CEM203-Financial and Management Accounting in Construction
Module Provider: School of Construction Management and Engineering, School of Built Environment
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded: CEM106 Sustainable Heat and Power CEM107 Sustainable Design and Management Principles and Practice
Module version for: 2016/7
Module Convenor: Prof Will Hughes
Email: w.p.hughes@reading.ac.uk
Summary module description:
A general introduction to financial accounting is provided in the context of the construction sector. Construction firms, in common with all firms, have to undertake corporate financial accounting. This requires an understanding of the basic concepts and the technical language of the discipline, as well as understanding of the principles and practice of financial accounting. Management accounting is about the provision of financial data and advice to a company for use in the organization and development of its business. It relates to organisational decision-making, financial planning, financial control and the evaluation of the financial performance of firms.
Aims:
• To introduce the way that financial and management accounting are used as key tools of management for a construction firm.
• To provide an appreciation of key financial and management accounting concepts and the role financial information plays in planning, controlling and decision making by managers.
• Gain appreciation of the differences and the link between financial and management accounting and the roles played by each in the management of a construction firm.
• Understand key concepts in financial and management accounting as necessary tools for managing an enterprise.
• Prepare and interpret financial statements such as a cash flow statement, an income statement, a balance sheet and a profit and loss account.
• Gain awareness of investment appraisal methods as decision making tools.
• Appreciate the different approaches to the costing of a product and the importance of costing to profitability.
Assessable learning outcomes:
On completion of this module, a student will be able to:
1. Explain the key aspects of financial accounting and management accounting in relation to the management of a construction firm.
2. Explain the role of management accounting in providing information to managers for decision-making, planning and control.
3. Interpret information relating to corporate decision-making in relation to costs, marginal, full-cost and market-based approaches to pricing.
4. Interpret financial accounts so that business decision-making may be informed by historical and project financial information.
5. Prepare simple corporate budgets and carry out standard costing and variance analysis.
Outline content:
On completion of this module, a student will be able to:
1. Explain the key aspects of financial accounting and management accounting in relation to the management of a construction firm.
2. Explain the role of management accounting in providing information to managers for decision-making, planning and control.
3. Interpret information relating to corporate decision-making in relation to costs, marginal, full-cost and market-based approaches to pricing.
4. Interpret financial accounts so that business decision-making may be informed by historical and project financial information.
5. Prepare simple corporate budgets and carry out standard costing and variance analysis.
Brief description of teaching and learning methods:
Lectures, seminars and private study
Summative Assessment Methods:
| Method |
Percentage |
| Written assignment including essay |
50 |
| Set exercise |
50 |
Other information on summative assessment:
Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information:
http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx
Requirements for a pass:
A mark of 50% overall
Reassessment arrangements:
Students are required to contact the School to confirm reassessment arrangements.
Additional Costs (specified where applicable):
1) Required text books:
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:
Last updated: 21 December 2016