Accounting & Financial Management

Evaluating the financial performance of business units is crucial to all managers. This module introduces you to the terminology, concepts, and problems of representing and measuring economic activity. You will cover the basic forms in which financial statistics are conventionally presented as well as techniques for their analysis and interpretation. The module will enable you to enter into intelligent discussions with financial specialists, taking an overview rather than getting lost in details. Whilst there will inevitably be some calculations, there is an emphasis on understanding the issues around the numbers and the context in which they are set.

You will explore the lack of certainty in accounting, the need for conventions, and the problems of choosing among equally logical, defensible, and consistent accounting conventions. Although some aspects of accounting and finance are consistent across industries, we will discuss how certain parts gain particular importance in a capital-intensive industry operating across the world.

Topics covered include:

The accounting world & rules
Companies and their accounts
Recording and preparation of accounting information
Direct & indirect costs
Creative accounting
Cash flow statements & forecasts
Interpretation of financial information
The analysis of profitability
Price-earning ratios.

By the end of this module you will:

Understand the meaning of the profit and loss account and the balance sheet
Be able to interpret the key financial statements in order to assist decision-making
Appreciate the importance of cash flow management
Use costing information to make short and long term decisions
Appreciate the sources of finance available for a company and the role and importance of shareholders
Understand the key contemporary issues in accounting and finance within the energy industry, for example, social and environmental accounting, and the valuation and reporting of oil and gas reserves.