IBAM Diploma

BUSINESS FINANCE
The Business Finance module builds upon the knowledge and techniques in the IBAM Certificate Accounting for Business module and develops these to a higher level. Students learn how to prepare financial statements for a limited company and about simple financial decision-making such as costing and pricing decisions and measuring economy, efficiency and effectiveness of a company. They will also learn how organisations are financed and the principles of working capital management. The Business Finance module explains what students need to know about financing organisations at an intermediate level.

SYLLABUS
Financial Objectives, Accounting Information and Stakeholders
• The primary objectives in accounting
• Linking organisational objectives and accounting information
• Stakeholders and accounting information needs

Financial Statements
• Profit and loss account and balance sheet (limited company/internal use)
• Intangible fixed assets
• Annual report and accounts (limited company)

Analysis and Decision Making
• Marginal costing
• Cost-volume-profit (CVP)analysis
• Pricing decisions and transfer pricing
• Accounting ratios
• Measuring economy,efficiency and effectiveness

Financial Planning and Control
• Annual budgets and strategic objectives
• Functional budgets and the master budget
• Fixed and flexible budgets
• Capital investment decisions
• Standard costing and variances

Financing the Organisation
• Sources of long-term finance
• Sources of short-term finance
• Financial gearing
• Cost of capital and weighted average cost of capital
• Working capital and working capital ratios