Unit 4 - Financial Awareness

Get to grips with the nature, role and importance of financial information in organisations from a managerial perspective. 

 

You will: 

 

• Explore the communication and interpretation of financial information for managing organisations, its regulation and structuring and use in decision making, together with the principles of accounting, standards expected, and concepts and conventions that influence the presentation of financial information.

 

• Understand, through the examination of financial information, the important issues relating to the measurement of efficiency, profitability and solvency, and the different demands on organisations made by different stakeholders.

 

• Explore the extent to which external confidence is determined by financial performance.

 

• Examine how financial information can be interpreted, analysed and evaluated, how costs in an organisation can be monitored and controlled, and how the concept of contribution aids decision making.

 

Since you may be unfamiliar with financial terminology a Glossary is provided.

 

If you do not wish to take the whole unit, you can choose just one module.

Principles, Standards and Conventions of Accounting - Module 1. 

Explore and understand key terms within accounting. Put your new-found understanding into practice with a variety of financial activities.

 

Nature and Use of Financial Information - Module 2. 

Develop your ability to read and understand balance sheets; Profit and Loss accounts. Explore types of comparison and the relationship between the Profit and Loss account and the balance sheet.

 

Interpretation and Analysis of Financial Information - Module 3. 

Learn why analysing financial information is important. Develop the managerial skills needed to measure financial performance, identify trends and interpret financial information. Explore profitability, Common Size Analysis and liquidity.

• Experienced staff who are being given management responsibilities

• Team leaders

• Those with access to management work situations

• Recent graduates new to management

Principles, Standards and Conventions of Accounting (Module 1)

 

Includes:

 

• Background to Financial Management

 

• Accounting and Financial Management

 

• Principles of Accounting

 

• Ways of measuring Financial Information

 

• Assets

 

• Liabilities

 

• Financial Statements ? the Balance Sheet

 

We suggest you put aside roughly 8 – 14 hours. Please note: this is guidance only as some people will take less time, others more.

 

Nature and Use of Financial Information (Module 2)

 

Includes:

 

• The Balance Sheet

 

• The Profit and Loss Account

 

• Types of Comparison

 

• Relationship between Profit and Loss Account and Balance Sheet

 

We suggest you put aside roughly 5 – 10 hours. Please note: this is guidance only as some people will take less time, others more.

 

Interpretation and Analysis of Financial Information (Module 3)

 

Includes:

 

• Importance of Analysing Financial Information

 

• The relevance of Profitability

 

• Common Size Analysis

 

• Measuring Financial Performance

 

• Liquidity

 

• Identifying Trends

 

• Interpretation and Analysis of Financial information

 

We suggest you put aside roughly 5 – 10 hours. Please note: this is guidance only as some people will take less time, others more.