F
ACCOUNTING
FOR
INVESTMENT
AND
MANAGERIAL DECISION-MAKING
Develop a financial and managerial accounting toolkit to inform business decision-making
and enhance organisational performance.
ABOUT THIS COURSE
Today’s decision makers require a multifaceted skill set that includes a firm grasp of
financial knowledge, in order to devise actionable strategies that can drive business
profitability.
The Accounting for Investment and Managerial Decision-Making online certificate
course from the London School of Economics and Political Science (LSE) equips you
with a suite of financial and managerial accounting tools to make better business and
investment decisions for improved organisational performance. Through an analysis of
pertinent real-life business problems and experiences, this course demystifies the
language of accounting for professionals with very little or no prior knowledge of the
subject. Over eight weeks, you’ll develop your ability to interpret financial statements
and effectively communicate the results to key stakeholders. You’ll explore ways to
evaluate costs, efficiencies, and profits using real-world case studies, and discover how
skillful delegation can foster a heightened sense of responsibility and a sustainable
culture for improved performance. By the end of the course, you’ll learn how best to
set out plans, budgets, and performance targets, and uncover incentive, monitoring, and
feedback systems that can help you achieve your targets.
Please note this course is geared towards non-financial managers and professionals
from a broad range of industries and business areas. Prior knowledge of accounting is
not required or expected.
This Accounting for Investment and Managerial Decision-Making online certificate
course is certified by the United Kingdom CPD Certification Service, and may be
applicable to individuals who are members of, or are associated with, UK-based
professional bodies. The course has an estimated 70 hours of learning.
Note: should you wish to claim CPD activity, the onus is on you. The London School
of Economics and Political Science (LSE) and GetSmarter accept no responsibility,
and cannot be held responsible, for the claiming or validation of hours or points.
WHAT THIS COURSE COVERS
Over eight weeks, this course will explore the fundamentals of financial and managerial
accounting, from unpacking the building blocks of reporting practices to interpreting
statements, and measuring and incentivising profitability. After an essential grounding
in financial accounting concepts and principles, you’ll learn how best to analyse the
financial position and capital structure of a company using income statements, balance
sheets, and ratio analysis to communicate the results effectively. Next, you’ll learn how
to evaluate costs, efficiency, and profit to create a sustainable culture for improved
performance. You’ll also explore ways of delegating decision-making and control to
foster personal and team responsibility among employees. Finally, you’ll assess the
role of planning, budgeting, and performance targets to promote profitability and gain
insights into the monitoring and feedback systems that can be used to drive results.
WHAT YOU’LL LEARN
ORIENTATION MODULE: Welcome to your Online Campus
You’ll be welcomed to the course and begin connecting with fellow participants, while
exploring the navigation and tools of your Online Campus. Be alerted to key milestones
in the learning path, and review how your results will be calculated and distributed.
You’ll be required to complete your participant profile, confirm your certificate
delivery address, and submit a digital copy of your passport/identity document.
Please note that module titles and their contents are subject to change during course
development.
MODULE 1: The building blocks of financial reporting
Discover the key insights that underpin accounting practices.
Discuss the role and importance of accounting-based information in the context
of the broader market for information
Review how financial statements are constructed
Apply the principles of dual entry to company transactions
Explain the difference between accounting profit and cash flow
Determine the role of accounting information in managerial decision-making
MODULE 2: Financial performance assessment: THE INCOME STATEMENT
Use the income statement as a window to the financial performance of a company.
Review revenue and cost recognition rules
Discuss the presentational components of an income statement
Determine the appropriateness of different profit measures
Investigate the components of earnings that are most persistent, and clean the
earnings of a case company
Analyse the profitability of the income statement for a listed company
MODULE 3: Financial position and capital structure: THE BALANCE SHEET
Use the balance sheet as a window to a company's financial position and capital
structure.
Discuss the recognition and valuation rules for tangible and intangible non-
current assets
Determine the components of working capital and its importance
Analyse a company's liabilities and the impact thereof on the balance sheet
Investigate the appropriateness of various capital structures for different sectors
and company life cycle stages
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MODULE 4: Financial statement analysis
Use ratios and market information to analyse financial statements.
Determine the various aspects of a company's financial position, performance,
and liquidity using ratio analysis
Analyse the profitability and efficiency of a company
Analyse the liquidity, solvency, and capital of a company
Investigate the viability of an investent using ratio analysis
MODULE 5: Management accounting concepts and principles
Gain insight into the costs, efficiency, and profit of a company, and explore how
to create a sustainable culture for improved performance.
Identify fixed and variable cost as well as relevant and irrelevant cost
Apply costing methods to different products
Choose the most applicable pricing strategy for a given project
Analyse and choose among production strategies by considering the effects on
short- and long-run profitability
Use measures in feedback, reporting, and incentive systems to drive a sustainable
culture for performance improvement
Assess and guard against pitfalls and unintended consequences of measurement
MODULE 6: Delegation and control
Explore the delegation of decision-making authority to foster personal and team
responsibility among employees.
Categorise divisions of an organisation into responsibility centres
Analyse decision-making authority and shared responsibility in divisions
Assess measurement and incentive systems that support personal and team
responsibility
Recommend a hierarchy that allows for an efficient flow of information
Evaluate formal and informal means of recognising personal and group
contributions
MODULE 7: Measuring and incentivising profitability
Explore precisely measuring profit, and set budgets and targets that fit an
organisation's risk-reward profile.
Determine the causes of overhead costs
Decide on the allocation of scarce resources to products based on projections of
their financial impact
Recommend ways in which to foster organisational collaboration in proposing
and selecting among investment opportunities
MODULE 8: Incentives, monitoring, and feedback to drive results
Gain insight into how to create systems of incentives, monitoring, and feedback to
drive results in an organisation.
Reflect on the advantages and disadvantages of ranking and incentive systems
Decide between the measures available to provide the relevant set of information
to individual decision makers in an organisation
Propose information display formats that account for behavioural economics and
yield the best reactions from employees
WHO SHOULD TAKE THIS COURSE
This course is designed for non-financial managers and professionals across industries
who want to leverage accounting to enhance their decision-making, analyse business
challenges, and drive organisational performance. It benefits new or aspiring managers
seeking to expand their financial knowledge, business owners and entrepreneurs who
need a grounding in accounting to better guide the trajectory of their organisations, and
non-business management professionals looking to improve their skills. The course
content is designed for individuals with a limited knowledge of accounting practices
and principles. As such, it isn’t suitable for existing finance or accounting
professionals.
THIS COURSE IS FOR YOU IF YOU WANT TO:
MAKE BETTER DECISIONS
Gain a firm understanding of financial and managerial accounting concepts and
principles to inform business decision-making.
ENHANCE YOUR SKILL SET
Develop your ability to analyse financial statements, evaluate costs and profits, and
effectively communicate results to stakeholders.
DRIVE PERFORMANCE
Learn to set organisational targets and create systems of incentives, monitoring, and
feedback that can help achieve them.
WHO YOU’LL LEARN FROM
YOUR COURSE CONVENORS
These subject matter experts from LSE guide the course design and appear in a
number of course videos, along with a variety of industry professionals.
Kenneth Lee
Associate Professorial Lecturer and MSc Programme Director,
Department of Accounting, LSE
Henry Eyring
Assistant Professor of Accounting, Department of Accounting, LSE
GUEST EXPERTS
1. Vicki Stern
Equity Analyst and Managing Director
2. Eduardo Zanatta
Vice President of Home Dialysis Operations, DaVita Kidney Care
3. Deborah Taylor
Financial Trainer
4. Nick Anderson
IASB Board Member
