On successful completion of this module students should be able to:

1. Be familiar with basic accounting terminology
2. Understand and interpret basic financial statements and be able to write an analysis of the statements
3. Understand the financial reporting environment, legal requirements for public presentation of accounting records
4. Appreciate how management accounting information can assist management in their planning role
5. Understand cost behaviour patterns, fixed and variable cost components
6. Be able to use ratios to assist management in their decision making role
7. Be able to prepare a cash budget and demonstrate an understanding of the relationship between the components
8. Be able to prepare a budgeted Income and Expenditure Account
9. Be able to prepare a budgeted Balance Sheet

Course Outline

Lecture 1: Introduction
• Types of business organisations;
• The role of The Companies Registration Office (CRO) and global financial reporting context. Financial reporting obligations for managers
• The importance of finance and accounting in grant applications and sponsorship requests

Lecture 2: Statement of Comprehensive Income (P&L)
• The Income and Expenditure Account / Profit and Loss Account;
• The role of the P&L internally and externally for stakeholders (eg Arts Council)

Lecture 3: The Statement of Financial Position/ Balance Sheet
• What you own and what you owe
• Asset Register and Management
• Depreciation of Assets – the importance of asset replacement planning in the arts

Lecture 4 & 5: Analysis of Financial Statements
• Sample Financial Statements and analysis
• Case Studies
• Selected Companies – downloading their financial statements and interpreting their financial health

Lecture 6: Finance and the arts worker
• Freelance worker finance issues for your organisation and the wider sector context
• PAYE modernisation: real-time revenue reporting to tax authorities
• VAT: it's not your money! Make sure you understand how to report it in your books, and ensure
you do not rely on it for cash- flow!

Lecture 7: Interim Test: 25% of total marks for course.

Lecture 8 & 9: Budget Preparation:
• Understand what a cash budget is, and how a cash budget is constructed
• Cash budget preparation
• Actual income and expenditure versus budget income and expenditure
• Budgeted Balance Sheet preparation

Lecture 10: Ratios and financial analysis
• Key ratios to understand profitability, liquidity and gearing

Lecture 11:
• Summary of course, and its role in Business Plans for the course and future careers

Week 12 Final Assessment – 2 hour exam

Not applicable to this module.

• Feedback individually to students, post-assessment

In the case of the mid-semester short test, feedback will be given on an individual basis within a week of the test. In the case of the end of semester 2-hour exam, feedback will be given on a one-to-one basis to any student requesting it.