Financial Accounting for Energy and Mining Industries module (CP51048)

The module has two parts. First, it introduces the subject of financial accounting for non-accounting master’s students. It is specific to financial accounting, rather than accounting in general. In that, its focus is to provide a basis to enter management decision making processes which involve the final accounts of an organisation.

Second, it provides you with a critical understanding of the complexities of business finance and the issues business managers in the energy and extractive industries are required to consider in the decision-making process. Such issues include the sources and cost of finance, return on investment, and management of working capital requirements.

What you will learn

In this module, you will learn:

• introduction to corporate finance
• capital investment appraisal
• practical aspects of investment appraisal
• cost of capital
• working capital
• the nature and purpose of accounting
• starting a business: accounting implications and financial statements
• capital assets and depreciation
• cash flow and its management
• business performance through the interpretation of financial statements
• international accounting and the extractive industries
• financial reporting in the extractive industries

By the end of this module, you will be able to:

• analyse, interpret, and negotiate allocation of financial risks
• apply financial principles and models for capital investment appraisal and measure business value
• analyse and interpret balance sheets and income statements
• manage time effectively to undertake the relevant reading for the module
• communicate in writing and orally in a clear, concise and coherent manner

Assignments / assessment

• mid-term exam (50%)
• final closed-book exam (50%)

Teaching methods / timetable

The module will be delivered primarily in person, with a 3-hour lecture each week.