| CODE | ISR0003 | ||||||
| TITLE | Essentials of Financial Economics and Accounting | ||||||
| 今日黑料 LEVEL | 00 - Mod Pre-Tert, Foundation, Proficiency & DegreePlus | ||||||
| EQF/MQF LEVEL | 4 | ||||||
| ECTS CREDITS | 5 | ||||||
| DEPARTMENT | Insurance and Risk Management | ||||||
| DESCRIPTION | This study-unit introduces learners to the foundational principles of financial economics and accounting that are necessary for understanding the business and financial environment in which financial services operate. It is designed to develop core knowledge of economic concepts, accounting processes, and financial reporting tools, enabling learners to understand how organisations record and report financial performance. The study-unit provides an essential grounding in both the economic forces that influence financial activity and the accounting information used to record and report on it.Learners will explore key areas of microeconomics and macroeconomics, including supply and demand, inflation, interest rates, gross domestic product, fiscal policy, taxation, exchange rates, and international trade. Through these topics, the study-unit builds understanding of how economic conditions affect consumers, businesses, financial institutions, and markets. It also introduces the relationship between wider economic developments and the performance of the financial services sector, thereby helping learners to see how economic conditions affect financial activity. The study-unit also provides a structured introduction to essential accounting principles and practices. Learners are introduced to the accounting equation, double-entry bookkeeping, and the preparation and basic interpretation of key financial statements, including the balance sheet, income statement, and cash flow statement. In addition, the study-unit introduces financial ratios, budgeting, forecasting, depreciation, amortisation, asset valuation, and the time value of money, thereby supporting the development of practical financial literacy. Overall, this study-unit is intended to equip learners with the economic awareness, accounting knowledge, and basic numerical skills required for further study within the qualification and for responsible participation in entry-level financial services and business-related environments. It establishes an important foundation for understanding financial information, describing business performance, and recognising how economic conditions affect organisational and sectoral outcomes. Study-Unit Aims: The aim of this study-unit is to provide learners with a foundational understanding of the principles of economics and accounting that underpin financial and business activity within the financial services sector. The study-unit is designed to develop learners' knowledge of the economic environment in which organisations operate, while also introducing the accounting concepts, financial statements, and basic tools used to record and present financial information.The study-unit further aims to familiarise learners with key microeconomic and macroeconomic concepts, including supply and demand, inflation, interest rates, gross domestic product, fiscal policy, taxation, and exchange rates, in order to support an understanding of how economic conditions affect consumers, businesses, markets, and financial institutions. In parallel, it seeks to establish a basic understanding of accounting principles such as the accounting equation, double-entry bookkeeping, and the structure and purpose of the balance sheet, income statement, and cash flow statement.In addition, the study-unit aims to develop learners' ability to understand basic financial information and carry out introductory calculations, including basic ratios, budgeting, forecasting, asset valuation, and time value of money concepts. Through this, it supports the development of financial literacy and numerical confidence that are relevant to both academic progression and practical engagement in financial services and business-related settings. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Explain the basic principles of microeconomics and macroeconomics relevant to financial and business activity; - Describe the relationship between supply, demand, and market pricing in determining economic outcomes; - Explain the significance of key economic indicators, including inflation, interest rates, gross domestic product, taxation, and government debt; - Identify the main factors that affect exchange rates, trade balances, and international economic activity; - Explain the purpose and structure of the accounting equation and the principles of double-entry bookkeeping; - Describe the purpose, content, and function of the principal financial statements, namely the balance sheet, income statement, and cash flow statement; - Identify the main components of revenue, expenditure, assets, liabilities, and equity in a financial reporting context; - Describe the purpose of financial ratios and their role in showing business performance and financial position; - Describe the concepts of budgeting, forecasting, depreciation, amortisation, and asset valuation; and - Explain the importance of the time value of money and its relevance to basic financial planning. 2. Skills: By the end of the study-unit the student will be able to: - Recognise basic economic information and relate it to business and financial services activity; - Distinguish between microeconomic and macroeconomic factors affecting organisations and markets; - Calculate basic financial ratios using provided financial data and describe what they show; - Classify financial statement items correctly as assets, liabilities, equity, revenue, or expenses; - Identify the main elements of a balance sheet, income statement, and cash flow statement; - Differentiate between capital expenditure and operating expenditure in straightforward accounting contexts; - Record or categorise simple transactions using basic accounting principles and debit/credit logic; - Apply basic budgeting and forecasting concepts to simple financial scenarios, with guidance; - Describe how changes in inflation, interest rates, and other economic variables can affect borrowing, spending, and investment, using given examples; and - Organise and present financial and economic information in a clear and structured manner for introductory academic or professional purposes. Main Text/s and any supplementary readings: |
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| ADDITIONAL NOTES | Pre-requisite Qualifications: Not less than four passes in the Secondary Education Certificate Examination at Grade 5 or better, or at SEC Level 3, in Mathematics, English Language and Maltese or any other language that satisfies Regulation 13 of the Admissions Regulations 2016: Maltese as a Requirement, together with any other subject (or one which you may deem appropriate). Co-requisite Study-units: ISR0001 and ISR0002 |
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| STUDY-UNIT TYPE | Lecture | ||||||
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2026/7. It may be subject to change in subsequent years. |
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