Management Accounting and Analysis

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. - Module 1. Advanced Financial Statement Analysis and Valuation, 7.5 credits - Module 2. Advanced Management Accounting, 7.5 credits 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** 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. - analyse and reformulate financial statements to identify a firm's business strategy and value drivers so as to facilitate forecasting and valuation. - analyse 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. - understand and be able to apply an academic approach to avoid plagiarism in academic work. Focus of instruction Learning is supported by lectures, seminars, literature i.e. textbook and research articles, cases and projects. Students are introduced to academic conduct, for example how cheating and plagiarism can be avoided and referencing techniques.  Examination modes Examination is based on an individual written hall exam, multiple choice tests and an individual computer-based examination on plagiarism and referencing. A passing grade is required for examination in the module. The course is given and examined in English. Note as well examination modes below for the course as a whole. **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. The contents of the course are intended to prepare the students toward the FMAA (Financial and Managerial Accounting Associate) and the CMA certification (Certified Management Accountant), both delivered by the IMA (Institute of Management Accountants). Expected learning outcomes After completing the module, the student should be able to: - 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 analyse the challenges of transfer pricing. - apply management accounting processes: strategic planning, costing, budgeting, sustainability reporting, designing performance measurement and incentive systems. - analyse 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 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 written group assignments with oral presentation. 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.