Advanced Diploma in Financial Management
Business, Commerce and Management Studies - Finance Economics and Accounting
Purpose and Rationale
Qualification Purpose and Rationale
Purpose:
The purpose of this qualification is to prepare Diploma learners for further study in Financial Management and Management Accounting. The qualification aims to equip learners with integrated knowledge and advanced conceptual thinking skills to solve complex problems in Financial Management. The key themes of this qualification are Financial Management and Cost Accounting.
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Financial Management: This theme covers relevant financial management theory, enabling learners to apply integrated knowledge to evaluate and select long-term investment options, make decisions regarding financing an enterprise and its long-term assets, value business operations using different methods, and utilize financial analysis techniques.
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Cost Accounting: The Cost Accounting modules focus on enabling learners to apply various cost accounting tools and techniques to generate information required to evaluate and control present and projected performance. It also aims to develop learners' cognitive skills and practical competency in utilizing information for decision-making and performance control, ensuring optimal efficiency within business enterprises.
Rationale:
The development of this qualification was driven by the need to address the challenges in articulation opportunities between qualifications of merged institutions, specifically the University of Johannesburg. The merger resulted in separate qualification structures for Universities and Technikons, complicating the transfer of learners between different higher education qualifications.
To bridge this gap and provide learners with opportunities for further learning in Financial Management and related fields, this qualification was designed to offer a pathway for Diploma: Accountancy or Financial Information Systems holders to advance their studies in Financial Management.
The qualification also responds to the demand for advanced learning pathways for Diploma achievers. Special permission was granted by the Registrar of the University to allow Diploma learners to pursue the Financial Management bridging option for a Bachelor's Degree, showcasing the commitment to expanding learning opportunities for Diploma holders. Currently, there are learners enrolled in this bridging option and in the Mathematics for Diploma learners module, emphasizing the interest and demand for this qualification among Diploma holders seeking further academic growth.
Outcomes
- Apply different cost accounting tools and techniques to generate information needed to evaluate and control present and projected performance.
- Examine the role of tax in financial analysis and decision-making.
- Prepare the full financial statements for a single company and the principal consolidated financial statements for a simple group.
- Apply the time value of money to value different financial instruments and make long-term financial decisions.
- 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.
Assessment Criteria
Associated Assessment Criteria for Exit Level Outcome 1:
- Evaluate and apply costing methods and their results.
- Explain and interpret the role of Material Requirements Planning and Enterprise Resource Planning systems.
- Understand and apply the principles of environmental costing.
- Prepare information to support project appraisal, forecasts, plans, and budgets.
- Analyze project proposals and assess the impact of uncertain variables.
- Identify the working capital position, short-term funding, investment opportunities, and areas for improvement.
Associated Assessment Criteria for Exit Level Outcome 2:
- Explain types of tax, principles, and administrative requirements for incorporated businesses.
- Understand and apply fundamental concepts in international taxation.
- Prepare and evaluate corporate income tax calculations.
- Explain accounting rules for current and deferred taxation and budget principles.
Associated Assessment Criteria for Exit Level Outcome 3:
- Prepare full consolidated statements for a single company and financial position for a simple group.
- Research and apply accounting for capital schemes and foreign exchange rate changes.
- Understand and discuss accounting principles relevant to contemporary issues.
- Research and apply ratio analysis for performance evaluation.
- Understand contemporary developments in financial and non-financial reporting.
Associated Assessment Criteria for Exit Level Outcome 4:
- Evaluate and apply long-term capital investment decisions and capital budgeting techniques.
- Evaluate the leasing decision and alternative finance sources.
- Identify and apply appropriate sources of long-term corporate capital.
- Evaluate the dividend policy and recommend payout and retention ratios.
- Calculate and interpret performance using ratio analysis.
- Calculate the value of business operations using various valuation methods.
- Research and evaluate the role of the treasury function in managing financial risk.
Associated Assessment Criteria for Exit Level Outcome 5:
- Discuss and apply concepts of cost and revenue relevant to pricing and product decisions.
- Analyze short-term pricing, pricing strategies, and product decisions.
- Evaluate techniques for managing costs for a competitive advantage.
- Understand and apply budget principles in control.
- Evaluate performance using budgets and sensitivity to variable factors.
- Discuss broader managerial issues related to the use of budgets and responsibility centers in organizational structure and management control.
Integrated Assessment:
- Formative assessment through written assessments, assignments, and class assessments.
- Summative assessment through a three-hour written examination paper.
Qualification Details
- Type
- Advanced Diploma
- NQF Level
- 07
- Min. Credits
- 120
- SAQA Source
- More Information
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