AF3S02 Advanced Financial Reporting
The module will commence by considering research into the usefulness of the annual report
and accounts to the private shareholder from a global perspective. The attempts over time to
establish a conceptual framework for financial reporting will then be introduced, culminating in
the Statement of Principles, which will be examined.
The module will consider attempts that have or are being made to extend the framework by
including additional statements such as social and environmental reports.
The preparation of financial statements will be revised and extended to include adjustment to
group accounts and the treatment of associate companies and foreign subsidiaries. Final
accounts will be analysed and interpreted and the potential bias introduced by creative
accounting will be considered. Attempts by the standard setters to reduce such bias, for
example by standards on substance over form, capital instruments, provisions and
contingencies etc., will be explored. This will be done against a background of the need to
present a true and fair view and the balance sheet approach being advocated by the
Statement of Principles.
Finally, current issues and developments in financial reporting will be kept under review and
addressed when necessary.
AF3S04 Financial Management
Financial management objectives and environment
Capital Structure
Dividend Policy
Portfolio Theory and The Capital Asset Pricing Model
Risk Management – Forwards, Futures, Options, Hedging & Derivatives
Market Value Added
Shareholder Value Analysis
Economic Value Added
AF3S05 UK Tax Planning and International Taxation
Evaluation and comparison of taxes and tax systems in different countries.
The exploration of the different opinions of what constitutes tax avoidance and tax evasion.
Analysis of and calculations using a number of taxes which may include: Taxes on income
(e.g. Income tax); Social security taxes (e.g. National insurance contributions); Sales taxes
(e.g. Value Added Tax); Company taxes (e.g. Corporation Tax); Taxes on capital gains (e.g.
Capital Gains Tax); Taxes on wealth (e.g. Inheritance Tax).
Current issues in international tax and tax planning.
AF3S08 International Issues in Accounting and Audit
The issues that have led to the introduction of international standards for both accounting and
auditing.
The cultural and environmental causes of differences that still exist despite the introduction of
international standards
The application of international accounting standards and the retention of national standards,
and the comparison of US GAAP
The attempts by the international standard setters and others to issue standards that
harmonise these differences
Regulatory frameworks for auditing services and assurances
Fraud, error, and whistle – blowing, corporate failures including Enron
Money laundering
Professional ethics, Professional liability and quality control for auditors
Information technology and the auditor
Transnational auditing and the role of the OECD and governments
Global issues affecting accounting and auditing, the political and social environment, and
cross boundary activities for corporations
AF3S14 Strategic Performance Management
The history of management accounting and its influence/relevance. (Kaplanrelevance lost and regained)
Introduction to strategic management accounting- effects of changes in
business structure, environment and world economics
(Impact of JITbackflush costing, ABC, Target costing, Life cycle costing)
Decentralised organisations and their implications for management accounting.
(divisional performance measurement, long-term/short term, transfer pricing
issues)
Performance measurement in public and private sectors and the influence of
intra-organisational transfer pricing. (balanced scorecard, value chain)
The developing and future role of management accounting and the influence of
information technology (Information as a resource, throughput accounting,
Models underlying management control and decision making – control theory;
contingency theory;
Ethical and empowerment issues in management
accounting (budgeting theory, behavioural issues, beyond budgeting)
The influence of, and implications for, management accounting of contemporary
approaches to organisational, strategic and cost management theory
AF3S16 Global Governance, Risk and Ethics
The definition of corporate governance and the scope of governance.
The development of codes of best practice for governance
Agency theories linked to governance issues.
The corporate board and its associated committees
Different approaches to corporate governance
Voluntary codes as opposed to mandatory requirements of governance
Risk management and assessment including the role of the auditor
Categories of risk, identification, assessment and measurement of risk
Methods of controlling and avoiding risk
Professional Ethics
Ethical theories and social responsibility
Conflicts of interest and the consequences of unethical behaviour
Environmental issues in the conduct of business and of social behaviour
AF3S17 Advanced Management Accounting
Short term decision making (make or buy, special orders, throughput accounting, limiting
factors),
Long term decision making (investment appraisal, strategic decisions, life cycle costing)
Forecasting and planning (activity based budgeting, learning curve, time series)
Information for Control ( variance analysis, customer profitability analysis)
Risk and uncertainty (probabilities, sensitivity analysis)
The pricing decision (cost based and demand-based pricing, the price/demand relationship,
transfer pricing)
AF3S18 Cases in Auditing
The case studies will cover various aspects of both external and internal auditing
Audit Planning
Audit management
Audit risk and the use of IT
Audit role in risk management
Audit relationship with Audit Committees
External audit reporting on financial statement and corporate governance
Internal audit management and risk assessment
Audit assurance
Audit in the public sector
Private and public sector auditing similarities and differences
International auditing standards and their role in ensuring audit quality
Auditor liability, fraud detection and money laundering legislation
Forensic Accounting
Fundamentals of fraud auditing and forensic accounting.
The business as a victim- fraud and corruption schemes
Risk assessment, fraud prevention and control
The investigative process. Analysis tools for investigation.
The Forensic Accountant as expert witness.
Gathering evidence and proving cases through documentary evidence.
Documenting and presenting evidence