This unit is designed to introduce learners to the nature, role and importance of financial information in organisations from a managerial perspective. Learners will have the opportunity to look at 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.
Learners will, through the examination of financial information, learn about the important issues relating to the measurement of efficiency, profitability and solvency, and the different demands on organisations made by different stakeholders. They will also explore the extent to which external confidence is determined by financial performance.
Learners will 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.
The overriding aim of the unit is to provide the learner with the necessary knowledge to be able to critically evaluate the financial systems, processes and procedures in their own organisations.
Learners will gain understanding of accounting conventions, appreciate measurement for efficiency, profitability and solvency, and the different demands made by different stakeholders. Learners will gain understanding of financial commentary.
| Learning Outcome | Assessment Criteria- The Learner can: |
| 1. Explore the nature and use of financial information | 1.1 Discuss the need for financial information, its purpose, limitations and the main stakeholders interested in the information |
| 1.2 Identify accounting arrangements and conventions used by organisations | |
| 2. Investigate the principles and standards used to produce accounting and financial information | 2.1 Explain how accounting frameworks and regulation influence accounting and financial arrangements |
| 2.2 Explain the uses of published financial information | |
| 2.3 Explain how an organisation uses management accounting practices | |
| 3. Examine financial commentary that interprets and analyses published financial information | 3.1 Explain the main items commented on and explain their importance |
| 3.2. Identify trends in published accounting information |
