1. Explain the purpose and process of regulating the financial reporting information of incorporated entities
2. Describe the key principles of corporate governance and the regulation of companies.
3. Demonstrate an awareness of the key principles of finance
4. Discuss the ethical responsibilities of the owners and managers of businesses
1. Describe the structure of a company and the different methods by which it may be financed
2. Describe the basic principles of personal and corporate taxation.
3. Demonstrate a knowledge and understanding of the characteristics of the principal forms of financial instrument issued or used by companies and the ways in which they may be issued.
4. Discuss the factors to be considered by a company when deciding on its capital structure and dividend policy.
5. Discuss how and why companies grow, how and why they may wish to divest and the different ways of company restructuring.
6. Outline the motives for mergers and acquisitions.
1. Discuss how a company’s cost of capital interacts with the nature of the investment projects it undertakes.
Define what is meant by a company’s cost of capital.
Describe how to calculate a company’s weighted average cost of capital.
Discuss the principal methods that may be used to determine the viability of a capital project.
Carry out cash flow projections and techniques to estimate cashflows.
Describe methods commonly used to evaluate risky investments including simulation and certainty equivalents.
Discuss the issues in establishing the required rate of return for a capital project.
Discuss the factors underlying the choice of discount rate within project assessment, including: • the assumptions and limitations in the use of the weighted average cost of capital. • the allowance for leverage. • the allowance for risk.
Discuss the methods that may be used for identifying the risks that may be present for different types of project.
Discuss suitable techniques for ascertaining the probability of occurrence of different risks over varying timescales and the financial impact of occurrence.
Discuss suitable techniques for ascertaining the distribution of the possible financial outcomes of a capital project.
1. Describe the basic construction of accounts of different types and the role and principal features of the accounts of a company.
Explain why companies are required to produce annual reports and accounts.
Explain the value of financial reporting on environmental, social and economic sustainability.
Describe alternatives to traditional financial reporting. 4.1.4 Explain the fundamental accounting concepts that should be adopted in the drawing up of company accounts.
Explain the purpose of: • a statement of financial position. • a statement of comprehensive income. • a cash flow statement. • the notes to the accounts.
Construct simple statements of financial position and statements of profit or loss.
Explain cash flow statements.
Describe the structure and content of insurance company accounts.
Describe the structure and content of banking company accounts.
Explain what is meant by the terms subsidiary company and associated company.
Explain the purpose of consolidated accounts. Explain how goodwill may arise on the consolidation of group accounts.
Explain how depreciation is treated in company accounts.
Explain the function of the following accounts – share capital, other reserves and retained earnings
2. Assess the accounts of a company or a group of companies, including the limitations of such assessment.
Calculate and explain priority percentages and gearing.
Calculate and explain interest cover and asset cover for loan capital.
Describe the possible effects of interest rate movements on a highly geared company.
Calculate and explain price earnings ratio, dividend yield, dividend cover and Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA).
Explain net earnings per share.
Calculate and explain accounting ratios that indicate: • profitability. • liquidity. • efficiency.
Discuss the working capital position of a company.
Discuss the shortcomings of historical cost accounting.
Discuss the limitations in the interpretation of company accounts.
Discuss the ways that reported figures can be manipulated to create a false impression of a company’s financial position.
Describe the function of forecasts and budgets as sources of management information.
How corporates are financed
Constructing and interpreting company accounts
Our faculty is a highly qualified former Delhi University Professor who completed Master's in Economics from Delhi School of Economics. She has taught Economics Honours at Delhi University and has been a guest lecturer at many reputed MBA institutes. Further, she has been teaching CB2 for past three years.
For teaching, we have gone through several books and journals both national and international, and gathered all the information so that it can presented and accessible to the student. The entire study material is prepared from very basic level so that every student can understand every topic from the syllabus. Besides the theory being extensively discussed, an enormous collection of problems has been added so that the student can learn to apply the concepts over a diverse spectrum of difficulty. All the problems have been worked out thoroughly so that in case the student gets stuck, we've got you covered!