Finance I ( ACCA) 2400-PP2FI1ACCA
Lectures Finance I (ACCA), Finance II (ACCA) and a seminar Corporate finance (ACCA) are equivalent to the module „Financial Management” of the ACCA (the Association of Chartered Certified Accountants) qualification so give a chance to be exempted from the official ACCA exam. This does not mean that the exam following ACCA guidelines is easier or more difficult than the one following the WNE standard. It may be different but checks the same knowledge and skills. Since it has to follow ACCA rules, it has some unique features and time constraints (check details below).
Consecutive lectures focus on the following matters:
1. The role and structure of the financial system: characteristics of money; money circulation in the economy; characteristics, elements and functions of the financial system
2. Time value of money: the value of money as a function of time; calculation of time in financial mathematics; interest rate and discount rate; interest rates and inflation; the nominal and effective interest rate; annuities (due/immediate, arithmetic/geometric annuities, perpetuities); settlement of debt (equivalence of debt and settlements, debt repayment schedules, debt restructuring)
3. Investment appraisal criteria: financial investments; simple and discounted payback period; return on investment; net present value; internal and external rate of return
4. Money market: segments and instruments of the money market, interbank deposits, bills, certificates
5. Capital market: participants and instruments of the capital market; organization of the capital market
6. Analysis and valuation of shares: types of shares, shareholders’ rights, discounted dividend model
7. Analysis and valuation of bonds: types of bonds; the factors affecting the price of bonds; dirty and clean price and accrued interest of bonds; interest rate risk
8. Business risk: types of risk in the economic activity; quantity and value breakeven point; degree of operational, financial and total leverage
9. Structure and analysis of financial statements: balance sheet, income statement and cash flow statement (analysis of liquidity, profitability, debt)
Course coordinators
Type of course
Prerequisites (description)
Learning outcomes
After completing the course the student is aware of the importance of the capital market and financial market economics, knows how to analyze the value of money in time, knows the criteria for making investment decisions, knows what risks are associated with running a business, knows the basic methods of valuation of financial instruments.
The student is able to analyze various segments of the financial market, to perform a valuation of ownership and debt financial instruments, assess the business risk, as well as to analyze the company's financial situation.
The student correctly identifies and resolves dilemmas related to business activities. He or she is able to broaden the acquired knowledge and skills so as to expand them to the extent required for professional work. With a broad look at a variety of financial problems, the student can think and act in an entrepreneurial way.
Assessment criteria
To complete the course, the student has to pass a written exam once he or she has already passed the laboratory part of the course (i.e. acquired at least a grade 3 [sufficient grade]).
The exam is divided into three sections: Section A consisting of 10 multiple choice theoretical questions (each question is worth 1 point), section B consisting of 10 multiple choice questions with short calculations (each question is worth 2 points) and Section C consisting of 2 open questions (each question is worth 10 points).
The passing threshold is 50%. Students may get a bonus that is taken into account when calculating the exam result if the grade acquired during the lab part of the course is higher than 3 [sufficient grade]:
grade 3.5 => a bonus of 1 point
grade 4 => a bonus of 2 points
grade 4.5 => a bonus of 3 points
grade 5 => a bonus of 4 points
grade 5.5 => a bonus of 5 points
This means that the final grade of each student is calculated according to the following table:
lab course grade: final grade
5,5 5 4,5 4 3,5 3 2
points acquired during the exam:
>=45 >=46 >=47 >=48 >=49 50 x 5,5
40-44 41-45 42-46 43-47 44-48 45-49 x 5
35-39 36-40 37-41 38-42 39-43 40-44 x 4,5
30-34 31-35 32-36 33-37 34-38 35-39 x 4
25-29 26-30 27-31 28-32 29-33 30-34 x 3,5
20-24 21-25 22-26 23-27 24-28 25-29 x 3
<20 <21 <22 <23 <24 <25 x 2
During the exam students have access to financial tables and can only use a simple calculator (not a mobile phone nor a financial calculator).
Bibliography
Mandatory literature:
Dębski W., Rynek finansowy i jego mechanizmy, PWN
Supplementary literature:
1. Jajuga K., Inwestycje finansowe, Wydawnictwo AE we Wrocławiu
2. Rutkowski A., Zarządzanie finansami, PWE
3. Steiner R., Kalkulacje finansowe, Dom Wydawniczy ABC
4. Podgórska M., Klimowska J., Matematyka finansowa, PWN
5. Brealey R.A., Myers S., Podstawy finansów przedsiębiorstw, PWN
6. Nowak E., Analiza sprawozdań finansowych, PWE