Postgraduate Diploma in Management Accounting

Purpose

The purpose of the Postgraduate Diploma in Management Accounting is to prepare learners for a role as professional senior management accountants in the workplace. The qualification will equip learners with an insight into the world of management accounting, both from a corporate and individual perspective, with an emphasis on improving decision-making in a competitive environment.

Upon completion of the qualification, qualifying learners will be able to

• Utilise the specialised management accounting skills acquired to prepare group financial statements, notes to the financial statements, integrated reports and any other accounting reports required from public and private companies.
• Apply advanced management accounting knowledge and techniques to solve complex problems in an organisation.
• Demonstrate advanced knowledge in performance management that can add value to an organisation.
• Apply advanced financial management knowledge and techniques to solve complex financial problems in an organisation, as well as to conduct systematic research on a management accounting topic that is aimed at providing answers to questions whose resolutions are not antecedental known, or to verify answers that are assumed based on accepted wisdom.

Rationale

The needs analysis study conducted by Finance and Accounting Services Sector Education and Training (FASSET) (2015-2016), financial Sector Education Training Authority (SETA) revealed a national shortage of financial professionals, particularly management accountants in South Africa. These findings were corroborated by the Department of Home Affairs (Government Gazette, 37716) which designated management accounting as a scarce skill. FASSET (2015-2016) defines scarce skills as skills required in positions that remain unfilled for long periods of time due to a lack of qualified people to fill the positions. The annual talent shortage surveys conducted by the Manpower Group South Africa (2018), have consistently ranked management accounting as one of the top ten skills that South Africa has a shortage of. Accounting is on the scarce skills list as defined by the National Skills Development Strategy III and scarce skills areas of FASSET SETA, and is a priority area for national and provincial strategic plans.

According to FASSET (2015-2016), out of the 3 100 vacant positions that remained unfilled for long periods, 40% fell in the category of trainee accountants. A lack of availability of Black African graduates with suitable qualifications and relevant experience was reported. As a result, fierce competition exists among organisations for the small pool of skilled black graduates in the market.

This qualification will develop increased capacity not only in traditional management accounting functions, but also will provide an increased focus on information technology (IT) in response to industry-informed needs as previously outlined, thereby not only meeting the demands of theoretical engagement, but also the practical and technical expertise that is currently lacking amongst existing management accountants.

The qualification has been uniquely designed to provide learners with a specialisation that will enable them to apply management accounting to provide information for solving complex managerial problems and make informed choices with regard to the appropriate technology or systems for the given situation. In addition, the learners will be equipped with skills required to critically analyse management accounting information and resulting decisions, acquire a level of mastery to deal with unfamiliar concrete and abstract problems and justify their recommendations in complex business decision-making situations. Typical learners will be learners with a minimum of two years of industry experience in the field of management accounting, cost accounting or financial management.

Recognition of Prior Learning (RPL)

The institution has an approved Recognition of Prior Learning (RPL) policy which is applicable with regards to equivalent qualifications for admission into the qualification. RPL will be applied to accommodate applicants who qualify. RPL thus provides alternative access and admission to qualifications, as well as advancement within qualifications. RPL may be applied for access, credits from modules and credits for or towards the qualification.

RPL for access

• Learners who do not meet the minimum entrance requirements or the required qualification that is at the same NQF level as the qualification required for admission may be considered for admission through RPL.
• To be considered for admission in the qualification based on RPL, applicants should provide evidence in the form of a portfolio that demonstrates that they have acquired the relevant knowledge, skills, and competencies through formal, non-formal and/or informal learning to cope with the qualification expectations should they be allowed entrance into the qualification.

RPL for exemption of modules

• Learners may apply for RPL to be exempted from modules that form part of the qualification. For a learner to be exempted from a module, the learner needs to provide sufficient evidence in the form of a portfolio that demonstrates that competency was achieved for the learning outcomes that are equivalent to the learning outcomes of the module.

RPL for credit

• Learners may also apply for RPL for credit for or towards the qualification, in which they must provide evidence in the form of a portfolio that demonstrates prior learning through formal, non-formal and/or informal learning to obtain credits towards the qualification.
• Credit shall be appropriate to the context in which it is awarded and accepted.

Entry Requirements

The minimum entry requirement for this qualification is

• Bachelor of Accounting Sciences in Management Accounting, NQF Level 7.

Or

• Advanced Diploma in Accountancy, NQF Level 7.

Or

• A relevant qualification in the related field, NQF Level 7.

This qualification consists of the following compulsory modules at National Qualifications Framework Level 8 totalling 120 Credits.

Compulsory Modules, Level 8, 120 Credits

• Advanced Financial Reporting, 24 Credits.
• Advanced Management Accounting, 24 Credits.
• Performance Management, 24 Credits.
• Advanced Financial Management, 24 Credits.
• Research Methodology, 24 Credits.

1. Demonstrate knowledge of and engagement in an area at the forefront of a field, discipline or practice, an understanding of the theories, research methodologies, methods, and techniques relevant to the field, discipline or practice; and an understanding of how to apply such knowledge in a management accounting context.
2. Demonstrate an understanding of the complexities and uncertainties of selecting, applying, or transferring appropriate standard procedures, processes, or techniques to unfamiliar problems in a specialised field, discipline or practice.
3. Demonstrate the ability to operate effectively within a system, or performance management system based on an understanding of the roles and relationships between elements within the system and add value to an organisation.
4. Demonstrate the ability to use a range of specialised skills to identify, analyse and address complex or abstract problems drawing systematically on the body of financial management knowledge and techniques to solve complex financial problems in an organisation.
5. Demonstrate the ability to critically review information gathering, synthesis of data, evaluation, and management processes in specialised contexts in order to develop creative responses to problems and issues and apply a solid knowledge of relevant research skills in the formulation of a research project.

Associated Assessment Criteria for Exit Level Outcome 1

• Prepare group financial statements, notes to the financial statements, integrated reports and any other accounting reports required from public and private companies.
• Apply relevant International Financial Reporting Standards (IFRS) to prepare group financial statements.
• Apply the international integrated reporting framework (IIRF) to prepare an integrated report that caters for the diverse needs of multi-stakeholders of a company.
• Identify and apply relevant tools to analyse the financial statements of an organisation and provide relevant reports as required.

Associated Assessment Criteria for Exit Level Outcome 2

• Analyse and apply cost and quality management methodologies to reduce costs, improve efficiency, profitability and quality, and manage cost.
• Examine and apply value management techniques to manage costs and improve value creation.
• Apply investment appraisal techniques to evaluate mutually exclusive projects.
• Apply appropriate pricing decisions and strategies to achieve targeted revenues in an imperfect market.
• Analyse risk and uncertainty associated with medium-term decision-making to plan effectively for future developments.
• Analyse the performance of responsibility centres and prepare appropriate reports.

Associated Assessment Criteria for Exit Level Outcome 3

• Analyse and develop appropriate disruptive business models that create value in an increasingly digital world.
• Analyse individual and team performance to advise on how to improve team performance using employee empowerment and engagement, target setting, performance reporting and review, rewards and sanctions, diversity and equity, health, and safety, and adopting a suitable organisational culture.
• Advise a business on how to manage work relationships to improve team performance by communicating, building, and leading productive teams.
• Apply appropriate tools and techniques such as Workstreams, Work Breakdown Schedule, Gantt Charts, Network Analysis, Program Evaluation Review Technique (PERT) Charts, scenario planning, project risk management, and project management software to manage a project effectively.
• Advise appropriately on what the roles of key project personnel should be and how project stakeholders should be managed to ensure that a project's objectives are met.

Associated Assessment Criteria for Exit Level Outcome 4

• Select and apply knowledge of valuation of investment opportunities; capital budgeting and the associated risks for medium and long-term funds to advise an organisation on the appropriate source of funds.
• Calculate the cost of long-term funds to appropriately advise an organisation on how to minimise the cost of funds, whilst ensuring the availability of adequate long-term funds at an acceptable level of risk.
• Analyse and manage different types of medium-term risks to correctly employ information systems and data to manage upside and downside risks.

Associated Assessment Criteria for Exit Level Outcome 5

• Conduct a preliminary literature review to identify a viable topic, research problem and research questions for a management accounting research project.
• Conduct a thorough and extensive literature review to identify the gaps in the prior literature on the management accounting topic selected.
• Implement a coherent and critical understanding of the research methodologies, techniques and data analysis tools relevant to conducting research in the field of management accounting.
• Draft a research proposal on a management accounting topic of interest.
• Develop an appropriate report on all aspects of the research topic, according to language, referencing and other publication conventions as required by the institution and the sector.
• Apply all ethics considerations as required by the institution and the accountancy profession.

INTEGRATED ASSESSMENT

Integrated assessment forms part of continuous assessment at the institution and takes the form of an appropriate mix of both formative and summative assessment methods. Assessment policy and practices at the institution promote constructive alignment of the curriculum, learner-centred learning and assessment, and the importance of feedback to enhance learner engagement. Assessment practices should be fair, reliable and valid. It should also be in keeping with academic disciplinary and professional field norms and standards.

Formative assessment is aimed at enhancing learning and provides learners with an opportunity to reflect critically on their own learning and to improve their own levels of personal accountability and time management. Formative assessment usually consists of a variety of assessment tasks relevant to the field of study. It will

consist of a variety of tasks such as problem-solving individual and/or group assignments and projects, case studies, portfolio development, class discussions, quizzes, field trip reports and poster design.

Summative assessment will take place at the end of a section of each semester and is aimed at assessing learners' attainment against the learning outcomes of the subject(s).

Summative assessments are internally and externally moderated based on institutional policy and requirements. Summative assessments usually consist of a variety of formal assessment tasks relevant to the field of study, including written tests, reports and examinations. It will consist of written assessments in the form of written class tests, reports, assignments, presentations, and examinations conducted during and at the end of the academic semester/year.

Integrated assessment cuts across several modules and is aimed at the holistic development of learners and contributes to learners' personal and professional development in the field of study in terms of foundational, practical and reflexive competence.

Integrated assessment in this qualification will take place in the research methodology module. Learners will be assessed holistically by means of a research proposal project report and an oral presentation related to the needs and requirements of the industry.