Managerial Finance

Aims of this Unit

This unit is designed to equip future business leaders and managers with the essential knowledge and skills in financial management and accounting principles. In today's dynamic business landscape, managers bear significant responsibility for optimising the financial performance of their organisations. This unit aims to empower students to meet this responsibility effectively by enabling them to comprehend, evaluate, and utilise financial insights in decision-making processes. Students will explore a comprehensive range of financial concepts, including the analysis of financial statements, the art of budget development and control, costing methodologies, capital investment decision-making techniques, and funding structures within organisations. The curriculum is built on a foundation of theoretical frameworks and models, which are then seamlessly integrated into practical applications, both within students' respective organisations and through real-world case studies.

Throughout the unit, students will not only gain proficiency in financial principles but also learn to leverage financial information to inform operational and strategic decisions. An integral aspect of this learning journey is the ethical dimension of responsible financial management, which underpins sustainable enterprise development. By the end of the unit, students will possess the knowledge and capabilities necessary to navigate the financial aspects of their roles, contributing to the overall success and sustainability of their organisations.

Knowledge and Understanding

This unit aims to provide students with a comprehensive understanding of key aspects of financial management and accounting, enabling them to: 

• Grasp the broader business context and its influence on financial practices and decision-making
• Proficiently navigate General Purpose Financial Statements (GPFS) by acquiring knowledge of essential accounting concepts, terminology, and disclosure standards
• Apply various financial analysis techniques to interpret and extract meaningful insights from GPFS data • Explore cost analysis methodologies, including an examination of cost behaviour, to support effective cost management and budgeting
• Develop a structured approach to evaluate and make informed capital expenditure (investment) decisions.
• Comprehend the fundamental principles of business financing and assess its organisational implications. Upon completion of this unit, students will possess a strong foundation in financial management and accounting, equipping them with the skills and knowledge necessary to excel in diverse business environments.

Learning Outcomes

Following completion of this course, participants should be able to:

1. Analyse financial statements and business context: evaluate financial statements and understand their role in the broader business context, including stakeholders, governance and business structures.
2. Develop and manage budgets: apply budget development and budget management skills to optimise resource allocation and support business objectives
3. Apply costing techniques and models: apply the use of costing concepts, principles and appropriate costing methodologies to improve decision-making
4. Make informed capital investment decisions: evaluate capital investment opportunities using techniques like NPV and IRR and assess the impact of financing decisions on business operations.
5. Manage financial resources for business success: Develop skills in optimising and managing financial resources.

Apply financial analysis in real-world scenarios: apply financial knowledge and skills to solve practical business challenges, demonstrating adaptability and creativity in financial decision-making.