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Module Title
Financial Information and Decision Making

Income, Balance Sheet, Cash Flow Statements and Stock Market Data; Ratio, Dupont & Z Score Analysis; Value Added and Sustainable Growth.

SCQF Points15
ECTS Points7.5
CreatedMay 2002
ApprovedJune 2013
AmendedAugust 2014
Version No.4

This Version is No Longer Current
The latest version of this module is available here
Prerequisites for Module

None in addition to SCQF 11 entry requirement or equivalent.

Corequisite Modules


Precluded Modules


Aims of Module

To develop the ability to identify and evaluate the nature, context and format of the relevant financial information of companies and to analyse such information with respect to appropriate decision making.

Learning Outcomes for Module

On completion of this module, students are expected to be able to:

1. Critically evaluate the relevance of the information in the Income, Balance Sheet, Cash Flow Statements, Notes to the Financial Statements and Stock market data.
2. Critically appraise the accounting approach to income and asset value measurement and evaluate the financial reporting environment.
3. Identify and interpret the key drivers of Financial Statements, Share Prices of the Company.
4. Understand and critically evaluate relevant techniques of analysis to the above Financial Information, noting their main sources in order to make key decisions

Indicative Module Content

Structure and Content of Income, Balance Sheet and Cash Flow Statement, noting differnce of focus in operation of business income and asset measurement; the financial reporting environment, relevance of Profit Levels, Assets, Liabilities, Net Book Value and Cash Flows plus Balances to performance of business; Key Drivers of Revenues, Costs Expenses, Interest and Tax plus Fixes Assets, Net Current Assets and Long Term Debt plus Operational, Investment, Financing Cash Flows; Ratio and Dupont Analysis, Z Scores, Value Added and Sustainable Growth; Stock Market Data

Indicative Student Workload

Contact Hours

Full TimePart Time

Directed Study

Directed study

Private Study

Private study

Mode of Delivery

The module will be delivered by formal lectures and tutorial exercises.

Assessment Plan

Learning Outcomes Assessed
Component 1 1,2,3,4

Final Written Examination

Indicative Bibliography

1.ATRILL, P. and McLANEY, E., 2013. Financial accounting for decision makers. 7th ed. Harlow: FT Prentice Hall. ebook
2.DYSON, J.R., 2010. Accounting for non-accounting students. 8th ed. Harlow: FT Prentice Hall. ebook
3.HOLMES, G., SUGDEN, A. and GEE, P., 2008. Interpreting company reports and accounts. 10th ed. Harlow: FT Prentice Hall. ebook
4.PENDLEBURY, M., 2004. Company accounts: analysis, interpretation and understanding. 6th ed. London: Thomson.

Robert Gordon University, Garthdee House, Aberdeen, AB10 7QB, Scotland, UK: a Scottish charity, registration No. SC013781