Unit Information Form (UIF) UIF1213
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SECTION 1 - Changes made to Section 1 of the UIF will require Faculty level approval. If substantial changes to Units/Courses are required, consult with Sub Dean (Quality Enhancement) for advice
Unit Name Financial Management
Unit Code AAF002-3
Level 6
Credit Value 30
Location of Delivery Luton, Bedford and TNE (Kaplan) campuses
Summary/Overview
This unit builds on aspects of the curriculum of Financial Accounting and Management Accounting that will have been covered at previous levels. The content of this unit is informed to a significant extent by curriculum developments of the Association of Certified Chartered Accountants paper F9, Financial Management.
Financial Management is the study of the nature of all the decisions that financial managers make when running a corporate, profit-making organisation. However, since the array of decisions is wide and varied, the study of Financial Management focuses on those economic decisions that have a direct financial implication to the business and its shareholders. Students discuss the nature of these decisions and are expected to be able to specifically highlight the impact of these decisions on the financial well-being of the organisation, managers and stakeholders. Financial Management decisions fall largely into 1 of 3 categories. These categories comprise the Investment, Finance and Dividend decision. Through a process of both academic debate, numerical manipulation and practical application, students are expected to make boardroom level decisions and recommendations that enhance shareholder wealth.
This unit is taught through a series of weekly 2 hour lectures and 1 hour seminars involving the practical application of techniques to company data provided. Students are expected to have read the relevant chapters of the text book that forms the basis of the lecture discussion. Seminars will provide students with the opportunity to apply techniques
discussed in lectures to management data to derive appropriate solutions. Students should anticipate a significant level of numerical application for this unit as this unit attracts exemption from Paper F9, Financial Management, of the ACCA suite of examinations.
Aims
The aims of this unit are such that students should be able to:
Select appropriate investment strategies from an array of options and be able to critically evaluate the shareholder wealth impact of these strategies. Compare and contrast the different techniques of
risk management to financial data.
Evaluate the cost of capital and analyse the different factors which affect it.
Discuss and apply different approaches to working capital management and critically appraise
appropriate managerial actions that can enhance a company’s financial standing.
Implement and evaluate effective, shareholder maximising methods of investment appraisal and conduct post-audits where variances have transpired.
Core Learning Outcomes
Learning Outcomes
On completion of this unit you should be able to:
Assessment Criteria
To achieve the learning outcome you must demonstrate the ability to:
1
Evaluate and apply appropriate theoretical models of financial management.
Using a variety of case material, select and apply a range of financial management models, to issues of investment appraisal and the workings of capital markets. Critically appraise the outcome and
communicate their strengths and
weaknesses to a given audience.
2
Determine the likely outcomes that will result from the application of financial management models, and critically assess the limitations of these models.
Critically discuss the advantages and disadvantages of the differing approaches
to problem solving in Financial
Management. Use case material to judge the environmental factors that impact on the success of these models of problem solving for gearing, dividend policy and merger activity.
3
Analyse data, using techniques appropriate to the financial management of an organisation.
From problem data for organisations, select and apply techniques, distinguishing between relevant irrelevant data. Evaluate the results of the analysis from a management perspective. Recommend
approaches to working capital
management and valuation.
4
Produce creative and realistic solutions to complex financial management problems.
Research in groups to source and apply financial management approaches to complex real world problems. Judge the utility of the outcomes in an environment of uncertainty.
5
Critically review information and discriminate between relevant and irrelevant data that can be used to inform a process of decision making.
Review the academic literature specific to relevant problems in the field of Financial Management and effectively present. SECTION 2 - Any changes made to Section 2 of the UIF will normally require Faculty level approval
Period of Delivery Whole year Pre-requisites/Restrictions
Student Activity
(10 notional learning hours = 1 credit)
Activity Notional Learning
Hours Lectures 48 Seminars/tutorials 37 Lab/Field work Workshops Rehearsals Assessment 50 E-Learning 40 Self-directed study 110 Group work 15 Other (specify) Total 300 Approach to Learning
Students will be required to attend a series of 2 hour lectures and 1 hour seminars each week. Whilst the theoretical underpinning of the unit will be delivered in the lectures, students will have the opportunity to display their understanding of the application of their knowledge by attending seminars and generating solutions to pre-determined questions.
Attendance at seminars will also facilitate for smaller, informal groups to meet and discuss not only the numerical aspects of the discipline but also the application of the knowledge acquired to the Financial Management decision making process.
Online materials will enable students to self assess and prepare for the terminal examination.
Skills Development
Communication
To help with the development of this you will present your proposal of the solution to your peers in a seminar environment. Students are required to deliver a presentation as the first formal assessment which will also test their skills in presentation, communication and clarity of thinking in an aspect of Financial Management.
Information Literacy
To help with the development of this you will be required to demonstrate your ability in data-mining and discriminating between relevant and irrelevant information. Seminar questions will present an array of information about a company and the first steps towards presenting a viable solution will require you to be able to identify and utilise the appropriate data.
Research and Evaluation
To help with the development of this you will be led to read the required pre-requisite literature but also, you will be
required to read the financial press in order to see what articles are relevant to the subject area of study. An aspect of your first assessment will require you to research and evaluate the conflicting views and theories in the literature.
Creativity and Critical Thinking
To help with the development of this you will be required to be able to critically distinguish between that research that is relevant and that which is not applicable in the context of the particular subject matter. You will also be required to provide an appraisal of different options that have been presented to specific Financial Management problems.
Assessment Strategy
This unit will be assessed through a group presentation and a final examination. Peer reviews will be used as a tool to aid the awarding of individual grades from the group assignment. The group grades awarded for presentations will be converted into individual grades based on the peer review. Members of the group will be asked to provide a peer review concerning other members of the group to assist the assessor in awarding the individual grades. The presentation will enable students to research and present on a contemporary issue within Financial Management. An element of this will involve analysis and interpretation of data.
The final examination will capture the needs of the ACCA’s paper F9. No Assessmen t Method* Description of Assessment Method Weight % Learning Outcomes Assessed Submission week (assignments) or length (exam) 1 2 3 4 5 Week
1 PR Group Presentation 40% Y Y Y Y Week 21
2 EX Final Examination 60% Y Y Y 3 Hours
*The following codes for assessment methods apply:-
AR Artefact PC Practical
CB Computer-Based PF Performance
CS Case Study PL Placement
DI Dissertation or Project PO Portfolio
EX Exam PR Presentation
GR Group Report RE Individual report
IT In unit Test OR Oral
LR Literature Review OT Other
SECTION 3 - Once initial approval of the unit has been given, the unit co-ordinator may make changes to this section, following appropriate consultation
Outline Teaching Schedule
The Role Of The Financial Manager and Corporate Governance Corporate Performance
Doesn’t exist in UIF REPORT Recommended Resources Essential
Watson, D and Head, A (2009), Corporate Finance, Principles and Practice. Pearson Education. ISBN 978-0273725343
Background
Brealey, R A Myers S.C and Allen F (2007), Principles of Corporate Finance. McGraw Hill Samuels J.M, Wilkes F.M and Brayshaw R.E. (2008) Management of Company. FT Press Journals
Journal of Banking and Finance
Journal of Financial and Quantitative Analysis Money Management
Public Finance
Review of Economic Studies Websites YahooFinance.com BBCBusiness.com FT.com Economist.com Newsweek.com Corporatefinancemag.com
SECTION 4 – Administrative Information
Faculty Business
Field Accounting and Finance
Department/School/Division Accounting and Finance
Unit Co-ordinator Piotr Konwicki
Version Number
Body approving this version FTQSC Date of University approval of this
version (dd/mm/yyyy)
Shared Units – Indicate below all courses which include this Unit in their diet BA (Hons) Accounting (and Sandwich variant)
BSc (Hons) Accounting and Finance (and Sandwich variant) BSc (Hons) International Finance (and Sandwich variant)
BSc (Hons) International Finance and Banking (and Sandwich variant)
Name: Naveed Butt Date: 30 April 2012
Authorisation on behalf of the Faculty Teaching Quality and Standards Committee (FTQSC)
Chair: ……… Date: ……….
Unit Updates Date
(dd/mm/yyyy) Nature of Update
FTQSC Minute Ref:
30/3/2012 Minor update to assessment strategy and a revision of the essential and background reading.
