Core Course
MB460 – Accounting & Finance
Course Unit Code: MB460
Type Of Unit: Core
Level of Course Unit: Second cycle
Year of Study: First/second year
Semester: On demand
Number of ECTS Credits: 6
Class Contact Hours: 28
Mode of Delivery
Face to Face
Prerequisites
None
Course Objectives
The objectives for this course are as follows: (1) provide a comprehensive overview of accounting principles and standards to allow students develop and improve their financial intelligence so as to understand, interpret, and use accounting information to make decisions and evaluate performance as part of their job routine; (2) introduce the fundamental concepts of the theory and practice of finance paying particular attention to helping managers make value- creating corporate finance decisions and balance risk and return issues in an optimal way.
Learning Outcomes
- Define the goal of financial management, distinguish between various types of financial instruments and financial markets, master professional terminology of Accounting and Finance to use it for effective communication.
- Demonstrate awareness of the general principles of ethical financial reporting, interpret and use the key information contained in the financial statements and in the management accounts.
- Analyze the financial performance of an organization employing different financial analysis tools, evaluate its financial position, and describe the main limitations of accounting information and financial statements.
- Explain the process of forecasting and budgeting, employ break-even analysis, and use cost information to make sound financial decisions.
- Explain the ‘value-oriented’ principles behind strategic financial decisions and apply the investment appraisal techniques such as the net present value, internal rate of return, profitability index.
- Apply the concept of cost of capital to make corporate finance decisions and assess projects’ risks.
Course Content
1. Introduction to accounting and finance. Main accounting principles and standards. Sources of financial information. Role and responsibilities of external auditors and the Board of Directors.
2. The measurement of performance – the income statement
3. The statement of financial position – the balance sheet
4. The statement of cash flows
5. Ratio analysis. Net Working Capital management.
6. Budgeting, forecasting, variance analysis, and break-even
7. Case Analysis Practical Workshops – financial analysis and
financial planning exercises with the aim to integrate strategy, financial analysis, and business planning (group work)
Course Features
Assessment methods and criteria
20% participation (including both in-class participation and Moodle activities such as online self- assessment quizzes and sharing solutions in the discussion forum)
20% case practical workshops (group work)
60% final exam
Planned learning activities and teaching methods
Live lectures, pre-reading, pre-recorded video lectures, in-class discussions and debates, in-class exercises, problem sets, Excel spreadsheet calculations, teamwork, practical case workshops, student presentations, online activities on Moodle (online quizzes, discussion forums, surveys, etc.)
A laptop equipped with Microsoft Excel is required for each class, per each student. We will be using Excel spreadsheets for financial calculations. The exam will also include financial calculations via Excel. (You need a full version of MS Excel, which includes financial functions).
Instruction Language
English
Work placement(s)
Not applicable
Readings
Case studies, template Excel files, problem sets, revision exercises, sample exam papers, and other course materials are provided via Moodle.
Case study example:
Kandinskaia, O. (2019). Zorbas Bakeries: An Option to Expand? Case Research Journal via Harvard Business Publishing: https://store.hbr.org/product/zorbas-bakeries- cyprus-an-option-to-expand/NA0585.
More case studies recently prepared by the instructor will be used throughout the course.
Recommended Textbooks:
1. Berman, K., Knight, J. (2013). Financial Intelligence: A Manager’s Guide to Knowing What the Numbers Really Mean. Harvard Business Review Press.
2. Brealey, R., Myers, S. & Allen, F. (2019). Principles of Corporate Finance, International ed. McGraw-Hill Education.
3. Elliott, B., Elliott, J. (2018). Financial Accounting and Reporting, 18th edition. Pearson. Ross, S., Westerfield, R. & Jordan, B. (2018). Fundamentals of Corporate Finance, 12th ed.
McGrawHill Education.
Recommended web resources:
Financial Dictionary www.investopedia.com
Understanding the Time Value of Money https://www.investopedia.com/articles/03/082703.asp#axzz2ACSiy71z
Damodaran online: teaching, blog, data sets – pages.stern.nyu.edu/~adamodar/
Cyprus Financial News www.stockwatch.com.cy, http://www.financialmirror.com/
KPMG web site (latest audit and tax information) www.kpmg.com/cy/en/pages/default.aspx
Khan Academy – Time Value of Money (video) https://www.khanacademy.org/economics- finance-domain/core-finance/interest-tutorial/present-value/v/time-value-of-money
International Financial Reporting Standards (IFRS) website www.ifrs.org/Pages/default.aspx
Financial statements and stock research reports www.macrotrends.net/, finance.yahoo.com
US Securities and Exchange Commission database of annual reports https://www.sec.gov/oiea/Article/edgarguide.html
Bloomberg http://www.bloomberg.com/
CNN Money http://money.cnn.com/ , particularly if you prefer financial news in the video format http://money.cnn.com/video/
Financial Calculator Excel Tutorial www.tvmcalcs.com/index.php/calculators/excel_tvm_functions/excel_tvm
_functions_page1
Bloomberg iPhone/iPad free application
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