MN0218 Financial Modelling

Synopsis of Module

Organisations have always manipulated data to provide meaningful information for decision making; this has involved collecting and processing (using mathematical models) substantial amounts of data, often by hand. The emergence of spreadsheets has made this task easier, more effective and within the capability of most managers.

This module will explore the use of financial models to support decision making and seek to apply and integrate knowledge gained from other modules within your programme. Students will be introduced to modelling as part of a decision support system and they will learn how to build appropriate financial models to support common decision making situations.

The module is assessed using an assignment involving the construction of a financial model to aid the exploration of a decision situation.

Aims of Module

1.	To provide an overview of the role of modelling within decision support systems.

2.	To build on students' previous knowledge and understanding of accounting and hence develop a deeper understanding and ability to apply tools and techniques which assist in making a financially based decision.

3.	To develop an understanding of, and ability to, apply general modelling principles and techniques in the development of financial models.

4.	To develop students' analytical skills.

Learning Outcomes

Having completed the work for the module, students will be able to:

1.	Discuss the role of modelling within the decision support framework.

2.	Apply best practical modelling principles and techniques in the development of financial models.

3.	Utilise the models developed to analyse and evaluate a range of financial information.

4.	Experiment with decision models, using 'what-if' and optimisation techniques and order to draw conclusions.

5.	Recommend a course of action to resolve a model based, decision scenario

It will therefore provide the opportunity to develop skills in:

1.	Applying knowledge gained from prior financial learning,,

2.	Analysis, synthesis and evaluation through the creation of models to derive optimum solutions to given problems

Outline Syllabus

Modelling theory

•	The place of financial modelling within MIS and DSS and the level of support provided in regard to the structured and non-structured decision making processes.

Model structure and design

•	Good practice design considerations.

Model Building

•	To apply prior knowledge from the financial and information systems (particularly spreadsheeting) fields

•	and develop an understanding of the application of more advanced tools and techniques including If-statements, outlines, input tables, look-up tables, goal-seek, solver, database functions, pivot tables, visual basic,

•	in the solution of prescribed problems.

Summative assessment

Assessment A: Assignment

The weighting of this assessment is 100%