governance, such as board of directors, executive incentives and compensation; shareholder activism, auditing; market for corporate control. • Alternative conventions of income measurement and valuation. • Latest developments and future directions in corporate governance and accountability such as research on corporate governance effectiveness, social and environment accounting, integrated reporting, global reporting initiative • Theories of management accounting and control, • Role and effectiveness of budgeting and the process of budgeting • Divisional performance evaluation and financial measures. • Management accounting and strategy: contemporary practices and approaches. • Performance management frameworks e.g. Balanced Scorecard and the quantification of organisational goals, identification of perspectives and corresponding metrics

Learning and Teaching

Teaching and learning methods

Teaching methods include Lectures, formal and informal group work sessions, case studies, presentations and student led mini-debates. Learning activities include • group based evaluation of governance information (e.g. corporate governance reports remuneration reports) using accounting and non-accounting data sources, requiring preparation of report and presentation. • private study – directed reading and analytical activities

TypeHours
Independent Study126
Teaching24
Total study time150

Resources & Reading list

Merchant K. A. and Van der Stede W. A.. Management Control System - Performance Measurement, Evaluation and Incentives. 

Trevor Hopper, Deryl Northcott and Robert Scapens. Issues in Management Accounting. 

Peter Atrill and Eddie McLaney. Management Accounting for Decision Makers. 

Jill Solomon. Corporate Governance and Accountability. 

Christopher Nobes. The Penguin Dictionary of Accounting. 

Krishna G Palepu, Paul, M. Healy and Erik Peek. Business Analysis and Valuation IFRS edition. 

Steen Thomsen and Martin Conyon. Corporate Governance: Mechanisms and Systems. 

Assessment

Summative

MethodPercentage contribution
Examination  (2 hours) 70%
Group project  (3000 words) 30%

Repeat

MethodPercentage contribution
Examination  (2 hours) 100%

Referral

MethodPercentage contribution
Examination  (2 hours) 100%
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