The University of Southampton
Courses

MANG6225 Accounting and Finance for Actuarial Science

Module Overview

This module is designed to provide an introduction to financial accounting, corporate finance and financial management of organisations. The 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.
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.
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.

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

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

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

Oxford Dictionary of Accounting. 

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

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

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

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.

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

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

R. Vaitilingam (2005). The “Financial Times” Guide to Using the Financial Pages. 

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

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

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%

Repeat Information

Repeat type: Internal & External

Costs

Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:

Textbooks

Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the core/recommended text as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at www.calendar.soton.ac.uk.

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