msc international accounting and finance · smm147 financial statement analysis 20 ... • penman,...

September 2012

Course handbookMSc in InternationalAccounting & Finance

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Table of Contents Page

Section 1 Course Director’s Welcome 2

Section 2 Programme Information

Programme Aims 3

Programme Structure 3

Assessment Matrix 4

Term Dates and Assessment Periods 6

Section 3 Module Descriptions

SMM461 Accounting Information and Capital Markets 7

SMM466 Applied Empirical Accounting 9

SMM527 Business Research Project 11

SMM469 Finance 1: Corporate Finance and Valuation 13

SMM471 Finance 2: Advanced Corporate Finance 15

SMM249 Financial Reporting 18

SMM147 Financial Statement Analysis 20

SMM460 International Financial Management 22

SMM450 International Financial Reporting Standards 25

SMM522 Research Project Management Skills 27

SMM452 Strategic Cost Management 29

Elective Information 31

Section 4 Regulations

Degree Requirements 32

Assessment Calculations 32

Coursework 33

Peer Assessment 33

Failure and Re-sitting of Modules 34

Award of Merit and Distinction 34

Grade Related Criteria 36

Section 5 Additional Information

MSc Course Office 37

Virtual Learning Environment (Moodle) 37

Personal Tutors 38

Staff Contact Details 38

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Section 1 Course Director’s Welcome

Dear MSc Student,

I would like to extend a warm welcome to you on joining the MSc International Accounting and Finance Programme at the Cass Business School. I am confident that you would find the programme challenging and rewarding – indeed, a life-time experience. This handbook provides information about the MSc in International Accounting and Finance. It covers administrative procedures, assessment and regulations, timetables and module-specific outlines. You will need to refer to the handbook throughout the year, so please keep it in a safe place. My colleagues and I aim to provide you with an academically rigorous and professionally relevant education that will serve your career needs for a long time in the future. The next year will involve hard, but interesting, work. Please try to make the most of it by showing up punctually to your classes, preparing coursework in good time and participating in the discussions. Throughout the year you will also be invited to various events that aim to help you with the job market. Take advantage of these and other events to enhance your experience at Cass. My colleagues and I will be delighted to help in any way we can. If you wish to speak to me directly, please either email me or come to see me whenever you wish to discuss any aspect of your studies. With best wishes for a successful year, MSc Course Director

Giacinta Cestone

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Section 2 Programme information

Programme aims

The MSc in International Accounting & Finance provides students with expertise in accounting and finance set in a broad international context. The course focuses on the connections between theory and practice. In particular, it explores issues in accounting and finance from the perspective of those who will be involved in the evaluation and/or management of company performance.

Learning Outcomes:

On completion of the course, the participant will:

• Gain an understanding of the principles underlying current thinking in accounting and finance

• Examine accounting and finance from the perspective of those who use financial reports to evaluate company and managerial performance

• Have excellent networking opportunities within the City of London • Acquire a qualification suitable for a wide range of careers.

Programme structure

Term 1

• Applied Empirical Accounting • Finance 1: Corporate Finance and Valuation • Financial Reporting • Research Project Management Skills • Strategic Cost Management

Term 2

• Accounting Information and Capital Markets • Finance 2: Advanced Corporate Finance • Financial Statement Analysis • International Financial Management

Term 3

Option 1: Five specialist electives

Option 2: Business Research Project and one specialist elective

Option 3: Super Elective and two specialist electives

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Assessment Matrix

Module Title Module Code

Credits Assessment weightings used to calculate module mark

Coursework Examination

Term One

Applied Empirical Accounting SMM466

15 25% 75%

Finance 1: Corporate Finance and Valuation

SMM469 15 25% 75%

Financial Reporting SMM249 15 25% 75%

Strategic Cost Management SMM452 15 100%

Research Project Management Skills

SMM522 10 100%

Term Two

Accounting Information and Capital Markets

SMM461 15 25% 75%

Finance 2: Advanced Corporate Finance

SMM471 15 25% 75%

Financial Statement Analysis SMM147 15 25% 75%

International Financial Management

SMM460 15 25% 75%

Term Three

Option One

Elective 1 SMMXX 10 100%





Option Two

Business Research Project SMM527 40 100% Elective 1 SMMXX 10 100%

Option Three

Elective 1 SMMXX 10

100%


Super Elective SMM450 30 100%

Degree Total 180

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ECTS equivalencies

Each MSc course is worth between 180 - 210 CAPS credits. As a general rule two CAPS credits equal one ECTS credit. (For example, a course with 180 CAPS credits is worth 90 ECTS credits.)

*CAPS (Credit Accumulation of Programme Specification)

*ECTS (European Credit Transfer and Accumulation System)

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Term Dates and Assessment Periods

Induction

16 – 28 September 2012

Term One

01 October – 07 December 2012

Term One Examinations

14 – 25 January 2013

Term Two

28 January – 09 April 2013

Term Two Examinations

29 April – 10 May 2013

Term Three

13 May – 28 June 2013

Term Three Assessments

01 – 12 July 2013

Resit Examinations and Assessments (terms one, two and three)

19 – 30 August 2013

Business Research Project Submission Date

2 September 2013

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Section 3 Module Descriptions

Accounting Information and Capital Markets SMM461

Module Leader TBC

Sessions 10 x 3 hourly sessions

Module Assessment Coursework 25%

Examination 75%

Educational aims

The aim of this course is to develop an understanding of the use of financial statement information in valuing securities in international markets. The main emphasis is on the analysis of financial information for assessing the fundamental value of traded securities and for making decisions to invest in businesses. The primary focus is on the interactions between capital markets and the value of the underlying real assets.

The course provides tools for active investment strategies by training students in contemporary fundamental equity analysis methods with an aim of identifying stocks that can earn abnormal returns (alpha) and being able to discriminate between mispricing and risk premia. The material covered is relevant to security analysts, accountants, corporate financial analysts, corporate managers and investment bankers.

The course text and lectures refer extensively to practical examples of corporate financial statements to illustrate theory and learn from real world situations. Building on knowledge gained in the course Financial Statement Analysis, students will learn how to “read between the lines” of financial statements, how to identify firms’ key value drivers, how to forecast financial information, how to build valuation models based on forecasts and how to issue an equity research recommendation.

Learning outcomes

On completing the course participants should be familiar with:

• The form, content and use of financial statements, from the perspective of the fundamental analyst;

• Valuation methods based on comparable firms;

• Dividend- and cash-flow-based valuation models.

• The residual earnings valuation model (REVM) and its implications for the analysis of profitability in valuation;

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• The abnormal earnings growth valuation model (AEGM), and its implications for interpretation of the price-earnings ratio; The theory linking accounting-based valuation models with standard valuation models covered in finance courses.

• The distinction between operating and financial activities in the financial statements of a business;

• Techniques for forecasting key financial statement information

• The integration of financial statement analysis, forecasting and valuation models in business valuation

Indicative Reading List

• Penman, S.H., Financial Statements Analysis and Security Valuation, 4th Edition, McGraw Hill, 2010.

• Palepu, K.G, P.M. Healy and E. Peek, Business Analysis and Valuation: IFRS Edition, 2nd Edition, South Western, 2010.

• Lundholm, R. and R. Sloan, Equity Valuation and Analysis, 2nd Edition, McGraw Hill, 2007.

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Applied Empirical Accounting SMM466

Module Leader Professor Richard Payne

Sessions 10 x 3 hourly sessions (lectures and labs)

Module Assessment Coursework 25% Examination 75%

This module will be assessed by group coursework (25%) and an exam (75%). Where assessment is by group coursework, 20% of the coursework mark will be determined by Peer Assessment.

Educational aims

The educational aims are to provide the students with the tools to understand empirical research findings in accounting and finance, enabling students to conduct quantitative research tasks involving statistical and econometric methods - and to develop students’ ability to critically evaluate the research findings in the empirical accounting literature.

Learning outcomes

On completing the course the participants will:

• Understand basic concepts in statistics and econometrics

• Understand statistical distributions and hypothesis testing

• Understand regression analysis, both conceptually and from a practical standpoint.

• Be able to conduct data analysis individually or as a part of research-oriented team

• Critically assess the research findings presented in the course.

Sessions

The following list covers the main topics to be covered in this module. However, there may be some adjustment to these topics to reflect current academic research and practitioner trends.

• Elementary statistical concepts (means, variances, correlations, conditional probabilities)

• Statistical distributions (Normal, Student t, Chi squared)

• Regression analysis inclusive of common estimation problems and their remedies

• Hypothesis testing

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• Measures of model adequacy, autocorrelation, heteroskedasticity

• Topics in panel data estimation

• Working with accounting/financial datasets and Eviews

Reading List

The core text for the course is below; 1. Brooks, C, Introductory Econometrics for Finance, 2nd ed., Cambridge, 2008

Some other books at a similar level are;

2. Gujarati, D., Basic Econometrics, 5th ed., McGraw Hill, 2008 (includes student version of EViews software package)

3. Wooldridge, J. M. Introductory Econometrics, International Student Edition 4rd ed., South-Western, 2009

4. Hill, R., Griffiths, W. and G. Judge, Undergraduate Econometrics, John Wiley & Sons, 2001

5. Franses, P.H., A Concise Introduction to Econometrics: An Intuitive Guide, Cambridge University Press, 2002

NOTE: Book 5 would make excellent pre-course reading for students with a very limited quantitative background.

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Business Research Project SMM527

Module Leader A project supervisor will be allocated

Sessions This is an individual project which students will develop in their own time with support from their project supervisor.


Delivery of the final project, indicative length: 10,000 words

Educational aims

• To train students to undertake individual research and provide them with an opportunity to specialise in a contemporary business or finance topic related to their future career aspirations

• To integrate and apply concepts from different aspects of their MSc.

Learning outcomes

On completing the project students will be able to:

• Identify specific business or finance related issues which would be useful to research and shape an achievable research question around them.

• Develop a research question and plan and carry out a research programme to address the question.

• Understand the theories and recent research relating the project topic.

• Understand how to apply research methodologies to practical business and commercial issues.

• Show confidence in overcoming problems raised in the course of a practical research project and

• Accept the challenge of carrying out a piece of research with elements of originality.

Project requirements

The choice of project is your responsibility. It is most important that you choose an area you are happy to work in, and in which you are confident of your abilities.

Students are encouraged to start thinking about project ideas at the beginning of their studies. By the end of the first term you will have gained sufficient knowledge to start to develop ideas that can be discussed with faculty. We expect you to identify the basic idea or research question, though this is likely to be modified after discussion with academic staff.

Make effective use of the RPMS module. This module can be used to help to formulate your ideas and design an appropriate methodology. It can also help you develop a specific

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project topic – the greater clarity you have about the topic of your project the more successful it is likely to be.

The types of project allowed are:

What you can do. What you can’t do

• Statistical test of a hypothesis drawn from the academic finance literature.

• Study the empirical feasibility of a financial strategy.

• Numerical project that describes and implements one or more numerical methods for pricing, hedging or reserving for derivatives or portfolios.

• Thorough review and synthesis of the literature on a particular academic topic.

• Critical analysis and discussion of relevant case studies.

• Some evidence that the writer has learnt a new subject, a sort of extra elective.

• A piece of journalism.

• A compendium of facts and statistics

• Projects totally unrelated to finance and the academic literature in this field.

Reading list

Student research and reading list will be defined by the subject matter of the project.

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Finance 1: Corporate Finance and Valuation SMM469

Module Leader Dr Anh L. Tran

Sessions 10 x 3 hourly sessions.


This module will be assessed by coursework (25%) and an exam (75%). Where assessment is by group coursework, 20% of the coursework mark will be determined by Peer Assessment.

Educational aims

This course addresses the basic theory and practice of corporate financial management. The aim of the course is to provide a good foundation in basic concepts of corporate finance and a thorough understanding of the key factors affecting the valuation of a company; the choice between various forms of short and long-term financing, and the interaction between corporation and capital markets.

The course will make it possible for participants to:

• Appreciate the implications of modern finance theory on practical corporate finance issues

• Develop analytical tools for assessing the costs of the key sources long term finance for private and listed companies

• Understand the different types of corporate investment decisions and the methods used to measure their long-term profitability

• Develop analytical skills to assess the firm value

• Understand the perspectives of corporate managers, shareholders, financiers and financial intermediaries of key financial decisions

Learning outcomes

On completing the course the participants will: • Have a strong foundation of corporate finance theory

• Know the key considerations affecting corporate finance decisions

• Understand the context and structure of corporate finance transactions

• Sharpen their analytical, writing and presentation skills

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• Develop and execute complex corporate finance deals

Sessions

• Introduction to Corporate Finance

• Accounting Statements and Cash Flows

• Time Value of Money

• Principles of Valuation

• Investment Decision Rules

• Capital Budgeting

• Risk and Return

• Cost of Capital

• Factor Models and Arbitrage Pricing Theory

• Efficient Market Hypotheses

• Revision

Reading List

Required textbooks:

• Hillier D., Ross S., Westerfield R., Jaffe J., and Jordan B. (2010) Corporate Finance: 1st European Edition, McGraw-Hill (ISBN-10: 0077121155, ISBN-13: 9780077121150)

Additional references:

• Damodaran, A. (2011) Applied Corporate Finance: A user’s manual, 3rd Edition, John Wiley and Sons (ISBN: 0-471-66093-0)

• Beck, J. and DeMarzo, P. (2011) Corporate Finance, 2nd Edition, Pearson International Edition (ISBN 0-321-41680-5)

• Brealey, R., Myers, S. and Allen, F. (2008) Corporate Finance, 9th edition, McGraw-Hill (ISBN 0-07-111551-X)

• Research papers and financial press: The Financial Times, Wall Street Journal, The Economist

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Finance 2: Advanced Corporate Finance SMM471

Module Leader Dr Giacinta Cestone



This module will be assessed by coursework (25%) and an examination (75%)

Educational aims

Building on term 1’s Corporate Finance and Valuation, this module provides an in depth analysis of the theory and international practice of capital structure decisions, dividend policy and valuation, and an introduction to mergers and acquisitions. Among the deviations from the classic Modigliani and Miller paradigm that make key financial decisions relevant, asymmetric information and agency problems between firms and investors are particularly emphasised. The focus on market imperfections allows us to examine the factors that may hinder or facilitate firms’ access to external finance. Students are also taught to appreciate how business valuation, capital structure decisions, and corporate restructuring are affected by the role that shareholders, boards of directors and incumbent managers play in the governance of corporations.

The course should be valuable to perspective financial officers, economists, investment bankers, analysts and regulators. The teaching blends rigorous, theory-based principles and empirical evidence based on academic research with practical applications drawn from case studies. The course aims to enable decision makers to acquire the analytical skills and the conceptual foundations for making informed assessments on key financial decisions. Throughout the course students will be exposed to the recent advances in academic research and encouraged to develop a critical approach to the practice of corporate finance.

Learning outcomes

Systematic understanding of: • How firms obtain external finance by raising equity and debt capital

• Costs and benefits of different capital structure decisions

• Costs and benefits of different dividend and liquidity policies

• How different valuation methods incorporate the costs and benefits of leverage

• Relevant issues in the valuation of diversified firms

• The impact of corporate governance and managerial incentives on capital structure and firm value

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• Corporate restructuring - Mergers and acquisitions.

On completing the course participants will:

• Appreciate the key considerations affecting corporate finance decisions

• Appreciate the implications of modern finance theory for practical corporate finance issues

• Evaluate the appropriate capital structure and dividend policy for a firm in an environment with market imperfections and taxes

• Incorporate capital structure considerations in the valuation of firms and investment projects

• Understand the motivations and the potential outcomes of corporate restructuring decisions

• Work in different countries and understand their different approaches to Corporate Finance

• Appreciate the interactions between companies and capital markets

• Appreciate why there may be conflicts of interest between different stakeholders, and understand ways of managing such conflicts

• Understand the different perspectives of corporate managers, shareholders, boards of directors, financiers, accountants and financial intermediaries on key financial decisions.

Teaching Format

The course will comprise of ten sessions of three hours contact time each. In addition, students are expected to devote, at least, an equivalent amount of learning time in private and group study of course material and the preparation of the assignments. The preparation of the coursework assessment will involve additional time in private and group study. During the term you will get assignments containing problems and questions related to the taught material. Case studies are used extensively throughout to illustrate theory and learn from real world situations.

Syllabus

The following list covers the main topics to be covered in this module: • Capital Structure Decision: Fundamental Principles

• Capital Structure Decisions: Taxes and Default Costs

• Capital Budgeting and Valuation with Leverage: APV vs WACC method

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• Valuation of Conglomerate Firms

• Agency Problems, Market Signalling, and Capital Structure

• Corporate Liquidity Policy

• Payout Policy: Theory and Empirical Evidence

• Mergers and Acquisitions

• Corporate Governance and Firm Finance

Reading List

Recommended Texts:

• Berk, J. and P. DeMarzo, Corporate Finance, 2nd edition, Pearson International

• R.C. Higgins, Analysis for Financial Management, 9th ed., Irvin, McGraw-Hill

• Other books you can use as background reading:

• Damodaran, A. 2006, Applied Corporate Finance: A User's Manual, 2nd Edition, John Wiley and Sons

• Hillier D., Grinblatt M., Titman S. (2008) Financial Markets and Corporate Strategy, European Edition, McGraw-Hill (ISBN: 9780077119027) – this is a more advanced text

Case studies will be used to illustrate theory in real world applications.

Students are also expected to read relevant research papers from the top academic finance, economics, and accounting journals and follow recent developments in the corporate world by reading the financial press, e.g. Financial Times, The Wall Street Journal, The Economist.

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Financial Reporting SMM249

Module Leader Dr Ivana Raonic

Sessions 30 hours – 10 x 3 hourly sessions

Module Assessment

The course is assessed by a mid-term test (25% of the final mark) and a final exam in January.

Educational Aims

The aim of the course is to provide students with an understanding of the principles and practices of accounting, the characteristics and limitations of accounting data. The course will make it possible for participants:

To prepare and interpret financial statements

To comment on accounting policies and to discuss its implication for the financial performance of the business

To use accounting information to assess the financial situation of a company.

Learning Outcomes

On completion of the course, the participants will:

• Understand the accounting principles and methods underlying financial reporting

• Have the technical knowledge to read and understand financial information

• Be able to prepare a set of financial statements

Sessions

Session 1 Introduction to financial reporting, recording business transactions and preparing financial statements

Session 2 Accrual and cash accounting

Session 3 Inventory transactions

Session 4 Non-current assets

Session 5 Mid-term test

Session 6 Long-term liabilities

Session 7 Shareholders’ equity

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Session 8 Cash flow statement

Session 9 Inter-corporate investments, Group accounting and Foreign exchange translation

Session 10 Revision

Reading List

1. Stolowy, H. and M.J. Lebas. Financial Accounting and Reporting. A Global Perspective. 3rd Edition, 2010, Cengage Learning (ISBN 978-1-4080-2113-2)

2. Thomas, A. and Ward, A.M. Introduction to Financial Accounting. 7th Edition, 2012. McGraw-Hill (ISBN 13 9780077132682)

3. Collins, B. and J. McKeith. Financial Accounting and Reporting. 2010 Edition. McGraw-Hill (ISBN 978-0-07-711452-7)

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Financial Statement Analysis SMM147

Module Leader Dr Gilad Livne

Sessions 30 hours – 10 x 3 hourly sessions

Module Assessment

There will be one assessed piece of coursework* and a final exam that will be weighted as 25% and 75%, respectively.

*Where Coursework Assessment is by Group Coursework please note that a Peer Assessment will be incorporated into the final mark. Please refer to section six for details.

Educational Aims

The aim of this part of the course is to equip you with the basic knowledge necessary for financial statement analysis and valuation. In addition, this part will build on the first part by discussing certain important current accounting issues.

Learning Outcomes

The course will enable you to:

• Carry out the four-step procedure for financial statements analysis

• Carry out ratio analysis and measure performance

• Conduct cash flow analysis

• Analyse the effect of accounting choice on reporting outcomes.

Exercises and Problem Sets

From time to time you will get exercises and problem sets to accompany taught materials. You will need to prepare the cases and solve questions given. The lecturer will hand out solutions in due course. You may do this in groups or individually. However, you do not need to submit this work, as it is not counted towards your module mark.

Preparation

You are expected to read the lecture notes, annual reports, cases and all other materials in advance before coming to class. Lack of preparedness could hinder class discussion and detract from the quality and depth of your learning. It is therefore imperative that you come prepared to all lectures.

Please remember to bring with you to class all relevant materials, such as cases, and annual reports.

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Please also bring to each session a calculator.

Syllabus

Topics to be covered include:

• Strategy analysis and review of accounting policies

• Ratio analysis (DuPont)

• Common size analysis

• The need to distinguish between operating vs. financial items in financial statement

• Capitalisation of operating leases

• Analysis of the effect of depreciation on reported financial performance

• Adjusting PPE to fair values

• Capitalisation of R&D expenses

• Earnings manipulations

Note: The above syllabus is subject to change depending on the prevailing conditions.

Reading List

The course is not taught to a textbook and the lecture notes combined with other materials should be self sufficient. Nevertheless, if you seek further reading the following two books are suggested:

Palepu, K.G, P.M. Healy, V.L. Bernard, and E. Peek, Business Analysis and Valuation, IFRS Edition, 2007, Thomson Learning (ISBN 978-1-84480-492-4) (PHBP) (There may be a newer edition out by the time the course begins – please check and consult with me before purchasing.)

White, G. I., A. C. Sondhi and D. Fried, The Analysis and Use of Financial Statements, 3rd Edition, 2003, Wiley (WSF) (This an older book and a more technical one. Nevertheless it may be helpful for understanding certain technical issues.)

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International Financial Management SMM460

Module Leader Dr Aneel Keswani



This module will be assessed by one mid-term test (25%) and examination (75%). Where assessment is by group coursework, 20% of the coursework mark will be determined by Peer Assessment.

Educational aims

This course aims to provide the student with an integrated view of international financial markets and the management of multinational firms.

Our focus will be on the markets for foreign exchange, currency forwards, options, swaps, international bonds and international equities. For each of these markets we will study how they operate, how the instruments traded in these markets are valued and the application of these instruments to the following decisions:

• Managing exposure to exchange rates

• Financing in international capital markets

• International capital budgeting

The course will not cover international macroeconomics, international trade and international business strategy.

Learning outcomes

By the end of the course, students will: • Understand why corporations face real exchange rate risk

• Understand why hedging foreign exchange risk can add value

• Know how to measure foreign exchange exposure

• Know the advantages and limitations of using forwards, futures, swaps and options to hedge foreign exchange exposure

• Know how to value risky projects that earn foreign currency denominated cash flows

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• Know the additional financing possibilities that open up when borrowing is considered internationally and also understand their associated risks.

Sessions

1 The Foreign Exchange Markets

• Conventions, notation and basic concepts

• The dimensions of the foreign exchange markets

• The Spot Market

• Profitability of FX trading

2 The Forward Market for Foreign Exchange

• Organisation of forward markets

• Market conventions for quoting forward exchange rates

• Forward exchange markets: valuation and applications

3 Parity Conditions

• Law of one price

• Absolute Purchasing Power Parity

• Relative Purchasing Power Parity

• Testing for Purchasing Power Parity

4 Forecasting the Exchange Rate

• Using the forward rate to forecast the spot rate

• Uncovered interest rate parity

5 International Risk Management

• Implications of exchange rate behaviour for Corporate Finance

• Types of exposures: contractual, operating, accounting

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• Tools for exchange rate hedging

6 Raising Finance Internationally

• Listing of stocks on multiple exchanges

• Depositary Receipts

• Eurosecurity Markets

7 Valuing International Projects

• Valuation of Projects with Currency Risk

Reading List

The readings will be taken from the following books:

• Sercu and Uppal, International Financial Markets and the Firm, South Western

College Publishing (latest edition) • Richard Levich, International Financial Markets, McGraw Hill, (latest edition) • Alan C. Shapiro, Multinational Financial Management- John Wiley and Sons (latest

edition) • Eiteman, Stonehill and Moffett, Multinational Business Finance- Addison Wesley,

latest edition

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Certificate in International Financial Reporting Standards

SMM450

Module Leader Dr Arthur Kraft

Sessions 54 hours – 18 x 3-hour sessions (Term three)

Module Assessment

This course will prepare students to take the ICAEW Certificate in IFRS qualification. The course will run as equivalent to 3 electives in term three.

Assessment will involve the completion of the ICAEW certification examination at the end of the course.

Educational aims

Provide students with the knowledge and skills to apply complex international financial reporting standards in companies.

Learning outcomes

Upon completion of the module a student should:

• Receive training to take an internationally recognised qualification;

• Have a sound knowledge and understanding of international financial reporting standards (IFRS);

• Be able to read and understand the essential features of international financial reporting standards;

• Be able to apply the standards in practice;

• Be able to give guidance to management on how IFRS standards will affect performance measure;

• Be in able to develop complex analytical problem solving skills;

• Develop enhanced skills for dealing with complex financial instruments;

• Learn to identify and discuss the implications of standards for financial reporting to managers who have little training and understanding of IFRS and

• Be able to produce and interpret financial statement information.

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Syllabus

The following areas will be covered:

• Framework for preparation and presentation of financial statements

• IAS 1 to 41

• IFRS 1 to 9

• SIC committee statements

• IFRIC committee statements

PRE-REQUISITES AND ADDITIONAL INFORMATION

For MSc IAF students who have passed the term 1 module Financial Reporting, this is an optional 30 credit module, which replaces the Business Research project. MSc IAF students who opt for this module will be required to take two other electives during term three.

On successful completion of the course students will be prepared and registered to take the internationally recognised ICAEW certificate in International Financial Reporting and Standards.

Reading List

• International Financial Reporting Standards, Certificate manual, 2012 Edition, Institute of Chartered Accountants in England and Wales

• Collection of company financial statements

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Research Project Management Skills SMM522

Module Leader Various

Sessions 5 x 3 hour sessions


Educational aims

The aim of this module is to prepare students in the various methods of undertaking empirical research. The module will introduce students to recent developments in various relevant fields of research, and foster the understanding of qualitative and quantitative research methods.

Learning outcomes

The course will make it possible for participants to:

• Appreciate the use of statistical techniques in testing the research question

• Develop analytical skills to evaluate the impact to major institutional, market or organisational change

• Develop an understanding of commonly used sources of data/literature available

• Understand the use of statistical techniques in research.

Syllabus

This module will run over the course of term one, with sessions from Cass’s Database Manager, external consultants and academics.

Sessions will include:

• Use of Databases: Empirical research involves collecting and analysing financial data. Such data can be extracted from Financial Extel, DataStream, London Share Price Database (LSPD) Reuters etc. The session will review key databases available at Cass.

• Research Methodologies: These sessions will review how to approach data through the use of financial databases. Students will be taken step by step through the processes necessary to performing analysis and reporting.

• Application of Research: This session will develop the practical relevance and application of research methodologies within the MSc study routes, providing advice and guidance on the choice between the Business Research Project or elective route and developing the skills necessary to getting the most out of these options.

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Reading List

Students will be provided with links to resources and practical material throughout the sessions.

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Strategic Cost Management SMM452

Module Leader Professor Miles Gietzmann



This module is assessed by a mid-term test and a final test based on a pre-seen case study. The assessments will be based on case studies or key aspects of the module, testing critical learning outcomes. The invigilated test will cover all areas of the module’s learning outcomes.

Educational aims

The module examines management accounting in an international business environment. The course takes both a comparative and an MNC focus, as both are important in the current and future development of management accounting. However, the main emphasis is on key management accounting concepts relating to the management of international corporations.

• To examine current issues in management accounting in relation to international companies

• To explore the theories and principles of management accounting particularly as they affect the strategic management of international companies

• To examine the differences which have arisen between management accounting practices in different national environments.

Learning outcomes

On successful completion of the module, students will: • Understand key issues in strategic cost management in relation to the management of

international corporations

• Develop practical and analytical skills in the application of specific aspects of management accounting within multi-national firms.

Syllabus

Class 1 Cost Management in the context of an organisation’s strategic framework.

Class 2 Product and service costing systems

Class 3 Activity Based Costing.

Class 4 Activity Based Management

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Class 5 Budgeting and Financial Planning

Class 6 Mid-term exam.

Class 7 Performance Management

Class 8 Strategic Cost Management and Decision Making.

Class 9 Managing Quality and Time to Create Value

Class 10 Final Exam Case

Reading List

• Seal, W, Ray, H, Garrison, RH, & Noreen, E. (2009) Management Accounting, McGraw Hill Irwin

• Collection of Harvard Business School case studies

Supplementary reading

Latest editions of:

• Bromwich, M. and Bhimani, A. Management Accounting: Pathways to Progress, CIMA

• Cooper, R & Kaplan, RS. The Design of Cost Management Systems, Prentice-Hall

• Hilton RW, Maher MW and Selto FH. Cost Management, Strategies for Business Decisions. McGraw Hill

• Kaplan, R and Atkinson, A. Advanced Management Accounting; Prentice Hall

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Elective Information

Cass Business School provides an extensive range of elective modules for the different MSc programmes. A special elective handbook regarding your term three selection of modules will be distributed in the second term and will provide further information.

Electives which have previously been provided by MSc International Accounting and Finance include:

Corporate Governance

Financial Statement Analysis and Valuation in Banks

Communicating with the Capital Markets

International Financial Reporting Standards

Apart from these electives, students will also be able to choose from preselected modules offered by other MSc programmes. In the past these have included, among others:

Raising Equity Capital

Corporate Restructuring

Mergers and Acquisitions

Please note the School reserves the right to withdraw an elective if demand is insufficient and to add new electives if they are available. Space restrictions and timetable availability may also apply.

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Section 4 Regulations

Described below are the rules governing the award of a master degree in MSc International Accounting and Finance. For further information, the City University’s complete set of “Ordinances and Regulations”, including the Assessment Regulations (Regulation 19), are published on the University’s website http://www.city.ac.uk/about/education/academic-services/senate-regulations

Periods of Registration

The periods allowed for completion of the qualifications are:

• Four years for a masters degree, full or part time

• Two years for a postgraduate diploma, full or part time

Degree Requirements

To qualify for a Masters degree a candidate must achieve at least 50% as an aggregate mark for each module and an overall degree average mark of 50%. This will result in the acquisition of 180 credits, which is the number required to achieve a master’s degree in MSc International Accounting and Finance.

Assessment Calculations

The rules governing calculation of module and overall degree marks are as follows;

• To receive credits for a MSc all modules must be passed

• There are no minimum mark requirements for separate assessment components (unless specifically stated). However, it is compulsory to complete all components and no module mark can be awarded until these are completed.

• A module mark is calculated by aggregating marks for all assessment components as stated in the module outline (section three).

• Where modules are assessed by both exam and coursework, these are weighted to calculate the module mark. Please see the assessment matrix in section two for the relative weightings.

• Where there are several pieces of coursework, the coursework results are calculated according to the relevant weightings.

• To calculate the overall degree mark, module marks are combined using weightings in line with the relative credit value of each module.

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Please note: Where peer assessment is used you must complete it in order to access the full range of marks for the module. If you do not complete the peer review element of your assessment by the given deadline you will receive a zero grade for it which will impact on the final result you receive for the module.

Coursework

All coursework and invigilated tests are compulsory and count towards the final degree. In some modules presentations or invigilated tests may replace written coursework assignments.

Some subjects may be assessed by coursework only. Precise details concerning examined and non examined modules are provided in the module outlines.

Please note coursework is required to be submitted for assessment by the specified deadline date. Late coursework will receive imposed penalties. Late coursework will immediately receive a deduction of five marks on the first day of lateness, with one further mark deducted for each day of lateness, for a maximum of five days. After this point coursework will not be accepted and a mark of zero will be awarded.

All coursework should be submitted electronically via the virtual learning environment, Moodle. It is essential that you keep a copy of all coursework submitted.

All sources used should be cited using the Harvard referencing system. Further information about this can be found on the Cass website:

http://www.cass.city.ac.uk/intranet/student/learning-resource-centre/citing-references

Coursework will be returned to students as quickly as possible with the aim of students receiving feedback within three to four weeks of their submission

Peer Assessment

In many careers working as part of a team is an integral part of the role. Learning the skills to support successful team working and build successful interpersonal relationships is an important element of your MSc course. To help you do this Cass has developed a peer review strategy which is part of the assessment for some of the modules on your degree.

The process works as follows:

• At the end of each of the applicable modules you will receive a link to the peer review database, which will allow you to complete the assessment.

• You can access the database from anywhere there is Internet access, but you will only be able to access it for a defined period of time (usually around one - two weeks) following submission of your coursework, after which the database will be closed and you will not be able to access it.

• You should think carefully about the grades you give and the comments you make – ensure they are truthful and constructive as they will be reviewed by lecturers.

Please refer to the individual module outlines for clarification of which modules this applies to. Further information about how to do peer assessment, and how it might affect your grades, is available via Moodle.

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Failure and the Re-sitting of Modules

• Any module with an aggregate mark of less than 50% is deemed to have been failed and will have to be re-sat.

• To re-sit a failed module, a candidate must re-do all assessment components which gained marks of less than 50%.

• Candidates may re-sit a module only once.

• A candidate who successfully completes a re-sit will be awarded the credits for the module. The mark awarded for the components will be capped at 50%. The mark awarded for other components will be the original mark. This mark will also be used in calculating the overall degree mark

• A candidate who does not pass his or her re-sit by the date specified by the Assessment Board will not progress on the programme and the Assessment Board will normally make a recommendation that they withdraw.

Award of Distinction

To calculate the overall degree mark all module marks are combined using the weighting in the assessment matrix table. The award of distinction for the masters is based on:

• An overall degree mark of at least 70% with no modules failed at first attempt.

Award of Merit

To calculate the overall degree mark all module marks are combined using the weighting in the assessment matrix table. The award of merit for the masters is based on:

• An overall degree mark between 65% - 69.9% inclusive and no modules failed at first attempt

• Or an overall degree mark of 70% or more and one module failed at first attempt

Postgraduate Diploma

A student who has not accumulated enough credits to be awarded a masters degree may be awarded a postgraduate diploma provided they have satisfied the following conditions:

• The total number of credits gained is equal to or greater than the minimum credits stipulated in the programme specification for the award of a diploma

For the award of a diploma a student may compensate a maximum of twenty core or core elective credits provided the following conditions are met:

• The mark achieved for the module(s) to be compensated is at least 40%

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• The average mark of all modules to be counted towards the diploma, including those modules to be compensated, is at least 50%

Note that:

• The diploma average will be calculated in the same way as the masters average as specified in the programme specification;

• The award of distinction and merit will also be calculated in the same way for the masters degree, as specified in the programme specification.

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Grade Related Criteria

Class % Literary Knowledge Independent thought, uses of sources and research materials

Presentation Professional

Dis

tinct

ion

85-100 A Outstanding Comprehensive and informative knowledge of subject area, may include - new knowledge derived from which the marker and wider community may learn; addresses the learning outcomes/ assessment criteria in full

Where relevant, evidence of independent reading, thinking and analysis and strong critical ability

Well-constructed

Dis

tinct

ion

80-84 Excellent

75-79 Very good Sophisticated or strong - shows knowledge of complex issues or a broad range of issues and addresses the learning outcomes/assessment criteria well.

Where relevant, show evidence of wide and comprehensive reading and critical ability

Clearly written

70-74

Mer

it

65-69 B Good Sound knowledge of a broad range of issues or detailed knowledge of a smaller number of issues; makes a good attempt to address the learning outcomes/assessment criteria, realising all to some extent and some well

Evidence of thorough research of the topic(s) but some answers may not be complete or arguments sufficiently explored. Some critical ability will be evident.

Well-structured and logically written

Mer

it

Pass

50-64 C Satisfactory Adequate knowledge of important issues – some level of response to all learning outcomes/assessment criteria but may not include important elements or information that is fully accurate.

Where relevant, development of ideas is limited but attempts will be made to analyse materials critically

Expression and structure may lack clarity

Pass

Fail

(0%

-49%

)

41-49 D Poor Unsatisfactory work - inadequate knowledge of the important issues and doesn’t succeed in grasping key issues, therefore learning outcomes/ assessment criteria will not be realised

No real development of ideas and critical analysis will be very limited.

Presentation is confused or incoherent

Fail

(0%

-49%

)

20-40 E Very poor Knowledge is lacking either through omission, the inclusion of large amounts of irrelevant information or evidence of significant misunderstanding - totally inadequate attempt to address the learning outcomes/ assessment criteria

No critical ability will be displayed

Confused, incoherent or unstructured presentation

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Section 5 Additional Information

MSc Course Office

The MSc course office is here to support both staff and students and each MSc course has its own dedicated Course Officer who you will get to know over the course of your time here at Cass. The Course Office team will provide you with course related information, material and your grades, advice relating to other areas of City University and support throughout the duration of your studies.

Location

The course office is located on the 3rd floor of Cass Business School, 106 Bunhill Row, London EC1Y 8TZ

Contact

You can contact the course office team either in person at the office, by email, telephone or via Moodle, our virtual learning environment.

You can contact the Course Office team either in person at the office, by email, telephone or via Moodle, our virtual learning environment. Contact details for the Course Officer responsible for each MSc course and module can be found on Moodle.

Office Opening Hours

During term time the course office is open to students:

Monday 1300 – 1830

Tuesday 1300 – 2000

Wednesday 1300 – 1830

Thursday 1300 – 2000

Friday 1030 – 1530

Outside of term time the course office is open to students:

Monday to Thursday 1300 – 1700

Friday 1030 – 1530

Moodle: Your Virtual Learning Environment

Moodle is the virtual learning environment used at City University and it provides a wide variety of information and interactive environments to students, including the following:

• Module material and supplementary learning documents, including areas for the submission of coursework and the release of coursework results

• Timetables, including teaching and examination

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• Specialist Masters, MSc specific and module pages providing information relating to each area with supporting documents and forums

• Links to the Learning Resource Centre, Careers, Student Advice and Clubs and Societies

Students are responsible for checking their Moodle pages and their City email account regularly. This is how all information, including changes to teaching, is communicated. Course Officers manage the communications sent to students via Moodle and all administrative enquiries should be directed to them for assistance.

Personal Tutors

Postgraduate taught students are assigned a personal tutor at the beginning of the year. This personal tutor will be available to provide general academic, professional and pastoral support and will also ensure students are aware of the additional and more specialised support mechanisms available within the University.

Students should have the opportunity to see their personal tutor at least once a term; however it is the student’s responsibility to contact their personal tutor to make an appointment.

The Course Office team is also here to assist should you need any support during the course of your studies.

Academic Staff Contact Details

In addition to their main teaching responsibilities academics also engage in research, administration and external work. As a result staff members may not be able to see you without an appointment.

If the matter is non-urgent please make an appointment or make use of the office hours many academics hold. If the matter is urgent please make this clear when contacting the member of staff to request an appointment.

Lecturers’ contact details and office hours can be found on Moodle.

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Programme Disclaimer

The information in this Specialist Masters Programme Handbook is correct at the time of going to press in August 2012. The University reserves the right to make amendments to:

a) the contents of the Programme Handbook and in particular to the timetable, location and methods of delivery or the content, syllabus and assessment of any of its programmes as set out in the programme and module specifications in this Handbook and/or on the University's website; and

b) its statutes, ordinances, regulations, policies, procedures and fee structures,

provided that such amendments are (i) as a result of student demand (or lack thereof), (ii) as a result of unforeseen events or circumstances beyond the University's control or (iii) are deemed reasonably necessary by the University.

In the event that amendments are made, the University shall take reasonable steps to notify you as soon as is reasonably possible.

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