(Bristol) ACFI10003: Fundamentals of Accounting and Finance

This unit introduces core principles and concepts in accounting and finance to students, most of whom will have no or limited prior exposure to these principles. It establishes a foundation for further study and equips students with understanding of the basic techniques which underpin the disciplines of accounting and finance.

Upon completion of the unit, students will be able to:

• Use appropriate tools and techniques to prepare primary Financial Statements (Statement of Financial Position, Income Statement, Statement of Changes in Equity, Statement of Cash Flows), from information about transactions and balances, including from incomplete records;
• Analyse financial statements and comment on the financial position, performance, and financial adaptability of an organisation;
• Explain the concepts of “Contribution” and “Relevant Costing” and their significance for decision-making;
• Apply Cost-Volume-Profit analysis to inform organisational decisions;
• Use Marginal Costing and Absorption Costing to prepare profit statements and provide appropriate advice to decision-makers within the organisation, appreciating the benefits and drawbacks of those approaches;
• Prepare budgets;
• Analyse project viability using multiple investment appraisal methods, including Discounted Cash Flow techniques in the presence of taxation and inflation; and
• Explain, in simple broad terms, the implications of the nature of different sources of finance.