ST335-15 Finance & Financial Reporting

Introductory description

This module is available for students on a course where it is a listed option and as an Unusual Option to other students.

This module is used to determine the exemption eligibility for the Institute and Faculty of Actuaries module CB1 Business Finance. (Independent application to the IFoA may be required.)

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

Structure of a joint stock company and the different methods by which it may be financed.
Basic principles of personal and corporate taxation.
Principal forms of financial instruments. Factors to be considered by a company when deciding on its capital structure and dividend policy. Company's cost of capital and how its cost of capital interacts with the nature of investment projects.
The major forms of financial institution.
Role and principal features of the accounts of a company.
Construction of simple balance sheets, profit and loss accounts and cash flow statements.
Financial statements issued by pension funds and insurance companies.

Learning outcomes

By the end of the module, students should be able to:

• Be familiar with the structure of a joint stock company and how it can be financed.
• Be familiar with the different types of financial instruments.
• Be able to construct simple balance sheets and profit and loss accounts.
• Be able to interpret financial statements.

Indicative reading list

View reading list on Talis Aspire

Interdisciplinary

Students learn beyond the boundary of statistics and probability connecting their learning with the professional expectations of the chartered professional body dedicated to educating, developing and regulating actuaries based both in the UK and internationally.

Subject specific skills

• Demonstrate facility with mathematical, probabilistic and statistical methods.

• Select and apply appropriate mathematical and/or statistical techniques.

• Demonstrate knowledge of key mathematical and statistical concepts, both explicitly and by applying them to the solution of finance and financial problems.

• Create structured and coherent arguments communicating them in written form.

• Reason critically, carefully, and logically and derive judgements to support recommendations.

Transferable skills

• Problem solving: Use rational and logical reasoning to deduce appropriate and well-reasoned conclusions. Retain an open mind, optimistic of finding solutions, thinking laterally and creatively to look beyond the obvious. Know how to learn from failure.

• Self awareness: Reflect on learning, seeking feedback on and evaluating personal practices, strengths and opportunities for personal growth.

• Written Communication: Present arguments, knowledge and ideas, in a range of formats.

• Verbal communication: Students will engage with the module leader and peers in dialogue concerning questions from the module.

• Professionalism: Prepared to operate autonomously. Aware of how to be efficient and resilient. Manage priorities and time. Self-motivated, setting and achieving goals, prioritising tasks.