Programme Curriculum for Master Programme in Accounting and Finance 1. Identification Name of programme Scope of programme Level Programme code Master Programme in Accounting and Finance 60 ECTS Master level Decision details Board of the School of Economics and Management, 17 April, 2015 Amendment details 2015-09-25 2. Programme description The target audience of the master programme in Accounting and Finance consists of students who are aiming for a career as, for example, financial analysts or investment bankers, in internal audit, assurance, or management consultancy, or as chief financial officers (CFO), controllers, treasurers, or in other financial-management functions. An accounting and finance background is an excellent springboard for a career in the top echelons of industry, and many senior corporate executives have a background in accounting, internal auditing, or finance. The programme also provides a thorough preparation for academic research in accounting or corporate finance. A career in accounting, financial services, financial management, or related sectors of the economy requires an advanced level of understanding of the theory and practice of accounting and corporate finance. The programme meets this need by providing a comprehensive and rigorous treatment of key areas of accounting and corporate finance. The program of study is organized into three tracks. Depending on ambitions and interests, participants choose to specialize in: Track 1: Accounting and Financial Communication Track 2: Accounting and Management Control Track 3: Corporate Financial Management Applicants are to decide on which track they are applying for when applying for the programme. Accounting and financial communication are critical for assuring credible information to the financial markets and various stakeholders. In Track 1: Accounting and Financial Communication you will develop advanced knowledge about accounting standards and methods, the diffusion and uses of 1
corporate information, and how information is assured and audited. In addition, you will gain knowledge about the institutional settings and norms governing financial communication on a national and international level. You will improve your technical proficiency in solving advanced accounting problems and analyzing and interpreting financial information. You will also develop your ability to communicate the meaning of financial information and your understanding of and restrictions on financial communication. Management accounting and control is a critical function in organizations to ensure that decisions and behaviors are consistent with objectives and strategies. In Track 2: Management Accounting and Control, you will develop advanced knowledge about the design of management control packages and the process of collecting, analyzing, and reporting financial and non-financial performance that may relate to an individual, group, organization, or system. You will also learn about investment calculus and valuation of companies, costing and pricing of products, assessment of capital costs as well as contemporary management accounting techniques and methods. Knowledge of research approaches and methods will be integrated parts of the courses. Case assignments and experiments are important parts of the course work to facilitate participants understanding of the linkages between individual motivation and incentives, organizational strategy and performance, and the design of management control systems. Corporate finance is a place where business strategy, processes, and information combine. Track 3: Corporate Financial Management gives participants the opportunity to specialise in corporate finance. It provides techniques and models to assist in financial decision-making and the insight to determine whether these decisions make sense in a strategic competitive context. Whether working in financial management or financial advisory, senior management, or management consulting, understanding how to analyse corporate performance, firm value, and credit worthiness and the impact of strategic decisions and corporate restructurings on these are valuable. Equally valuable is knowledge of how to finance and manage the risk of ventures, be they start-ups or incumbent firms, and of how to manage assets and liabilities. The track in Corporate Financial Management is founded on the idea that learning is fruitful when a subject matter is applied in practical decision contexts. Hence, strong emphasis is put on training participants abilities to apply their knowledge in decision situations. The track is designed to prepare participants for professional qualifications, not least towards examinations as certified financial analysts. Given the high level of academic performance expected from participants, a significant amount of independent study and preparation is required for successful completion of the programme. Career opportunities There is a broad and extensive labour market for graduates of programmes in accounting and finance both nationally and internationally. Connections to further studies After completion of the programme, participants are eligible for applying to further studies at the advanced level in business administration as well as to the doctoral programmes in business administration. 3. Learning outcomes The programme builds on previous studies at the undergraduate level including knowledge obtained in business administration, accounting, and finance. In accordance with the Higher Education Ordinance, the Degree of Master of Science (60 credits) is awarded to participants who at the completion of the programme accomplish the following: 2
Track 1: Accounting and Financial Communication Knowledge and understanding - Demonstrate knowledge and understanding within accounting and financial communication, including both a broad command of the field and deeper knowledge of certain parts of the field, together with insight into current research and development work; and - demonstrate deeper methodological knowledge in the field of accounting and financial communication. Skills and abilities - Demonstrate an ability to integrate knowledge and to analyse, assess, and deal with complex phenomena, issues, and situations, even when limited information is available; - demonstrate an ability to independently identify and formulate issues and to plan and, using appropriate methods, carry out advanced tasks within specified time limits; - demonstrate an ability to clearly present and discuss their conclusions and the knowledge and arguments behind them, in dialogue with different groups, orally and in writing; - demonstrate the skill required to participate in research and development work or to work in other advanced contexts; - have an ability to communicate analyses and conclusions both to specialists and to non-specialists; and - have the ability to work in multi-cultural teams. Judgement and approach - Demonstrate an ability to make assessments within accounting and financial communication, taking into account relevant scientific, social, and ethical aspects, and demonstrate an awareness of ethical aspects of research and development work; - demonstrate insight into the potential and limitations of science, its role in society, and people s responsibility for how it is used; - be able to apply theories and concepts concerning ethics to the ethical issues facing professional accountants; and - demonstrate an ability to identify their need of further knowledge and to take responsibility for developing their knowledge. Independent project (degree project) For a Master of Science (60 credits) participants must have completed an independent project (degree project) worth at least 15 higher education credits in accounting and finance, within the framework of the course requirements. Track 2: Accounting and Management Control Knowledge and understanding - Demonstrate knowledge and understanding within accounting and management control, including both a broad command of the field and deeper knowledge of certain parts of the field, together with insight into current research and development work; and - demonstrate deeper methodological knowledge in the field of accounting and management control. Skills and abilities - Demonstrate an ability to integrate knowledge and to analyse, assess, and deal with complex phenomena, issues, and situations, even when limited information is available; - demonstrate an ability to independently identify and formulate issues and to plan and, using appropriate methods, carry out advanced tasks within specified time limits; - demonstrate an ability to clearly present and discuss their conclusions and the knowledge and arguments behind them, in dialogue with different groups, orally and in writing; - demonstrate the skill required to participate in research and development work or to work in other advanced contexts; 3
- be able to use theories and methodologies concerning accounting and management control to analyse and assess practice; - have an ability to communicate analyses and conclusions both to specialists and to non-specialists; and - have the ability to work in multi-cultural teams. Judgement and approach - Demonstrate an ability to make assessments within accounting and management control, taking into account relevant scientific, social, and ethical aspects, and demonstrate an awareness of ethical aspects of research and development work; - demonstrate insight into the potential and limitations of science, its role in society, and people s responsibility for how it is used; - be able to apply theories and concepts concerning ethics to the ethical issues facing professional accountants; and - demonstrate an ability to identify their need of further knowledge and to take responsibility for developing their knowledge. Independent project (degree project) For a Master of Science (60 credits) participants must have completed an independent project (degree project) worth at least 15 higher education credits in accounting and finance, within the framework of the course requirements. Track 3: Corporate Financial Management Knowledge and understanding - Demonstrate knowledge and understanding within the field of corporate finance, including financial analysis, valuation, funding, risk management, corporate and financial restructurings, and credit assessment; - demonstrate insight into current research and development work within the field of corporate finance; and - demonstrate deeper methodological knowledge within the field of corporate finance. Skills and abilities - Demonstrate an ability to integrate knowledge and to analyse, assess, and deal with complex phenomena, issues, and situations, even when limited information is available; - demonstrate an ability to independently identify and formulate issues and to plan and, using appropriate methods, carry out advanced tasks within specified time limits; - demonstrate an ability to clearly present and discuss their conclusions and the knowledge and arguments behind them, in dialogue with different groups, orally and in writing; and - demonstrate the skill required to participate in research and development work or to work in other advanced contexts. Judgment and approach - Demonstrate an ability to make assessments within the field of corporate finance, taking into account relevant scientific, social, and ethical aspects, and demonstrate an awareness of ethical aspects of research and development work; - demonstrate insight into the potential and limitations of science, its role in society, and people s responsibility for how it is used; and - demonstrate an ability to identify their need of further knowledge and to take responsibility for developing their knowledge. 4
Independent project (degree project) For a Master of Science (60 credits) participants must have completed an independent project (degree project) worth at least 15 higher education credits in accounting and finance, within the framework of the course requirements. 4. Course information The programme is organized into three tracks and applicants must specify which track they are applying for when applying for the programme. Tracks 1 and 2 partly share courses, whereas the participants on track 3 to a large extent follow their own program of study. The program of study on each track is fixed and there are no possibilities for participants to combine courses across tracks. The programme of study on all tracks is divided into two semesters, which are further divided into four study periods. Period 1 extends from late August to late October, period 2 from late October to mid-january, period 3 from mid-january to late March, and Period 4 from late March to early June. Track 1: Accounting and Financial Communication Track 1: Accounting and Financial Communication has the following course structure: Semester 1 (Autumn) Semester 2 (Spring) Period 1 Sept-Oct Period 2 Nov-Jan Period 3 Jan-March Period 4 April-June BUSN73 Financial BUSN72 Information BUSN75 Accounting Accounting & Communication (7.5 ECTS) Environment (7.5 ECTS) Philosophy, History, and Trends (7.5 ECTS) BUSN79 Degree Project in Accounting and Finance (15 BUSN71 Accounting and Management Control BUSN74 Auditing & Assurance (7.5 ECTS) Electives (subject to variation) ECTS) (7.5 ECTS) Course information, Track 1: Accounting and Financial Communication Period 1: During this part of the program the participants are introduced to the theme of financial communication and its relation to the general control structure and management control system of the firms. Participants follow two courses: Financial Accounting and Communication. The course gives participants thorough understanding of principles for solving advanced accounting problems. And the language used when supplying financial information explaining and legitimating corporate actions, outcomes, decisions etc. Accounting and Management Control. The course gives participants thorough understanding of advanced and complex management accounting and control issues from both a theoretical and a practical perspective. Throughout the course participants are confronted with the latest developments in management accounting and control in research as well as practice. Period 2: The second study period focuses on different forms in which information is given by the firm and assured by auditors. In addition, it focuses on how features of the environment in which the information is used influence the communication from the firm. Participants follow two courses: 5
Information Environment. The course provides understanding of the firm s information environment and its relationship with the governance and control of organizations. The course discusses the provision and assurance of accounting and other information released by organizations or other parties to financial markets and other stakeholders, the role of information in corporate governance, macro-level ideologies that shape the institutional context of businesses, and the role of institutions in regulating, processing, and securing information from organizations. Auditing & Assurance. The course gives participants an active knowledge and understanding of the fundamental concepts of auditing, theories about auditing and its role in organizations and society, the nature and practices of the big audit firms, and the international regulation of auditing and its national consequences. Participants should obtain the skills to enable them to critically analyze current issues facing the international auditing profession. Period 3: The third study period will deepen the knowledge acquired during the two first periods. Participants follow one compulsory and one elective course. Accounting Philosophy, History, and Trends. The course provides advanced knowledge about the theoretical and historical basis of corporate financial communication. The course further provides skills in critically discussing and applying different methods in accounting research. Elective courses. A number of courses will be offered in order to allow participants to deepen their knowledge within an optional area. The courses will be subject to variation, but examples are: - International Accounting, which examines and analyzes accounting practices and norms in, and differences between countries. It also analyzes and compares the work of leading accounting standard-setting bodies with an international influence, such as the EC, the IASB (the International Accounting Standards Board), and the FASB (the Financial Accounting Standards Board). - Accounting Information Systems, which provides a deep knowledge of the models for and structure of corporate information systems as well as risk assurance systems. At this time the subject for the degree project is chosen and work on it is begun. Period 4: The degree project is carried out in the fourth study period. The work with the project starts in the beginning of the second semester, and is continued full-time during the second half of the second semester. A supervisor will be assigned to each degree project. 6
Track 2: Accounting and Management Control Track 2: Accounting and Management Control has the following course structure: Semester 1 (Autumn) Semester 2 (Spring) Period 1 Period 2 Period 3 Period 4 Sept-Oct Nov-Jan Jan-March April-June BUSN73 Financial Accounting & Communication (7.5 ECTS) BUSN71 Accounting and Management Control (7.5 ECTS) BUSN64 Strategic Cost Management (7.5 ECTS) BUSN76 Performance Measurement and Management (7.5 ECTS) BUSN63 Accounting and Management Control in Different Contexts (7.5 ECTS) BUSN79 Degree Project in Accounting and Finance Electives (subject to (15 ECTS) variation) Course information, Track 2: Accounting and Management Control Period 1: During this part of the program the participants are introduced to the theme of financial communication and its relation to the general control structure and management control system of the firms. Participants follow two courses: Financial Accounting and Communication. The course gives participants thorough understanding of principles for solving advanced accounting problems. And the language used when supplying financial information explaining and legitimating corporate actions, outcomes, decisions etc. Accounting and Management Control. The course gives participants thorough understanding of advanced and complex management accounting and control issues from both a theoretical and a practical perspective. Throughout the course participants are confronted with the latest developments in management accounting and control in research as well as practice. Period 2: The second study period focuses on advanced knowledge and applications in the areas of strategic cost management and performance measurement and management. Participants follow two courses: Strategic Cost Management. The course provides participants with deepened and thorough knowledge of investment analysis, credit analysis, and costing within a strategic framework. It provides participants with tools to investigate business problems, specialized knowledge about investment planning and costing on an aggregate level, and detailed knowledge about model building. The course also familiarizes participants with major and recent literature in their field as well as introduces important research techniques. Performance Measurement and Management. This course provides participants with advanced knowledge about the motivation of individuals and alternatives for the design of performance reports and incentive schemes. The process of collecting, analyzing, and reporting financial and non-financial performance may relate to an individual, group, organization, or system. Metrics and analytical tools used to analyze and present data (e g, the Balanced Score Card approach) are linked with incentives to ensure that decisions and behaviours are consistent with objectives and strategies. 7
Period 3: The third study period will extend the knowledge acquired during the two first periods. It consists of one compulsory course, focusing on applications of the knowledge and methods learned during the first semester, and one elective course: Accounting and Management Control in Different Contexts. The course provides participants with knowledge about how management control is influenced by organizational characteristics and objectives and market and societal factors. Special emphasis is given to complex situations that require balancing management control systems towards multiple and competing demands. Contexts covered include management control to support innovation strategies, management control of projects, and management control in not-for-profit and political contexts and in professional services industries including the health care sector. Elective courses. A number of courses will be offered in order to allow participants to deepen their knowledge within an optional area. The courses will be subject to variation, but examples are: - International Accounting, which examines and analyzes accounting practices and norms in, and differences between countries. It also analyzes and compares the work of leading accounting standard-setting bodies with an international influence, such as the EC, the IASB (the International Accounting Standards Board), and the FASB (the Financial Accounting Standards Board). - Accounting Information Systems, which provides a deep knowledge of the models for and structure of corporate information systems as well as risk assurance systems. At this time the subject for the degree project is chosen and work on it is begun. Period 4: The degree project is carried out in the fourth study period. The work with the project starts in the beginning of the second semester, and is continued full-time during the second half of the second semester. A supervisor will be assigned to each degree project. Track 3: Corporate Financial Management Track 3: Corporate Financial Management has the following course structure: Semester 1 (Autumn) Semester 2 (Spring) Period 1 Period 2 Period 3 Period 4 Sept-Oct Nov-Jan Jan-March April-June BUSN93 Financial Analysis and Corporate Valuation (10 ECTS) BUSN94 Econometrics for Corporate Finance (5 ECTS) BUSN95 Corporate Financial Tactics and Strategies (10 ECTS) BUSN96 Investments (5 ECTS) BUSN84 Financial Analysis and Corporate Restructuring (7.5 ECTS) BUSN86 Macrofinancial Risk Analysis (7.5 ECTS) BUSN79 Degree Project in Accounting and Finance (15 ECTS) Course information, Track 3: Corporate Financial Management Period 1: The first study period focuses on enhancing essential accounting and finance capabilities including critical analysis of corporate structures, performance, and financial reporting and statistical skills for undertaking empirical investigations in corporate finance. Participants follow two courses: 8
Financial Analysis and Corporate Valuation. The course focuses on analysing businesses, corporate performance, and financial reporting and valuing companies, primarily using cashflow- and income-based valuation methods. Participants will gain in-depth experience in valuing companies. The course emphasizes analysing accounting data and appraising, interpreting, and restructuring financial statements for use in financial analysis and corporate valuation. Econometrics for Corporate Finance. The course deals with econometric and microeconometric techniques for analysing corporate finance data. Emphasis is put on choosing and using appropriate modeling techniques. Topics covered include cross-sectional and panel econometrics, model diagnostics, instrumental variable techniques, endogeneity, and econometrics for categorical and limited dependent variables. Period 2: In the second study period the focus shifts to financial decision making by firms and investors. Again participants follow two courses: Corporate Financial Tactics and Strategies. The course trains participants in analyzing and solving complex and unstructured practical corporate financial problems. It provides advanced knowledge of corporate finance, covering topics such as the interaction between internal and external financing and risk management, contracting between a firm and its management and stakeholders, dividends and stock repurchases, and financial distress and its resolution. It also provides applied knowledge of corporate financing using equity, straight, hybrid, and structured fixed-income securities, and insurance products. Investments. The course deals with managing investments for individuals and institutions, including investment vehicles, portfolio management, wealth planning, and ethical and professional standards. It covers the formulation and implementation of active and passive investment strategies, alternative investments, and strategic and tactical asset allocation. Period 3: The third study period will extend the knowledge on analytical techniques and financial decision-making acquired during the two first periods. In the third study period participants again follow two compulsory courses, one forwarding participants knowledge of corporate financial analysis, corporate restructurings, and corporate credit assessment and the second enhancing participants knowledge of analysis and management of corporate exposure to macroeconomic risks: Financial Analysis and Corporate Restructuring. The course provides participants with thorough and practical understanding of how to analyze, compare, value, structure, and finance corporate restructurings, such as mergers and acquisitions, buyouts, spinoffs, etc. It also trains participants in assessing credit risk and doing corporate credit ratings. Macrofinancial Risk Analysis. The course deals with analysis, measurement, and management of the importance of macroeconomic policymaking and risk to corporate performance. It combines contingent claims analysis and international macroeconomics to analyse risk within an economy. It also provides tools to measure and manage the firm's exposure to macroeconomic risk. The focus is on risk management using derivatives, such as forwards, futures, and swaps, basic and exotic options, and hybrid securities. At this time the subject for the degree project is chosen and work on it is begun. Period 4: The degree project is carried out in the fourth study period. The work with the project starts in the beginning of the second semester, and is continued full-time during the second half of the second semester. A supervisor will be assigned to each degree project. 9
5. Degree Upon completion of the programme a Degree of Master of Science in Business and Economics (60 credits) will be awarded in compliance with the National Higher Education Ordinance (SFS 2006:1053). The major for students following Track 1: Accounting and Financial Communication will be in Business Administration with specialization in Accounting and Financial Communication (Ekonomie magisterexamen: huvudområde företagsekonomi, specialisering redovisning och finansiell kommunikation). The major for students following Track 2: Accounting and Management Control will be in Business Administration with specialization in Accounting and Management Control (Ekonomie magisterexamen: huvudområde företagsekonomi, specialisering redovisning och ekonomistyrning). The major for students following Track 3: Corporate Financial Management will be in Business Administration with specialization in Corporate Financial Management (Ekonomie magisterexamen: huvudområde företagsekonomi, specialisering företagsfinansiering). 6. Admission requirements and selection criteria Track 1: Accounting and Financial Communication An undergraduate degree (BA/BSc) with at least 60 ECTS credits in business administration, or equivalent knowledge obtained through courses in related fields (for example, courses in accounting, business, commerce, corporate finance, international business, management, management science, marketing, or organisational studies), and at least 15 ECTS credits in accounting on the intermediate or advanced undergraduate level. English 6. Recommended prior knowledge Accounting and Financial Communications Track 1: Accounting and Financial Communication provides advanced treatments of theories, applications, and relevant empirical research methods within the area of accounting and management control. It is recommended that participants hold background knowledge of accounting equivalent to an advanced undergraduate level course. All participants are expected to hold at least basic knowledge about financial reporting, management accounting, and quantitative methods. Track 2: Accounting and Management Control An undergraduate degree (BA/BSc) with at least 60 ECTS credits in business administration, or equivalent knowledge obtained through courses in related fields (for example, courses in accounting, business, commerce, corporate finance, international business, management, management science, marketing, or organisational studies), and at least 15 ECTS credits in accounting on the intermediate or advanced undergraduate level. English 6. Recommended prior knowledge Accounting and Management Control Track 2: Accounting and Management Control provides advanced treatments of theories, applications, and relevant empirical research methods within the area of accounting and management control. It is recommended that participants hold background knowledge of accounting and management control equivalent to an advanced undergraduate level course. All participants are expected to hold at least basic knowledge about financial reporting, management accounting, and quantitative methods. Track 3: Corporate Financial Management An undergraduate degree (BA/BSc) with at least 60 ECTS credits in business administration, or equivalent knowledge obtained through courses in related fields (for example, courses in accounting, business, commerce, corporate finance, international business, management, management science, 10
marketing, or organisational studies). Preferably a major in corporate finance or financial management. In addition at least 10 credits in corporate finance and finance at the intermediate or advanced undergraduate level (over and above introductory-level courses), and at least one course in econometrics or statistics, covering cross-sectional regression analysis and time-series analysis are required. English 6. Recommended prior knowledge Corporate Financial Management Track 3: Corporate Financial Management provides advanced treatments of theories, applications, and empirical research methods of corporate finance. It is essential to hold background knowledge of corporate finance equivalent to that provided in an advanced level undergraduate course in corporate finance. It is equally important to hold background knowledge of econometrics equivalent to an introductory undergraduate course in econometrics. All participants are assumed to at least hold prior knowledge as follows: ability to calculate net present values ability to value options using the Black-Scholes model ability to analyse capital structures, including calculation of the weighted average cost of capital understanding of the trade-off between risk and return, equilibrium pricing of risk, and the capital asset pricing model understanding of the structure and format of financial statements ability to calculate profitability, asset turnover, growth and cash flow basic knowledge of macroeconomics, including the trade-off between inflation, interest rates, and exchange rate changes and the IS/LM model knowledge of mathematics, including algebraic rules, solving equations, exponential function and logarithms basic knowledge of statistics, including hypothesis testing using the normal, t, F, and χ2 distributions basic knowledge of cross-sectional econometrics, including the classical linear regression model, autocorrelation, and heteroscedasticity basic knowledge of time-series econometrics, including autoregression and moving averages Selection criteria Selection is based on academic qualifications from university studies and a Statement of Purpose in which applicants should state their reasons for applying to the programme and the chosen track. Students should also clearly define if they are applying for Track 1: Accounting and Financial Communication, Track 2: Accounting and Management Control, or Track 3: Corporate Financial Management. 11
7. Other information Courses at the School of Economics and Management are graded according to the criterion-referenced principal grades A-F: GRADE POINTS CHARACTERISTIC A Excellent 100-85 A distinguished result that is excellent with regard to the following aspects theoretical depth, practical relevance, analytical ability and independent thought. B Very good 84-75 A very good result with regard to the above mentioned aspects. C Good 74-65 The result is of a good standard with regard to the above mentioned aspects and lives up to expectations. D Satisfactory 64-55 The result is of a satisfactory standard with regard to the above mentioned aspects and lives up to expectations. E Sufficient 54-50 The result satisfies the minimum requirements with regard to the above mentioned aspects, but not more. F Fail 49-0 The result does not meet the minimum requirements with regard to the above mentioned aspects. It is up to the teaching professor to decide whether the credits of a course should be converted into a total of 100 points for each course, or if the scale above should be used as percentage points of any chosen scale instead. Disciplinary actions against plagiarism The University views plagiarism very seriously, and will take disciplinary actions against students for any kind of attempted malpractice in examinations and assessments. The penalty that may be imposed for this, and other unfair practice in examinations or assessments, includes suspension from the University. 12