OverviewThis module considers the construction and analysis of corporate accounts including the following: Regulatory backdrop to accounting, Accounting Principles, Basic construction of the main accounts, ie statements of comprehensive income, statements of financial position, cashflow statements and changes in equity statements, Directors' and auditors’ reports, Interpretation of accounts and horizontal and vertical analysis using ratios, Limitations of accounts and ratio analysis, Group accounting structures, Peculiarities of insurance company accounts.
The intention is that this curriculum together with that for MACT5270 Corporate Finance for Actuaries would provide an acceptable platform for exemption from the UK actuarial profession’s examination in subject CT2, subject to satisfactory performance.
This module appears in:
Method of assessment
70% Examination, 30% Coursework
The material is covered by the Actuarial Education Company’s notes for Subject CT2, Financial accounting - Britton, Anne, Waterston, Christopher, Dawsonera 2010 and by “Interpreting Company Reports and Accounts” Geoffrey Holmes, Alan Sugden & Paul Lee 10th Edition. Prentice Hall ISBN 978-0-273-71141-4
The intended subject specific learning outcomes. On successfully completing the module students will be able to:
1 construct the main accounts normally contained within corporate annual reports;
2 understand and interpret critically the concepts and methods of financial reporting;
3 analyse and compare corporate results across time and between firms using horizontal and vertical analysis techniques.
The intended generic learning outcomes. On successfully completing the module students will be able to:
1 use a logical mathematical approach to solving problems and will be able to solve problems in financial reporting and analysis using appropriate methods;
2 demonstrate enhanced skills in the selection and use of electronic sources to search for and retrieve information online, and to use generic commercial software and its applications to accounting;
3 manage their time and work independently;
4 demonstrate improved skills in numeracy, problem solving, and written communication.