1 ASSOCIATE DIPLOMA FOR FINANCIAL MANAGERS CURRICULUM Introduction: This course is designed to equip learners with the knowledge, tools, techniques, strategies and skills necessary to collect, access and analyse financial data. Course Structure: The course structure is in 2 Modules. Module 1 is course work intensive and Module 2 is Dissertation writing. The course work is to expose the learner to the theoretical and practical knowledge, skills, tools, techniques and strategies needed to excel as an Associate Diploma holder and as a Financial Manager. Students may apply for exemptions based on their course work backgrounds. In Module 2, the Dissertation is mandatory. Each student will pick a subject/topic of their choice with the guidance of their course supervisor and write a mini thesis up to a minimum of 5000 words. Course Contents Module 1: Course Work Part 1 Fundamentals of Financial Markets 1. An overview of financial markets, its need and importance 2. Money Market 3. Capital Market 4. Corporate Debt Market 5. Derivative Market 6. Mutual Funds definition, types, AMC, etc. 7. Depositaries Basics of Finance 1. Introduction to Accountancy definition, objectives, importance 2. Accounting Cycle, Journal, Ledger 3. Concept, Conventions and International Accounting Standard, US GAAP 4. Financial Statements of Limited Companies Trading and Profit & Loss Accounts, Balance Sheet and Cash Flow Statement, Balance Score Card 5. Financial Statement Analysis 6. Source of Capital: Debt, Accounting for Bonds, Leased Assets, Analysis of Capital Structure 7. Source of Capital: Owners Equity, Form of Business Organization, Ownership in a Corporation, Earning per Share 8. Long-lived, Non-monetary Assets and their Amortization
2 9. Environment of Business Finance, Ratio Analysis, Fund Flow Analysis, Cash Flow Analysis, Economic Value Added 10. Capital Functionary cost of capital, operating and financial leverage, capital structure theories, dividend distribution theories 11. Capital Budgeting Techniques capital expenditure, investment decisions 12. Financial Markets money market, capital market, international capital market 13. Working Capital Management cash, inventory, account receivable management and factoring Securities and Business Law 1. Contract definition and concept, agreement, consideration, capacities to contract, free consent, void agreement, discharge of contract, quasi contract, remedies for breach of contract 2. Contract of Sale of Goods 3. Partnership, Formation, Rights and Obligations of Parties, Dissolution of a Partnership Firm 4. Negotiable Instruments, Promissory Notes, Bills of Exchange and Cheques 5. Company basic concepts, formation of company, memorandum and articles, capital of company, prospectus, all about shares, shareholders meeting etc., insolvency and winding up 6. Securities and Exchange Commission 7. Banking Law Computers and Communication in Management 1. Fundamentals of Information Systems 2. System Development Tools 3. Hardware, Software, Telecommunication, DBMS 4. Transaction Process System, Information Reporting System, Decision Support System, Executive Information System 5. Artificial Intelligence, Expert System 6. Information System in Function Area 7. Introduction to Communication 8. Types of Communication 9. Barriers to Communication 10. Report and Letter Drafting etc. Quantitative Techniques and Methods 1. Introduction to Quantitative Techniques 2. Central Tendency, Measure of Dispersion 3. Correlation Regression 4. Time Series 5. Probability 6. Sampling etc.
3 Part 2 International Business and Finance 1. International Finance a Business Perspective, Global Financial Environment 2. Understanding Financial Risk 3. The Foreign Exchange Market 4. Introduction to Currency Futures and Options, Management of Currency Exposure 5. Swaps 6. Working Capital Management 7. International Long Run Financing and Institutions 8. Foreign Direct Investment and International Capital Budgeting 9. The Emerging Markets and Financial Developments 10. International Portfolio Investment Strategic Mergers and Acquisitions 1. Brief Outline about Mergers, Acquisitions, Takeovers, Tender Offers 2. Change Forces and Mergers, Anti-trust Policies 3. Deal Structure 4. Mergers and Takeovers theory and practices 5. Alternative Paths to Growth, Valuation 6. Corporate Restructuring 7. Takeover Defenses 8. LBOs and MBOs, Financial Restructuring 9. Corporate Governance and Performance 10. Case Studies International Portfolio Management 1. Introduction to Portfolio Management 2. Introduction and Importance of Investment 3. Security Markets: present and future 4. Sources of Investment Information 5. Analysis and Valuation of Equity Securities economic activities, industry analysis, financial statement analysis 6. Issues in Efficient Markets, i.e. technical analysis and market efficiency 7. Fixed Income and Leverages Securities 8. Derivatives Products Equity Research and Analysis 1. Introduction to Stock Markets both at National and International Level 2. The Emerging Markets, Financial Repression and Financial Development 3. Globalization and the Multinational Firm 4. Basics of Financial Analysis
4 5. Stock Market Operating, Working, Regulatory Bodies, etc. 6. Types of Debt and Equity Instruments, Analysis of Financial Choices and Investment Decisions 7. Capital Structure Analysis, Financial Health Analysis 8. Human Resource, Market and Technical Analysis of Companies 9. Mergers, Acquisitions and Takeovers Tax Aspects 10. Credit Rating 11. Ethics in Finance and Corporate Governance 12. Case Studies 13. Analysis of Business Environment and Industry-wide Analysis Direct and Indirect Taxes 1. Concept of Taxation 2. Capital Gains 3. Income from Salaries 4. Income from Other Sources 5. Tax Authorities etc. Part 3 Corporate Restructuring 1. Concept of Corporate Restructuring 2. Understanding Financial Statement and its Analysis 3. Capital Structure 4. Derivatives options, futures and corporate finance 5. Warrants and Convertibles 6. Derivatives and Hedging Risk 7. Mergers and Acquisitions 8. Leverage Buy-outs and Management Buy-outs 9. Efficient Market Theory 10. Arbitrage and Price Theory 11. Portfolio Performance Evaluation, Analysis Corporate Financial Services 1. Introduction to Financial Services 2. Asset/Fund-based Financial Services theoretical and regulatory framework 3. Accounting/Reporting Framework and Taxation of Learning 4. Financial Evaluation of Learning 5. Hire Purchase and Commercial Credit 6. Factoring, Forfeiting, Bill Discounting 7. Housing Finance 8. Insurance Services Life and Non-life 9. Venture Capital Financing
5 10. NBFCs 11. Merchant Banking and other Fee-based/Advisory Financial Services, i.e. issue management, mergers, amalgamations, takeover etc., Equity Research, Stock Broking 12. Credit Rating Derivatives Trading 1. Introduction to Derivatives 2. Futures, Mechanics of Buying and Selling Future, Future Prices 3. Hedging Fundamentals 4. Social Benefits of Future Markets and the Role of Speculation 5. The Regulation of Future Markets, Stock Index Futures, Short and Long Term Interest Rate Future 6. Foreign Currency Future 7. Commodity Future 8. The Basics of Options, Option Pricing, Applications of Option Financial Risk Management 1. The Need for Risk Management Systems 2. The New Regulatory and Corporate Environment 3. Structuring and Managing the Risk Management 4. Measuring the Risk Management 5. Measuring the Market Risk 6. Credit Rating Systems 7. Hedging Credit Risk 8. Risk Management in Non-bank Corporation 9. Risk Management in the Future Financial Engineering 1. Concept of Financial Engineering, Role of Financial Engineers in an Organization 2. Understanding Financial Statement and its Analysis 3. Capital Structure 4. Derivatives options, futures and corporate finance 5. Warrants and Convertibles 6. Derivatives and Hedging Risk 7. Mergers and Acquisitions 8. Corporate Restructuring 9. Efficient Market Theory 10. Arbitrage and Price Theory 11. Portfolio Performance Evaluation, Analysis
6 Module 2 Dissertation Writing This is a mandatory requirement for the qualification. At the end of the course work, each candidate has to undergo the discipline of Dissertation writing. A sample structure is provided within this study kit and the student s mentor/supervisor will guide the student through the writing. References Arens, A. A. (1988), Auditing: an integrated approach, Englewood cliffs, NJ: Prentice Hall Cornelissen, J. (2004), Corporate Communications: theory and practice, SAGE Publications Etor, J. R. & Muspratt, M. J. (1982), Keep Account; A guide to profitable book-keeping The complete study course, Pan Books Limited Horngren, C. T., Foster, G. & Datar, S. M. (2000), Cost Accounting: A managerial emphasis, Prentice Hall Laudon, K. C. & Laudon J. P. (2006), Management Information Systems, Tenth Edition Render, B. & Stair, R. M. (2000), Quantitative Analysis for Management, Prentice Hall International, Inc Whitehead, G. (1982), Simplified Book Keeping for Small Businesses, Usborne Publishing Limited Wood, F. & Sangster, A. (2005), Business Accounting, London: Pearson Education Relevant journal articles from Accounting, Auditing and Accountability Journal would also be used. Lymer, A. (2002), Taxation: policy and practice, London: Thomson Learning Salanie, B. (2003), The economics of taxation, Cambridge, Mass: MIT Press Relevant journal articles from academic and professional taxation journals will also be used, e.g. Journal of International Accounting, Auditing and Taxation. Ashton, D., Hopper, T. & Scapens, R. W. (1991), Issues in Management Accounting, New York: NJ; London: Prentice-Hall
7 Atkinson, A. A., Kaplan, R. S. & Young, S. M. (2004), Management Accounting, 4 th ed, Pearson Education, Inc Grading Pass 50 64% Merit 65 79% Distinction %