STRATEGIC FINANCIAL ANALYSIS

SHE Level 4
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MHN425744
Module Leader Edward Thompson
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimester
  • A (September start)

Pre-Requisite Knowledge

Management Accounting for Decision Making or equivalent

Summary of Content

This module aims to examine contemporary issues relating to financial reporting of a strategic nature. It aims to develop the knowledge and skills necessary in the use of financial information in decision making processes emphasising the identification and critical analysis of relevant issues. The module seeks to be integrative across accounting subjects but also with the management discipline area. Recent developments and perspectives in the field will be reviewed and discussed with practical implications critically analysed and evalua ted. Topics covered include: divisional performance management; strategic management accounting, business valuations, Corporate Financial Analysis, Financial Risk and Control.

Syllabus

Business Unit performance evaluation Divisional performance measurement using financial and non-financial metrics Behavioural implications of domestic transfer pricing and International transfer pricing Strategic imperatives: Value chain analysis, Customer profitability analysis Advanced investment appraisal integrated to financing strategies Risk and investment appraisal Models for including non-financial aspects Merger/acquisition scenarios Financial performance and position analysis Profitability analysis Gearing and long term financing Company valuations Financial risk management Evaluate an entity's financial risks using appropriate measure to manage financial risks

Learning Outcomes

On successful completion of this module, the student should be able to:1. Evaluate the performance of business units, both domestic and international, applying appropriate financial control systems2. Critically evaluate techniques for analysing and managing costs and incomes for competitive advantage3. Critically discuss the arguments for and against the use of acquisitions and mergers as a method of corporate expansion4. Evaluate an entity's performance and financial position and apply various theortetical models to value a business5. Evaluate the financial risks facing an organisation and evaluate appropriate methods for managing those risks6. Critically evaluate current developments in organisational financial reporting from a knowledge based that is informed by recent research and practice.

Teaching / Learning Strategy

There will be two hours of lectures per week. Lectures will be used to highlight the key issues in a specific topic and point the way towards relevant journal articles and other appropriate literature. Students will be then expected to prepare for following week's lectures on each topic by engaging in literature searches, undertaking relevant reading and preparing responses to discursive and where necessary, computational questions. The lectures will adopt a variety of teaching styles including seminar style contributions such as group discussion to enhance intellectual, critical and analytical skills. For more applied topics, students will be required to attempt relevant problem or scenario based questions prior to the lectures taking place, providing the basis for deepening professional skills, knowledge and understanding. Appropriate use will be made of C&IT resources including GCULearn support. GSBS will continue to use the advancement of GCU Learn as a blended learning tool through its teaching and learning as well as through engagement with students. GSBS will ensure that all modules are GCU Learn enabled and with the support of the Learning Technologists at the cutting edge of development of online materials. Academic staff and the Learning Technologists will continue to work together to develop and operate all modules on GCULearn to ensure student support and information sharing. GSBS will continue to use the advancement of GCU Learn as a blended learning tool through its teaching and learning as well as through engagement with students. GSBS will ensure that all modules are GCU Learn enabled and with the support of the Learning Technologists at the cutting edge of development of online materials. Academic staff and the Learning Technologists will continue to work together to develop and operate all modules on GCULearn to ensure student support and information sharing. Students are provided with formative and summative feedback via a variety of mechanisms. Feedback on coursework is provided within 3 working weeks of submission .

Indicative Reading

Books and articles: DRURY, C.,2018. Management and Cost Accounting, 10th edition, Cengage Learning, Andover, UK. BRIGHAM, E.,EHRHARDT,M. & FOX, R.,2016, Financial Management: Theory and Practice, Cengage Learning, Andover, UK. Various prescribed journal articles taken from journals such as Journal of Management Accounting Research; Critical Perspectives on Accounting; Journal of Business Finance and Accounting; and Journal of Applied Finance.

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: 1. Critical thinking skills which are reflected in engagement with the lecture material and the necessary preparation for the assessments. 2. Communication skills which are reflected in discussions.3. Independent working which is reflected in the preparation for the lectures. 4. Problem solving which is reflected in preparation for lectures. 5. Planning, monitoring, reviewing and evaluating own learning and development which is reflected by the structure of the module which is designed to foster the development of these skills.

Module Structure

Activity Total Hours
Lectures (FT) 24.00
Independent Learning (FT) 114.00
Assessment (FT) 50.00
Seminars (FT) 12.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 2.00 70.00 35% Unseen class test - a 2000 word report using microsoft and excel
Coursework 1 n/a 30.00 35% Group Report 1500 words due at the end of week 10