Accounting for Accountability and Decision Making

Module code: MN7062

This module provides a comprehensive foundation in accounting, encompassing key areas such as financial accounting, management accounting, and core accountability concepts that are essential for effective decision-making in today’s complex corporate environment. You will begin by examining the role of accounting and acquiring techniques for both internal and external reporting. As the module progresses, you will develop critical thinking skills to apply their knowledge to contemporary issues in the field. Emphasis is placed not only on understanding accounting systems, but also on evaluating their practical impact and the quality of decisions they support. The module is structured into three main components: financial accounting, management accounting, and accountability concepts. Each component consists of approximately 4 to 6 units (lectures), as outlined below.

Unit 1: Fundamentals of Financial Accounting

This unit introduces the fundamental concepts of financial accounting, including accounting principles, regulations, double-entry bookkeeping, and the recording and preparation of key financial statements. You will also learn how to evaluate a firm's financial position and performance by analysing these financial statements. The unit covers ratio analysis in depth, equipping students with the skills to calculate and interpret key financial ratios. These techniques can be applied to assess a company’s performance in comparison to competitors and industry averages, enabling a more informed evaluation of financial health and strategic positioning. You will explore the dynamics of external reporting by analysing the financial reports of various organisations and gain an understanding of how accounting operates within broader economic, social, and organisational contexts. This foundation will support more advanced study and professional practice in accounting.

Unit 2: Fundamentals of Management Accounting

Focusing on internal decision-making, this component examines how management accounting principles and concepts support strategic decision-making within organisations to achieve competitive advantage. Topics include costing techniques, variance analysis, budgeting and forecasting, performance management, and control. Emphasis is placed on strategic decision-making, value creation, and accountability within complex business environments. Students will apply these techniques to evaluate the strategic options available to a firm, demonstrating how management accounting serves as a vital source of information for internal decision-making processes. Unlike financial reporting—which prepares accounts for external stakeholders—management accounting information is used exclusively within the organisation, offering detailed, timely, and relevant insights that guide operational and strategic choices. Students will learn how to interpret and apply this internal information to support effective organisational decisions.

Unit 3: Accountability and Practice

This component of the module focuses on the concept of corporate accountability and the critical role accounting plays in supporting it. Key topics include corporate governance, accounting for social and environmental costs, and the impact of advances in information technology and algorithmic control. Through these areas, you will develop a practical and applied understanding of how accounting helps shape accountability practices within organisations. By examining how financial and non-financial information informs ethical and responsible decision-making, the module enables you to understand how and why organisations make decisions that take into account the interests of a broad range of stakeholders beyond shareholders alone.