Advanced Diploma in Financial Management

Purpose

The purpose of this qualification is to prepare Diploma learners for further study in Financial Management and Management Accounting. The qualification will prepare the learners for the labour market by enabling them to apply integrated knowledge and advanced conceptual thinking skills to solve complex problems in Financial Management.

To achieve this purpose the qualification is structured around two major themes, namely Financial Management and Cost Accounting. Financial Management contains the relevant financial management theory and is structured to enable learners to apply integrated knowledge, to evaluate and select long-term investment options and to make decisions regarding the financing of an enterprise and its long-term assets.

This would also provide the learner with the skills to value business operations using different valuation methods and financial analysis techniques. The Cost Accounting modules aim firstly to enable learners to apply different cost accounting tools and techniques to generate information needed to evaluate and control present and projected performance. Secondly, they aim to develop the learner's cognitive skills and practical competency in the application of information when making decisions and controlling performance to ensure optimum efficiency within business enterprises.

Rationale

With the formation of the University of Johannesburg through the merger process, separate and parallel qualification structures for Universities and Technikons have complicated the articulation of qualifications and the transfer of learners between qualifications in higher education institutions. The qualification is developed to specifically address the lack of articulation opportunities between qualifications of the merged institutions, by providing learners with an opportunity for further learning in Financial Management and related fields.

The qualification will provide learners with a Diploma: Accountancy or Financial Information Systems with an opportunity for further learning in Financial Management. In 2011 the Registrar of the University gave the Faculty of Finance and Economic Sciences special permission to allow Diploma learners to enter the Financial Management bridging option for a Bachelor Degree. This was an attempt to add to the learning pathway possibilities for the Diploma achiever. Twenty learners with a Diploma are currently enrolled for this bridging option.

There are a further 385 Diploma learners enrolled for the Mathematics for Diploma learners module. This is a reflection of the demand for the qualification, because only learners who are interested in an Advanced Diploma subsequent to their Diploma studies enrol for this module.

It is assumed that learners accessing this qualification are able to read, analyse and reflect on study material at NQF Level 7. It is assumed that they are able to communicate effectively using English in written and oral form, and have acquired applied competence in the Financial Accounting and Management Accounting context. It is further assumed that the learner is competent in Mathematics at the required level.

Recognition of Prior Learning

The learners who do not meet the minimum requirements can gain access to the qualification through the Recognition of Prior Learning and credits will be granted where competency in a specific module is established by an assessor.

Access to the Qualification

Access to the Advanced Diploma is granted to learners who meet the minimum entrance requirements or the alternative routes of entry. Applicants should be in possession of:

• A Diploma with Financial Accounting and Management Accounting at NQF Level 7.
• Mathematics at NQF Level 4 with an achievement rating of 4.

Or

• The Mathematics for Diploma learners module.

Learners with a Mathematics admissions point score below 4 or Mathematics Literacy will only be considered after completion of the Mathematics for Diploma learners module offered at the University. All learners will be subjected to a selection process including a review of performance in previous studies and a motivation letter.

This qualification consists of a total of 120 Credits and all seven modules, at NQF Level 7, are compulsory

• Financial Mathematics, 15 Credits.
• Performance Operations, 15 Credits.
• Financial Operations, 15 Credits.
• Intermediate Finance A, 15 Credits.
• Performance Management, 20 Credits.
• Financial Management, 20 Credits.
• Intermediate Finance B, 20 Credits.

The successful learner will be able to

1. Apply different cost accounting tools and techniques to generate information needed to evaluate and control present and projected performance.
2. Examine the role of tax in financial analysis and decision-making.
3. Prepare the full financial statements for a single company and the principal consolidated financial statements for a simple group.
4. Apply the time value of money to value different financial instruments and make long-term financial decisions.
5. Apply decision-making and control techniques to ensure maximum performance.

Critical Cross-Field Outcomes

All the Critical Cross-Field Outcomes are addressed in this qualification.

Associated Assessment Criteria for Exit Level Outcome 1

• Costing methods and their results are evaluated and applied.
• The role of Material Requirements Planning and Enterprise Resource Planning systems is explained and interpreted.
• The principles of environmental costing and the purposes of forecasts, plans and budgets are understood and applied.
• Information to support project appraisal, forecasts of financial results and budgets based on those forecasts is prepared.
• Project proposals are evaluated and the information to assess the impact on decisions of variables with uncertain values is analysed.
• The working capital position of an enterprise, short-term funding and investment opportunities and areas for improvement are identified.

Associated Assessment Criteria for Exit Level Outcome 2

• The types of tax, principles and potential administrative requirements that can apply to incorporated businesses are explained.
• The fundamental concepts in international taxation of incorporated businesses are understood and applied.
• Corporate income tax calculations are prepared and evaluated.
• The accounting rules for current and deferred taxation and the principles that underlie the use of budgets in control are explained.

Associated Assessment Criteria for Exit Level Outcome 3

• Full consolidated statements of a single company and the financial position and comprehensive income for a simple group are prepared.
• The principles of accounting for capital schemes and foreign exchange rate changes are researched and applied.
• Accounting principles and their relevance to accounting issues of contemporary interest are understood and discussed.
• Ratio analysis from financial statements and supporting information is researched and applied.
• Performance and position are evaluated.
• Contemporary developments in financial and non-financial reporting are understood and discussed.

Associated Assessment Criteria for Exit Level Outcome 4

• Long-term capital investment decisions and capital budgeting techniques are evaluated and applied.
• The leasing decision and alternative sources of finance are evaluated.
• The appropriate sources of long-term corporate capital are identified and applied.
• The dividend policy of a company and recommendations regarding the optimum payout and retention ratios are evaluated and understood.
• A company or a division's performance is calculated and interpreted using ratio analysis.
• The value of the business operations is calculated using different valuation methods.
• The role of the treasury function to manage financial risk together with the different techniques is researched and evaluated.

Associated Assessment Criteria for Exit Level Outcome 5

• Concepts of cost and revenue relevant to pricing and product decisions are discussed and applied.
• Short-term pricing, pricing strategies and product decisions are analysed.
• The techniques for analysing and managing costs for a competitive advantage are evaluated and applied.
• The principles that underlie the use of budgets in control are understood and applied.
• Performance is evaluated using budgets, alternative approaches and sensitivity to variable factors.
• The broader managerial issues arising from the use of budgets in control are discussed.
• The use of responsibility centres in devising organisational structure and management control is evaluated and understood.
• The information for managing decision-making in responsibility centres is analysed and understood.
• The broader managerial issues, arising from the division of the organisation into responsibility centres, are discussed and interpreted.

Integrated Assessment

An Integrated Assessment method encompassing both formative and summative assessment will be used. The outcomes for each module will be assessed as follows:

• Formative assessment consisting of two formal written assessment opportunities during the semester, with additional assessment opportunities in the form of assignments and class assessments.
• Summative assessment consisting of a three hour written examination paper.