Semester

6

Course Code

MA5610

Course Name

Corporate Finance and Accounting for Engineers

Credit Value

3

Pre-requisites

None

Core/Optional

Optional

Hourly Breakdown

Theory

Small Group Activities

Independent Learning

15

30

105

Course Aim(s): To introduce corporate finance and accounting concepts for engineering managers to function effectively in the industry.

Intended Learning Outcomes:
On completion of the course, students should be able to:

➢      appreciate the role of an engineer in the financial goals of a firm.

➢      apply the costing and budgeting technique for engineering projects and products.

➢      appraise investment decisions for engineering projects, products and services.

➢      analyse financing decisions for engineering projects and products.

➢      appreciate the role of financial statement analysis in the value creation of the firm.

Course Content: (Only main topics & subtopics)

➢      Introduction to Branches of Corporate Finance and Accounting: Financial goals of a firm: survive in business, avoid financial distress and bankruptcy, beat the competition, maximise sales or market share, minimise costs, maximise profits, and maintain steady earnings growth; the engineer's role in the financial goals of a firm; fundamental financial concepts: time value of money; risk and return.

➢      Costing and Budgeting Techniques for Decision-Making: Types and nature of costs; project costing: analogous estimation, bottom-up estimation, parametric estimation, three-point estimation, cost of quality, reverse analysis and vendor bid analysis, project management estimating software and expert judgment; services and product costing: activity-based costing vs traditional costing.

➢      Investment Decisions: Process of capital budgeting; capital budgeting techniques – ARR, payback, NPV, IRR; effect of risk; inflation and tax on investment decisions; lifecycle costing; cost-volume-profit (break-even) analysis and decision making.

➢      Financing Decision: Financing requirements of a business; sources of finance and different classifications; life cycle financing; capital structure and cost of capital; operating budgets and cash budgets; working capital management: profitability vs liquidity.

➢      Financial Statements and Analysis: Basic: Basic accounting concepts; accounting statements - balance Sheet; income statement; cash-flow statement; statement of retained earnings; key financial ratios; ratio analysis.

Teaching/Learning Methods:

➢      Lectures

➢      Student Based Activities

Assessment Strategy:

Assessment Strategy:

Continuous Assessment
50%

Final Assessment
50%

Small Group Activities 30%

Quizzes 20%

Theory(%)

50%

Practical(%)

-

Other (%)

-

Recommended Reading:

➢      Lawrence J. G. (2006). Managerial Finance (11th Edition). Pearson Education. SBN: 13: 978-0-13-354640-8.

➢      Stephen R., Westerfield, R., Jordan, B. (2021). Fundamentals of Corporate Finance. 13th Edition. McGraw-Hill Education. ISBN: 1265553602,9781265553609.

➢      Weetman, P. (2016). Financial and management accounting: an introduction (7th Edition). Pearson Education, England, New York. ISBN 978-0-273-71845-1.