Financial AccountingLaajuus (5 cr)

Objective

The course is designed to offer students key knowledge about accounting and financial management. The course will help students develop the skills of interpreting, analysing and communicating financial information.

Learning outcomes; the student

• demonstrates an understanding of the accounting function in a business
• can interpret the main financial statements (statement of financial position, balance sheet and cash flow statement)
• is able to apply diverse methods and techniques to calculate, interpret and analyse key performance indicators to support decision making
• develops the ability to effectively evaluate and communicate financial information.

Content

Accounting as an information system:
• Concepts of accounting and finance
• Users of accounting information
• Management accounting versus financial accounting

Financial statements overview:
• Statement of financial position
• Income statement
• Cashflow statement

Analysis of financial information and key measures:
• Financial and non-financial key indicators
• Profitability indicators (return on equity, return on capital employed, profit margins)
• Efficiency indicators (trade receivables and trade payables period, storage period, operating cycle and cash operating cycle)
• Liquidity indicators (current and acid test ratios)
• Gearing and financial risk indicators (gearing, debt, solvency and interest coverage ratios)
• Share indicators (PER, EPS, price, dividend yield)
• Non-financial indicators (social and environmental indicators)
• Identifying financial problems (causes and early signs of financial problems)

Qualifications

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Assessment criteria, satisfactory (1)

LO1 - Learning objective 1 - Demonstrate an understanding of the accounting function within a business
0 Fail: No submission
1-2: Task shows very basic understanding of accounting and accounting information. Limited support for information is given.
LO2 - Learning objective 2 - Interpret the main financial statements (statement of financial position, balance sheet and cashflow statement)
0 Fail: No submission
1-2: Very basic understanding of financial reporting within a business. Poor/very basic understanding of the importance of financial reporting to support decision making. No evaluation of accounting information and reports. Limited support for arguments and information is given.
LO 3 Application of diverse methods and techniques to calculate, interpret and analyse key performance indicators to support decision making
0 Fail: No submission
1-2: The task shows a very basic understanding of how to calculate and use indicators to improve performance and business operations. Incomplete/poor calculations lacking important indicators and information. Limited support for the arguments is given.

Assessment criteria, good (3)

LO1 - Learning objective 1 - Demonstrate an understanding of the accounting function within a business
3 - Pass: Task shows a fair understanding of accounting and accounting information. Limited analysis. Arguments tend to be supported by relevant references.
LO2 - Learning objective 2 - Interpret the main financial statements (statement of financial position, balance sheet and cashflow statement)
3 - Pass: Task reveals a fair understanding of how financial reporting can be used to support decision making. Still, there is limited evidence of research. Writing is mostly organised, clear and objective. Presentation of the task is of good standard.
LO 3 Application of diverse methods and techniques to calculate, interpret and analyse key performance indicators to support decision making
3 Pass: The task shows an appropriate use and analysis of indicators to improve business performance and operations. There is some incomplete/incorrect information, but overall calculations show a satisfactory understanding. There is limited evidence of research and the level of detail has room for improvement. Some choices are justified and supported by evidence. Presentation of financial information is of good standard.

Assessment criteria, excellent (5)

LO1 - Learning objective 1 - Demonstrate an understanding of the accounting function within a business
4 - Good: Task shows a good understanding of accounting and accounting information. Deep analysis. Arguments are clear, justified and supported by relevant references.
5 - Exceptional: Task shows an excellent and deep understanding of accounting and accounting information. Deep, critical analysis of management practices. Arguments are clear, justified and supported by relevant references.
LO2 - Learning objective 2 - Interpret the main financial statements (statement of financial position, balance sheet and cashflow statement)
4 - Good: Shows a good understanding of how financial reporting and management accounting information can be used to support decision making. Analysis of internal and/or external contexts is deep and clear and there is clear evidence of research. Report is well organised, clear and the information provided is relevant and supported. Good evidence of research. Presentation of the task is of very good standard.
5 - Exceptional: An excellent understanding of how financial reporting can be used to support decision making. Detailed and very deep analysis of internal and/or external contexts. The task is excellent. The arguments are logical and the information provided is supported by relevant references. Compelling evidence of research. Writing is well organised, clear and objective. Presentation of the report is of exceptional standard.
LO 3 Application of diverse methods and techniques to calculate, interpret and analyse key performance indicators to support decision making
4 Good: There is good use and analysis of measures to improve business performance and operations. Calculations are mostly correct and complete showing a good understanding of the financial methods and techniques. The level of detail is good and there is a good evidence of research. Most choices are justified and supported by evidence. Presentation of financial information is of a very good standard.
5 Exceptional: The use and analysis of measures to improve business performance and operations shows an excellent understanding. Calculations are free from errs and complete. The level o detail is compelling and the choices are justified and well supported by relevant evidence. Presentation of financial information is of an excellent standard.

Assessment criteria, approved/failed

The assessment requires students to produce a report analysing the financial performance and operations of a chosen social or health care organisation (for more details, please see the assignment brief).
Fail: The student does not return the required assignment.

Materials

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Further information

The language of tuition is English.
The course is assessed on a scale from 0 (failed) to 5 (excellent).