Summary Management Accounting (MAC4861/MAC4862)

MANAGEMENT ACCOUNTING
SUMMARY



TOPICS COVERED
1. ANALYSIS AND INTERPRETATION OF FINANCIAL AND
NON-FINANCIAL INFORMATION
2. BUSINESSES IN DIFFICULTY
3. VALUATIONS
4. MERGERS & ACQUISITIONS
5. BUSINESS PLANS AND FINANCIAL
PROPOSALS




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,TOPIC 1: ANALYSIS AND INTERPRETATION OF FINANCIAL AND
NON-FINANCIAL INFORMATION


Financial information:


Unless otherwise stated:
• Use average or closing balances in calculations
• Use 365 days per year
• Use market values (not book values)


Answering ratio questions:
1. Understand and interpret each ratio.
2. Compare the ratio to a benchmark i.e. prior period or similar company
3. State whether the ratio has improved or deteriorated.
4. Give reasons based on information in the question / general knowledge.
5. Discuss the impact on the business.


Where the required asks you to evaluate the performance of a particular entity:
• Consider ratios from all areas depending on the information supplied in the
question.
• Include specifically requested ratios based on the scenario.
• Use the mark allocation as a guide to how many ratios are needed




Non-financial Information:


Mention four criteria:
1. Sustainability
2. Environmental
3. Social
4. Governance




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, THE BUSINESS MODEL




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