Financial & Management Accounting (FMA)

Course overview

Financial & Management Accounting provides a general introduction to the basic techniques of financial analysis, including familiarity with working capital management, business planning and budgeting. It provides the underlying knowledge and techniques that are the foundations of advanced and applied financial analysis, which is developed further in the Corporate Finance & Funding Paper.

Financial & Management Accounting is only available as part of the AMCT Diploma in Treasury. It is not a standalone qualification.

Financial & Management Accounting is one of four compulsory foundation papers which comprise stage one of the AMCT Diploma in Treasury – the ACT’s core treasury qualification. Only students enrolling on AMCT can book this paper.

Exemptions

• Exemptions from stage one of AMCT are available where prior knowledge can be demonstrated in the form of a relevant qualification.
• Automatic exemptions from stage one of AMCT is available for all UK accountancy qualifications under the fast-track route.

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Learning outcomes

Following completion of the course you will be able to:

• Understand the basic construction of sets of accounts, including a general knowledge of double entry
• Apply the basic legal rules governing the presentation of limited company financial statements
• Understand selected financial accounting standards, particularly those relevant to treasury practice
• Understand the structure of group accounts and be able to analyse a set of group accounts
• Apply the principles of budgeting, planning and control
• Understand the principles of management accounting for business decision taking
• Understand the key factors in the management of working capital
• Apply the techniques used in investment appraisal
• Understand the sources, types and applications of finance.

Course content

Study Unit 1 – The background to accounts

The purpose of accounts
Financial and management accounts
The balance sheet, profit and loss account and cash flow statement
Statutory and regulatory requirements
The role of auditing
Corporate governance

Study Unit 2 – The framework of company accounting

The structure of accounts
The accounting life cycle
Receipts and payments
Double entry book-keeping
The accruals concept

Study Unit 3 – The main financial statements

IASB framework
True and fair view
Form and content of financial statements
Profit and loss account disclosure requirements
IAS7 - cash flow statements
IAS 37 - provisions, contingent liabilities and contingent assets
IAS 10 - events after the balance sheet date
Comparison UK GAAP, US GAAP and IAS

Study Unit 4 – Group financial statements

Investments in other companies
Consolidated balance sheet – acquisition of a subsidiary
Goodwill on consolidation
Consolidation in years after acquisition
Consolidation of subsidiaries not wholly owned
Acquisition accounting – consolidated profit and loss
Consolidated P&L – partly owned subsidiary
Equity method of accounting – associates
Equity method of accounting – profit and loss
Accounting for joint ventures
Intra-group transactions
Accounting standards and group financial statements

Study Unit 5 – Reporting standards for financial instruments

Foreign currency translation
Financial instruments
Accounting for leases and hire purchase contracts

Study Unit 6 – The management of working capital

Main principles
Stock
Trade debtors
Trade creditors
Cash
The effects of poor working capital management

Study Unit 7 – Planning, budgeting and control

Management planning
Purpose of budgets
Types of budgets
Key steps in the preparation of budgets
Practical problems in the budgeting process
Zero based budgeting
Cost behaviour
Management accounting
Flexible budgeting

Study Unit 8 – Financial analysis

Accounting ratios
Limitations of ratio analysis

Study tools

• A comprehensive course manual
• e-learning website providing access to the course manual, past/pilot papers, glossary, student resources and ask the tutor

What’s included: Course manual (print and online) and access to the e-learning website.

You will need: Access to a computer with internet connection.

Entry requirements

Due to the course being written and examined in English, students will need to possess a good standard of both written and spoken English.

Tuition and revision

Optional introductory course

The two day Introduction to Accountancy course is designed to precede the Financial Management and Accounting tuition course. Recommended for students as a refresher on accountancy or who have limited accountancy knowledge.

Optional tuition

The four day optional tuition course covers core topics. Tuition has been tailored to cover the key areas of the course – reinforcing and improving knowledge. Tuition days complement your home study; each day is intensive, covering a number of topics in detail with lecturers, worked examples and tutorial sessions.

Optional revision

The three day optional revision course covers exam preparation techniques, revision, tutor-structured solutions and exam question practice. The objective of the revision course is to revise material covered earlier, to enhance your confidence in attempting exam standard questions in the topics covered. Coverage is not comprehensive, but is designed to complement your final exam preparations and the previous tuition course and/or home study programme.

• Meet the tutors

Assessment and examination

Students are assessed by a three-hour written exam.

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