Governance NZ

Finance for Decision Making

Subject Outline

The aim of this subject is to develop knowledge of finance and accounting and the ability to use that knowledge to interpret financial and accounting information in order to provide advice to the board, or a similar decision-making body, in strategy development and/or decision-making.

Learning Outcomes

1Understand and interpret financial reports
2Identify the financial reporting regulatory regimes and their objectives
3Identify and critically evaluate sources of finance and their associated risks and returns
4Utilise the major fundamental financial models and evaluate these for decision-making
5Conceptualise the nature and importance of capital structure and the cost of capital and evaluate these for decision-making

Areas covered

1Introduction to accounting and business decision-making
2The conceptual framework for financial reporting
3Analysing the assets and liabilities of he organisation - The balance sheet
4Analysing the profit of the organisation - The profit and loss statement
5Analysing the cash flows of the organisation - The cash flow statement
6Analysis and interpretation of financial statements
7Planning and budgeting systems and performance management
8Financial investment principles
9Financing the business - Analysing risks and returns
10Assessing capital structures and the cost of finance
11Analysing the investment decision
12Assessing competitive advantage and the investment decision system