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
3Financial statement components - The balance sheet
4Financial statement components - Statement of profit or loss and statement of changes in equity
5Financial statement components - The cash flow statement and other financial report areas
6Analysis and interpretation of financial statements
7Monitoring and controlling the business and performance measurement
8Financing the business - Associated risks and returns
9Capital structure and cost of capital
10Financial investment principles
11Investing in capital projects (capital budgeting)
12Competitive advantage and the capital budgeting decision process