Accounting and Finance for Actuarial Science

Learning Outcomes

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• evaluate the competing theories on the roles of dividend policy and the debt-equity mix in the determination of firm value;
• evaluate the processes by which the value of both real and financial assets can be estimated;
• show awareness of the different sources of business finance and the range of financial instruments, and how they are incorporated in a business’s capital structure.
• apply real options capital investment appraisal to simple examples;
• appraise the role financial strategy within the business model of a firm;
• understand the role of accounting information in the collection, collation, decision making and analysis of business performance;

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• financial strategy including capital structure, dividend policy and corporate governance of firms.
• the assumptions underlying the preparation, interpretation and analysis of the Income Statement, Financial position statement and Cash Flow Statement;
• cost analysis in the context of short and long term decision making and the use of discounted cash flow analysis;
• the purpose, limitations, layout and presentation of financial statements;
• the importance of capital structure and dividend policy decisions;

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• benefit from improved skills in learning, problem solving, numeracy, written communication and self- management.

• Introduction to accounting and finance
• Measuring and reporting financial position
• Measuring and reporting financial performance
• Measuring and reporting cash flows
• Interpreting financial statements. Ratio analysis and non- financial indicators
• Analysing Accounts for limited companies
• Accounting for decision making
• Introduction to Investment Appraisal: NPV and Relevant Cost. The Strategic context
• Cost of capital and Capital structure
• Liquidity/working capital management
• Financing and dividend policy

Learning activities include:

Lectures

There will be one double session per week. The lecture will be used to introduce and outline topics and give a structure for students own work.

Classes

There will be one per week. The work for the classes will be set in advance for the students to prepare in order to facilitate a good discussion in the classes.

Individual work

In addition to work for lectures and classes, students need to spend 6 - 7 hours per week on further reading, and on working through computational examples in order to develop a good understanding of underlying principles and to gain practice at applying them.

Formative

This is how we’ll give you feedback as you are learning. It is not a formal test or exam.

Set exercises - non-exam

• Assessment Type: Formative
• Feedback: Formative feedback will be provided during the lecture and classes on the students’ performance in problem solving exercises and multiple choice questions.
• Final Assessment: No
• Group Work: No

Summative

This is how we’ll formally assess what you have learned in this module.

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.