Financial Decision Making

MODULE HANDBOOK
Programme:
BA (Hons) Business Management
Course:
Financial Decision Making BM414
Academic Year
2021-2022
Table of Contents
1. Foreword……………………………………………………………………………………………………………………………….. 3
2. Module Specification ………………………………………………………………………………………………………………. 4
3. Module Schedule: …………………………………………………………………………………………………………………… 6
4. Module Assessment………………………………………………………………………………………………………………. 10
5. Teaching Schedule ………………………………………………………………………………………………………………… 10
6. Cross-Referencing of Module Outcomes to Module Assessment………………………………………………… 11
1. Foreword
Welcome to the Financial Decision Making module. This module prepares you, alongside
the knowledge you have acquired in other courses under the business management
programme, to carry out investigation of a substantial business/business environment
issues or problems, including those on a global scale and demonstrates a critical
awareness of business environment practice, relevant theories and approaches.
This module will help to enhance and develop students’ abilities to appreciate the
importance of finance and accounting in the world of business and commerce. It will
enable the students to understand the value of finance and its relationship with the other
business functions, and how the financial statements are used and applied by the owner,
manager or an external party, irrespective of the size of the business.
Numeracy and quantitative skills, the use of information technology and communication
skills are regarded as very important commodities in today’s workplace. Additionally the
Financial Decision Making module will be an important core element in the development of
the students’ capability to either run their own business or manage someone else’s.
This course will have one assessment, which will take place via a piece of coursework.
The coursework will involve the construction of a spreadsheet for budgeting or the
analysis of a set of financial statements. The students will be required to apply various
financial ratios and other accounting techniques on an organisation.
2. Module Specification
About the Module:
The aim of this module is to introduce students to the concept of finance and accounting.
The students will learn about the purpose of different financial statements prepared by
business, the importance of different elements of financial statements, importance and
purpose of financial ratios. . It will also enable the students to understand the value of
finance and its relationship with the other business functions, and how the financial
statements are used and applied by the owner, manager or an external party, irrespective
of the size of the business.
Module Code: BM414
Module Level: Level 4
Credit Rating: 15 credits
Teaching Weeks: 15 weeks
Teaching Hours: 45 hours
Module Aim:
This module aims to provide students with an opportunity to:
• Develop and enhance students’ financial management skills.
• Develop an awareness and an understanding of the source and purpose of financial
accounting information within the organisation and an understanding of the structure
of the main financial statements.
• Encourage non-accounting students to develop skills necessary to be able to use
financial information for planning, control and decision-making.
Module Learning Outcomes:
• Demonstrate knowledge of the role of finance and accounting within the
organisation with respect to both reporting and decision making aspects.
• Explain the structure and terms used within the main financial statements.
• Apply management accounting techniques for planning, control and decisionmaking within the organisation.
• Calculate the main accounting ratios and explain their significance.
Summative Assessment Regime

Assessment Task	Key Dates
Coursework:1 CW1 – Coursework: Report: 3000 max word report to include business calculations/ratios	Timetabling WK 14 Tuesday 24th May, 2022 2.00pm via Turnitin

AssignmentTutorOnline

Core Text:

•	Weetman, P. (2015) Financial Accounting: An Introduction. 7th ed. London: FT Prentice Hall.

• Cox, D. and Fardon, M. (2007) Management of Finance: a guide to business
finance for the non-specialist. Worcester: Osborne Books.
• Atrill, P. and McLaney, E. (2017) Accounting and Finance for Non-Specialists 10th
ed. Harlow: Pearson.
• Dyson, J. (2017) Accounting for Non-Accounting Students. 9th ed. Harlow: FT
Prentice Hall.
Journals (including e-Journals)
• Accounting and Business Research – ICA
• Management Accounting Research – CIMA Accountancy – ICAEW
3. Module Schedule:

Week by Week Guide:	Teaching details
1. Week beginning: 07/02/2022 (Timetabling Week 1)	Introduction – The Module, Teaching and Learning & Assessments Core Lecture Content: Different types of businesses and organisations Core Reading: Chapter 1: Who needs Accounting Weetman, P. (2015) Financial Accounting: An Introduction. 7th ed. London: FT Prentice Hall.
2. Week beginning: 14/02/2022 (Timetabling Week 2)	The role of accounting and finance department, the financial statements’ basics Core Lecture Content: Introduction to accounting and finance, different types of financial statements and their entities (income statement, balance sheet) Core Reading: Chapter 1: Introduction to accounting and finance Atrill, P. and McLaney, E. (2017) Accounting and Finance for Non-Specialists 10th ed. Harlow: Pearson. Core Reading: Chapter 2: A systematic approach to financial reporting: The accounting equation Weetman, P. (2015) Financial Accounting: An Introduction. 7th ed. London: FT Prentice Hall
3. Week beginning: 21/02/2022 (Timetabling Week 3)	The financial statements’ basics Core Lecture Content: Different types of financial statements and their entities (cash flow statement) Core Reading: Chapter 2: A systematic approach to financial reporting: The accounting equation Weetman, P. (2015) Financial Accounting: An Introduction. 7th ed. London: FT Prentice Hall.

 

4. Week beginning: 28/02/2022 (Timetabling Week 4)	Analysis and interpretation of accounts, the accounting equation Core Reading: Chapter 3: Financial statements from the accounting equation Weetman, P. (2015) Financial Accounting: An Introduction. 7th ed. London: FT Prentice Hall.
5: Week beginning: 07/03/2022 (Timetabling Week 5)	Analysing financial statements, concept and interpretation of ratios Core Lecture Content: Importance of accounting ratios, profitability ratios and liquidity ratios Core Reading: Chapter 3: Financial statements from the accounting equation Weetman, P. (2015) Financial Accounting: An Introduction. 7th ed. London: FT Prentice Hall.
6: Week beginning: 14/03/2022 (Timetabling Week 6)	Concept and interpretation of ratios Core Lecture Content: Financial efficiency ratios and investment ratios Core Reading: Chapter 3: Financial statements from the accounting equation Weetman, P. (2015) Financial Accounting: An Introduction. 7th ed. London: FT Prentice Hall.
7. Week beginning: 21/03/2022 (Timetabling Week 7)	Further practice on ratios Core Lecture Content: Exercises on ratios from weeks 5 and 6.

 

8. Week beginning: 28/03/2022 (Timetabling Week 8)	Budgeting Core Lecture Content: Definition of Budget, Importance of Budgeting, Variance analysis Core Reading: Cox, D. and Fardon, M. (2007) Management of Finance: a guide to business finance for the non-specialist. Worcester: Osborne Books.
9. Week beginning: 04/04/2022 (Timetabling Week 9)	Budgets and programmes Core Lecture Content: Types of Budgets Core Reading: Cox, D. and Fardon, M. (2007) Management of Finance: a guide to business finance for the non-specialist. Worcester: Osborne Books.
Week beginning: 11/04/2022 – 18/04/2022 (Timetabling weeks 10-11)	Easter Break
10. Week beginning: 25/04/2022 (Timetabling Week 12)	Drop-In Session Assignment Support

 

11. Week beginning: 02/05/2022 (Timetabling Week 13)	Criticisms of Absorption Cost Systems: Incentive to Overproduce Core Lecture Content: Types of Cost Core Reading: Cox, D. and Fardon, M. (2007) Management of Finance: a guide to business finance for the non-specialist. Worcester: Osborne Books.
12. Week beginning: 09/05/2022 (Timetabling Week 14)	Criticisms of Absorption Cost Systems: Incentive to Overproduce (Part 2) Core Lecture Content: Absorption and Variable Costing, Contribution per unit, Breakeven point Core Reading: Cox, D. and Fardon, M. (2007) Management of Finance: a guide to business finance for the non-specialist. Worcester: Osborne Books.
13. Week beginning: 16/05/2022 (Timetabling Week 15)	Drop-In Session Assignment Support
14. Week beginning: 23/05/2022 (Timetabling Week 16)	CW1 Submission on 24th May 2022 before 14:00
15. Week beginning: 30/05/2022 (Timetabling Week 17)	Revision on main lecture topics

4. Module Assessment

Assessment One
Assessment Number	One (1)
Assessment Weighting	100%
Due Date	Tuesday 24th May, 2022 2pm via Turnitin
Assessment Method	Individually Written report
Word Limit	3000 (Three thousands) Words max

5. Teaching Schedule

Academic Week Number	Date commencing	Module Activity	Comment
1	07/02/2022	Teaching
2	14/02/2022	Teaching
3	21/02/2022	Teaching
4	28/02/2022	Teaching
5	07/03/2022	Teaching
6	14/03/2022	Teaching
7	21/03/2022	Teaching
8	28/03/2022	Teaching
9	04/04/2022	Teaching
11/04/2022	Easter Break
18/04/2022	Easter Break
10	25/04/2022	Teaching	Formative Feedback

 

11	02/05/2022	Teaching
12	09/05/2022	Teaching
13	16/05/2022	Teaching	Formative Feedback
14	23/05/2022	Teaching	Assessment 1 Submission – individually written report
15	30/05/2022	Teaching	Workshops and activities

6. Cross-Referencing of Module Outcomes to Module Assessment
Please Note:
The specific assignment details and the tasks can be found on LSST Connect site.

Learning Outcome	Assessment 1 Individual report
1. Demonstrate knowledge of the role of finance and accounting within the organisation with respect to both reporting and decision making aspects.	
2. Explain the structure and terms used within the main financial statements.	
3. Apply management accounting techniques for planning, control and decision-making within the organisation.	
4. Calculate the main accounting ratios and explain their significance.	