Finance I ( ACCA) 2400-PP2FI1ACCA
Finance I (ACCA) is a course designed for all students and is equivalent to the Finance I course. The only difference is that Finance I (ACCA), together with the Finance II (ACCA) course and the Corporate Finance (ACCA) Conversation, gives students on programmes accredited by ACCA (the Association of Chartered Certified Accountants) the opportunity to obtain an exemption from one of the ACCA qualification examinations - the Financial Management module.
The lecture meetings are designed to discuss the following:
1. The role and structure of the financial system - characteristics of money, circular movement in the economy, features, elements and functions of the financial system
2. The time value of money - the value of money as a function of time, interest vs. interest rate, time calculus in financial mathematics, interest and simple discounting, equivalence of interest and simple discounting, compound interest and discounting, equivalence of interest and compound discounting, interest vs. inflation, nominal vs. effective interest rate, annuity calculus, debt repayment settlements
3. Investment decision criteria - concept of financial investment, simple and discounted payback period, rate of return, rate of return over the investment period and annually, net present value, internal rate of return, modified internal rate of return
4. Money market - money market segments and instruments, interbank deposits, bills, certificates, bills of exchange
5. Capital market - participants and instruments of the capital market, organisation of the capital market
6. Analysis and valuation of shares - types of shares, rights attached to shares, the discounted dividend model, including the Gordon model
7. Bond analysis and valuation - types of bonds, factors affecting the price of bonds, gross, net price and accrued interest of bonds, numerical characteristics of bonds, interest rate risk of bonds, immunization, cash flow matching strategy
8. Business risk - types of business risk, quantitative and value operating breakeven, operating, financial and total leverage effects
9. Structure and analysis of financial statements - types, significance and audit of financial statements (including analysis of liquidity, operating efficiency, profitability, debt)
Classes in Finance I (ACCA) help students develop applications of the theory learnt in lecture to the analysis of sample events and problems. The classes develop students' diagnostic, qualitative as well as quantitative analysis skills and teach the application of theory in practice, also using selected computer packages. Classes are conducted in a computer laboratory using primarily a computer algebra package (Maxima) and ancillary other software (e.g. spreadsheet). Some of the problems solved require students to find financial data on their own in the resources of the Internet.
Type of course
Prerequisites (description)
Course coordinators
Learning outcomes
KNOWLEDGE:
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.
SKILLS:
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.
COMPETENCES:
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
The basis for passing the course is receiving a positive grade from an exam, provided that the student has previously passed the exercises.
Conditions of passing exercises are determined by the lecturers.
The examination consists of three parts: part A is a single-choice test consisting of 10 theoretical questions (each correct answer gives 1 point), part B is a single-choice test consisting of 10 short calculation tasks (each correct answer gives 2 points), while part C consists of two open questions (each for 10 points).
The pass threshold for the examination is set at 50% (25 points) and the number of points required to achieve each grade is as follows:
Liczba punktów Ocena z egzaminu
od do
50 x 5,5
45 49 5
40 44 4.5
35 39 4
30 34 3.5
25 29 3
0 24 2
The final grade for the course is a weighted average of the exercise grade and the exam grade, with the exam weighted at 75%:
Bibliography
Mandatory literature:
Dębski W., Rynek finansowy i jego mechanizmy, PWN
Gawrycka M., Analiza finansowa przedsiębiorstwa. Ocena sprawozdań finansowych. Analiza wskaźnikowa, Difin Podgórska M., Klimowska J., Matematyka finansowa, PWN
Supplementary literature:
Dębski W., Teoretyczne i praktyczne aspekty zarządzania finansami przedsiębiorstwa, PWN
Drajska E., Korol T., Figura P., Bławat F., Prusak B., Gawrycka M., Analiza finansowa przedsiębiorstwa. Finansowanie, inwestycje, wartość, syntetyczna ocena kondycji finansowej, CeDeWu
Jajuga K., Inwestycje finansowe, Wydawnictwo AE we Wrocławiu
Korol T., Prusak B., Bławat F., Figura P., Drajska E., Prewysz-Kwinto P., Redo M., Matematyka finansowa. Teoria i praktyka, PWN
Rutkowski A., Zarządzanie finansami, PWE
Steiner R., Kalkulacje finansowe, Dom Wydawniczy ABC
Brealey R.A., Myers S., Podstawy finansów przedsiębiorstw, PWN
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: