International Finance and Accounting

Aims and objectives

The Module will provide an understanding of the theory and practical application of accounting in relation to the following accounting procedures:

  • The interpretation of external financial statements of incorporated companies (Financial Accounting).
  • Internally generated accounting information for decision making and control within organisations (Management Accounting).

The module will also develop skills in the analysis of accounting data and provides a good understanding of the underlying assumptions on which the figures are based.

The topics covered by the module are:-

Financial Accounting

The following issues will be considered:

  • the underlying assumptions upon which the financial statements are prepared and the relevant International Accounting Standards.
  • the strengths and weaknesses of the figures included therein.
  • the legal framework under which companies are incorporated and thus the reasons behind the need for companies to prepare annual financial statements.

This will lead to a detailed analysis of a set of financial statements.

Management Accounting

This section will look at a number of techniques that companies use for internal decision making, namely:

  • Cost-volume-profit analysis: the distinction between fixed and variable costs and break-even analysis and how these are used for short-term changes to companies operations.
  • Short-run decision making: marginal analysis and the use of relevant costs.
  • Full costing: how companies calculate the costs of their products to enable them to set selling prices or to compare cost to a market driven selling price.
  • Making capital investment decisions – how companies evaluate major capital projects.
  • This will lead to a detailed analysis of a set of financial statements.

Learning outcomes

By the end of the module students should be able to:

  • Demonstrate an advanced understanding of and be able to interpret a set of previously unseen financial statements.
  • Apply advanced management accounting concepts to business decision-making.
  • Display an advanced understanding and critical analysis of the role and function of accounting in the organisation both as an internal reporting and external reporting tool.