AC.F211M: Accounting Information Systems and Auditing

• Terms Taught: Michaelmas Term only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites: High school mathematics and coursework equivalent to Ac.F 100 / 111 / 261.

Course Description

This module is designed to provide in-depth exposure to the basic areas of accounting information systems and auditing and to develop competencies in the practical application of these areas of expertise. This course is compulsory for all AcF degrees and optional within a range of other degree programmes. It is intended to provide an introduction to, and an overview of, the design and main features of Accounting Information Systems (AIS), and the use of such systems in the conduct of an audit, and also coverage of some basic concepts and practices in auditing.

Educational Aims

After completing this course, students should be able to:

• Identify and articulate the key elements of an accounting information system (AIS);
• Document an AIS system using flowcharts;
• Understand and appraise the main design features of an AIS;
• Understand how these features lead to the correct and appropriate recording of accounting information;
• Appreciate the role of information technology to the financial accounting function;
• Identify and understand the business cycles within an organisation and appreciate how an AIS serves these cycles;
• Identify and evaluate the risks associated with growing dependence on information technology;
• Be aware of the basic techniques of the conduct of an audit and understand some key elements of how an audit works in practice; and
• Articulate a reasoned argument under exam conditions.

Outline Syllabus

• Introduction to information systems in accounting and systems thinking
• Transaction processing and documentation
• Control and accounting information systems
• Fraud
• Controls for information security
• Accounting information systems development
• Key issues in auditing

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F212L: Principles of Financial Accounting

• Terms Taught: Lent / Summer Terms only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites: High school mathematics and coursework equivalent to Ac.F 100 / 111 / 261.

Course Description

This module examines the main features of financial reporting by UK companies as well as the regulatory requirements and conceptual bases associated with these, with attention given to the UK Companies Acts and international accounting standards. Time will be devoted to problem areas and to specific reporting topics of current interest and concern.

Educational Aims

This course is designed to extend students' knowledge of the environment within which companies in the U.K. conduct their financial accounting and reporting, introduce selected issues relating its regulation and monitoring and aspects of the theory and practice relating to such reporting. Whilst the course examines certain technical aspects of the accounting process, it aims to broaden students' perspectives to enable them to appreciate the principles guiding the regulation of financial reporting, and the role of external financial reporting in the efficient allocation of economic resources.

Outline Syllabus

• The Regulation of Financial Reporting Theory:The law
• The Regulation of Financial Reporting Practice: the accounting profession and others
• Standards of Financial Reporting ( Including the IASB's Conceptual Framework)
• Share capital creditor protection
• Property, Plant & Equipment (PPE)
• Intangible Assets
• Impairment of Assets
• Inventories
• Revenue Recognition and Receivables
• Financial Instruments
• Provisions
• Reporting Financial Performance
• Earnings Management
• Earnings per share
• Published Accounts of Companies
• Accounting for Groups of Companies

Note: Subject to Annual change/updating.

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F213L: Management Accounting for Business Decisions

• Terms Taught: Lent / Summer Terms only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics and coursework equivalent to Ac.F 100 / 111 / 261.
  • May not be combined with AC.F213M: Management Accounting for Business Decisions

Course Description

This module provides an introduction to the use of management accounting information for management purposes. This includes an examination of cost-volume profit analysis, the concepts of direct and indirect costs, and various costing methods. The importance of budgets to organisations and their impact on performance are also discussed.

Educational Aims

The course acts as an introduction to management accounting, and is designed to explore the basic principles and underlying concepts of the subject. The aim of the course is for students to develop an appreciation of the main approaches to measuring, analysing and reporting information to support management decisions.

The objectives for the course are as follows:

• Examine the major aspects of management accounting in the organisation;
• Provide insights into the changing nature of manufacturing practice and the recent development of other management accounting methods (for example Strategic Management Accounting) and the impact on the role of the management accountant;
• Facilitate the development of skills for, and knowledge of, management accounting in the organisation.

Outline Syllabus

• Introduction to management accounting and cost concepts
• Information for decision making: Cost-volume profit analysis and special studies/marginal analysis
• Cost assignment and pricing: Full costing and aspects of pricing
• Information for planning and control: The budgeting process, standard costing and variance analysis and the need for responsibility accounting, performance measurement, motivation and behavioural aspects of accounting systems
• Management of working capital
• Strategic cost management & performance management

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F213M: Management Accounting for Business Decisions

• Terms Taught: Michaelmas Term only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics and introductory coursework equivalent to Ac.F 100 / 111 / 261.
  • May not be combined with AC.F213L: Management Accounting for Business Decisions

Course Description

This module provides an introduction to the use of management accounting information for management purposes. This includes an examination of cost-volume profit analysis, the concepts of direct and indirect costs, and various costing methods. The importance of budgets to organisations and their impact on performance are also discussed.

Educational Aims

The course acts as an introduction to management accounting, and is designed to explore the basic principles and underlying concepts of the subject. The aim of the course is for students to develop an appreciation of the main approaches to measuring, analysing and reporting information to support management decisions.

The objectives for the course are as follows:

• Examine the major aspects of management accounting in the organisation;
• Provide insights into the changing nature of manufacturing practice and the recent development of other management accounting methods (for example Strategic Management Accounting) and the impact on the role of the management accountant;
• Facilitate the development of skills for, and knowledge of, management accounting in the organisation.

Outline Syllabus

• Introduction to management accounting and cost concepts
• Information for decision making: Cost-volume profit analysis and special studies/marginal analysis
• Cost assignment and pricing: Full costing and aspects of pricing
• Information for planning and control: The budgeting process, standard costing and variance analysis and the need for responsibility accounting, performance measurement, motivation and behavioural aspects of accounting systems
• Management of working capital
• Strategic cost management and performance management

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F214L: Principles of Finance

• Terms Taught: Lent / Summer Terms only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics and introductory coursework equivalent to Ac.F 100 / 111 / 261
  • May not be combined with AC.F214M: Principles of Finance

Course Description

The course aims to describe the theory and practice of financial decision making to cope with the practical financial problems that both firms and individuals are likely to confront. To equip the students with the necessary tools for dealing with such issues, this course focuses on the capital budgeting process, introduces the theory of risk, return and the cost of capital, including portfolio theory and the capital asset pricing model (CAPM), outlines the efficient markets hypothesis (EMH) and some behavioural issues in finance. The course also discusses how firms raise funds to undertake their investments by introducing basic arguments for the firms’ capital structure and payout policies. The course concludes with the introduction of three main derivative contracts (options, forwards and futures).

Educational Aims

By the end of the course, students should:

• Assess investment projects using capital budgeting techniques, and understand the problems associated with applying such techniques in practice;
• Understand the relationship between risk and required return and interpret the capital asset pricing model;
• Understand the concept and practical implications of market efficiency; be able to provide a number of rational and behavioural explanations of selected market anomalies;
• Interpret the determinants of a firm’s capital structure choice and payout policy;
• Have a basic understanding of futures and forwards contracts, demonstrate payoffs of simple options.

Outline Syllabus

• Fundamentals of capital budgeting
• Risk, return and the cost of capital
• The Efficient Markets Hypothesis and behavioural finance
• Capital structure
• Payout policy
• Futures and Forwards
• Option Markets

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F214M: Principles of Finance

• Terms Taught: Michaelmas Term only.
• US Credits: 4 Semester Credits.
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics and Ac.F 100 / 111 / 261
  • May not be combined with AC.F214L: Principles of Finance

Course Description

The course aims to describe the theory and practice of financial decision making to cope with the practical financial problems that both firms and individuals are likely to confront. To equip the students with the necessary tools for dealing with such issues, this course focuses on the capital budgeting process, introduces the theory of risk, return and the cost of capital, including portfolio theory and the capital asset pricing model (CAPM), outlines the efficient markets hypothesis (EMH) and some behavioural issues in finance. The course also discusses how firms raise funds to undertake their investments by introducing basic arguments for the firms’ capital structure and payout policies. The course concludes with the introduction of three main derivative contracts (options, forwards and futures).

Educational Aims

By the end of the course, students should:

• Assess investment projects using capital budgeting techniques, and understand the problems associated with applying such techniques in practice;
• Understand the relationship between risk and required return and interpret the capital asset pricing model;
• Understand the concept and practical implications of market efficiency; be able to provide a number of rational and behavioural explanations of selected market anomalies;
• Interpret the determinants of a firm’s capital structure choice and payout policy;
• Have a basic understanding of futures and forwards contracts, demonstrate payoffs of simple options.

Outline Syllabus

• Fundamentals of capital budgeting
• Risk, return and the cost of capital
• The Efficient Markets Hypothesis and behavioural finance
• Capital structure
• Payout policy
• Futures and Forwards
• Option Markets

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F215L: Introduction to Asset Pricing

• Terms Taught: Lent / Summer Terms only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites: Advanced Mathematics and Intermediate Finance (equivalent to Ac.F 214).

Course Description

This module provides students with a detailed analysis of three fundamental areas of financial theory: Decision making under uncertainty, including utility theory, Equilibrium asset pricing models, including mean-variance analysis and the Capital Asset Pricing Model (CAPM) and No arbitrage asset pricing, including the fundamental theorem of finance, pricing in complete and incomplete markets, and derivative pricing.

Educational Aims

After successful completion of the course students should be able to:

• Apply utility theory to simple decisions faced by risk-averse individuals.
• Carry out basic mean-variance analysis and understand its relationship with the Capital Asset Pricing Model.
• Use the Capital Asset Pricing Model to estimate returns on risky assets.
• Understand the link between no arbitrage, market completeness and risk-neutral pricing and what is necessary for markets to be complete and risk-neutral pricing to be appropriate.
• Apply risk-neutral probability methods to price derivative securities and construct hedging strategies in discrete time models.

Outline Syllabus

Decision-making under uncertainty, including:

• Preference relation
• Expected Utility Theorem
• Risk Aversion, Risk Premium
• Absolute Risk Aversion
• Examples: Optimal investment in risky asset; Basic insurance contract

Arbitrage pricing, including:

• Arbitrage
• State-prices
• Complete and incomplete markets
• Risk-neutral probabilities
• Pricing kernel

Derivatives pricing, including:

• Dynamic behaviour of asset prices
• Binomial pricing model
• Examples: Put-Call parity; Option Pricing

Market equilibrium, including:

• Mean-variance trade-offs
• CAPM

Assessment Proportions

• Coursework: 25% (Mid-term test)
• Exam: 75%

AC.F261M: Introduction to Financial Accounting for Managers

• Terms Taught: Michaelmas Term only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites: High school mathematics.

Course Description

This module provides an introduction to the analysis and use of published financial statements and the concepts which underlie financial reporting by companies. It also considers the relationship between companies and their financial environment. The concepts and use of financial statements are placed within the current commercial context, so that you acquire an appreciation of the role of financial accounting.

Educational Aims

This objectives of this course are to introduce students with no previous knowledge of accounting and finance to:

• The use and interpretation of financial statements,
• Some concepts underlying financial reporting by companies, and
• An appreciation of financial accounting as needed by non-accounting managers of companies.

The course considers the perspectives of various users and opportunities for creative accounting. It places the concepts and use of financial statements within the current commercial context, so that students can appreciate the role of financial accounting.

Outline Syllabus

• Financial accounting: users and purposes
• Principal financial statements and the accounting equation
• International regulatory context for financial accounting
• Corporate governance, qualitative characteristics and accounting policies
• T accounts and the trial balance
• Sales and revenue recognition
• Cost of sales, inventories
• Interpretation of inventories, gross and net profit
• Working capital
• Property, plant and equipment, including depreciation and disposal
• Intangible assets and impairment
• Liabilities and provisions
• Share capital
• Cash flow statements
• Groups of companies
• Financial statement analysis

Assessment Proportions

• Coursework: 40%
• Exam: 60%

AC.F263L: Introduction to Finance

• Terms Taught: Lent / Summer Terms only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits.
• Pre-requisites:
  • High school mathematics.
  • May not be combined with AC.F 263M: Introduction to Finance

Course Description

This course provides an introduction to finance for non-specialists. The course aims to develop a basic understanding of financial environment and the importance of capital markets, to introduce the basic concepts of business valuation and provide an overview of the relationship between risk and return. It assumes no previous knowledge of finance.

The key objectives of Ac.F263 are to develop an understanding of financial concepts including the time value of money and to use them to value stocks and bond; to understand and apply net present value (NPV) and other criteria used in investment decision-making; to provide a basic understanding of financial markets and the trade-off between risk and return. Ac.F 263 cannot be taken by students who have previously studied Introductory Finance.

Educational Aims

By the end of the course, students should:

• Be able to explain the goals of financial management and understand conflicts which may arise between owners and managers,
• Be able to compute the present value, future value and rate of return of investments and compare criteria used to make investment decisions,
• Understand differences between types of bonds, the determinants of bond yields and the impact of inflation and interest rates on bond prices,
• Have an overview of the operation of capital markets, how firms raise capital, the role of risk in determining investment returns and be able to calculate a firm’s cost of capital,
• Be able to calculate stock prices using the dividend growth model, understand the importance of diversification and the role of systematic risk.

Outline Syllabus

• Introduction to Finance and Finance Management
• Introduction to Capital Markets
• Introduction to Time Value of Money and Discounted Cash Flow Valuations
• Interest rates and Bond Valuations
• Bond and Bond Markets
• Equity Markets and Stock Valuations
• Net present Value and Other investment Criteria
• Making capital investment decisions
• Risk and Return
• Cost of Capital

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F301M: Financial Accounting I

• Terms Taught: Michaelmas Term only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics.
  • Knowledge of financial reporting issues, such as that provided by an intermediate financial accounting courses such as Ac.F212, is assumed.

Course Description

The purpose of this module is to enable students to prepare and present financial statements for business combinations (complex entities) which conform to international accounting standards and to be able to explore and evaluate some of the more complex areas of financial accounting and reporting.

Educational Aims

At the end of this modules, students should:

• understand the concepts underpinning the main areas in accounting for leases, provisions and contingencies, financial instruments, group accounting and other complex areas of financial accounting and reporting;
• have an overview of the relevant UK and international accounting standards, and an overall perspective of developments in and changes caused by international standards;
• be able to carry out basic technical procedures relating to accounting for leases, provisions and contingencies, financial instruments, group accounting and other complex areas of financial accounting and reporting;
• be able to interpret the meaning and composition of accounting numbers in consolidated financial statements and analyse the effects of changes in underlying data on them;
• understand how underlying financial and business objectives can affect accounting choices;
• identify and apply relevant technical knowledge and skills to analyse a specific reporting or accounting issue;
• perform relevant, accurate calculations in a logically structured way; and

• apply technical knowledge to support reasoning and conclusions.

Outline Syllabus

• Group accounting
• Accounting for strategic investments
• Accounting for leases
• Reporting financial performance
• Other accounting standards – events after the reporting period, accounting policies and accounting for government grants
• Financial instruments – this is limited to very specific areas of IAS 32 and IFRS 7

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F302L: Corporate Finance

• Terms Taught: Lent / Summer Terms only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics.
  • Intermediate finance (equivalent to Ac.F214 ) and an understanding of the structure of the UK and/or US financial system and of the theory of finance comparable to Ac.F214 above.

Course Description

This course equips students with the knowledge to apply the techniques that have been developed in corporate finance to real world situations. It builds on and extends the concepts covered in the introductory financial management courses (Ac.F100 and Ac.F214) and introduces advanced topics in corporate finance. The major topics covered include capital budgeting, capital structure, company valuation, equity and debt issuance, real options, mergers and acquisitions, and corporate governance. The analytical tools and financial theories discussed in the course are brought together in practical settings through comprehensive examples based on real companies.

Educational Aims

The core objectives of Ac.F 302 are:

• To deepen the understanding of traditional corporate finance paradigms.
• To consider the real life complexities in the analysis of the fundamental decisions in the Corporate Finance area.
• To widen the analysis of capital structure by examining the implications of taxes, bankruptcy costs, and agency problems for capital budgeting and company valuation.
• To provide an insight into more applied topics in corporate finance, such as merger and acquisitions, issuing new securities, and corporate governance.

Outline Syllabus

• Capital budgeting and valuation with leverage
• Company valuation and financial modeling
• Real options
• Raising Equity Capital
• Raising capital through debt markets
• Leasing
• Short-term financing
• Mergers and acquisitions
• Corporate governance

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F303L: Advanced Management Accounting

• Terms Taught: Lent / Summer Terms only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites: High school mathematics and Introduction to Management Accounting.

Course Description

This module aims to extend students’ understanding of management accounting, focussing on three distinct approaches to the discipline: conceptual, practical and applied. The conceptual material in the course will seek to develop critical thinking skills for students by inviting them to consider the wide range of philosophical and economic theories that fit with the management accounting paradigm. In particular students will learn to become critical of assertions about the superiority of particular management accounting techniques and will be able to identify that the appropriateness of a technique is contingent on a number of factors, including context, pragmatism and organisational structures and objectives. The practical element of the course will introduce students to new management accounting techniques, including the role of uncertainty in management accounting, management control systems and the use of transfer pricing. The emphasis in learning these techniques will be placed on identifying when and how these approaches can be used to help management make appropriate decisions in a range of contexts, including those relating to the private and public sectors. The applied material will centre on a series of case study classes in which students will be required to engage with case study material and articulate their ideas about how to help the case organisation solve the particular problems that it faces.

Educational Aims

After completing this course, students should be able to:

• Synthesise, evaluate and articulate the role of the management accountant and understand the skills required to perform this role effectively,
• Understand, apply and evaluate the range of advanced techniques available to management accountants, especially those used in management decision making,
• Explain the use of management control systems and evaluate the use of budgeting as a management control,
• Select appropriate management accounting techniques given a range of contexts, including their use in a strategic context, and summarise the advantages and disadvantages of these techniques with reference to real world examples and accounting literature,
• Develop critical thinking skills that enable the student to synthesise data and identify and apply appropriate solutions in particular case study situations,
• Discuss academic literature in the management accounting subject area and critically appraise the existing research base in the subject, and
• Articulate a reasoned argument in a classroom situation and under exam conditions.

Outline Syllabus

• Introduction to advanced management accounting
• Cost behaviour and estimation
• Control systems, transfer pricing, budgeting and beyond…
• Management accounting for decision making

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F304L: Financial Markets

• Terms Taught: Lent / Summer Terms only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics.
  • Intermediate Finance (equivalent to Ac.214).

Course Description

The aim of the course is to offer a practical introduction to the workings of today’s financial markets and institutions built on a theoretical base. Moving beyond the descriptions and definitions provided by other textbooks and UK university courses in the field, AcF 304 ‘Financial Markets’ encourages students to understand the connection between the theoretical concepts and their real-world applications. Accordingly, this module prepares students for successful careers in the financial services industry or successful interactions with financial institutions, whatever their future careers

Educational Aims

The course is multi-asset class in nature covering the full range of financial instruments and how various financial institutions use such financial products. This course has a strong tilt towards combining theory with practice and reference to mini-case studies and recent and current financial news and developments are made throughout the course. Students are expected to follow financial markets to a reasonable degree and guidance will be given here. The course has a combined practical, qualitative and quantitative approach.

• Understand why financial markets and institutions exist and why the financial system has evolved into its current format including how financial crisis has shaped this.
• Develop understanding of key fundamentals of financial markets around interest rates.
• Understand the role of central banks and the conduct of monetary policy in today’s markets.
• Gain a solid grounding in Money Markets, Bond Markets, Stock Markets, Mortgage Bond, Foreign Exchange and Derivative Markets.
• Understand how financial market trading has evolved to include a substantial electronic trading presence today.
• Grasp the trends and challenges facing financial market participants today including the impact of financial regulation.

Outline Syllabus

• Financial Markets and Financial System Overview
• Why Do Financial Crises Occur and Why Are They So Damaging to the Economy?
• Central Banks
• Financial Markets and the Conduct of Monetary Policy
• The Foreign Exchange Market
• The Money Markets
• Bond Markets 1 – The Term Structure of Interest Rates
• Bond Markets 2 - The Bond and Mortgage Bond Markets
• The Stock Market
• Financial Derivatives & Commodities

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F305M: International Financial and Risk Management

• Terms Taught: Michaelmas Term only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics.
  • Intermediate Finance (equivalent to Ac.F214) including portfolio diversification.

Course Description

This course provides knowledge that is important to those concerned with financial management in a multinational setting. Areas covered include: a) the relationships between exchange rates, interest rates and inflation rates; b) forward, futures and option markets; c) corporate exchange-rate risk management.

Educational Aims

• To describe the structure of the international monetary system.
• To analyse the relationships between interest rates, inflation rates and exchange rates.
• To explain the main determinants of exchange rate movements and their interaction.
• To deepen the understanding of derivatives valuation by applying basic concepts to foreign exchange futures, options and other related instruments.
• To explain the use of foreign exchange derivatives in the context of corporation risk management.
• To analyse the relationships between other risk factors, e.g. equity price risk, credit risk and liquidity risk.
• To provide guidelines for corporate financial decision making in an international context.

Outline Syllabus

• International Finance: Institutional Background
• Spot Markets for Foreign Currency
• Understanding Forward Exchange Rates for Currency
• Using Forward Contracts for International Financial Management
• Currency Futures and Swaps
• Currency Options
• Rationales for Corporate Hedging and Measuring Exposure
• Cost of International Capital and Risk Management - the International CAPM
• The Fed and International Capital Budgeting

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F306M: Taxation

• Terms Taught: Michaelmas Term only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics.
  • Introductory accounting and finance (equivalent to Ac.F100).

Course Description

This module gives you an understanding of the economic and social impact of taxation and how these impacts influence the formation of tax policy. It covers the basic principles of UK income tax, corporation tax and other taxes, and teaches you the skills needed to perform basic tax computations.

Educational Aims

On successful completion of the course, students should have:

• A basic understanding of the history and development of the UK tax system.
• An understanding of the political and legislative framework in which the UK tax system operates, including a knowledge of the UK legislative process, the administrative structure of UK tax compliance and a knowledge of how the EU and other multilateral agencies impact UK fiscal policy.
• An understanding of the economic and social impact of taxation and how these impacts influence the formation of tax policy
• An understanding of the basic principles of UK Income tax, Corporation Tax and Value Added Tax.
• A knowledge of the basic principles of Case Law in supplementing primary legislation.
• The ability to perform basic computations of income tax and corporation tax liability.
• A brief understanding of other UK taxes; Inheritance Tax and Capital Gains Tax.

Outline Syllabus

• Introduction to UK tax system ethics
• Personal income tax computation
• Tax theory - the implications of a complete tax system - designing a tax system - characteristics of a 'good' tax
• Employment income and National Insurance
• Tax rules v Accounting rules and Adjustment of profit, Basis Periods
• Capital allowances and Trading losses
• Capital Gains Tax - basic principles and computation
• Capital Gains Tax Reliefs
• Inheritance tax
• Corporation tax - computations and principles
• Corporation tax loss relief and tax implications or groups of companies - International aspects
• VAT - Introduction to basic principles of liability and the impact of registration of business
• International tax issues - corporation tax issues and personal tax issues
• Tax evasion and avoidance and planning
• The future of UK taxation - The Business Tax Roadmap

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F307M: Issues in Auditing

• Terms Taught: Michaelmas Term Only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics.
  • Knowledge of auditing, such as that provided by Ac.F211, is assumed.

Course Description

This module examines the economic rationale for auditing and the structure of the auditing industry. Fundamental issues involved in auditing financial statements and financial information systems are examined. Theories and issue such as audit risk, agency theory, independence and auditor liability, as well as the ethical demands on auditors, are covered.

Educational Aims

The objectives of this course are to build upon the foundations laid by the pre-requisite course Ac.F 211 "Accounting Information Systems and Auditing" and thus extend participants' knowledge of the environment, function, scope and methods of auditing. The course also provides an opportunity to reflect upon important issues facing the auditing profession and, by extension, the accounting and financial worlds today. Via both lectures and seminars, contextual material is provided and conceptual bases for understanding the audit function are offered, as is the opportunity to explore the interaction of these.

Outline Syllabus

• The audit process
• Conceptualising the audit process
• The market for audit (and other) services
• The digital world
• Recent changes affecting auditors
• Ethics and Independence
• The Expectations Gap
• Audit reporting
• Auditor Liability
• Overview: The Auditing Profession – Quo vadis?

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F308L: Financial Statement Analysis and Valuation

• Terms Taught: Lent/Summer Term Only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics
  • Intermediate Financial Accounting (equivalent to Lancaster University’s AcF212 Principles of Financial Accounting.)
  • Intermediate Finance (equivalent to Lancaster University’s AcF214 Principles of Finance.)

Course Description

This course is intended to provide you with:

• A framework for business valuation using financial statement data and other information;
• Financial statement analysis techniques that enable you to practically conduct business valuation;
• Insights into the usefulness and limitations of financial statement analysis as applied in different decision contexts (e.g., investment decisions, lending decisions, etc.);
• Teamwork and communication skills, analytical thinking, and general business knowledge.

Educational Aims

Upon completion of the course, you should be able to:

• Understand the role in financial statement analysis and business valuation of analysis of a business's strategy;
• Identify red flags of potential misrepresentation in financial statements and make accounting adjustments to "undo" accounting distortions;
• Reformulate financial statements in order to separate operating items and financial items;
• Compute a business's financial ratios and interpret ratios from an analyst’s perspective;
• Forecast financial statements for the purpose of business valuation;
• Value a business using various valuation techniques such as those based on the discounted-cash-flow model, valuation multiples and the discounted-abnormal-profit model;
• Use financial statement information in credit analysis and distress prediction.

Outline Syllabus

• Financial statement analysis framework and strategy analysis
• Accounting analysis
• Financial analysis
• Forecasting of financial statements
• Valuation methods: Cash flow based methods; multiples-based methods; the discounted-abnormal-profit-based method
• Credit analysis and distress prediction

Assessment Proportions

• Coursework: 100%

AC.F311L: Financial Accounting II

• Terms Taught: Lent/Summer Term Only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics.
  • Knowledge of financial reporting issues, such as that provided by Ac.F212, is assumed.

Course Description

This module develops your ability to critically evaluate advanced financial accounting issues, placing this within the international accounting context. It focuses on International Financial Reporting Standards (IFRS), with appropriate and relevant comparisons to US GAAP.

Other topics covered include the accounting treatments of taxation, leases, pensions, provisions and contingent liabilities. The module also looks at empirical research on issues of relevance to accounting practitioners and accounting regulators.

Educational Aims

After following the course students should be able to:

• Formulate and evaluate accounting and reporting policies appropriate to a range of scenarios examined on the course.
• Explain how different methods of recognising and measuring assets and liabilities can affect reported financial performance.
• Understand how different bases for recognising, measuring and classifying financial assets and financial liabilities can impact upon reported performance and position.
• Explain how different methods of providing remuneration for employees may impact upon reported performance and position.
• Apply, explain and appraise accounting standards that relate to employee remuneration including: different forms of short-term and long-term employee compensation; retirement benefits; and share-based payment.
• Understand how current and deferred tax is recognised and appraise accounting standards that relate to current tax and deferred tax.
• Explain the impact of accounting principles and bases on measurement in corporate reporting including fair value measurement.
• Evaluate alternative accounting treatments, using relevant accounting concepts to analyse choices in accounting methods.
• Communicate their understanding of the academic perspectives of reporting issues covered on the course.

Outline Syllabus

Introduction and recap of second year AcF 212

• Conceptual framework and accounting theory – including incentives of the different parties involved in accounting
• Analytical representations of accounting rules and contracts including accounting numbers
• IAS 12 Tax and deferred tax
• IAS 19 Employee benefits - Pension accounting
• Formulating and evaluating accounting and reporting policies
• IFRS 2 Share-based payments
• IFRS 8 Segmental reporting
• Fair value measurement and accounting for financial instruments - IFRS 9 financial instruments
• Future issues including UK GAAP

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F318L: Professional Ethics

• Terms Taught: Lent / Summer Terms only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics.
  • Intermediate Financial Accounting (equivalent to Ac.F212) or Intermediate Finance (equivalent to Ac.F214).

Course Description

This module includes the role that governance plays in the management of a business and the evolution of good governance practice, the nature of professional ethics and its significance in the business environment, ethical dilemmas in business, the content of professional ethics codes and the content of regulatory governance frameworks.

Educational Aims

This module aims to:

• Give students a comprehensive understanding of core ethical theories and how they underpin the ethical codes of practice for individuals, organisations and professional bodies
• Develop students’ knowledge of the multiple forms that codes of conduct can take and how their legal status, level of operation and ways of influencing professional behaviour can vary
• Equip students with the skills to analyse, interpret and construct a stakeholder view of corporate social responsibility activities within an organisation
• Give students an understanding of social reporting, triple bottom line accounting and the multiple regulatory and advisory bodies and stock market indices that are interested in such forms of reporting and corporate activity
• Provide students with an insight into the historical development of corporate governance in the UK, and an understanding of how the Financial Reporting Council develop, use and enforce their ethical codes
• Give students a good knowledge of the two most important codes of conduct relevant to financial professionals – published by the International Federation of Accountants (IFAC), and by the Chartered Financial Analysts Institute (CFA).

Outline Syllabus

• Introduction to Ethics
• Ethical Theories in Practice & Business Ethics
• Stakeholder Analysis & Corporate Responsibility
• Governance, Reporting & Internationalisation
• Bribery, Money Laundering & Whistleblowing
• Analysing Social Reporting
• IESBA & CFA Code of Ethics
• Analysing Codes of Conduct
• Integrative Ethical Management

Assessment Proportions

• Coursework: 100%

AC.F321L: Investments

• Terms Taught: Lent / Summer Terms only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • High school mathematics.
  • Intermediate Finance (equivalent to Ac.F214).

Course Description

The course investigates how to manage the trade-off between maximising expected return and minimising risk for portfolios of securities.

Issues to be considered include allocation of assets, selection of securities, and optimal portfolio strategies. The use of derivatives and fixed-income securities in investment management will also be covered.

While the theoretical underpinnings will not be neglected, the emphasis of the course will be on implementation of the theory, i.e. investment management in practice.

Educational Aims

By the end of the course you should be able to:

• Discuss the theory and applications of the modern portfolio analysis and understand their strengths and limitations.
• Trace the efficient frontier under different conditions.
• Construct the optimal portfolio for an individual or for funds with specific goals.
• Solve real-world problems with asset pricing models.
• Develop techniques to evaluate the performance of money managers.
• Understand the debate questioning the efficient market hypothesis.
• Comprehend the structure and objectives of mutual funds and major investment companies, and identify when they are appropriate.
• Understand the characteristics of hedge funds, and the variety of hedge fund strategies and styles.

Outline Syllabus

• Financial instruments and markets
• Diversification and Portfolio Theory
• Asset Pricing Models
• Empirical Analysis of Security Returns
• Market Efficiency
• Portfolio performance measurement
• Fixed-income securities and portfolio management
• Derivatives and portfolio management
• Hedge Funds

Assessment Proportions

• Coursework: 25%
• Exam: 75%

AC.F324M: Quantitative Finance

• Terms Taught: Michaelmas Term Only.
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites:
  • Advanced mathematics  (refer to Course Director).
  • Intermediate Finance (equivalent to Ac.F214).
  • Student's eligibility for this course must be approved by the course convenor 

Course Description

This course is designed as an introduction to econometric methods for the analysis and research of financial assets and capital markets relationships. The focus will be on the analysis of financial data and econometric methods for modelling of financial time series, risk management and forecasting. The key objectives are to:

• Explain how econometric methods can be used to learn about the behaviour of financial assets
• Endow students with practical experience of analysing financial data useful for research and practical work in the quantitative finance industry
• Endow students with the relevant quantitative skills for advanced studies in MSc programmes

Educational Aims

After completing the course students should:

• Understand the important features of time series of market prices,
• Appreciate the relevance of efficient market theory to predicting prices,
• Be familiar with appropriate methods for forecasting (e.g. price volatility),
• Be familiar with a basic toolbox for risk management,
• Be able to use option prices to make statements about the distributions of future asset prices,
• Have acquired experience of applying computational methods to market data.

Outline Syllabus

• Introduction, Fundamental Concepts & Stylised Facts
• Univariate Time Series Analysis
• Multivariate Time Series Analysis
• Volatility Modelling
• High Frequency Finance
• Risk Management
• Probability Distributions implied by Options Prices

Assessment Proportions

• Coursework: 50%
• Exam: 50%

AC.F338M: Sustainability and ESG Accounting

• Terms Taught: Michaelmas Term Only
• US Credits: 4 Semester Credits
• ECTS Credits: 7.5 ECTS Credits
• Pre-requisites: Introduction to accounting and finance

Course Description

Investors, business executives, regulators and the accountancy profession have increasingly recognized that ongoing societal and environmental degradation poses significant risks to the financial resilience of business, while tackling their causes provides many novel business opportunities. They also regard accountancy as having a major role to play in the effective management of these risks and opportunities required to build resilient businesses.

This is an exciting area of growth for the accountancy profession, requiring innovative solutions and thinking. This course develops students’ knowledge and understanding of these cutting-edge developments in sustainability accounting and accountability for enhanced organizational resilience.

Educational Aims

Students who pass this module should be able to:

• Identify key social, environmental and economic risks and opportunities for businesses resilience arising from economic externalities.
• Critically evaluate the main roles of accounting in embedding an integrated understating of sustainability-related impacts and dependencies into organizational decision-making to enhance business resilience.
• Appreciate the complex nature of sustainability-related decisions that can be aided through accounting practices
• Understand rationales underlying widespread sustainability reporting practices
• Evaluate the relative contributions of different approaches to accounting
• Understand some of the limitations of quantification in accounting
• Appreciate the role of narrative forms of accounting in conjunction with quantitative accounting practices
• Debate complex issues
• Evaluate relevant academic literature

Outline Syllabus

The syllabus will be tailored to contemporary developments but is likely to include coverage of areas related to:

• Identification of sustainability-related business risks and opportunities
• Distinguishing between sustainability-related impacts and dependencies
• Use of the UN SDGs as a framework for understanding and managing the above factors
• Understanding the motives underlying widespread sustainability reporting practices
• Some of the key sustainability reporting standards, frameworks and initiatives
• Using accounting to embed an integrated understating of social, environmental and economic risks and opportunities in organizational decision-making

Assessment Proportions

• Coursework: 25%
• Exam: 75%