BUSN9226 Accounting for Managers

The topic introduces students to the way in which a manager utilises accounting, finance, and information systems in decision making. The topic provides students with a solid grounding in accounting fundamentals including statements of comprehensive income, balance sheets, changes in equity and cash flows. Emphasis will be placed on how to assess an organisation's current cash flow and profitable position together with how to deal with internal and external environmental complexities and constraints. Students will be involved in the formulation, implementation, and control of an organisation's accounting, internal controls, and financial statements, and will produce and interpret performance ratios.

The topic consists of four main parts:

1. The accounting environment and accounting reports - their nature and use
2. The recording and external reporting focus
3. Accounting and financial management
4. Accounting for management decisions

This topic aims to provide an insight and understanding of the accounting process, specifically to increase understanding of what managers must do to make an organisation financially successful. Emphasis will be placed on how to assess an organisation's current cash flow and profitable position together with how to deal with internal and external environmental complexities and constraints. In attempting to cover these issues formulation, implementation, and control of an organisation's accounting, internal controls, and financial statements need to be understood and performance ratios required to be interpreted. In addition, the topic aims to develop:

• Generic cognitive skills (especially analytical and evaluative skills)
• Behavioural skills (especially personal and interpersonal skills) which can be employed in an organisational work environment

1. Describe the basic concepts and principles of accounting and the nature and purpose of accounting reports as applied to different business entities
2. Prepare an accounting worksheet and a simplified Income Statement and Balance Sheet
3. Explain the importance of cash flow and distinguish between accrual and cash-based transaction recognition
4. Discuss the components of the Cash Flow Statement and its significance in strategic decision making
5. Use ratio analysis to identify the key aspects of financial performance and financial position, identify limitations of ratios analysis and evaluate alternative techniques
6. Explain the importance of a detailed understanding of cost behaviour, distinguishing between fixed and variable costs to determine a break-even point
7. Critically evaluate the usefulness of break-even analysis and apply the concept to a make or buy decision and a decision to close or continue a sbusiness unit
8. Explain the nature and scope of capital investment decisions and explain some of the practical issues in making investment decisions, and apply the following concepts: payback period; accounting rate of return; Net Present Value
9. Identify and explain the management of net working capital and related issues including the sources of both short term and long term finance and equity financing instruments