Module BUSI41Y15: MANAGING FINANCE 2 (DL)

Department: Management and Marketing

BUSI41Y15: MANAGING FINANCE 2 (DL)

Prerequisites

• Managing Finance 1

Corequisites

• None.

Excluded Combination of Modules

• None.

Aims

• To build on the core module ‘Managing Finance 1’ by:
• developing students’ critical understanding of the financial tools of business management, in particular the international financial reporting environment;
• developing students' understanding of the financial control processes of business and their systems context;
• providing students with the ability to critically evaluate alternative mechanisms to deliver information for management control and decision making;
• providing students with a critical understanding of the centrality of management accounting information to wealth creation;
• introducing students to the main concepts used in the definition, measurement and management of financial risk. Particular emphasis is placed on developing an advanced understanding of financial instruments as corporate assets as opposed to liabilities.
• introducing students to the fundamentals of financial derivatives and contingent claims valuation.

Content

• Introduction to Financial Risk Management.
• Principles of Diversification and Hedging in the Context of Mean-variance Optimisation.
• Bills, Bonds and Equities, from an Asset Perspective.
• Financial Derivatives.
• Introduction to Behavioural Finance.
• Financial Measures of Performance; International Dimensions.
• International differences in Financial Reporting.
• Standardisation of International Accounting and its impact.
• Behavioural aspects of control; the performance measurement agenda.
• Incentive Measures and Performance.

Learning Outcomes

• By the end of this module, students should have:
• a critical understanding of the context of the information needs of management;
• a critical understanding of the impact of management accounting on key strategic issues faced by organisations;
• a critical appreciation of the limitations in application of wealth creation models;
• a critical understanding of the definition of `financial risk’ and what it means to a company;
• a critical appreciation of the principles of diversification and hedging.

• By the end of this module, students should:
• have explored the use of bills and bonds as tools for managing liquidity risk;
• be able to critically evaluate the role of budgeting in effective management control;
• be able to use the tools of financial analysis to make comparisons between organisations in the context of wider international issues.

• Written communication.
• Planning, organising and time management.
• Problem solving and analysis.
• Using initiative.
• Computer literacy.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• The module is delivered in discrete Units. These are designed to enable the learning outcomes to be achieved through a combination of specially written material, directed reading, reflection through self-assessed assignments and guidance for further reading. Module tutors provide feedback on formative work and are available for individual consultation as necessary (by email, telephone, post or fax).
• The summative assessment of the module, by written assignment, will test students' acquisition and articulation of knowledge and their ability to apply the tools of financial analysis.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Written assignment of 1,500 words (maximum)

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University