ACC 1011 INTRODUCTION TO MANAGEMENT ACCOUNTING AND FINANCE

ACC 1011: INTRODUCTION TO MANAGEMENT ACCOUNTING AND FINANCE LECTURE 1: INTRODUCTION 1

WELCOME TO ACC 1011 Ø Aims of today v. To introduce the module • • Degree programmes Teaching team Timetable of lectures, workshops & help sessions Assessment Text book Resources available Warning! v. To introduce Management Accounting 2

WELCOME TO ACC 1011 Ø Degree programmes § N 400: Accounting and Finance BA Honours § BAF: Business Accounting and Finance BA Honours § GN 13: Financial Mathematics BSc Honours 3

WELCOME TO ACC 1011 Teaching Team Ø Lecturers § Shanta Davie (Module leader) § Dylan Che Ø Workshop leaders § Tom Cuckston - N 400 § Helen Currie - NN 14 § Gill Holden – N 400 & GN 13 4

LECTURES Ø 2 x one hour lecture per week § Semester 1: • Monday 10 – 11 am (HERB CA) • Wednesday 12 – 1 pm (HERB LT 1) § Semester 2: • Monday 4 – 5 pm (HERB CA) • Wednesday 12 – 1 pm (HERB LT 1) ØAll in this Building ØPlease arrive on time, with pens, papers, lecture notes. 5

SEMINARS & HELP SESSIONS Ø Seminars § 5 x 1 hour seminars in Semester 1 § 4 x 1 hour seminars in Semester 2 § Seminar times – based on degree programmes v. Attempt seminar questions prior to attending Ø Help Sessions § Weeks 10, 14, 35 -37. § See blackboard for details of time and location 6

TIMETABLE Ø The timetable shows all possible seminar times, lecture times. Ø The most compulsory contact time you will have with ACC 1011 in any one week is 3 hours being 2 x 1 hour lectures (Monday 10 -11 & Wednesday 12 -1 pm), and 1 x 1 hour seminar if there is one that week. Ø Make sure you are registered for a seminar session 7

WEEK SEMESTER 1 LECTURE TOPICS 5 Introduction to module & classification of costs 6 Corporate finance & key concepts 7 W 1 8 9 Product costs Future values and present values W 2 Product costs 10 The term structure of interest rates & bonds 11 W 3 12 Job costing 13 W 4 14 Cost-volume-profit analysis 15 W 5 Private study Equity value Alternative methods of investment and appraisal 8

WEEK 22 SEMESTER 2 LECTURE TOPICS W 1 23 Working capital management 24 W 2 25 26 - 28 Budgeting Standard costing Performance evaluation W 3 W 4 Private study 29 -32 Vacation 33 Private study 34 Revision 9

Week commencing 7 W 1 15 th Oct 9 W 2 th Oct 29 11 W 3 th Nov 12 13 W 4 th Nov 26 15 10 th Dec W 5 Seminar Topics: Semester 1 Classification of costs Future values and present values Product costs – traditional The term structure of interest rates Product costs – ABC Bonds Job costing Equity value Cost-volume-profit analysis Alternative methods of investment appraisal 10

Week commencing 22 W 6 28 th Jan 24 W 7 th Feb 11 26 W 8 th Feb 25 28 W 9 th Mar 11 Seminar Topics: Semester 2 Budgeting Working capital management Standard costing Performance evaluation Revision questions 11

ASSESSMENT Ø Two exam-based assessments § First semester exam - 1 hour Covers semester 1 materials – 25% January 2013 – Contains both MA & Fin § Second semester exam – 2 hours Covers semesters 1 & 2 materials – 75% May/June 2013 – Contains both MA & Fin § Must work consistently throughout BOTH the semesters 12

ASSESSMENT Ø Need 40% overall to pass this module Ø Do not have to pass each individual piece of assessment Ø You can not retake an exam to improve your mark Ø If you fail this module, there is a 3 hour re-sit paper in August Ø If you feel there any circumstances which may affect your performance then please contact your personal tutor as soon as possible. Ø For professional accreditation need at least 50% 13

PRESCRIBED TEXT BOOK Ø Customised book § Title: Introduction to Management Accounting & Finance § Compiled by: Shanta Davie & Dylan Che 14

BLACKBOARD Ø Key course documents § § § Staff contact details Lecture notes Seminar questions Seminar groups Exam marks – January 2013 15

Health Warning § The exams and seminar assignments are of a professional standard § You should work consistently throughout the year § Avoid last minute cramming 16

AIMS OF TODAY Ø To introduce the module § Degree programmes § Teaching team § Timetable of lectures, workshops & help sessions § Assessment § Text book § Resources available § Warning! ØTo introduce Management Accounting 17

INTRODUCTION TO MANAGEMENT ACCOUNTING & FINANCE Ø Module Aim § To acquire a basic foundation of knowledge and skill in management accounting and finance. Ø Key Skill Outcomes § Record business transactions, prepare and analyse financial statements of business organisations § To be able to inform the internal decision making process of a business organisation 18

INTRODUCTION TO ACCOUNTING Accounting exists because it is useful Process of identifying, measuring and communicating economic information about a business entity Company Sole trader Partnership 19

INTRODUCTION TO ACCOUNTING Stakeholders – any individual or group with a financial interest in the business public Internal Stakeholder lenders management employees customers External government Stakeholder suppliers owners 20

INTRODUCTION TO ACCOUNTING Both Internal and External stakeholders want to know How well has the business performed? What is the current financial position? What will happen in the future? Specifically for Internal Stakeholders (management) Compare actual data to budget Product profitability Prepare budgets Departmental costings Use decision making tools • Internal users Management Accounting • Unregulated • Forward looking 21

Management Accounting Cost Accounting 1 • Accumulate historic costs and allocate to units • Backward looking Cost Accounting 2 • Planning, control and decision making • Forward looking Management Accounting = provide information to assist management with planning control and decision making

What qualities should the information have? For management Per IASB Framework • Understandability Information must also be • Relevance • Timely • Materiality • Reliability • Faithful representation • Substance over form • Neutrality IASB = International Accounting Standards Board • Prudence • Completeness • Comparability 23

RECOMMENDED READING Ø Customised Text Book § Introduction to Management Accounting & Finance. • Chapters 1 & 2 24

REMEMBER - KEY DATES Ø Monday - Lecture 10 am – 11 am here Ø Wednesday – Lecture 12 – 1 pm LT 1 Ø Next week – same times, same days & same venues Ø Please bring pens, paper & lecture notes to ALL lectures. 25

LET’S ENJOY ACC 1011 TOGETHER 26

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