Accounting and Finance with Law - BA (Hons)

Abertay University

Introduction to corporate finance. Gain knowledge of the main sources of corporate finance and the ability to apply key techniques to use and manage finance in large and small organisations. Indicative content: - Time value of money: Future Value and Present Value; Annuities and Perpetuities; Quotes rates, Effective Annual Rate and Annual Percentage Rate. - Bond valuation: Bond Pricing; Bond Ratings; Interest Rate Risk; Determination of Bond Yields. - Equity valuation: Ordinary and Preference Shares; Cash Flow Valuation. - Capital budgeting: Net Present Value, Payback Rule and Other Investment Criteria; Pro forma Financial Statements; Special Cases of Discounted Cash Flow; Scenario Analysis; Sensitivity Analysis; Break-Even Analysis. - Risk and return: Expected Returns and Variances; Systemic and Unsystematic Risk; Diversification and Portfolio Risk; Systemic Risk and Beta; the Security Market Line and CAPM. - Cost of capital: The Cost of Equity; the Cost of Debt and Preference Shares; the Weighted Average Cost of Capital. - Financial leverage and capital structure policy: The effect of Financial Leverage; Capital Structure and the Cost of Equity; Modigliani & Miller Propositions and the value of the firm; Optimal Capital Structure; the Pecking-Order Theory. - Dividends and pay-out policy: Cash Dividends and Dividend Payments; Does Dividend Policy Matter? Low vs. High-Dividend Pay-out; Shares Repurchases. - Short-term financial planning and management: Reasons for holding Cash; Understanding Float; Investing Idle Cash; Determining the Target Cash Balance; Optimal Credit Policy; Inventory Management.

The use of management accounting for management control and advanced numerical techniques in decision-making. Indicative content: - Control: Examine divisional performance appraisal, transfer pricing, and aspects of modern management practice, including accounting issues across different sectors such as social enterprises. Develop skills in preparing business plans, management reports and applying life'cycle costing. - Decision Analysis: Gain an introduction to Activity Based Costing and Activity Based Management, and explore decision'making under uncertainty using tools such as decision trees and the value of information. - Strategic Management Accounting Techniques: Study value management through value chain analysis and economic value added, and apply strategic management accounting techniques including target costing, linear programming, learning and experience curves, regression analysis, cost estimation and forecasting. Consider performance analysis in not'for'profit organisations and the public sector. - Economic Goals and Performance Evaluation: Analyse the goals of profit, non'profit and public sector organisations, and how these influence organisational behaviour. Explore shareholder wealth and its role in decision'making, alongside sustainable business decisions and the ethical dimensions of financial decision'making.

In this module, you will examine the individual contract of employment at common law and under statute, alongside the regulatory framework that governs it. You will develop the ability to critically analyse and evaluate the law and policy surrounding the employment relationship, considering both theoretical principles and their practical application. Through research, discussion and applied tasks, you will strengthen your understanding of employment rights, contractual obligations and the evolving impact of legal and policy changes in the UK. Indicative content: - Formation of the contract of employment: Definition; form; jurisdiction and choice of law, continuous employment; fixed-term, retiring age. - Administration of employment law: The Tribunals system; the Department for Business Innovation and Skills and other agencies active in this field e.g. ACAS, Equality and Human Rights Commission. - Terms of the contract: Minimum statutory requirements; express, implied, custom, collective agreements. Terms imposed by the common law and modified by statute. Employment protection provided by statute: e.g. suspension from work; family friendly working rights; pay; insolvency of employer. - Discrimination in employment: General; Equality Act 2010 and protected characteristics of gender reassignment, race, disability, age, religion or belief, sex, sexual orientation, pregnancy and maternity, and marriage and civil partnership; equal pay. - Discipline and grievance: Works’ rules and procedures; ACAS recommended practice. - Transfer of a business: UK implementation of EU Directives; rights of transferred employees. - Termination of the contract of employment: Notice; dismissal: wrongful, unfair; redundancy; remedies.

The application of financial accounting theory and practice to current issues in accounting, and the development of international financial accounting theory and practice. Indicative content: - Statements of cash flows IAS7: Preparation of statements of cash flows. Cash and cash equivalents; classification of cash flows by activities, Indirect and direct methods. The Interests, dividends and taxes on cash flows. Working capital changes and cash flows. - Accounting for groups: The conceptual basis of accounting for the investment of one entity in another entity; preparation of group accounts including inter- company balances, unrealised profit on inter-company sales and acquisitions during the year. - Accounting treatments under IAS and IFRS: Provisions IAS37, post balance sheet events IAS10 Leases, IAS17, IFRS16 Financial instruments. IAS32, IAS39, IFRS7, IFRS9.

The legal framework business organisations operate within and the principles of Scots commercial and corporate law. Indicative content: - T he Law of Partnership: Definition, relationship between partners and between partners and third parties, limited partners, limited liability partnerships. - Incorporation: Organisation of business in the UK, registration, promoters, separate legal personality, piercing the veil, minority protection. - Company Officers: Directors, role, and duties; auditors, role and duties; company secretary, role and duties. - Shares and share capital: Allotment and transfer of shares; maintenance of capital; repurchase and reduction of shares, dividends. - Unfair prejudice and derivative proceedings: Shareholders’ rights in the face of unfairly prejudicial conduct; shareholders’ rights against directors. - Insider dealing, meetings: Insider dealing and its prevention; market abuse. Shareholder democracy and decision-making. - Corporate insolvency: Receiverships, administration orders, liquidation and company voluntary arrangements.

Consideration of the role played by financial accounting in the context of international business and the financial reporting and accounting complications caused by multinational business activities. Module content - International financial reporting and harmonisation: Drivers for international financial reporting; accounting as an international language of business; general financial reporting models; the process of harmonisation and the theory of international disclosure. - The concept of valuation in accounting: Income measurement and capital maintenance; Income measurement under the conditions of certainty and uncertainty. - Accounting for changing prices: Criticism against historical cost accounting; current purchasing power accounting; replacement cost accounting; realisable value accounting and current value accounting; fair value measurement and IFRS 13. - Accounting treatments for foreign currency transactions: How to treat foreign currency transactions - N on-financial reporting: Non-financial reporting, Corporate governance and ESG reporting requirements and performance in accordance with relevant standards including ethical guidance in the context of reporting and performance

The module expands on the material covered in corporate finance, offering you the opportunity to study further investment and financing decisions, short-term capital management, and corporate governance. Indicative content - Capital budgeting: Investment appraisal methods, strengths and weaknesses of these methods, cash flow projections, project analysis and evaluation, sensitivity analysis. - Capital structure: MM propositions without taxes and with taxes, agency theory and agency costs, pecking order theory, trade-off theory, market timing theory etc., practical issues in capital structure policy. - Working capital management: Inventories management, accounts receivable management, accounts payable management, cash management, treasury management, working capital funding strategies. - Corporate governance: Definitions, agency theory, conflict between managers and shareholders, conflict between majority shareholders and minority shareholders, a variety of governance mechanisms, such as ownership structure, board of directors, executive compensation, corporate control market, and shareholder activism etc., corporate governance codes around the world. - Portfolio management and cost of capital: Capital allocation line (CAL), capital market line (CML), security market line (SML), the beta coefficient, the market risk premium, and the Sharpe ratio, WACC, CAPM, APT, Fama & French three-factor model. - Market efficiency and equity valuation: Weak market efficiency, semi-strong market efficiency, strong market efficiency, behavioural finance, discounted dividend valuation, free cash flow valuation, market-based valuation, residual income valuation, private company valuation, applications and processes of equity valuation.

Public International Law is the body of rules and principles which are binding upon states (and certain other entities) in their relations with one another. Public International Law is sometimes called the "law of nations"; or just simply International Law. Indicative content Introduction to Public International Law: You'll explore how public international law governs relationships between states and other international entities. You'll also discover what makes it different from national law and private international law. Substantive Issues: You'll examine the key ideas and issues that shape international law, including its history and development, its relationship with national law, and its main sources. You'll also explore areas such as states and territory, the use of force, state responsibility, distinct international legal regimes and how international disputes are settled.

International Financial Management involves international investing and ï¬nancing decisions that are intended to maximise the value of firms that are engaged in some form of international business. These firms as known as Multinational Corporations (MNC). Indicative content - The international financial environment: Overview of the MNC and the environment in which it operates (Goals of the MNC, international flow of funds, international financial markets). - Exchange rates: Factors that affect exchange rates (Determination of exchange rates, links between inflation, exchange rates and interest rates). - Managing exchange rate risk: Functions involved in managing exposure to exchange rate risk (measuring exposure to exchange rate movements, hedging that exposure). - Management of long-term assets and liabilities: How MNCs manage long-term assets and liabilities (information needs, capital budgeting, cost of capital, country risk, long-term financing decisions, international portfolio investment). - MNC portfolio investment: Domestic and international investment in real projects and financial investments.

You’ll be introduced to the principles, theory and practice of auditing and how they apply in real-world business contexts. You’ll explore why auditing matters — socially, economically and professionally — and examine the legal, ethical and regulatory frameworks that govern the work of auditors. You’ll learn how to plan and conduct audits using risk-based approaches, evaluate audit evidence and understand the audit process from start to final report. The module also covers current issues in auditing, including fraud detection, corporate governance, sustainability assurance and the use of technology in audit practice. Indicative content - Audit Theory: The postulates of auditing and the enduring principles of auditing. Agency theory and auditing. The nature and value (usefulness) of key accounting information. Internal and External users. - Legal and professional considerations: Rules of professional conduct (independence etc.). Quality control and process monitoring. Companies Acts - Legal status of an audit; auditor appointment, resignation and removal; auditor rights, duties and remuneration; professional responsibility and liability. - Current issues: The auditor's responsibility for discovering fraud and error; Quality control and monitoring; Corporate Governance; Limiting the auditor's liability; Non- audit engagements undertaken by the auditor. - Risk based auditing: Business risk and its impact on audit risk; Analytical procedures; Understanding the industry; Audit planning. - Audit objectives: Testing controls; Balance sheet assertions; Types of tests; Types of evidence; Sufficiency and reliability of evidence. - The audit process: Specific balance sheet items and related profit and loss account cycles. Audit completion procedures - events after the balance sheet date, contingencies, management representations and the overall review of financial statements. - The audit process: Characteristics of information systems and control over systems reliability. Use of the computer as an audit tool. Applying Computer Assisted Audit Techniques (CAATs). Introduction to group and specialised audits (e.g. Financial services). - Reporting and completion: Reports to management. Statutory audit reports. Special reports.