Diploma inAccounting and Finance

Departmentof Accounting

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The Diploma in Accounting and Financeis a flexible postgraduate programmeproviding an opportunity for studentswith little or no background inaccounting and finance to acquire asolid foundation in these areas. Basedin the Department of Accounting, theprogramme allows students with varyinglevels of knowledge and experience tobuild or extend their understanding oftopics such as financial accounting,managerial accounting, auditing, assetpricing, corporate finance, andvaluation. Students can also acquireknowledge of, or specialise in, otherareas within the social sciences such aseconomics, management, mathematics,and statistics.

The Diploma in Accounting and Financeis a qualification in its own right. It alsoacts as a conversion course for thoseinterested in pursuing further study atMasters level. Admission to the Diplomain Accounting and Finance can lead tosubsequent admission to the MScAccounting and Finance, subject tosatisfactory performance. Thequantitative skills (in mathematics,statistics, microeconomics, andeconometrics) that students acquireduring the Diploma programme willenable them to take more advancedelective courses in the MSc programme.Those Diploma students who wish toapply for the MSc Accounting andFinance in the following year will notordinarily be required to submit a GMATtest with their application.

Over the past five years, aftersuccessfully completing the Diplomaprogramme, around one third of

students registered for further studiesat Masters level, one third chose towork in investment banking, and theremaining third elected to work inaccounting, consulting, auditing,finance, and general management.

The Department of Accounting isinternationally renowned for itsexcellence in accounting and financialmanagement research and education,and for its leading role in public policyissues. It is one of the most highly-rateddepartments in the subject area in theUK. The Department has 26 full-timeacademic staff, undertaking teachingand research across a broad range oftheoretical, empirical and applied issues.The interface between accounting andmanagers, organisations, institutions,public policy and regulatory bodies isa particular teaching and researchstrength of the Department. Staff fromthe Department also have close linkswith the Centre for Analysis of Riskand Regulation.

Located in Central London, the LondonSchool of Economics and Political Scienceis a world class social science institution,attracting some of the best researchersand teachers in their respective fields,and providing a challenging environmentfor highly capable students. The dynamicintellectual environment of LSE facilitatesa constant interchange of ideas betweenthe School and major financialinstitutions, leading multinationalorganisations and key regulatory bodies.LSE also houses the British Library ofPolitical and Economic Science, thelargest social sciences library in the world.

DurationThe Diploma in Accounting and Financeprogramme takes place over nine months.

Programme structureStudents must successfully complete theequivalent of four full-unit courses tomeet the requirements of the Diplomain Accounting and Finance. Studentstake a mix of undergraduate andmasters level courses, selected accordingto their background and academicinterests. Results from each of thecourses carry proportionate weight inthe final assessment of the degree.

Teaching StyleCourses are taught in lecture and classor seminar format. Lectures introducethe core theoretical and technicalconcepts whilst their associated classesallow students to apply these conceptsthrough exercises and in-depth study.Seminars allow for the focused study ofkey concepts in a more informal styleand often involve presentations bystudents on selected course materials.Many teachers adopt a variety ofteaching methods to deliver theircourses such as lectures, class exercises,team presentations, individual or groupwork, as well as case study discussions.

The programme

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Paper 1:Compulsory Finance CourseChoose one from:

Principles of FinanceAn introduction to both the theory offinancial decision making by firmsand the behaviour of the capitalmarkets in which these decisions aretaken (for students without any priorexposure to finance).

Corporate Finance, Investments,and Financial Markets (by specialpermission)An intermediate course providinga thorough exposure to financialmarkets, investments and corporatestrategy and highlighting theorganisation of markets and firmsas well as the role of institutionsand players.

Quantitative Finance(by special permission)An advanced course providing athorough exposure to asset pricing andfinancial forecasting, highlighting up-to-date methods and applicationsincluding investment theories, pricingof options and futures, risk analysis andreturn forecasting.

Paper 2:Compulsory Accounting CourseChoose one from:

Managerial AccountingAn introductory course analysing theroles and applications of managementaccounting practices and concepts incontemporary organisations andenterprises. Given the changing natureof management accounting within andacross modern organisations, the courseexplores key management accountingconcepts and tools, and theirinstitutional, strategic, behavioural andeconomic underpinnings.

Financial Accounting, Analysisand ValuationAn advanced course examining thetheory and practice of financialreporting, looking at accountingpractices in the light of historicaldevelopment, regulatory requirements,theories of income and capital andother approaches to accounting theory.

Management Accounting, Decision andControl (H) Financial Accounting:Reporting and Disclosure (H)An introduction to bothmanagement accounting andfinancial accounting, includingissues related to costing, performancemeasurement, and investmentappraisal, accounting regulation,and financial statement analysis.

Papers 3 and 4:

Any courses available fromDepartments around the School toa total of two full units, subject tothe approval of the ProgrammeDirector, and where applicable,permission from the course leader.The following are some of the morepopular choices made by studentsover the past five years:

Accounting, Strategy and ControlApplied Corporate FinanceAuditing, Governance and RiskManagementFinancial Reporting, Capital Marketsand Business CombinationsManagerial Accounting (if not alreadyselected under paper 2 above) orManagement Accounting, FinancialManagement and OrganisationalControl or Management Accounting,Decisions and Control (if not selectedunder paper 2 above)Financial Accounting, Analysis andValuation (if not already selected underpaper 2 above)Commercial LawCorporate and Financial CrimeDesign and Management ofOrganisationsEuropean Models of CapitalismFinancial Risk AnalysisGame Theory IIndustrial EconomicsIntroduction to EconometricsMacroeconomic Principles I or IIMathematics of Finance and ValuationMicroeconomic Principles I or IIOrganisational Theory and BehaviourQuantitative Methods (Mathematics)and Quantitative Methods (Statistics)or The Process of ManagementValuation and Security Analysis

Teaching staffStudents are taught by leading edgeresearchers with expert knowledge ofthe areas in which they teach. Theinternational backgrounds of theseteachers and their varied researchinterests provide students with aunique opportunity to learn from,and interact with, world-class faculty.

Department of AccountingDr Vasiliki Athanasakou,Assistant Professor of AccountingThe impact of regulation on corporatefinancial communication; earningsmanagement; analyst forecasts;voluntary disclosure.

Professor Alnoor Bhimani,Professor of Management AccountingManagement accounting in thedigital economy, internationalcomparative managementaccounting; strategy and costmanagement; the socio-culturalanalysis of accounting andgovernance systems.

Dr Stefano Cascino,Lecturer in AccountingAccounting conservatism; corporategovernance; international accounting;debt markets; disclosure regulation incapital markets; family firms.

Dr Yasmine Chahed,Lecturer in AccountingAccounting change in its social andinstitutional context; regulation ofnon-financial and future-orientedreporting; corporate accountability anddisclosure; integrated performancemeasurement and reporting-systems.

Dr Pascal Frantz,Lecturer in Accounting and FinanceSecurities analysis; the economics ofdisclosures and auditing.

Dr Martin Giraudeau,Lecturer in AccountingAccounts of the future;entrepreneurship and strategy;economic sociology: market devices,emergent market ties, financialinteraction, calculative practices;business history; history of economicthought; anthropology of the future.

The courses

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Dr Matthew Hall,Associate Professor of AccountingManagement accounting, managementcontrol systems and performancemeasurement; behavioural accountingand professional commitment ofaccountants; accounting education

Professor Bjorn Jorgensen,Professor of AccountingRisk measurement; risk disclosure; riskmanagement; equity valuation andcapital markets; earnings management.

Dr Liisa Kurunmäki,Associate Professor of AccountingAccounting in the New Public Sector,with special reference to healthcare.

Professor Richard Macve,Professor of Accounting, EmeritusConceptual framework of financialaccounting and reporting; financialreporting in the insurance industry; thehistorical development of accounting;environmental accounting andreporting; interactions betweeninsurance and environmentalmanagement.

Dr Andrea Mennicken,Associate Professor of AccountingInternational accounting and auditing;audit and accounting regulation andharmonisation; accounting, economictransition and social transformation inpost-Soviet Russia; the sociology ofcalculative practices; public sectoraccounting reforms.

Professor Peter Miller,Professor of Management AccountingInvestment appraisal in newmanufacturing environments;accounting in the new European publicsector; accounting as a social andinstitutional practice.

Dr Julia Morley,Lecturer in AccountingThe influence of financial economics onfinancial reporting practice; economicvaluation methods for pensions;changing performance metrics for socialenterprises; the role of professionals inthe market for social investment.

Dr Tommaso Palermo,Lecturer in AccountingManagement control systems andperformance measurement; linking riskmanagement to performancemanagement, managementaccounting and public sectormanagement.

Professor Michael Power,Professor of AccountingThe role of internal and externalauditing in the corporate governanceprocess; Internal control systems andcorporate risk management andregulation; risk reporting andcommunication.

Dr Rita Samiolo,Lecturer in AccountingSocial and institutional studies ofaccounting; accounting in the publicsector; risk management and regulation.

Dr Ana Simpson,Assistant Professor of AccountingVoluntary disclosure – incentives andconsequences; analysts’ forecastefficiency; earnings management.

Professor Ane Tamayo,Professor of AccountingImpact of accounting information oncapital markets; role of financialintermediaries in capital markets;empirical asset pricing and portfolioallocation; corporategovernance/finance.

Professor Wim A Van der Stede,CIMA Professor of Accountingand Financial Management, Headof Department of AccountingManagement control systems:budgeting, performancemeasurement, and incentive systems;corporate governance: executivecompensation, boards of directors,and internal controls.

Department of FinanceDr Jon Danielsson,Reader in FinanceFinancial risk analysis; value at risk;volatility modelling and forecasting;extreme value theory.

Dr Amil Dasgupta,Associate Professor of FinanceInformation economics and gametheory with applications to finance; thetheory of financial crises; delegatedportfolio management.

Dr Jack Favilukis,Assistant Professor of FinanceConsumption based asset pricing;incomplete markets; heterogeneity andinequality; limited participation andparticipation costs.

Professor Christopher Polk,Professor of FinanceAsset pricing; corporate finance; hedgefunds; macroeconomics.

Dr Michela Verardo,Associate Professor of FinanceEmpirical asset pricing, investmentanomalies, the information efficiencyof stock markets; the impact of analystforecasts on stock returns; financial andbayesian econometrics.

Professor David Webb,Professor of FinanceFinancial economics and insuranceeconomics; economics of information;corporate finance and financial markets

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The applicationThe application processApplicants for the Diploma inAccounting and Finance programmedo not require prior academiccourses in accounting or finance.Minimum entry requirements are agood upper second class honoursdegree from a UK University orequivalent from an overseas degree.

Applicants for whom English is asecond language, or those who havenot studied to degree level inEnglish, should provide evidence ofthe language. For the Diploma inAccounting and Finance programme,this would be a Minimum of 7.0 inIELTS (at least 6.0 in speaking andwriting, and 6.5 in reading andlistening) or 107 in the internet-based TOEFL (at least 20 in speaking,21 in writing and 22 in readingand listening).

Once an application has beensubmitted, candidates can keep upto date with its progress online byvisiting: lse.ac.uk/collections/graduateAdmissions/apply/trackYourApplication.htm

Given the high competition for placeson this programme, applicants whoindicate an interest in the Diploma inAccounting and Finance specifically astheir first choice will maximise theirprospect of admission to theprogramme. Equally, candidatesshould note the differentiated natureof the graduate programmes in theDepartment of Accounting, and areadvised to identify their first choiceaccordingly.

Funding your studiesThe School has a variety of namedscholarships and other forms ofsupport available, administered bythe Financial Support Office.Applicants can find out more aboutthese scholarships from the FinancialSupport Office website:lse.ac.uk/Financialsupportoffice

The application process for allgraduate programmes is managed bythe Graduate School at the LSE. Allcorrespondence relating to offers andregistrations should be directed to theGraduate Admissions Office at theGraduate School:

Graduate Admissions OfficePO Box 13420Houghton StreetLondon WC2A 2AROnline enquiries:lse.ac.uk/collections/graduateAdmissionstel: +44 (0)20 7955 7160

“The Postgraduate Diploma in Accounting and Finance allowed to me tobecome an independent thinker and equipped me with sufficient knowledgeto be able to differentiate myself in the highly competitive job market.”

Ekaterina Savelyeva, Class of 2011

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The students

The departmentDepartmental facilitiesThe Department has a StudentInformation Centre to serve as a centralpoint for enquiries and for thedistribution of relevant course materialssuch as lecture notes, handouts andclass exercises.

The Department also provides a studyroom for graduate students whichinclude computer access and networkpoints for laptops. Through the School’sIT Services, students have access to freeIT training for the core softwarepackages they will need to use duringtheir studies.

Useful links for furtherinformation

Graduate School (lse.ac.uk/programmesandcourses/graduate)For online applications and furtherinformation on studying at LSE.

Careers Office (lse.ac.uk/careers)For further details on graduateemployment opportunities, internshipsand vacation work.

Financial Support Office(lse.ac.uk/studentServicesCentre/financialsupportoffice)For information on scholarships andapplying for financial support.

Department of Accounting(lse.ac.uk/accounting)For further information on theprogrammes, faculty and activities ofthe Department of Accounting.

For further information on thisprogramme, contact:Diploma Programme ManagerDepartment of AccountingThe London School of Economicsand Political ScienceHoughton StreetLondon WC2A 2AE

Tel: +44 (0)20 7852 3780Email: accounting@lse.ac.uk

Other graduate programmes availablein the Department of Accounting:MSc Accounting and FinanceMSc Accounting, Organisationsand InstitutionsPhD in Accounting

Student profilesInternational diversity of both faculty andstudents is a key feature of studying atLSE and in the Department of Accountingwhich offers the Diploma in Accountingand Finance. In addition to aninternational faculty, the Diploma inAccounting and Finance programmeattracts students from 18 countries, withages ranging from 21-35 years.

Profile of registeredstudents 2013-14

Average Age: 23 yrs

Age Range: 21-30 yrs

Registrations to applications: 31.5%

Accounting and Finance programmeinclude Barclays Capital, DresdnerKleinwort Wasserstein, HSBC, MerrillLynch, Morgan Stanley. Many leadingorganisations make careers presentationsat the School during the year.

LSE’s Careers Service has a wide range ofresources available to assist students intheir job search. Staff at the CareersService are available to help studentswith their research into potentialemployers, completing application

forms, writing a curriculum vitae (CV)and covering letters. The Careers Servicealso organises and publicises on-campusrecruitment events held by employers. Ithas set up a range of online resources toprovide students with access to careers-related information and to link studentswith potential employers.

Age Range*Country

of Origin*

31-35 years 1%

26-30 years7.8%

20-25 years91.2%

* Data for registered Diploma in Accounting and Finance students 2010-11 to 2013-14

CareersStudents who successfully complete theDiploma in Accounting and Financeprogramme pursue careers across a widerange of sectors, in accounting,corporate finance, equity research, fundmanagement and managementconsultancy. A significant proportion ofDiploma students have gone on to studyfor an MSc degree.

Companies who have employed recentgraduates from the Diploma in

UK 10.9%

Asia 14.9%

Rest of Europe 49.5%

North America15.8%

Africa 2%

Other 6.9%

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