Accounting and Finance for Engineers

Learning Outcomes

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;
• appraise the role financial strategy within the business model of a firm.
• evaluate the competing theories on the roles of dividend policy and the debt-equity mix in the determination of firm value;

Knowledge and Understanding

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

• 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.
• the importance of capital structure and dividend policy decisions;
• the assumptions underlying the preparation, interpretation and analysis of the Income Statement, Balance Sheet and Cash Flow Statement;
• the purpose, limitations, layout and presentation of financial statements;

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.

Business Environment; Forms of business organisation; Introduction to accounting: information systems, the use of the Accounting Equation.; Accounting conventions and their use in the preparation of financial statements; Accruals, Prepayments and Depreciation The analysis and interpretation of financial statements using ratios; Financial planning and control. Dividend Payout policy and Capital Structure.; The valuation and appraisal of real and financial assets using DCF techniques and short term appraisal techniques including identification of relevant costs and discussion of other costing basis (direct, absorption; fixed and variable); Stock Exchange, Venture Capital and Initial Public Offerings, Merger and Acquisitions; Financial strategy and Corporate Governance. Risk and return, cost of capital, agency theory.

Teaching and learning methods

Lectures, weekly classes and 6-7 hours of private study per week, including reading, use of websites and working computational problems.

Resources & Reading list

Textbooks

Atrill, P. and McLaney, E. (2013). Financial Accounting for Decision Makers. FT Prentice Hall.

McLaney, E.. Business Finance: Theory and Practice. FT Prentice Hall.

Atrill, P. (2014). Financial Management for Decision Makers. FT Prentice Hall.

Atrill, P. and McLaney, E, (2017). Accounting and Finance for Non-Specialists. FT Prentice Hall.

Formative

Formative assessment description

Summative

Summative assessment description

Referral

Referral assessment description

Repeat

Repeat assessment description

Repeat Information

Repeat type: Internal & External