This section is about aligning financial objectives and policies to the strategies of the organisation. The key aim is to make sure that the organisation has a proper basis to determine what types of funds to access and how to use those funds. To do this effectively finance professionals must be able to evaluate the opportunities and constraints placed on them in the operating environment — particularly financial market requirements, the impact of taxation and the requirements of industry and financial market regulators. How should important elements of the financial statement be treated in the books? What principles should underpin these? How do financial reporting standards help to ensure this? Using financial reporting standards terminology this part will be looking at issues of recognition and measurement. The most important issues will be considered here. Managing risks related to finances is similar to managing other types of risks in general approach and methodology. However, there are specific differences such as the sources and types of financial risks, how they can be quantified and ways in which they are managed. This section looks at the very specific issues related to managing financial risks within a general risk management framework. This section looks at the conditions under which organisations need to calculate their own value or the value of other organisations or sub-units thereof. It introduces candidates to valuation techniques. Of particular importance in the digital world is the valuation of intangibles. This links also to how to report intangible value and their drivers in integrated reporting. In addition, how should digital assets be valued? One of the reasons for valuation is when merging or acquiring firms. How should such deals be structured, implemented and closed? For example what should the forms of the consideration be? What are the terms of the acquisition? How does one enable benefit realisation, particularly for synergies once the acquired organisation has been integrated into the acquiring organisation?

A.     Financial policy decisions

·   Advise on strategic financial objectives.

·   Analyse strategic financial policy decisions.

·   Discuss the external influences on financial strategic decisions.

B.     Sources of long-term funds

·   Evaluate the capital structure of a firm.

·   Analyse long-term debt finance.

·   Evaluate equity finance.

·   Evaluate dividend policy

C.     Financial risks

·   Discuss the sources and types of financial risks.

·   Evaluate financial risks

·   Recommend ways of managing financial risks

D.    Business valuation

·   Discuss the context of valuation.

·   Evaluate the various valuation methods.

·   Analyse pricing and bid issues.

·   Discuss post-transaction issues.

Higher Secondary Qualified 
Rs. 35399 Rs. 39999

Course Includes

    ·   Analyse different types of organisations and their objectives.

    ·   Impact of underlying economic conditions and business variables on financial objectives

    ·   Use of policy decisions to meet cash needs of entity

    ·   Sensitivity of forecast financial statements and future cash position to these policy decisions

    ·   Consideration of industry regulations such as price and service controls

    ·   Consideration of domestic and international tax regulations

    ·   Capital structure theories (traditional theory and Miller and Modigliani (MM) theories)

    ·   Calculation of cost of equity and weighted cost of capital to reflect changes in capital structure

    ·   Impact of choice of capital structure on financial statements

    ·   Structuring debt/equity profiles of companies in a group

    ·   Types of debt instruments and criteria for selecting them

    ·   Managing interest, currency and refinancing risks with target debt profile

    ·   Private placements and capital market issuance of debt

    ·   Methods of flotation and implications for management and shareholders

    ·   Rights issues, choice of discount rates and impact on shareholders

    ·   Calculation of theoretical ex-rights price (TERP) and yield adjusted TERP

    ·   Sources and types of financial risk

    ·   Evaluate how financial risks are quantified

    ·   Recommend ways to manage economic and political risks

    ·   Reasons for M&A and divestments

    ·   Process and implications of management buy-outs

    ·   Acquisition by private equity and venture capitalist

    ·   Different methods of equity valuation (share prices, earnings valuation, dividend valuation, discounted cash flow valuation)

    ·   Methods of financing cash offer and refinancing target entity debt

    ·   Post-transaction value incorporating effect of intended synergies

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