Master's Programme in Accounting and Finance

This programme consists of three major parts: core courses, electives, and a Master's thesis. The programme runs for one full year, and students may begin only in the autumn semester.

1. Resolution to offer the programme

2. Objective and contents

The programme is grounded in the principle of value-based management, in which the finance and controller functions as well as the accounting and auditing functions of firms are expected to contribute to an enhanced shareholder value. The programme offers career opportunities in accounting, auditing, controlling, and finance.

Two main paths of study allow the student to specialize in the accounting and auditing or the finance functions guided by the value-based management model.

It is recommended that students applying for the programme have covered accounting in their undergraduate curricula. Students choosing the accounting and auditing track are advised to take a course in Tax Law during the elective period. For those following the finance track, courses in Financial Economics, Statistics for Accounting, and Finance or Multinational Finance are recommended.

The core courses are:

Module 1. Corporate finance (5 points/7,5 ECTS)

Topics to be covered in this module include methods of valuing assets and opportunities as well as the rationale for using particular techniques. Financial management issues such as capital budgeting, capital structure and the choice between long and short term financing are also discussed. Derivatives and their role in the reduction of corporate risk are introduced. Additionally, corporate policy issues and theoretical perspectives for resolving them are presented.

b. Expected learning outcomes
Upon completion of this subject students should have sufficient knowledge to do all the following:

• Describe the inter-relationship between financing, investment and distribution decisions.
• Select and defend the use of appropriate models for valuing assets and opportunities.
• Explain how theoretical concepts, such as market efficiency, affect financial decisions and strategies.
• Outline the main components of current issues, such as corporate control and governance, which confront corporations today.

c. Required knowledge
General:
• Courses in Business Administration (90 ECTS)
• A minimum of 40 points/60 ECTS from A-level and B-level courses (Management, Accounting, Financial Investments, Cost Accounting, Marketing)
• At the advanced, C level, a minimum of 20 points/30 ECTS, including a Bachelor’s thesis or equivalent
• Furthermore, 10 points/15 ECTS Statistics or similar and a C-level course in Accounting (10 points/15 ECTS) are recommended

Module specific:
It is expected that the student is able to provide evidence of knowledge equivalent to a basic course in general finance as well as one in corporate finance. It is also expected that they have a minimum proficiency in basic statistics.

d. Focus of instruction
This subject will be presented using large group lectures as well as smaller group discussions, tutorials and workshops.

e. Examination modes
Students will be required to undertake a communication project attending and compulsory participation in a student presentation on issues that have divided theoreticians in the discipline. This is worth 30% of their assessment.

Students will be required to undertake a final examination in the module. The final examination will be comprised of both calculations and discussion questions but no multiple choice. The examination will be worth 70% of their assessment.

f. Course literature
See below 7.

Module 2. Advanced financial statement analysis and valuation (5 points/7,5 ECTS)

The primary purpose of the course is to provide the student with knowledge about equity (stock) valuation, with some attention given to credit analysis and the valuation of debt. The course is intended to provide practical valuation tools for valuing a company and its securities. The course will also provide students with advanced skills in financial modeling. Excel will be utilized as a tool for understanding and practicing financial statement analysis and valuation, including the creation of forecasted income statements and balance sheets (proformas) as a basis for valuation. A brief summary of topics includes: models of shareholder value and a comparison of accounting approaches and discounted cash flow approaches to valuation; the analysis of the firm’s profitability, growth, and value generation as a means of testing the quality of financial reports; the forecasting of earnings and cash flows; the construction of proforma analyses for strategy, planning, and valuation; analysis of risk; and the determination of price/earnings and market-to-book ratios.

b. Expected learning outcomes
After completing this course, the student should be able to:

Subject-specific skills
• Estimate "intrinsic value" with various valuation models.
• Apply financial statements in the process of determining intrinsic values.
• Understand the role of "bottom line" earnings (net income), book value, cash flows and dividends in valuation.
• Understand the relevance of cash flow information and accruals in performance evaluation and equity valuation.
• Deal with the different accounting methods used in financial statements?
• Evaluate accounting quality
• Determine the relevant firm attributes that determine firm value.
• Apply traditional ratio analysis to evaluate firm performance and value.
• Analyze factors that determines a firm's P/E ratio and market-to-book (P/B) ratio?
• Evaluate risk, for equity and for debt.

Core-academic skills
• Develop and apply valuation approaches.
• Mathematically derive various valuation models

Personal and key skills
• Demonstrate problem solving and analytical skills.
• Demonstrate skills of critical review, discussion and evaluation.
• Demonstrate the skills to locate, select, obtain and utilize information from library resources, computer databases and the internet.
• Demonstrate oral, written and presentation skills.

c. Required knowledge
• Courses in Business Administration (90 ECTS)
• A minimum of 40 points/60 ECTS from A-level and B-level courses (Management, Accounting, Financial Investments, Cost Accounting, Marketing)
• At the advanced, C level, a minimum of 20 points/30 ECTS, including a Bachelor’s thesis or equivalent
• Furthermore, 10 points/15 ECTS Statistics or similar and a C-level course in Accounting (10 points/15 ECTS) are recommended.

d. Focus of instruction
The course is taught from the perspective of an equity analyst, but much of the course material will be relevant to the internal corporate financial analyst for evaluating acquisitions, restructurings, and other investments, and for calculating the value generated by strategy scenarios. It takes the form of lectures, discussions, exercises, tutorials, cases, and sometimes guest lectures by invited professionals. Students must be prepared to do a significant amount of work outside the classroom in order to fulfill course requirements. Students are expected to prepare for tutorials (for which assignments might involve reviewing selected articles and solving numerical problems) and be prepared to enter into tutorial discussion. All material is potentially examinable, irrespective of the mode of tuition. Students are expected to keep themselves apprised of information upon the module via the course web page.

e. Examination modes
Assignments
There will be one piece of course-work (case assignment). It is not compulsory but will count for 15% of the grade. The case assignment must be finished during the course.

Assessment
Four hours of written examination, 85% of the final grade and one piece of course-work (15%). See the case instructions for further information about the assignment. Late submission is not accepted except when late submission permission is obtained from the module coordinator due to exceptional circumstances.

f. Course literature
See below 7.

Module 3a. Advanced auditing and corporate governance (5 points/7,5 ECTS)

a. Contents
The primary aim is to provide students with a comprehensive understanding of contemporary auditing theory and practice and an understanding of corporate governance.

The purpose is to present a framework for generally accepted auditing standards and for corporate governance in Sweden and internationally (e.g. the standards of, International Federation of Accountants). The primary value-added activities of an auditor are as follows:

• to verify for the owners the information in financial statements,
• to assist management in complying with laws and regulations,
• to assist in the development of internal controls within firms, and
• to react to changing needs in the environment.

b. Expected learning outcomes
Key objectives are that the student should, among other things, be able to:

• Explain what is meant by ethics and independence from an auditor’s, as well as understand approaches used to identify and resolve independent issues under the Swedish and IFAC rules.
• Describe what types of knowledge about a client’s business that is required to plan and carry out an audit.
• Explain what internal control is, discuss why internal controls are important and understand how control risks are assessed.
• Understand and apply the general nature of analytical procedures.
• Explain the process of gathering audit evidence and determine what evidence is relevant and what evidence is reliable.
• Apply auditing standards and procedures in order to propose the contents and form of the auditor’s report (including an understanding of the different types of opinions given in audit reports).
• Understand and debate the Swedish Corporate governance rules (Svensk kod för bolagsstyrning.

c. Required knowledge
• Courses in Business Administration (90 ECTS)
• A minimum of 40 points/60 ECTS from A-level and B-level courses (Management, Accounting, Financial Investments, Cost Accounting, Marketing)
• At the advanced, C level, a minimum of 20 points/30 ECTS, including a Bachelor’s thesis or equivalent
• Furthermore, 10 points/15 ECTS Statistics or similar and a C-level course in Accounting (10 points/15 ECTS) are recommended

d. Focus of instruction
Lectures, seminars, case studies, and course papers are all utilized in this course. The core topics will be covered by lectures and seminars, in which students will be expected to take an active part. Cases related to the topics will also be used. Students are required to make written and oral presentations at seminars and during case analyses and to submit course papers

e. Examination modes
Examination will be based upon the student’s active participation in seminars, a written comprehensive examination (tentamen), and successful completion of group or individual coursework as assigned.

The following grading system will be used: Pass with distinction (Väl godkänd, Vg, 75% or more), Pass (Godkänd, G, 50% or more) and Fail (Underkänd, U, less than 50%).

f. Course literature
See below 7.

Module 3b. Investments (5 points/7,5 ECTS)

The first part of the course covers modern portfolio theory and introduces fundamental concepts such as expected return, risk, risk aversion and expected utility. These concepts are then used in the development of mean-variance analysis, efficient diversification, and the notion of optimal portfolios.

The equilibrium pricing implications of portfolio theory are embodied in the capital asset pricing model (CAPM). The theoretical foundations of CAPM and its variations are studied and analyzed in the light of the model’s performance in recent empirical tests. The course introduces the principles of no-arbitrage and the resulting arbitrage pricing theory (APT).

Implementations of CAPM and APT in the form of single-index and multifactor models of returns are discussed. A treatment of the efficient market hypothesis and its implications for e.g. active and passive portfolio management, concludes this part of the course.

In the part on fixed income securities, valuation and bond pricing are discussed as well as term structure relationships and bond portfolio management, including duration analysis and immunization.

The course’s treatment of derivative securities covers options, futures, swaps and convertible securities. The Black-Scholes model is studied along with the relevant parity-relationships for futures and forwards. Certain emphasis is placed on the creation of synthetic securities and the construction and maintenance of various hedging strategies for both portfolios and individual securities using different derivatives.

The last part concerns performance measurement and international diversification. The former topic deals with the evaluation of managed portfolios in terms of risk and return. Performance attribution and style analysis are also included. The latter topic covers international investments and its risks and opportunities.

b. Learning outcomes
On successful completion of this module, students should be able to

• use portfolio optimization (program) to identify optimal portfolios for different levels of risk aversion
• analyze the CAPM and some of its variants
• explain the typical steps of empirical tests of the CAPM along with the results of some such tests
• apply the no-arbitrage principle and the APT
• apply single and multiple factor model implementations of CAPM and APT
• analyze the implications of the efficient market hypothesis for active and passive portfolio management
• analyze fixed income securities and term structure relations
• apply bond portfolio management methods, e.g., duration analysis and immunization
• analyze derivative securities, mainly options and futures
• apply derivatives to hedging, portfolio management and the creation of synthethic securities
• evaluate portfolio performance using risk-adjusted metrics, performance attribution, and other methods
• explain the opportunities and risks of international investments.

c. Required knowledge
• Courses in Business Administration (90 ECTS)
• A minimum of 40 points/60 ECTS from A-level and B-level courses (Management, Accounting, Financial Investments, Cost Accounting, Marketing)
• At the advanced, C level, a minimum of 20 points/30 ECTS, including a Bachelor’s thesis or equivalent
• Furthermore, 10 points/15 ECTS Statistics or similar and a C-level course in Accounting (10 points/15 ECTS) are recommended

d. Focus of instruction
The core topics of this course will be covered by lectures, although seminars, cases and computer exercises utilizing Excel may also be used. Students are expected to take active part in every aspect of the course

e. Examination modes
Examination will be based on a written comprehensive examination (tentamen), and on successful completion of group or individual coursework as assigned.

f. Course literature
See below 7.

Module 4. Value-based management accounting (5 points/7,5 ECTS)

What does a management accountant do?
Management accountants are strategic financial management professionals who integrate accounting expertise with advanced management skills to drive business performance inside organizations. They serve as trusted partners to executives in all areas of an organization, offering the expertise and analysis necessary for sound business decisions, planning, and support. Management accountants monitor, interpret, and communicate operating results, evaluate performance, control operations, and make decisions about the strategic direction of the organization. They understand the business formula for delivering value to the customer, arriving at strategies for identifying, developing, marketing, and evaluating a product or service throughout its entire life cycle.

This advanced management accounting course module is intended to integrate the Accounting and Finance Programme at USBE from a value-based management perspective. The focus of contemporary management accounting is on the enhancement of shareholder value through customer-driven value creation.

The course wants to enhance students’ knowledge, insights, and analytical skills related to the way corporate managers design, and utilize planning and management control systems to implement strategies. Techniques of the management control process are studied and behavioral considerations involved in the use of these techniques are discussed. The student should also become aware of the varied and changing roles of the controller function and the management accountant.

b. Expected learning outcomes
By the end of the module students should have:
Knowledge and understanding to

• Describe the roles management accounting systems have in organizations;
• Describe the consequences of management accounting system changes;
• Have an ability to work with the theoretical and research based knowledge in the area of management accounting;
• Make the best use of their knowledge of primary contemporary management accounting techniques
• Be well prepared for the varied and changing roles of the controller function.

Professional Skills to

• Make use of contemporary management accounting techniques;
• Describe the role of information relating to the controller function in an organisation;
• Communicate, negotiate and report financial and non-financial information within a management team;
• Be able to act as a catalyst, facilitator and management accounting change agent in organisations.
• Produce detailed and coherent reports (both written and spoken) in matters related to management accounting
• Take responsibility for own work in a professional and ethical way.

c. Required knowledge
• Courses in Business Administration (90 ECTS)
• A minimum of 40 points/60 ECTS from A-level and B-level courses (Management, Accounting, Financial Investments, Cost Accounting, Marketing)
• At the advanced, C level, a minimum of 20 points/30 ECTS, including a Bachelor’s thesis or equivalent
• Furthermore, 10 points/15 ECTS Statistics or similar and a C-level course in Accounting (10 points/15 ECTS) are recommended

d. Focus of instruction
The developments of the management accounting subject, techniques and concepts are presented during lectures. Students will become familiar with quantitative issues through numerical examples, exercises and cases. They are expected to take an active part in discussions on the development of the field, literature and article seminars and reporting about case studies. They will be given a number of assignments, leading to continuous assessment. Course work will be done individually and in small group, and must reach an advanced level of knowledge and understanding of the subject.

Readings
Requiring reading for the course includes cases, chapters, and articles contained in the assigned textbooks and supplementary materials. The lectures in the course will consider both conceptual and computational aspects of management accounting measurement topics. Class sessions will be organized around cases and team activities–debates and panel discussions. Written work will take the form of homework assignment and written case analyses.

Class participation
This class depends on students own participation. At this point of the Master curriculum, a substantial part of your learning comes from other students. It is important and essential for this course that you bring in your own experience and expertise. In addition to attending class (which is required), you should be prepared to comment on the case or article and discuss the analysis presented in class. Part of the excitement and the benefit of this course are the diversity of experience of the participants of this class.

e. Examination modes
Grading is based on a final exam, written cases and other assignments

f. Course literature
See below 7.

Module 5. Electives (10 points/15 ECTS)

For application of and information about elective courses, see www.usbe.umu.se/master or www.usbe.umu.se/master/index_eng.html

Module 6. Master's Thesis / D-Thesis (10 points/15 ECTS)

The objective of this course is to develop students' knowledge of scientific work and to provide students with the understanding to plan, conduct, and present their work independently. A further aim in this is to develop students' skills in critical thinking and research methods, providing students students with the opportunity for a deeper level of theoretical study within a chosen area.

Module 6:1 Seminars
The aim of this module is to develop the students' ability to investigate and report on a problem from a critical and scientific point of view. This part of the course requires the student a) to perform a major critical analysis of another Master’s thesis, including the conducting of an oral examination of this thesis; and b) to submit written critical analyses, 4 to 5 pages in length, of two other Master’s theses This is an individual assignment. The written critical analyses, in which the student’s critical abilities must be clearly documented, should be numbered consecutively (Number1 - Number2).

Module 6:2 Master's thesis
Thesis work should prove a students independent ability to develop and investigate an issue within the field of business administration. The emphasis lies in the critical choice of method, in the creation of a relevant theoretical frame of reference, and in an extensive analysis of the theoretical and empirical material available. The canditate should make a contribution to the literature in a chosen subject or problem area. The methodological approach must be clearly connected to the problem area and the different parts must be well integrated. Thesis work should generally be conducted in groups of two. The length of the Master’s theses in this programme typically range from 40 to 60 pages.

Teaching methods
The canditate's independence and responsibility is emphasized in the conducting of thesis work. Thus the supervisor’s influence and control is reduced in order to create the necessary conditions for individual autonomy, creativity, and personal responsibility. Nevertheless, students are expected to participate actively in joint discussions and seminars during the thesis period. It is understood that the ongoing Master’s thesis work is presented to the supervisor on at least three occasions during the thesis process.

Examination methods
The writing and defending of an independent work is the primary requirement of this course (Module 6:2). Students will also be evaluated on their ability to perform a major critical analysis of another Master’s thesis and the quality of their written critical analyses of two other Master’s theses (Module 6:1).

In case of complementary work as instructed by the supervisor, this should be completed and delivered to the supervisor within four weeks after the final seminar.

The following grading system will be used: Pass with distinction (Väl godkänd, Vg), Pass (Godkänd, G) and Fail (Underkänd U).

Remainder
Library copies of the thesis must be delivered within four week after the final seminar, in paper version as well as in digital form, to the Student Services Office (Studentexpeditionen).

The students must write their thesis within the field of the Master's Programme the student is following.

3. Prerequisites

A Bachelor's degree with a major in Business Administration (180 ECTS-credits), which should include courses in Business Administration (90 ECTS)

A minimum of 40 points/60 ECTS from A- and B-level [Basic and Intermediate] courses in Business Administration (Management, Accounting, Finance, Organization, Investments, Management Accounting, Marketing)

At the advanced level, C-level, in Business Administration a minimum of 20 points/30 ECTS, including a Bachelor’s thesis or equivalent

Furthermore, 10 points/15 ECTS Statistics or similar and a C-level course in Accounting (10 points/15 ECTS) are recommended

Further information about language skills etc.

4. Teaching methods

Described for each module above (d.) and in each individual course outline.

5. Examination

Examination of Modules 1-4 above will be based upon the student’s active participation in seminars, a written comprehensive examination (tentamen), and successful completion of group or individual coursework as assigned.

The following grading system will be used: Pass with distinction (Väl godkänd, Vg, 75% or more), Pass (Godkänd, G, 50% or more) and Fail (Underkänd, U, less than 50%).

6. Utilisation et cetera

Course language: English.

Students choose either Module 3a or 3b. (The language of instruction in 3a is Swedish.)

Diploma
After completing a full-year Master’s programme, students can apply for Ekonomie magisterexamen i företagsekonomi med inriktning mot Accounting and Finance 160 poäng/240 ECTS-credits (translated as Degree of Master of Science in Business Administration and Economics with specialization in Accounting and Finance) if they meet the degree requirements.

Alternatively, after completing a full one-year Master's programme, students can apply for Filosofie magisterexamen i företagsekonomi med inriktning mot Accounting and Finance 160 poäng/240 ECTS-credits (translated as Degree of Master of Science in Accounting and Finance) if they meet the degree requirements.

Further information about degree requirements : in Swedish or in English

Diploma supplement
Every student who graduates from one of the Master's programmes will receive, in addition to the diploma, a Diploma Supplement that describes the content and main goal of that specific programme.

Other Regulations
Acknowledgment/Plagiarism:
Plagiarism is not acceptable and may result in the imposition of severe penalties. The University provides clear guidelines on its attitude towards plagiarism and how to avoid unintentional plagiarism. Students are advised to read these carefully. If any doubts remain as to what constitutes plagiarism, students should discuss the matter with the lecturer(s).

Acceptable Calculators in Examinations:
Students may use scientific or financial calculators. They may not use programmable calculators identified by their alphanumeric keyboard.

Study Time:
Students are expected to prepare a significant amount of material outside of the classroom in order to fulfil course requirements. Previous indications suggest that students should treat this subject as full time work and invest a minimum of forty hours in preparation and attendance.

7. Readings and other Materials

Module 1. Corporate finance (5 points/7,5 ECTS)

Two cases provided in bulk pack from McGraw Hill will be used in tutorials. These are changed annually.

Web site
The Accounting and Finance web site www.usbe.umu.se/master/accounting, provides students with up to date information on the subject as well as any changes to the curriculum. Students are expected to access this site regularly to stay in touch with subject requirements. The web site provides students with access to the queries of their peers as well as lecturer responses to those queries, eliminating the chance of miss-understandings that come from “he-said” “she-said” repetitions. The site also contains copies of overheads used in lectures.

Additional web based resources are available through the publisher, including www.mhhe.com/rwj which provide students with an opportunity to test their own progress during the course through interactive exercises and self-grading quizzes.

Supplementary Readings
Brealey, R.A. and S.C. Myers, 2006, Principles of Corporate Finance, 7th edition, Mc-Graw Hill, New York

Ogden, JP, F.C. Jen and P.F. O’Connor, 2003, Advanced Corporate Finance: Policies and Strategies, Prentice Hall, New Jersey

Module 2. Advanced financial statement analysis and valuation (5 points/7,5 ECTS)

In addition a number of research papers will be included.

Supplementary readings: Copeland T, Koller T, Murrin J, Valuation: Measuring and Managing the Value of Companies, Wiley, 2000, 3rd Edition (a good introduction to valuation, written in English).

Stickney P, Financial Reporting and Statement Analysis: A Strategic Perspective, Dryden Press, 4th Edition, 1999. (a good book about financial statement analysis).

White G, Sondhi A and Fried D, The Analysis and Use of Financial Statements, Wiley, 2nd Edition, 1998 (a good book about financial accounting and financial statement analysis)

Module 3a. Advanced auditing and corporate governance (5 points/7,5 ECTS)

Supplementary readings:
Mautz & Sharaf The Philosophy of Auditing. American Accounting Association

Module 3b. Investments (5 points/7,5 ECTS)

List of articles and other material provided by the lecturer.

Module 4. Value-based management accounting (5 points/7,5 ECTS)

Additional study material
List or articles and cases provided by lecturer.

Module 5. Electives (10 points/15 ECTS)

Module 6. Master’s Thesis / D-Thesis (10 points/15 ECTS)

< < Courses in English
< < Application form