MScManagementFinancialinformationmanagement1StudentGuide2010/11Lecture1Thereissomeveryimportantreadingwhichyoumustdoatanearlystage.Youmustbeawareof;ThereasonswhybusinessesprepareaccountsTheprincipalusergroupsoffinancialaccounts.Thedefinitionsandprincipalfeaturesoffinancialaccounting,managementaccountingandfinancialmanagement(thelatterissometimesknownas“corporatefinance”or,moresimply,“finance”).Youmustbeabletodistinguishbetweenfinancialaccountingandmanagementaccounting.Thisreadingcanbefoundbetweenpages3and8.Itisgenerallystraightforward,andstudentshavefewproblemswithit.Fromtimetotime,examquestionshavebeensetontheabovetopics.However,theimportanceofthisinitialreadingcannotbeunderstatedStudentstakingFIM1(only)willfindthatacheap,basiccalculatorwillsuffice–suchacalculatorcanbeboughtforlessthanapoundfromthe“value”sectionofmanysupermarkets.StudentstakingFIM2,ICFandIBFMwillfindascientificcalculatoruseful–again,thesemaybesourcedfromsupermarkets,fromcatalogueshops,andoftenfrom“pound”shops.Youmustnotuseamobilephoneinsteadofacalculator,norareyouallowedtouseacalculatorcapableofcommunicationoracalculatorwhichisabletostoreordisplaytext.Programmablecalculatorsaresimilarlyprohibited–thereforeifyouareascience,mathsorengineeringstudent,youwillbeadvisedtoinvestinamuchmorebasiccalculatorthanonewhichyouarealreadyusing.Twoquestions;Whatisthepossibleeffectofdrawingscontinuallyexceedingprofitsyearafteryear?Whichgovernmentagencymighttakeaparticularinterestinthelevelofdrawings,especiallyrelevantinviewofthetrader’spersonalcircumstances?Manyslidescontainmoreelementarydetailofthebackgroundandcontentsofbusinessaccounts.ThiscouldbeexaminedeitherviaMCQorbyanessayquestion.Thereissomeadditionalreading,andaquestionisasked;Considerwhetheritispossibleforabusinesstoprepareasetofaccountswhicharecompletelyfreefrombiasoropinion.DepreciationAmeasureofthewearingoutorthereductioninvalueofanassetovertime.Ifyouhaveacar,oracomputer,youarelikelytoexperienceasubstantialfallinthevalueofyourasset