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Syllabus:

Management Accounting and Analysis D, 15 Credits

Swedish name: Management Accounting and Analysis D

This syllabus is valid: 2019-08-19 and until further notice

Course code: 2FE181

Credit points: 15

Education level: Second cycle

Main Field of Study and progress level: Business Administration: Second cycle, has only first-cycle course/s as entry requirements

Grading scale: VG Pass with distinction, G Pass, U Fail

Responsible department: Business Administration

Revised by: Rector of Umeå School of Business and Economics, 2019-06-20

Contents

This course covers topics related to financial reporting and how management accounting can be used to create value in companies. The course is given and examined in English.

Generic learning outcomes.
The course has a number of goals for the development of generic competences. After completing the course, the student should be able to:

●    analyze and frame problems in the accounting area  
●    understand and evaluate accounting and auditing related issues from an ethical perspective
●    work effectively in team environments
●    plan conduct, and present investigations, both orally and in writing

Common expected learning outcome:
  • communicate central concepts for the course in English, both orally and in writing
Module 1. Advanced Financial Statement Analysis and Valuation, 7,5 credits
Module 2. Advanced Management Accounting, 7,5 credits

Module 1. Advanced Financial Statement Analysis and Valuation, 7.5 credits
The module aims to provide students with relevant theories, methods and models for valuing companies and their securities, primarily equity (common stock). The module deals with the analysis of financial statement information and the use of this information for business strategy analysis, performance evaluation and investment decisions. Accounting and discounted cash flow approaches to valuation are discussed as are forecasting of dividends, earnings, cash flows and pro forma analyses. During the module, students will also be introduced to the code of academic conduct, e.g. referencing and avoidance of plagiarism and cheating.

Expected learning outcomes:
After successful completion of the module, the student should be able to:
●    value the equity, operations and debt of companies using different valuation approaches/models and financial statement information
●    analyze and reformulate financial statements to identify a firm's business strategy and value drivers so as to facilitate forecasting and valuation
●    analyze market prices, value drivers and financial measures, e.g., profitability, growth, P/B and P/E ratios, and their relations to estimated fundamental value
●    explain the relations between accounting standards, e.g. IFRS and US GAAP, accounting methods and value
●    integrate environmental, social and corporate governance (ESG) factors into equity valuation
●    describe, recognize and apply the code of academic conduct to the student's own work.

Focus of instruction:
Learning is supported by lectures, seminars, literature i.e. textbook and research articles, cases and projects. Students are expected to take an active part in every aspect of the module.

Module examination modes
Examination is based on an individual written hall exam, a maximum of two within module tests and an individual test of academic conduct. A passing grade is required for each part of the module. The course is given and examined in English. Note as well examination modes for the course below.

Module 2. Advanced Management Accounting, 7.5 credits
Management accountants are strategic financial management professionals who integrate accounting expertise with advanced management skills to drive business performance, with the postulate that the sustainability of a firm depends on its ability to recognize and benefit from its value drivers. With a solid theoretical framework, the course addresses modern issues in management control and performance measurement. The focus is on the enhancement of shareholder value through customer-driven value creation from a value-based management perspective. A second purpose of the course is to enhance students' knowledge and analytical skills related to the way managers design, and utilize planning and management control systems to implement strategies. Techniques of the management control process are studied and behavioural considerations are discussed. The management accounting systems studied should provide information on the value drivers of organizations, to assist in aligning the self-interests of management with long-term shareholder wealth. The students will also become aware of the varied and changing roles of the management accountant. During the module, students will also be introduced to methods of working in international teams.

Expected learning outcomes:
After completing this module, the student should:
  • Explain the meaning and significance of management accounting and control and discuss factors that make management accounting and controlling systems differ.
  •  Evaluate how company goals and factors in the environment such as stability, certainty, complexity and national culture influence the management accounting system.
  • Discuss the relationship between decentralization and management accounting and analyze the challenges of transfer pricing
  • Apply management accounting processes: strategic planning, costing, budgeting, designing performance measurement and incentive systems
  •  Analyze the specific challenges to the design of management accounting systems in not-for-profit organizations, in the provision of services and in temporary project organizations.
  • Integrate management accounting within sustainability strategy.
Focus of instruction
The developments of the management accounting subject, techniques and concepts are presented during lectures.  Requiring reading for the module includes cases, chapters, and articles contained in the assigned textbooks and supplementary materials. Students will become familiar with quantitative issues through numerical examples, exercises and cases. They are expected to take an active part in discussions on the development of the field, literature and article seminars and reporting about case studies. They will be given a number of assignments, leading to continuous assessment. Course work will be done individually and in small groups. Course work must reach an advanced level of knowledge and understanding of the subject.

Module examination modes
Examination is based upon a written individual hall exam and group assignments. A passing grade is required for each part of the module. The course is given and examined in English. Note as well examination modes below for the course as a whole.

Expected learning outcomes

See each separate module.

Required Knowledge

90 credits with a minimum of 75 credits in Business Administration. At Basic level (A-level) and Intermediate level (B-level) a minimum of 60 credits in Management, Marketing, Accounting and finance.  At least 7,5 credits in Finance courses and at least 7,5 credits in accounting. Statistics or similar 7.5 credits. At the C-level (Bachelor), a minimum 15 credits.

Proficiency in English equivalent to Swedish upper secondary course English B or the equivalent.

Form of instruction

See each separate module.

Examination modes

See each separate module and below.

The following grading system is used:
Pass with distinction (Väl godkänd, VG, 75% or more),
Pass (Godkänd, G, 50% or more)
and Fail (Underkänd U, less than 50%).

Grades on the course are awarded when the student has passed all examinations and compulsory course elements. The course is given and examined in English.
To receive the grade Pass with distinction (VG) in the 30 credits course consisting of four modules of the same size, the student must have achieved Pass with distinction (VG) in at least three out of four modules. In shorter courses for example 7,5 credit courses, 15 credit courses or 22,5 credits courses Pass with distinction (VG) is given when the student has achieved at least 75% of the total weighted points.

A student who does not pass at the time of the written examination will be offered an opportunity to sit a further examination within two months. Beyond that, additional examination opportunities normally arise every academic year, one week prior to the start of the autumn term. If required by specific circumstances, the Director of Studies may decide on other forms of examination

Exceptions from examination form as stated in the syllabus can be made for a student who has a decision on pedagogical support for disabilities. Individual adaptations of the examination form should be considered based on the student's needs. The examination form shall be adapted within the framework of the expected learning outcomes stated in the course syllabus. At the request of the student, the course responsible teacher, in consultation with the examiner, must promptly decide on the adapted examination form. The decision must then be notified to the student.

In case of failure on seminar participation or individual and group assignments, compensating assignments must be completed in accordance with instructions given, no later than two weeks after the completion of the module. Mandatory assignments (seminars, written assignments, cases, computer assignments etc.) that have not been handed in within stipulated time must be done the next time the course is offered. If the form of examination does not permit repetition other forms of re-examination may be used.

When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the director of studies no later than two weeks before the next examination opportunity.

A student who has passed an examination can not redo the examination to get a higher grade.
If a student fails to present a photo ID at the occasion of a written exam in an exam room will not be allowed to take the exam.

Disciplinary action may be taken against students who uses unauthorized help aids or in some other way tries to mislead on a test or when another type of task is being evaluated. Rules and regulations concerning the production of academic texts and correct referencing will be applicable to all written assignments. (see instructions in the thesis manual, Thesis Writing in Business Administration). Urkund records may be used for control. In addition, Umeå University rules and regulations for education and research applies.

Educational activities are designed to facilitate students towards achieving expected learning outcomes and can explain, supplement and provide contrast to the course literature and other relevant course materials.

Other regulations

Academic credit transfers are according to the University credit transfer regulations.

Literature

Valid from: 2019 week 34

Penman Stephen H.
Financial statement analysis and security valuation
5th ed. : New York : McGraw-Hill Higher Education : 2012 : 740 s. :
ISBN: 978-0-07-132640-7 (pbk.)
Mandatory
Search the University Library catalogue

Management control systems
Anthony Robert N., Govindarajan Vijay, Hartmann Frank G., Kraus Kalle, Nilsson Göran
1. European ed. : Maidenhead, Berkshire : McGraw-Hill Education : cop. 2014 : xx, 640 s. :
ISBN: 9780077133269
Mandatory
Search the University Library catalogue
Reading instructions: och ASIN:B00HQE7/PS (e-bok)

Umeå School of Business, Economics and Statistics USBE. Thesis writing in Business Administration. Thesis manual. (latest edition)
USBE Business Administration :
https://www.umu.se/en/student/usbe/thesis-and-degree-project-work/