Accounting for Financial Analysis syllabus

Accounting for Financial Analysis

• 1 Introduction (2 LHs)

  • Financial analysis concept, objectives, importance and types
• 2 Cost Management and Reporting (6 LHs)

  • Cost concepts and classification
  • Semi-variable cost segregation by two-point and regression methods
  • Correlation, determination and t significance
  • Marginal-costing reports
• 3 Cost Volume Profit Analysis (8 LHs)

  • Break-even analysis and profit planning for multiple products
  • CVP under uncertainty
  • Single-resource constraints
  • Multiple-resource constraints with linear programming
• 4 Interpretation of Financial Statement (15 LHs)

  • Income statement, financial position and cash flows
  • Liquidity and leverage indicators
  • Receivable, payable and asset-turnover indicators
  • Profitability and employee-related ratios
  • EPS, DPS, BVPS and price-earnings ratio
• 5 Investment Analysis (10 LHs)

  • Capital budgeting concept and need
  • Discounted payback, NPV, PI and IRR
  • Cost-benefit analysis
  • Sensitivity, standard deviation, scenarios and probability distributions
• 6 Financial Measures of Performance (7 LHs)

  • ROI, residual income and EVA concepts and calculations
  • RI versus EVA
  • ROI versus ROA