Curriculum -2018 - Wayamba University of Sri Lankawyb.ac.lk/images/.../acc/other/curriculum-20181.pdf · 3.1. Types of Leases 3.2. Books of Lessor 3.3. Books Of Lessee 3.4. Sale and

DEPARTMENT OF ACCOUNTANCY

Curriculum -2018 Bachelor of Science (Special) Degree in Accountancy and Business

Finance

Department of Accountancy Faculty of Business Studies and Finance

Wayamba University of Sri Lanka

Curriculum -2018

1

Department of Accountancy Wayamba University of Sri Lanka

Contents

01. Curriculum with effect from March – 2018 02

02. Detailed Syllabuses 06

03. Annexure 01 - Existing Curriculum 65

Curriculum -2018

2


Department of Accountancy

Faculty of Business Studies and Finance – Wayamba University of Sri Lanka

Curriculum with effect from March - 2018

Year I

Semester I

Code Course Name Credits

MGT 1114 Principles of Management and Organizational

Theory 04

BNF 1113 Microeconomics 03

MGT 1113 Business Mathematics I 03

MGT 1123 Business Environment 03

ACT 1114 Financial Accounting 04

ELT 1110 English I – Grammatical Foundation 00

Credits for Year I Semester I 17

Semester II


MGT 1224 Organizational Behavior 04

BNF 1224 Macroeconomics 04

MGT 1233 Business Mathematics II 03

MGT 1243 Information Technology 03

ACT 1224 Cost and Management Accounting 04

ELT 1210 English II – Composition 00

Credits for Year I Semester II 18

Total Credits for Year I 35

Curriculum -2018

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Year II

Semester I


MGT 2114 Human Resource Management 04

MGT 2124 Business Statistics 04

MGT 2123 Computer Software and Applications 03

ACT 2114 Taxation and Auditing 04

MGT 2131 Business Communication I 01

Credits for Year II Semester I 16

Semester II


MGT 2224 Marketing Management 04

BNF 2214 Managerial Economics 04

MGT 2244 Commercial Law and Industrial Law 04

ACT 2224 Financial Management 04

MGT 2251 Business Communication II 01

Credits for Year II Semester II 17

Total Credits for Year II 33

Curriculum -2018

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Year III

Semester I


ACT 3113 Advanced Financial Accounting 03

ACT 3123 Corporate Law 03

ACT 3133 Investment Management 03

ACT 3143 Management Science 03

Accountancy Cluster

ACT 3153 Accounting Information Systems 03

Business Finance Cluster

ACT 3163 Financial Mathematics 03

Credits for Year III Semester I 15

Year III

Semester II


ACT 3214 Research Methodology in Accounting and Finance 04

ACT 3223 Financial Reporting 03

ACT 3233 Corporate Finance 03

Accountancy Cluster

ACT 3243 Advanced Taxation & Tax Planning 03

ACT 3253 Computerized Accounting & ERP Systems 03


ACT 3263 Corporate Governance 03

ACT 3273 Financial Modeling 03

Total Credits for Year III Semester II 16

Total Credits for Year III 31

Curriculum -2018

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Notes:

1. No Changes will be there for the 1st year and 2nd year common programme

2. Once a cluster is selected by a 3rd year 1st semester student, he/she shall continue

with that cluster during the entire specialization programme.

Year IV

Semester I


ACT 4113 Corporate Reporting 03

ACT 4123 Financial Statement Analysis 03

Accountancy Cluster

ACT 4133 Advanced Auditing & Assurance 03

ACT 4143 Forensic Accounting 03

ACT 4153 Strategic Management Accounting 03


ACT 4163 Financial Derivatives 03

ACT 4173 Applied Econometrics 03

ACT 4183 Strategic Finance 03

Total Credits for Year IV Semester I 15

Year IV

Semester II

ACT 4216 Industrial Training and Dissertation 06

Total Credits for Year IV Semester II 06

Total Credits for Year IV 21

Total Credits for the entire Degree Programme

(35+33+31+21) 120

Curriculum -2018

6



Kuliyapitiya

Faculty of Business Studies and Finance

Bachelor of Science (Special) Degree in Accountancy and Business Finance

Semester 05

Course Code: ACT 3113

Course Name: Advanced Financial Accounting

Credit Value: 03

Core/Optional Core

Hourly Breakdown Theory Practical Independent Learning

45 105

Course Aim/Intended Learning Outcomes:

Apply the advanced aspects of financial accounting techniques in various

situations,

Apply the applications and implications of various Sri Lanka Accounting

Standards in complex business environments

Develop the financial decision making skills by applying the Sri Lanka

Accounting Standards

Explain the financial reporting requirements for a range of current accounting issues.

Solve relatively complex problems of financial accounting practice, by the selection and

application of appropriate accounting principles, concepts, and practices.

Critically evaluate the ongoing debates and differences of opinion in relation to current

accounting practices.

Course Content: (Main topics, Sub topics)

1. Accounting for Branches 1.1. Foreign Branches (With LKAS 21) 1.2. Preparation of publication purpose financial statements of a company with one or two

branches including foreign branches

2. Preparation of Consolidated Financial Statements 2.1. Consolidation of one or two subsidiaries (without indirect holding) 2.2. Elimination of intercompany balances 2.3. Pre and post-acquisition profits 2.4. Fair valuation of purchase consideration (including share transfer, deferred

consideration & contingent consideration) 2.5. Fair valuation of assets identified and liabilities assumed of the subsidiary as of

acquisition date. 2.6. Goodwill or gain on bargain purchase and impairment of goodwill (without Cash

Generating Units) 2.7. Associates 2.8. Joint Ventures

Curriculum -2018

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Applicable Standards LKAS 27 –Separate Financial Statements LKAS 28- Investment in Associates and Joint Ventures SLFRS 3- Business Combinations SLFRS 11- Joint Arrangements

3. Leases 3.1. Types of Leases 3.2. Books of Lessor 3.3. Books Of Lessee 3.4. Sale and lease back Transactions 3.5. Leases for lands and buildings 3.6. Operating Leases – Incentives

Applicable Standards LKAS 17- Leases SIC 15- Operating Leases – Incentives

4. LKAS 12 – Income Taxes (deferred tax adjustments will not be tested for consolidated accounts in this level)

5. LKAS 11- Construction Contracts 6. Property Plant and Equipment (PPE)

6.1. Advanced aspects of PPE including revaluation model and cost model and component depreciation.

6.2. Decommissioning cost Applicable Standards

LKAS 16 – Property Plant and equipment. IFRIC 1 – Changes In Existing Decommissioning, Restoration And

Similar Liabilities. IFRIC 5- Rights To Interests Arising From Decommissioning

Restoration And Environmental Rehabilitation Funds.

7. Intangible Assets Applicable Standards

LKAS 38- Intangible Assets SIC 32- Intangible Assets – Website Costs

8. Provisions, Contingent Liabilities and Contingent Assets 8.1. Advanced aspects of LKAS 37 8.2. Customer Loyalty Programmes

Applicable Standards LKAS 37 - Provisions, Contingent liabilities and contingent Assets

(Including IFRIC 1) IFRIC 13 - Customer Loyalty Programmes

9. LKAS 23 – Borrowing Cost

10. LKAS 40 - Investment Property

11. Impairment of Assets –LKAS 36 (Comprehensive)

12. Financial Instruments (LKAS 09)

12.1. Financial Asset 12.2. Financial Liability 12.3. Equity Instruments

Curriculum -2018

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12.4. Debt Vs. Equity 12.5. Compound Financial Instruments 12.6. Fair Value 12.7. De-recognition of Financial Assets and Financial Liabilities 12.8. Reclassification 12.9. Impairment 12.10. Business Model test and reclassification of financial instruments (as per SLFRS

9) 12.11. Derivatives

Teaching /Learning Methods:

Lectures, Tutorials and Practical Assignments

Assessment Strategy: The course unit may be evaluated by end–semester examination, mid-

semester examination, classroom tests, and assignments

Continuous Assessment

40%

Final Assessment

60%

Details:

Quizzes , mid-term , other - 40%

Theory

60%

Practical

Other

References/Reading Materials:

Sri Lanka Accounting Standards (2014) ICASL (International Financial Reporting Interpretation Committee) IFRICs and (Standard

Interpretation committee) SICs (ICASL) Jennings,A.R.,1997, Financial Accounting, 2nd Edition, DP Publications Maheshwari.S.N., Maheshwari.S.K.,2009, Financial Accounting, Vikas Publishing

House Pvt Ltd Shukla.M.C., Grewal.T.S., Guptha.S.C., 2004, Advanced Accounts, S.Chand& Company

Ltd, 1 Volume Wijewardena.H., 2004, Financial Accounting In Sri Lanka, Wijaya Publishing, Wood.F.,Sangster.A., 1999, Business Accounting 1, Pitman Publication, 8th Edition, Wood.F.,Sangster.A., 1999, Business Accounting 2, Pitman Publication, 8th Edition,

Curriculum -2018

9



Kuliyapitiya



Semester 05


Course Name: Corporate Law

Credit Value: 03

Core/Optional Core


45 105


Acquaint the legal principals, statutory controls, rules and regulations governing companies such as stocks , bonds and unit trusts in Sri Lanka

Apply the knowledge acquired through the course in different business related situations with legal implications

Apply corporate law to generate solutions to complex legal problems, and critique the operation of corporate law from a policy perspective.


1. Corporate Business Entities 1.1. Companies

1.2. Corporations

1.3. Trust companies 1.4. Corporative societies

2. Corporate Existence 2.1. Corporate personality – in general 2.2. Perpetual succession 2.3. Separate name 2.4. General legal duties and liabilities

3. Nature and Formation of A Company 3.1. Veil of incorporation

3.2. Limited liability

4. Classification of Companies 4.1. Private companies 4.2. Public companies 4.3. Off-shore companies 4.4. Unlimited companies

5. Promoters 5.1. Promoters and pre incorporation contracts

Curriculum -2018

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6. Articles of Association 6.1. Content and alterations

7. Share Capital 7.1. Nature of shares 7.2. Maintenance of shares

8. Prospectus and Underwriting 8.1. Issue and content 8.2. Effect of non-disclosure in prospectus 8.3. Offer for sale 8.4. Underwriting

9. Members 9.1. Becoming a member 9.2. Ceasing to be a member 9.3. Majority control and minority protection

10. Company Secretary 10.1. Qualifications 10.2. Functions and duties

11. The Auditor 11.1. Qualifications 11.2. Functions and duties

12. Meetings and Resolutions 12.1. Types of meetings 12.2. Convening a meeting 12.3. Quorum 12.4. Proceedings at meetings 12.5. Types of resolutions 12.6. Voting and polls 12.7. Minutes 12.8. Amendments and resolutions

13. Registers 13.1. The register of members, directors and secretaries 13.2. Director‘s interest in shares 13.3. Debentures, charges, general meetings

14. Accounts 14.1. The need for recording transactions 14.2. Content of accounting records 14.3. Director‘s and auditor‘s reports

15. Debentures and Borrowing Powers 15.1. Issue 15.2. Redemption 15.3. Transfer 15.4. Fixed and floating charges

Curriculum -2018

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16. Dividends 16.1. Payment of dividends 16.2. Creation of reserves 16.3. Issues of bonus shares

17. Insider Trading 17.1. Definition of insiders 17.2. Statutory controls

18. Dissolution of a Company 18.1. Voluntary winding up 18.2. Winding up by court

19. Securities Regulations 19.1. Securities and exchange commission Act and regulations 19.2. Mergers and takeovers code and amendments 19.3. Colombo stock exchange : Listing rules 19.4. Regulations governing government securities (Treasury bills and bonds)

20. Unit Trust 20.1. Formation and functions 20.2. Regulations

Teaching /Learning Methods: Lectures, Tutorials and Practical Assignments




40%

Final Assessment

60%

Details:

Quizzes , mid-term , other – 40%

Theory

60%

Practical Other


Companies Act no. 07 of 2007 Wickramasinghe, Kimali. Wickramasinghe‘s Company Law of Sri Lanka Ferando, HM. Sri Lanka, It‘s Company Law, Stock Exchange, Secretarial Practice

Curriculum -2018

12



Kuliyapitiya



Semester 05


Course Name: Investment Management

Credit Value: 03

Core/Optional Core

Hourly Breakdown

Theory Practical Independent Learning

45 105


Distinguish between investment, and speculation and gambling Determine how suitable investment sources are selected based on the investors‘

aspirations Make aware how to rebalance an investment portfolio by changing the composition of

its assets categories Identify recent trends in the investment environment enabling to explore new sources

of investments in the globe


1. The Investment Environment 1.1. Introduction 1.2. The investment process 1.3. Buying and selling securities 1.4. Security markets 1.5. Efficient markets, investment value and market prices

1.5.1. Efficient markets model 1.5.2. Random walk and efficient market hypothesis 1.5.3. Testing for market efficiency

2. Investment Theory 2.1. Portfolio selection 2.2. Portfolio analysis 2.3. Risk free lending and borrowing 2.4. Capital asset pricing model 2.5. Factor models 2.6. Arbitrage pricing theory

3. Common Stocks 3.1. Characteristics 3.2. Financial analysis of common stocks 3.3. Dividend discount models 3.4. Dividends and earnings

4. Portfolio performance evaluation 4.1 measures of Return

Curriculum -2018

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4.2Market Indices

4.3 Risk Adjusted Measures of Performance

4.4 Market Timing

4.5 Criticisms Risk Adjusted Measures of Performance

4.6 Bond portfolio Performance Evaluation

5. Fixed Income Securities 5.1. Types of fixed income securities 5.2. Fundamentals of bond valuation 5.3. Bond analysis 5.4. Bond portfolio management 5.5. Immunization

6. Investment Companies 6.1. Net asset value 6.2. Major types of investment companies

6.2.1. Unit investment trusts 6.2.2. Managed companies

6.3. Investment policies 6.4. Mutual fund taxation 6.5. Mutual fund performance 6.6. Evaluating mutual funds 6.7. Closed end funds premiums and discounts

7. Investment Banks

8. Financial Derivatives


Lectures, Tutorials, and Practical Assignments

Assessment Strategy:


40%

Final Assessment

60%

Details:


Theory

60%

Practical

Other


Zvi Bodie, Alex Kane, and Alan J. Marcus, Essentials of Investments, The McGraw-Hill Companies, 9th Edition

Gordon J. Alexander, William F. Sharpe and Jeffery V. Bailey, (2012) Fundamentals of Investments, PHI Learning Private Limited

Prasanna Chandra, (2008) Investment Analysis and Portfolio Management, McGraw-Hill Companies, 3rd Edition

Sharpe W, Alaxander GJ,Balley J V (1999) Investments (6th Edition) PHI Learning Private Limited

Curriculum -2018

14



Kuliyapitiya



Semester 05


Course Name: Management Science

Credit Value: 03

Core/Optional Core

Hourly Breakdown


45 105


Apply major quantitative techniques in order to improve managerial decisions. Develop analytical, critical thinking and problem solving skills in a business context. Understand the use of operational research techniques in financial decision making.


1. Introduction to Operations Research 1.1. Decision making 1.2. Discipline of Operations Research

1.3. Model building

2. Decision Tree and Probability 2.1. Basic probability concepts

2.2. Addition and multiplication rules

2.3. Conditional probability

2.4. Bayes theorem

2.5. Decision tree applications in investment appraisals

2.6. The value of perfect and imperfect information

3. Transportation Problems 3.1. Initial basic solution (NWC, LCM, VAM) 3.2. MODI method and steppingstone method 3.3. Improvement indexes 3.4. Costs 3.5. Balanced and unbalanced problems

4. Linear Programming 4.1. Characteristics and examples 4.2. Developing LP model 4.3. Graphical method (Maximization and Minimization) 4.4. Slack and surplus variables 4.5. Special cases 4.6. Simplex method (Maximization and Minimization)

5. Assignments 5.1. Developing an assignment model

Curriculum -2018

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5.2. Hungarian method 5.3. Special cases

6. Network Analysis 6.1. Constructing a network 6.2. PERT and CPM 6.3. Preparing a project schedule 6.4. Accelerating the completion period 6.5. Probability application

7. Inventory Models 7.1. EOQ 7.2. EBQ

8. Queuing Theory 8.1. Introduction 8.2. Queuing System Classification 8.3. Applications

9. Simulation

10. Game Theory

11. IT Applications 11.1. Spreadsheet applications 11.2. Other software

Teaching /Learning Methods: Lectures, Tutorials, (Theory and Practical in Computer

laboratory) and Practical Assignments

Assessment Strategy:

The course unit may be evaluated by end–semester examination (Written and Practical), mid-

semester examination, classroom tests, assignments and presentations


40%

Final Assessment

60%

Details:

quizzes , mid-term, other – 40

Theory

60%

Practical

Other


Francis J, Clauss, Applied Management Science and Spreadsheet Modeling, Duxbury Jeffrey D, Camm and James and James R. Evans, Management science: Modeling,

Analysis and interpretation, south – Western Karunarathne KRMT, Quantitative Methods for Management Wayne, L Winston and S Christian Albright, Practical Management Science: Applied

Management Science and Spreadsheet Modeling, Duxbury

Curriculum -2018

16



Kuliyapitiya



Semester 05


Course Name: Accounting Information Systems

Credit Value: 03

Core/Optional Optional


45 105


Explain and critically evaluate the basic concepts of AIS and its framework. Discuss the importance and functions of AIS in organizations. Document business process using system documentation techniques Discuss the elements and techniques of database modeling. Explain concepts of internal control and Common transaction cycles in a business. Apply and integrate the AIS concepts in transaction cycles


1. An Overview of Accounting Information System 1.1. What is AIS?

1.2. Characteristics of Useful information.\

1.3. Subsystems of AIS

1.4. The role of The AIS in the Value Chain and Supply Chain

2. Systems Development and Documentation Techniques 2.1. Data Flow Diagrams (DFD). 2.2. Subdividing the DFD. 2.3. Flowcharts Symbols. 2.4. Document Flowcharts. 2.5. System Flowcharts. 2.6. Program Flowcharts. 2.7. MS – Vision - Software

3. Relational Databases 3.1. Database Systems. 3.2. Two Approaches to Data Design. 3.3. Creating Relational Database Queries. 3.4. Database Systems and the Future of Accounting.

4. The Revenue Cycle: Sales and Cash Collections 4.1. Revenue Cycle: Business Activities.

Curriculum -2018

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4.2. Information Processing Procedures. 4.3. Control Objectives. 4.4. Threats and procedures. 4.5. Revenue Cycle Information Needs.

5. Expenditure Cycle: Business Activities 5.1. Information Processing Procedures. 5.2. Control Objectives. 5.3. Threats and Procedures. 5.4. Expenditure Cycle Information Needs.

6. The Production Cycle 6.1. Production Cycle Activities. 6.2. Information Processing Activities

7. The Human Resources Management and Payroll Cycle

8. General ledger and Reporting System

9. REA Data Model

10. Implementation of REA Model

11. System Development Life Cycle

12. Computer Fraud and Abuse

13. Computer Controls and Auditing

Teaching /Learning Methods: Lectures, Tutorials , Lab Practical, and Practical Assignments




40%

Final Assessment

60%

Details:


Theory

60%

Practical

Other


Romney, M.B. & Steinbert, P.J.& Cushing, B.E. (2006), Accounting Information Systems, Prentice Hall, USA, 10th Edition

Hall, A. J (2006), Accounting Information Systems, South-Western Thomson Learning, USA , 4th Edition

Gelinas, U. J., Sutton, S. G & Hunton, J. E. (2005). Accounting Information System, South-Western Thomson Learning, USA , 6th Edition

Wilkinson, W.J., Cerullo, J.M, Raval, M., Wong-On-Wing, B., (2000), Accounting Information Systems: Essential Concepts and Applications, Wiley. USA , 4th Edition.

Curriculum -2018

18



Kuliyapitiya



Semester 05


Course Name: Financial Mathematics

Credit Value: 03


Hourly Breakdown


45 105


Explain the basics and advanced topics on time value of money and to calculate interest rates and discount factors.

Apply the various models to calculate the present values and future values of annuities and lump sum payments

Apply these concepts to the pricing of simple, fixed-income financial instruments and the assessment of investment projects.


1. Basics, Interest Rates and Factors 1.1. Revision of Arithmetic and Geometric progressions 1.2. Revision of Exponents and Logarithms 1.3. Interest 1.4. Simple Interest 1.5. Compound Interest 1.6. Accumulated Value 1.7. Present Value 1.8. Rate of Discount: d 1.9. Constant Force of Interest: δ 1.10. Varying Force of Interest 1.11. Discrete Changes in Interest Rates

2. Level Annuities

2.1 Annuity-Immediate

2.2 Annuity–Due

2.3 Deferred Annuities

2.4 Continuously Payable Annuities

2.5 Perpetuities

2.6 Equations of Value

3. Varying Annuities 3.1 Increasing Annuity-Immediate

3.2 Increasing Annuity-Due

Curriculum -2018

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3.3 Decreasing Annuity-Immediate

3.4 Decreasing Annuity-Due

3.5 Continuously Payable Varying Annuities

3.6 Compound Increasing Annuities

3.7 Continuously Varying Payment Streams

3.8 Continuously Increasing Annuities

3.9 Continuously Decreasing Annuities

4. Non-Annual Interest Rate and Annuities 4.1 Non-Annual Interest andDiscount Rates

4.2 Nominal pthly Interest Rates: i(p)

4.3 Nominal pthly Discount Rates: d(p)

4.4 Annuities-Immediate Payable pthly

4.5 Annuities-Due Payable pthly

5. Project Appraisal and Loans 5.1 Discounted Cash Flow Analysis

5.2 Nominal vs. Real Interest Rates

5.3 Investment Funds

5.4 Allocating Investment Income

5.5 Loans: The Amortization Method

5.6 Loans: The Sinking Fund Method

6. Financial Instruments 6.1 Types of Financial Instruments

6.1.1 Money Market Instruments

6.1.2 Bonds

6.1.2.1 Types of Bonds

6.1.2.2 Pricing formulae of bonds

6.1.2.3 Amortization of Premium or Discount

6.1.2.4 Valuation of Bonds between Coupons Payment Dates

6.1.2.5 Callable Bonds and Serial Bonds

6.1.3 Common Stock

6.1.3.1 Short Selling

6.1.4 Preferred Stock

6.1.5 Mutual Funds

6.1.6 Guaranteed Investment Contracts (GIC)

6.1.7 Mathematics of Derivative Securities (Introduction)

6.1.7.1 Binomial Trees

6.1.7.2 Black-Sholes- Merton Model

6.3 Stock Valuation

7. Duration, Convexity and Immunization 7.1 Price as a Function of Yield

7.2 Modified Duration

7.3 Macaulay Duration

7.4 Effective Duration

7.5 Convexity

Curriculum -2018

20


7.5.1 Macaulay Convexity

7.5.2 Effective Convexity

7.6 Duration, Convexity and Prices: Putting it all Together

7.6.1 Revisiting the Percentage Change in Price

7.6.2 The Passage of Time and Duration

7.6.3 Portfolio Duration and Convexity

7.7 Immunization

7.8 Full Immunization

8. The Term Structure of Interest Rates 8.1 Yield-to-Maturity

8.2 Spot Rates

9. Mathematics of Portfolio 9.1 Matrix Algebra for Portfolio Mathematics

9.2 Minimum Variance portfolio (Markovitz Model)

9.3.1 Two assets case – Derivation and Applications

9.3.2 ‗n‘ Assets case

9.4 Alternatives to Markovitz Model- Black Litterman Model

10. Probability and Probability Distributions 10.1 Probability Theory

10.2 Conditional Probability and Bayes‘ Theorem

10.3 Probability Distributions

10.4 Applications of Probability distributions in Finance

11. Life annuities and Life Insurance

11.1 Formulae building

11.2 Applications

12. Application of Differential Equations in Financial Mathematics






40%

Final Assessment

60%

Details:

quizzes , mid-term , other – 40%

Theory

60%

Practical

Other


Samuel A. Broverman, Mathematics of Investment and Credit, 4th ed.,ACTEX Publications, 2008. ISBN 978-1-56698-657-1.

Stephen G. Kellison, The Theory of Interest, 3rd ed., McGraw-Hill, 2009.ISBN 978-007-127627-6.

John McCutcheon and William F. Scott, An Introduction to the Mathematics of Finance, Elsevier Butterworth-Heinemann, 1986. ISBN 0-7506-0092-6.

Petr Zima and Robert L. Brown, Mathematics of Finance, 2nd ed., Schaum's Outline

Curriculum -2018

21


Series, McGraw-Hill, 1996. ISBN 0-07-008203. Chiang C. Alfa (1984) Fundamental Methods of Mathematical Economics,

McGraw-Hill International Edition, 3rd Edition, Biais B, Björk T, Cvitanic, J. Karoui NE (1997), Financial Mathematics Capinski M, Zastawniak T (2011), Mathematics for Finance: An Introduction to

Financial Engineering, Springer

http://www.amazon.com/s/ref=dp_byline_sr_book_1?ie=UTF8&field-author=Bruno+Biais&search-alias=books&text=Bruno+Biais&sort=relevancerank

http://www.amazon.com/Thomas-Bj%C3%B6rk/e/B00IVVVTI2/ref=dp_byline_cont_book_2

http://www.amazon.com/s/ref=dp_byline_sr_book_3?ie=UTF8&field-author=Jaksa+Cvitanic&search-alias=books&text=Jaksa+Cvitanic&sort=relevancerank

http://www.amazon.com/s/ref=dp_byline_sr_book_4?ie=UTF8&field-author=Nicole+El+Karoui&search-alias=books&text=Nicole+El+Karoui&sort=relevancerank

Curriculum -2018

22



Kuliyapitiya



Semester 06


Course Name: Research Methodology in Accounting and Finance

Credit Value: 04

Core/Optional Core


60 140


Apply the knowledge in independent study to fill up the gap in the existing literature Apply social science research approaches in Accounting & Finance contexts Investigate empirical studies in Accounting & Finance Explore new arenas in Accounting & Finance


1. Traditions of Research in Accounting and Finance 1.1 Philosophy of Accounting and Finance Researches 1.3 Traditions of research in Financial Accounting 1.4 Traditions of research in Management Accounting 1.5 Traditions of research in Finance 1.6 Issues in Accounting and Finance researches 1.7 Agency Theory and Accounting Research 1.8 Developing research ideas in Accounting and Finance

2. Methods of Research in Accounting and Finance

2.1 Experimental research

2.1.1 Experimental design

2.2 Survey research

2.2.1 Mail surveys

2.2.2 Pilot testing

2.2.3 Measures of reliability

2.2.3 Interview methods

2.3 Fieldwork

2.3.1 Case study methods

2.3.2 Grounded theory

2.4 Archival research

2.4.1 Cross-section data

2.4.2 Financial time-series data

Curriculum -2018

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2.5 Empirical researches in Accounting and Finance

3. The Analysis of Literature

3.1 Different sources of theory

3.2 Searching the literature

4. Modeling the Relationship between Financial Variables

4.1 Linear relationships

4.2 Causal relationships

4.3 Co-integrating relationships

5. Data Collection and Analysis

5.1 Sample selection 5.2 Data management 5.3 Analytical tools in Financial Econometrics and Statistics 5.4 Software Applications

6. Scientific Writing





40%

Final Assessment

60%

Details:


Theory

60%

Practical

Other


Smith M., (2003) Research Methods in Accounting, SAGE Publications Ryan B., Scapens R.W., Theobald M.,(2002) Research Methods and Methodology in

Finance and Accounting, Cengage Learning EMEA Higher Education, 2nd Edition Hoque Z., (2002) Methodological Issues in Accounting Research, Spiramus Press

Curriculum -2018

24



Kuliyapitiya



Semester 06


Course Name: Financial Reporting

Credit Value: 03

Core/Optional Core


45 105


Discuss the conceptual and regulatory frameworks of corporate reporting; Interpret, apply and critically appraise accounting standards and interpretations (LKAS

and SLFRS, IFRICs and SICs) used in corporate reporting; Analyse and appraise current practices adopted by companies in financial reporting.


1. Preparation of Consolidated Financial Statements 1.1. Complex groups (including indirect holding) 1.2. Deferred tax adjustments related to consolidated accounts (Comprehensive) 1.3. Piecemeal acquisition 1.4. Disposal of Subsidiaries / Associates including deemed disposal 1.5. Foreign Subsidiaries (LKAS 21) 1.6. Joint ventures (Advanced Aspects) 1.7. Impairment of Goodwill (including cash generating units) 1.8. Complex adjustments in relation with the accounting standards learnt up to this level.

Applicable Standards LKAS 27 –Separate Financial Statements LKAS 28- Investment in Associates and Joint Ventures SLFRS 3- Business Combinations SLFRS 11- Joint Arrangements SLFRS 10- Consolidated Financial Statements SLFRS 12 – Disclosure of interests in other Entities All other Accounting Standards Learnt up to this level

2. Share Based Payment – SLFRS 2

3. Employee Benefits – LKAS 19

4. Accounting for Government Grants and Disclosure of Government Grants – LKAS – 20

5. Revenue

5.1. LKAS 18/ SLFRS 15 5.2. SIC 31- barter transactions involving advertising services

Curriculum -2018

25


6. Earnings Per Share – LKAS 33

7. Agriculture – LKAS 41 7.1. Distinction of biological assets and agricultural produce 7.2. Recognition, measurement and disclosure of agricultural assets

8. Non- Current Assets Held for Sale and Discontinued Operations – SLFRS 5

9. Related Party Disclosures – LKAS 24

10. Advanced Topics in Financial Instruments (LKAS 32, LKAS 39, SLFR 7, SLFRS 9)

11. Conceptual Framework

11.1. The objective of general purpose financial reporting 11.2. The reporting entity 11.3. Qualitative characteristics of useful financial information 11.4. Underlying assumptions 11.5. The elements of financial statements 11.6. Recognition of the elements of financial statements 11.7. Measurement of the elements of financial statements 11.8. Concepts of capital and capital maintenance






40%

Final Assessment

60%

Details:

Quizzes, mid-term , other – 40%

Theory

60%

Practical

Other


Sri Lanka Accounting Standards (2012) ICASL IFRICs and SICs (ICASL)

Curriculum -2018

26



Kuliyapitiya



Semester 06


Course Name: Corporate Finance

Credit Value: 03

Core/Optional Core

Hourly Breakdown


45 105


Critically evaluate the theories in corporate Finance Expose the participants to the practical situations by way of case discussions and

providing them the opportunities to deal with the practical corporate finance managers in the leading business and other organizations.

Apply the knowledge of corporate finance on real world scenarios


1. Introduction to Corporate Finance 1.1. Corporate finance - Introduction

1.1.1. The corporate firm 1.1.2. Goals of the corporate firm 1.1.3. Financial markets

1.2. Accounting statements and cash flow 1.3. Financial planning and growth

1.3.1. Meaning 1.3.2. Models 1.3.3. Determinants of growth 1.3.4. Caveats

2. Advanced Aspects of Capital Budgeting 2.1. Alternative investments rules 2.2. Net present value and capital budgeting 2.3. Risk analysis 2.4. Real options

3. Risk 3.1. Capital market theory 3.2. Return and risk – Capital Asset Pricing Model 3.3. Arbitrage pricing theory 3.4. Risk and Cost Of Capital

4. Capital Structure and Dividend Theory 4.1. Corporate financing decisions and efficient capital markets 4.2. Long term financing

Curriculum -2018

27


4.3. Capital structure 4.3.1. Basics 4.3.2. Limits to the use of debt

4.3.2.1. Costs of financial distress 4.3.2.2. Pecking order theory

4.3.3. Valuation and capital budgeting for a levered firm 4.4. Dividends and other payouts

4.4.1. Different types of dividends 4.4.2. Standard method of payment of cash dividends 4.4.3. Repurchase of stock 4.4.4. The clientele effect

5. Long Term Financing 5.1. Issuing securities to the public

5.1.1. Public offer 5.1.2. Alternative issue methods 5.1.3. The cash offer 5.1.4. Cost of new issues 5.1.5. Rights

5.2. Long term debt 5.2.1. Public issue of bonds 5.2.2. Bond refunding 5.2.3. Bond ratings 5.2.4. Types of bonds 5.2.5. Long term syndicated bank loans

5.3. Leasing 5.3.1. Types of leases 5.3.2. Cash flows of leasing 5.3.3. Lease Vs. Buy decision

6. Short Term Finance 6.1. Short term financing and planning 6.2. Cash management 6.3. Credit management

7. Mergers and Acquisitions 7.1. Basic forms of acquisitions 7.2. Determining the synergy from acquisitions 7.3. Calculation of firm value after the acquisition 7.4. NPV of a merger 7.5. Defensive tactics 7.6. Empirical evidence

8. Financial Distress 8.1. Meaning 8.2. Bankruptcy liquidation and reorganization 8.3. Private workout or bankruptcy

9. Risk Management 9.1. Managing Risk 9.2. Managing International Risk

10. Introduction to International Corporate Finance 10.1. International Flow of Funds

10.2. International Arbitrage and Interest Rate Parity

Curriculum -2018

28


10.3. Exchange Rate Risk Management 10.4. Multinational Capital Budgeting

10.5. Country Risk Analysis

10.6. International Cost of Capital and Capital Structure

10.7. International Cash Management



semester examination, classroom tests, assignments and

presentations


40%

Final Assessment

60%

Details:


Theory

60%

Practical

Other


Stephen A. Ross, Randolph W. Westfield, Jeffrey Jaffe.(2013), Corporate Finance Tata McGraw-Hill Publishing Co. Ltd, 10th Edition

Groppelli AA,and Nikbakbt E, Finance Barron‘s Educational Series, 4th Edition Brealey, Myers, Allen & Mohanty, Principles of Corporate Finance, 8th Edition Lectures, Tutorials and Practical Assignments

Curriculum -2018

29



Kuliyapitiya



Semester 06


Course Name: Advanced Taxation and Tax Planning

Credit Value: 03



45 105


Explain the Inland Revenue code provisions and the judicial and administrative materials interpreting the code.

Develop an understanding of the rationale and logic behind the system of income taxation including the political processes that shape tax law

Examine the tax principles and concepts of income tax law as they apply to property transactions, investments, sole proprietors, individuals, companies, charitable institutions and clubs and associations.

Explain the VAT system in Sri Lanka Advice for the complex tax matters in practice Evaluate the international tax treaties


1. Comprehensive Income Tax Computations 1.1. Individual (Revision) – Resident 1.2. Partnerships 1.3. Company taxation 1.4. Charitable institutions

2. Nonresident Persons and International Tax Treaties 2.1. Nonresident persons 2.2. Remittance tax 2.3. Double tax treaties

3. Income Tax Administration 3.1. Tax administration (Comprehensive) 3.2. Case law

4. Value Added Tax 4.1. VAT Registration and obligations of a VAT registered person 4.2. Simplified VAT 4.3. VAT on Financial services

5. Other Matters

Curriculum -2018

30


5.1. Transfer pricing 5.2. Tax planning of a company 5.3. Tax advisory services 5.4. Taxation and Ethics 5.5. Financial Reporting Standards and Taxation

Appendix: Case Law

I. Sutherland vs Commissioner of Income Tax II. Kanagasabapathy vs Commissioner General of Inland Revenue

III. Anglo-Persian Oil Co. Ltd. vs Commissioner of Income Tax IV. Chivers & Sons Ltd. vs Commissioner of Income Tax V. D. S. Mahawitharana vs CIR

VI. Ram Iswera vs CIR VII. Commissioner of Income Tax vs C. S. De Zoysa

VIII. Rutledge vs CIR IX. CIR vs Livingstone and Others X. IRC vs Fraser

XI. CIR vs Reinhold XII. Martin vs Lawry

XIII. The Commissioner of Inland Revenue vs J. M. Rajarathnam XIV. AA. Davoodbhoy vs Commissioner General of Inland Revenue XV. Vallambrosa Rubber Co. Ltd. vs Farmer

XVI. Hancock vs General Reversionary & Investment Co. Ltd. XVII. Artherton vs British Insulated & Helsby Cables Ltd.

XVIII. Theobald vs Commissioner of Income Tax XIX. Associated Portland Cement Manufacturing Co. vs Kerr XX. Mitchell vs Noble

XXI. Haughton Tea Company Limited vs Commissioner of Income Tax XXII. Law Shipping Co Ltd. vs CIR

XXIII. Odeon Associated Theatres Ltd vs Jones XXIV. The National Mutual Life Association of Australia Ltd. vs Commissioner of

Income Tax XXV. Heyley and Co. Ltd vs The Commissioner of Inland Revenue

XXVI. Commissioner of Inland Revenue vs A. W. Davith Appuhamy XXVII. Strong vs Woodifield

XXVIII. Rajapakse vs Commissioner of Income Tax XXIX. D. M. S. Fernando and Another vs Mohideen Ismail XXX. New Portman Ltd. vs W. Jayewardene and Others

XXXI. Meaning of plant Thornhill vs Commissioner of Income Tax XXXII. Chelvanayakam vs Commissioner of Income Tax





40%

Final Assessment

60%

Details:

Quizzes , mid-term , other

Theory

60%

Practical

Other


ICASL Guide to Income Tax Law, Revised edition 2015 Inland Revenue Act No.10 of 2006 and its amendments

Curriculum -2018

31


Value Added Tax Act No.14 of 2002 and its amendments. Balarathnam, S.B, Income Tax in Sri Lanka, 3rd Edition, Tax Publication Ltd, 2001.

Curriculum -2018

32



Kuliyapitiya



Semester 06


Course Name: Computerized Accounting & ERP Systems

Credit Value: 03


Hourly Breakdown


45 105


Demonstrate a good understanding of basic issues in Enterprise Systems, Explain the scope of common Enterprise Systems (e.g., MM, SCM, CRM, HRM,

procurement), Explain the challenges associated with implementing enterprise systems and their

impacts on organizations Describe the selection, acquisition and implementation of enterprise systems Use one of the popular ERP packages to support business operations and decision

making, Communicate and assess an organization‘s readiness for enterprise system

implementation with a professional approach in written form,


Part one: ERP Systems

1. Enterprise: An Overview:

2. Introduction to ERP: ERP and Related Technologies:

3. ERP Implementation Life Cycle:

4. ERP Modules Structure: ERP – A Manufacturing Perspective:

5. ERP: A Purchasing Perspective:

6. ERP: Sales and Distribution Perspective:

7. ERP: An Inventory Management Perspective:

8. ERP: An CRM Perspective:

9. ERP: A HR Perspective:

10. ERP: An Finance Perspective:

11. ERP Vendors, Consultants, and Employees:

12. Different ERP Vendors - ERP Vendors, SAP-AG:

13. Future Directions in ERP:

Curriculum -2018

33


14. Lab Practicals 14.1 Introduction 14.2 SAP Navigation 14.3 Master Data Creation 14.4 Vendor Master Data 14.5 Vendor Selection 14.6 Receiving Inventory 14.7 Customer Master Data 14.8 Sales Order Processing 1 14.9 Sales Order Processing 2 14.10 Create Invoice 14.11 Enterprise Systems 14.12 Advanced Topics

Part two: Accounting Packages

1. Introduction to Computer Based Accounting

2. Introduction to QuickBooks Accounting Package

3. Features of the QuickBooks Accounting Package

4. Creating a Company

5. Setting Up General Ledger Structure

6. Setting Up Customer and Supplier Records

7. Planning a Stock System

8. Sales Order Processing

9. Purchase Order Processing

10. General Journal and Banking Tasks

11. Running Various Reports

Part Three : Accounting Modeling

1. Introduction 2. Accounting modeling in AIS

3. Evolution

4. Characteristics

5. Limitations

6. Spreadsheet model designing

7. IF function

8. Spreadsheet decision logic

9. Sum IF

10. Developing models using spinners for sensitivity analysis

11. Sensitivity analysis

12. Loan schedules and NPV

13. Lookup Functions

14. Excel solver

15. Conditional formatting

16. Macros

17. Other advanced applications

Teaching /Learning Methods: Lectures, Tutorials and Practical Assignments, Lab Practicals



Curriculum -2018

34



40%

Final Assessment

60%

Details:


Theory

60%

Practical Other


Michael Fardon, Debbie Board, Computer Accounting Systems Tutorial Chandan Sengupta ,Financial Modeling Using Excel and VBA Scott Proctor K,Building Financial Models with Microsoft Excel Mary Jackson, Mike Staunton ,Advanced Modelling in Finance using Excel and VBA Isaac Gottlieb, Next Generation Excel: Modeling In Excel For Analysts And MBAs (For

MS Windows And Mac OS) 2nd Edition Enterprise Systems For Management, by Motiwalla and Thompson, Pearson/Prentice

Hall 2011 Concepts in Enterprise Resource Planning, Latest Editions By Ellen Monk and Bret

Wagner, Thomson Course Technology Essentials of Business Processes and Information Systems Simha Magal and Jeffrey

Word.ISBN‐13: 978‐0‐470‐23059‐6

http://www.amazon.com/gp/product/0471267686?tag=vertex42-20



http://www.amazon.com/Isaac-Gottlieb/e/B004ZFF5RE/ref=dp_byline_cont_book_1

Curriculum -2018

35



Kuliyapitiya



Semester 06


Course Name: Corporate Governance

Credit Value: 03


Hourly Breakdown


45 105


Critically evaluate the principles of corporate governance and how they are applied in Sri Lankan and international context.

Explain the role and responsibilities of directors of public corporations; Apply the theories of corporate governance on financial reporting and financing

practices and the audit process. Critically evaluate and assess the strengths and weaknesses of different internal

governance mechanisms. Assess different external pressures on corporate governance. Apply the knowledge to analyze real corporate examples and cases. Evaluate the impact of social and cultural differences on corporate governance

mechanisms


1. Introduction to Corporate Governance

1.1. Concept of corporate governance

1.2. Overview of Corporate Governance thinking: Past and Present

1.3. Ethics and moral judgment

1.4. Normative theories of ethics

2. Theoretical foundation: firms, contracts, information and incentives; agency, transaction cost and other theories

3. Corprate Governance Models and Application of Corporate Governance in Sri Lanka

4. International Corporate Governance

5. Internal corporate governance mechanisms: board structure, monitoring and incentive mechanisms, shareholders, CEO, management, internal control systems and some important governance codes

6. External corporate governance mechanisms: the role of the stock market, securities

Curriculum -2018

36


and stock exchange commission, and government 7. Institutional Shareholders and Activist Investors and the role

8. Legal Obligations of Boards of Directors

9. Board of Directors: Selection, Compensation, and Removal

10. Board of Directors: Structure and Process

11. CEO and Other Executive Succession Planning

12. Strategic Planning and Governance of Risk

13. Governance of Executive Compensation

14. The Audit Committee and the Governance of Financial and Other Reporting

15. The Market for Corporate Control

16. Institutional Shareholders

17. Corporate Governance Ratings and Proxy Advisors

18. Measuring Compliance Level of Corporate Governance

19. Contemporary issues in corporate governance

20. Case Studies: Corporations in Crisis and Corporate Scandals

20.1. Objectives

20.2. Introduction

20.3. General Motors

20.4. American Express

20.5. Enron

20.6. WorldCom

20.7. Bad Corporate Practices

20.8. Recent Sri Lankan Cases



semester examination, classroom tests, assignments and presentations\


40%

Final Assessment

60%

Details

Quizzes , mid-term , other -40%

Theory

60%

Practical

Other


Bob Tricker (2013) Corporate Governance: Principles, Policies and Practices, 2/e Berle, A. A. and Means, G.C., (1932), The Modern Corporation and Private

Property, New York: Macmillan.

Christine, A.M., (2004), Corporate Governance, Oxford University Press. National Bureau of Economic Research, (2005), A History of Corporate

Governance around the World, The University of Chicago Press, USA, ISBN 0-226-

53680-7.

The Securities and Exchange Commission of Sri Lanka & The Institute of Chartered Accountants of Sri Lanka , (2013) Code Of Best Practice On Corporate Governance

Curriculum -2018

37


Larcker, David and Tayan, Brian, (2011) Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences, (Pearson Education)

Monks, Robert A.G. and Minow, Nell, (2011) Corporate Governance, Wiley, 5th Edition Bain, Neville & Barker, Roger (2010), The Effective Board. London: Kogan, Bainbridge, S.M. (2011) Corporate Governance after the Financial Crisis. New York:

Oxford University Press, Baker, H.K. & Anderson, R., (2011) Corporate Governance: A Synthesis of Theory,

Research, and Practice. Hoboken, NJ: Wiley & Sons Braiotta Jr., A., et al, (2010) The Audit Committee Handbook, Hoboken, NJ: Wiley &

Sons, 5th edition Journal Articles

Curriculum -2018

38



Kuliyapitiya



Semester 06


Course Name: Financial Modeling

Credit Value: 03


Hourly Breakdown


45 105


Evaluate the Critical Role of the Finance Function in Developing Forecasting Models and use efficiently key Excel functions to construct sound financial forecasting models

Apply the modeling in pricing of securities Apply excel and Matlab in advanced modeling and optimization techniques Build More Realistic Forecasting arrays and Models for different corporate and

personal finance decisions using the best structuring techniques Apply and analyse more complex issues in financial forecasting such as real and

nominal values, rates Create a forecast income, cash flow statements and balance sheet Interpret and analyse the key ratios used in a financial forecast


1. Overview 1.1 Overview of modeling process 1.2 Excel and Spreadsheet Engineering 1.3 Model Structure, Inputs, Workings, Outputs, Key Drivers for Modeling 1.4 Key Excel Functions

2. Corporate Financial Planning and Forecasting

2.1 creating and analyzing cash flows from investing and financing activities 2.2 Revenue Drivers, Average price conventions , The Income statements, Revenue

based and outputs based assumptions, accounting-based valuation multiples, The Statement of Retained Earnings, The Balance Sheet , The Statement of Cash Flows, Integrating cash flow into the statements. Reviewing, interpreting and making decisions based on outputs, Actual Forecast. Cash Flow forecast, Ratios, Sensitivity, Du Pont System of Ratio Analysis

2.3 Capital Budgeting and Real Options 2.4 Forecasting techniques including Time series forecasting and Key drivers of

forecasting

3. Bonds

Curriculum -2018

39


3.1 Discount rates and cash flow modeling 3.2 Risk analysis of discounted cash flows 3.3 Monte Carlo simulation for risk analysis 3.4 Spreadsheet modeling for bond valuation 3.5 APR and EAR by YTM 3.6 Dynamic Chart 3.7 Five Bond Variables 3.8 Yield Curve 3.9 Pricing a Coupon Bond 3.10 Forward Rates 3.11 Duration 3.12 Convexity 3.13 Immunization

4. Stocks

4.1 Two stage and multiple stage models 4.2 Dynamic Chart 4.3 Estimating stock volatility 4.4 Geometric Brownian motion model 4.5 Estimating betas with regression analysis Using daily, weekly, and monthly data 4.6 Testing market efficiency

4.6.1 With regression analysis 4.6.2 With pivot tables

4.7 Recording and editing macros

5. Portfolio Modeling and Optimization 5.1 Matrix Algebra with Excel 5.2 Matrix Algebra with MATLAB 5.3 Mean Variance portfolio building with Excel 5.4 Mean Variance portfolio building with Mat lab 5.5 Efficient portfolio with and without short sales and Security market line and

estimating Beta 5.6 Variance – Covariance Matrix

6. Derivative Pricing

6.1 Binomial Trees 6.1.1 Valuation of European /American Options 6.1.2 Estimating stock return volatility

6.2 Black-Scholes-Merton Model 6.2.1 Pricing European Options 6.2.2 Implied Stock Return Volatility 6.2.3 Goal Seeking Function in Excel

7. Use of Financial Toolbox in Mat lab for Modeling 7.1 Key Features 7.2 Asset Allocation and Portfolio Optimization 7.3 Risk Analysis and Investment Performance 7.4 Fixed-Income Analysis and Option Pricing 7.5 Financial Time Series Analysis 7.6 Regression and Estimation with Missing Data 7.7 Technical Indicators and Financial Charts 7.8 Monte Carlo Simulation of SDE Models 7.9 Graphing techniques with Mat lab

Curriculum -2018

40


Teaching /Learning Methods: Lectures in Computer Laboratory, Lab Tutorials and Practical

Assignments

Assessment Strategy: The course unit may be evaluated by end–semester Practical

examination, mid-semester Practical examination, and Practical assignments


40%

Final Assessment

60%

Details:


Theory

60%

Practical

Other


―Spreadsheet Modeling and Applications‖, by Albright and Winston, Thomson/Duxbury Press 2005.

―VBA for modelers‖, by Christian Albright, Second Edition, Palisade 2006. Simon Benninga, Financial Modelling, 4rd edition, 2014. ISBN-10: 0262027283 John S. TJIA, Building Financial Models, McGraw-Hill, 2nd edition, 2014 Simon Benninga, principles of finance with Excel, The MIT Press; fourth edition,

ISBN-13: 978-0262027281, 2014 Paul Pignataro, Financial Modelling and Valuation: A Practical Guide to Investment

Banking and Private Equity, ISBN-10: 1118558766 1st Edition, 2013 Jonathan Swan, Practical Financial Modelling: A guide to current practice, 2nd edition,

CIMA Publishing, 2009 Francis X. Diebold, Elements of Forecasting, 3rd edition, Thomson South-western,

ISBN 81-315-0297-X 2007

Curriculum -2018

41



Kuliyapitiya



Semester 07


Course Name: Corporate Reporting

Credit Value: 03


Hourly Breakdown


45 105


Critically Evaluate the conceptual and regulatory frameworks of corporate reporting; Interpret, apply and critically appraise accounting standards (LKAS and SLFRS) used

in corporate reporting; Analyse and appraise current practices adopted by companies in reporting financial

and non-financial information; and Appraise critically the contemporary issues and future directions in corporate reporting


1. Preparation of Consolidated Financial Statements 1.1. Consolidated Statements of Cash Flows 1.2. Group reorganization and Reconstruction 1.3. Complex groups with more complex adjustments with relevance to standards. 1.4. Reverse acquisitions 1.5. Impact of Share Based Payments

Applicable Standards LKAS 27 –Separate Financial Statements LKAS 28- Investment in Associates and Joint Ventures SLFRS 3- Business Combinations SLFRS 11- Joint Arrangements SLFRS 10- Consolidated Financial Statements SLFRS 12 – Disclosure of interests in other Entities All other Accounting Standards Learnt up to this level

2. Corporate reporting environment 2.1. Overview of corporate reporting 2.2. Corporate reporting decision making process 2.3. International differences in corporate reporting

3. Operating segments – SLFRS 8

4. Fair Value Measurement – SLFRS 13

Curriculum -2018

42


4.1. The role of fair value in accounting 4.2. Fair value based measurements 4.3. Fair value hierarchy

5. Financial Reporting in Hyperinflationary Economies – LKAS 29

6. Interim Financial Reporting – LKAS 34

7. SLFRS for Small and Medium size Enterprises (SME)

8. Corporate Governance and Ethics

8.1. Evolution 8.2. Regulatory framework on governance 8.3. Mechanisms of corporate governance and their impact on different financial

accounting dimensions 8.4. Professional ethics and ethical conflicts/ Recent Ethical Issues 8.5. Corporate governance model in Sri Lanka

CASL – SEC Code of Best Practice 2013 8.6. Ethics and moral judgment 8.7. Normative theories of ethics 8.8. Moral reasoning in Accounting

8.8.1. Kohlberg‘s theory of cognitive moral reasoning and development

9. Introduction to Financial reporting in Public Sector Organizations 9.1. Overview of financial reporting process in public sector organizations 9.2. Preparation of financial statements 9.3. Application of Sri Lanka Public sector Accounting Standards (SLPSAS)

10. Corporate social responsibility reporting 10.1. Need for social responsibility reporting 10.2. Theoretical perspectives on Social responsibility reporting 10.3. Sustainability reporting

10.3.1. Global reporting initiative (GRI) guidelines -G4 10.4. Integrated reporting

10.4.1. International Integrated Reporting Framework 10.5. Importance of climate change and carbon reporting

11. Research Articles on Corporate Reporting 11.1. Research areas 11.2. Empirical researches on corporate reporting 11.3. Contemporary issues






40%

Final Assessment

60%

Details:

quizzes , mid-term , other – 40%

Theory

60%

Practical

Other


Curriculum -2018

43


Sri Lanka Accounting Standards – ICASL – Latest Edition IFRICs and SICs (ICASL) CASL – SEC Code of Best Practice 2013 CASL- Sri Lanka Public sector Accounting Standards (SLPSAS) Global reporting initiative (GRI) guidelines -G4 International Integrated Reporting Framework Journal articles on corporate reporting

Curriculum -2018

44



Kuliyapitiya



Semester 07


Course Name: Financial Statement Analysis

Credit Value: 03

Core/Optional Core

Hourly Breakdown


45 105


Explain the steps necessary when performing a business analysis Critically Evaluate and interpret the effects of accounting practices pertaining to

operating, investing, and financing activities on financial statements Identity and apply the tools used to analyse financial statements Analyse the credit of a company in terms of working capital, debt, and equity Analyse the capital structure of a company Prepare projected financial statements Describe and apply different valuation techniques Prepare and present the analysis and related interpretations of financial statements in

oral and written format


1. Overview of Financial Statement Analysis 1.1. Business Analysis 1.2. Financial Statements—Basis of Analysis 1.3. Analysis Tools

2. Financial Reporting and Analysis 2.1. Reporting Environment 2.2. Nature and Purpose of Financial Accounting 2.3. Accruals—Cornerstone of Accounting 2.4. Concept of Income 2.5. Fair Value Accounting 2.6. Introduction to Accounting Analysis

3. Analyzing Financing Activities 3.1. Debt Financing 3.2. Leases 3.3. Contingencies and Commitments 3.4. Off-Balance-Sheet Financing 3.5. Shareholders‘ Equity 3.6. Shareholders‘ Equity Reporting under IFRS

4. Analyzing Investing Activities 4.1. Introduction to Current Assets

Curriculum -2018

45


4.2. Inventories 4.3. Introduction to Long-Term Assets 4.4. Plant Assets and Natural Resources 4.5. Intangible Assets 4.6. Asset Revaluations under IFRS 4.7. Analyzing Investing Activities: Inter-corporate Investments

4.7.1. Investment Securities 4.7.2. Equity Method Accounting 4.7.3. Business Combinations 4.7.4. Derivative Securities 4.7.5. The Fair Value Option

5. Analyzing Operating Activities 5.1. Income Measurement 5.2. Nonrecurring Items 5.3. Revenue Recognition 5.4. Deferred Charges 5.5. Employee Benefits 5.6. Interest Costs 5.7. Income Taxes

6. Cash Flow Analysis 6.1. Statement of Cash Flows 6.2. Analysis Implications of Cash Flows 6.3. Analysis of Cash Flows 6.4. Specialized Cash Flow Ratios

7. Return on Invested Capital and Profitability Analysis 7.1. Importance of Return on Invested Capital 7.2. Components of Return on Invested Capital 7.3. Analyzing Return on Net Operating Assets 7.4. Analyzing Return on Common Equity

8. Prospective Analysis 8.1. The Projection Process 8.2. Projecting Financial Statements and Forecasting of financial information 8.3. Application of Prospective Analysis in the Residual Income Valuation Model 8.4. Trends in Value Drivers 8.5. Forecasting Techniques (Time Series)

9. Credit Analysis 9.1. Liquidity 9.2. Liquidity and Working Capital 9.3. Operating Activity Analysis of Liquidity 9.4. Additional Liquidity Measures

10. Capital Structure and Solvency 10.1. Basics of Solvency 10.2. Capital Structure Composition and Solvency 10.3. Earnings Coverage

11. Equity Analysis and Valuation 11.1. Earnings Persistence

Curriculum -2018

46


11.2. Earnings-Based Equity Valuation 11.3. Earning Power and Forecasting for Valuation 11.4. Business valuation

11.4.1. Models 11.4.2. Free cash flow based valuation

12. Miscellaneous Topics

12.1. Red-flags and accounting warning signs 12.2. Accounting shenanigans on cash flow statement. 12.3. Analysis of other source of financial information 12.4. Financial Reporting Disclosures: Market and Regulatory Failure 12.5. Distress and discriminant analysis of financial information (Models and

Research Insights) 12.6. Case Studies: Big Five Scandals (Enron, WorldCom etc.)





40%

Final Assessment

60%

Details:


Theory

60%

Practical Other


Financial Statement Analysis, (McGraw-Hill), by K. R. Subramanyam and John Wild,

10th Edition

Martin S. Fridson Financial Statement Analysis Workbook: A Practitioner's Guide

Thomas R. Ittelson Financial Statements: A Step-by-Step Guide to Understanding and

Creating Financial Reports

CSE Listing Rules

Financial Reporting Disclosures: Market and Regulatory Failures by Financial

Reporting Faculty ICAEW

Foster, G.,1986, Financial Statement Analysis, 2nd ed, Pearson Education

Helfert, E. H. 2009, Techniques of Financial Analysis, 5th ed, McGrawHill

Gibson, H.L, 2012, Financial Statement Analysis, 12th ed, Ceneage Learning

Fridson, M., and Alvarez, F., 2002, Financial Statement Analysis; a Practitioner‘s Guide,

3rd ed, John Wiley & Sons, Inc

http://www.amazon.com/Financial-Statement-Analysis-Workbook-Practitioners/dp/0470640030/ref=pd_sim_14_1?ie=UTF8&refRID=1AV7CHJ5FGEJRQKH90WT

http://www.amazon.com/Financial-Statement-Analysis-Workbook-Practitioners/dp/0470640030/ref=pd_sim_14_1?ie=UTF8&refRID=1AV7CHJ5FGEJRQKH90WT

Curriculum -2018

47



Kuliyapitiya



Semester 07


Course Name: Advanced Auditing and Assurance

Credit Value: 03


Hourly Breakdown


45 105


Critically Evaluate the underlying audit theories, procedures and practices surrounding an auditor, responsibilities in examining and reporting on financial statements

Appraise the assurance services and the framework on assurance services Advice on complex scenarios in practice by using the knowledge


1. Regulatory Environment 1.1. Regulatory framework for audit and assurance services

1.1.1. Need for laws, regulations, standards and other guidance relating to audit, assurance and related services.

1.1.2. Need for the legal and professional framework including: 1.1.2.1. The international standard-setting process 1.1.2.2. The authority of national and international standards 1.1.2.3. Public oversight and principles of corporate governance 1.1.2.4. The role of audit committees.

1.1.3. Effectiveness of the different ways in which the auditing profession and audit markets are regulated.

1.2. Money laundering 1.3. Laws and regulations

2. Code of Ethics 2.1. Code of ethics for professional accountants

2.1.1. Fundamental Principles and the conceptual framework approach 2.1.2. Threats to compliance with the fundamental principles

2.2. Fraud and error 2.2.1. The difference among the terms ‗error‘, ‗irregularity‘, ‗fraud‘ and ‗misstatement‘ 2.2.2. How, why, when and to whom fraud and error should be reported and the

circumstances in which and auditor should withdraw from and engagement. 2.2.3. Current and possible future role of auditors in preventing, detecting and reporting

error and fraud 2.3. Professional liability

2.3.1. Circumstances in which professional accountants may have legal liability 2.3.2. The criteria for legal liability to be recognized (including ‗due professional care‘

Curriculum -2018

48


and ‗proximity‘) and apply them to given situations 2.3.3. Compare and contrast liability to client with liability to third parties 2.3.4. Comment on precedents of case law 2.3.5. Practicability and effectiveness of ways in which liability may be restricted,

including professional indemnity insurance

3. Practice Management 3.1. Quality control

3.1.1. The principles and purpose of quality control of audit and other assurance engagements.

3.2. Advertising, publicity, obtaining professional work and fees, tendering 3.3. Professional appointment

3.3.1. The matters to be considered and the procedures that an audit firm/professional accountants should carry out before accepting a specified new client/engagement

4. Assignments 4.1. The audit of historical financial information 4.2. Planning, materiality and assessing the risk of misstatement 4.3. Audit Evidence 4.4. Evaluation and review 4.5. Group audits 4.6. Audit related services 4.7. Assurance services 4.8. Prospective financial information 4.9. Forensic audits 4.10. Internal audit

5. Reporting 5.1. Auditor‘s report

5.1.1. The form and content of a standard unmodified auditor‘s report. 5.1.2. The factors to be taken into account when forming an audit opinion in a given

situation. 5.1.3. Draft extracts suitable for inclusion in an audit report. 5.1.4. The implications for the auditor‘s report on financial statements that report

compliance with IFRSs. 5.1.5. Assess whether or not a proposed audit opinion is appropriate. 5.1.6. Discuss ‗a true and fair view‘. 5.1.7. Special purpose auditors‘ reports (e.g. on summarized financial statements)

5.2. Report to management 5.3. Other reports

5.3.1. The form and content of the professional accountant‘s report for an assurance engagement with an auditor‘s report.

6. Other Matters 6.1. Social and environmental auditing

6.1.1. The importance of policies that govern the relationship of an organization to its employees, society and the environment.

6.1.2. The difficulties in measuring and reporting on economic, environmental and social performance and give examples of performance measures and sustainability indicators.

6.1.3. The form and content of an independent verification statement (e.g. on an environmental management system (EMS) and a report to society)

6.2. Contemporary issues and Researches in the subject area 6.2.1. How the potential problems associated with the audit of small enterprises may be

Curriculum -2018

49


overcome. 6.2.2. How International Standards on Auditing affect smaller firms. 6.2.3. The dominance of the global firms and their influence and impact on the

accounting profession. 6.2.4. The impact of developments in public company oversight on external auditors. 6.2.5. Current developments in auditing standards including the need for new and

revised standards and evaluate their impact on the conduct of audits. 6.2.6. Empirical researches


Assessment Strategy: The course unit may be evaluated by end–semester

examination, mid-semester examination, classroom tests,

and assignments


40%

Final Assessment

60%

Details:

Quizzes , mid-term , other -40%

Theory

60%

Practical

Other


Sri Lanka Auditing Standards, Bond Volume, (2014 ) ICASL Sri Lanka Auditing Practice Statements , ICASL Sri Lanka Standards on Review Engagements, ICASL Sri Lanka Standards on Assurance services, ICASL Milichamp, A.H, Auditing, 8th Edition Research articles

Curriculum -2018

50



Kuliyapitiya



Semester 07


Course Name: Forensic Accounting

Credit Value: 03


Hourly Breakdown


45 105


Acquire an understanding of the fraudulent accounting methods Distinguish between unethical and illegal practices Apply fraud/forensic analysis to ―real‖ case work Comprehend how to preserve electronic evidence Demonstrate how practicing accountants ability to interact with computer forensic

specialists.


1. Principles of Forensic Accounting 1.1. Overview of Forensic Accounting 1.2. Accounting Information System and Fraud Schemes 1.3. The Legal Role and Qualification of Forensic Accountants 1.4. Gathering, Obtaining and Evaluating non – financial Evidence in Forensic Accounting 1.5. Auditors‘ and Management Responsibilities

2. Principles of Fraud Examination 2.1. Introduction 2.2. Fraud Schemes 2.3. Fraud Detection 2.4. Fraud Prevention 2.5. Fraud Risk Assessment 2.6. Fraud Risk Management 2.7. Fraud Examination

3. Forensic Criminology and Legal Studies 3.1. Introduction to Forensic Criminology 3.2. Theories of Crime Causation 3.3. The Civil and Criminal Justice System 3.4. Individual Rights 3.5. The Legal System 3.6. White Collar Crime 3.7. Evidence

4. Corporate Fraud and Internal Control 4.1. Organizational Crime

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4.2. Theft of Intellectual Property 4.3. Occupational Fraud 4.4. Internal Control and Evaluation of Control Risks 4.5. Evidence Gathering 4.6. Internal Audit and Internal Review 4.7. Conduct of Audit and Assurance 4.8. Reporting Framework

5. Financial Statement and Institution Fraud 5.1. Introduction to Financial Statement Fraud 5.2. Financial Statement Fraud - Schemes 5.3. Financial Statement Fraud – Red flags 5.4. Financial Statement Analysis and Prevention 5.5. Embezzlement Schemes 5.6. Cheque and Credit Card Fraud 5.7. Money Laundering 5.8. Securities Fraud 5.9. The Basel Committee on Banking Supervision

6. Forensic Investigation Techniques 6.1. Introduction to Forensic Investigation 6.2. Analyzing Documents 6.3. Interview Theory and Application 6.4. Sources of Information 6.5. Covert Investigations 6.6. Data Analysis and Reporting Tools 6.7. Tracing Illicit Transactions 6.8. Investigation Techniques and Case Management

7. Computer Forensics and Cyber Crime 7.1. Computer Forensic Investigation, Digital Evidence Collection and Incident Handling

7.2. Data and Image Files 7.3. Wireless Devices and Networks 7.4. Network Intrusions and Cyber Crime

8. Financial Crime Law 8.1. Anti-Money Laundering Laws 8.2. Law Enforcement and Financial Crime 8.3. Insurance and Medical Fraud 8.4. Bankruptcy 8.5. Bribery and Corruption

9. Litigation and Expert Witnessing 9.1. Introduction to Expert Witnessing 9.2. The Qualification of an Expert Witness 9.3. The Forensic Accountant as an Expert Witness 9.4. Trial Preparation 9.5. Ethics for the Forensic Accountant Expert Witness 9.6. Reporting

10. Advanced Forensic Accounting

10.1. Forensic Accounting 10.2. Revenue Based Financial Fraud Schemes 10.3. Assets Based Financial Fraud Schemes 10.4. Expense and Liability Fraudulent Schemes 10.5. Other Financial Reporting Fraud Schemes

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10.6. Detection and Prevention of Advanced Financed Financial Crime 10.7. Other Prevention Strategies 10.8. Tracing Hidden Assets

Teaching /Learning Methods: Lectures, Tutorials, Workshops with the support of Experts in

subject, Practical Assignments, Demonstration of Videos, Case Studies in the real world




40%

Final Assessment

60%

Details:


Theory

60%

Practical

Other


A guide to Forensic Accounting 2nd Edition, Thomas W. Golden, Steven L. Skalak, Mona M. Clayton and Jessica Pill

A Practitioner‘s Guide to the Law and Regulation of Financial Crime by Arun Srivastava and Andrew Keltie, 2010

Computer Forensics, Investigating Wireless Network and Devices by EC Council Press Constitutional Law and the Criminal Justice System 5th Edition by J. Scott Harr, Kären

M. Hess and Christine H. Orthmann Corporate Fraud Handbook, Prevention and Detection, Dr. Joseph T. Wells Crumbley, Heitger, and Smith (CCH) (2009) Forensic and Investigative Accounting, 4th

Edition. Expert Fraud Investigation; a step-by-step guide by Tracy L. Coenen Expert Witnessing in Forensic Accounting, a Handbook for Lawyers and Accountants,

by Zeph Telpner and Michael Mostek, Financial Investigation and Forensic Accounting 2nd Edition, George A. Maning, Ph.D,

CFE, EA Financial Statement Fraud, Gerard M. Zack, CFE, CPA, CIA, CCEP, 2013 Forensic Accounting and Fraud Investigation for Non – Experts 2nd Edition, Howard

Silverstone and Michael Sheetz. Forensic Criminology by Wayne A. Petherick, Brent E. Turvey, Claire E. Ferguson, 2009 Fraud Auditing and Forensic Accounting 4th Edition, Tommie W. Singleton and Aaron

J. Singleton Insurance Fraud Casebook, Paying a premium for crime by Joseph T. Wells and Laura

Hymes Joseph T. Wells, Principles of Fraud Examination, (2010), 3rd Edition Principles of Fraud Examination, Dr. Joseph T. Wells William Hopwood, Gay Leiner and George young, (2011), Forensic Accounting

Curriculum -2018

53



Kuliyapitiya



Semester 1 07


Course Name: Strategic Management Accounting

Credit Value: 03


Hourly Breakdown


45 105


Critically Evaluate the modes of diffusion of management accounting practices; Appraise change in management accounting practice based on three perspectives,

Rational (Transaction Cost Theory, Agency Theory and Contingency Theory), Interpretive and Critical;

Evaluate how management accounting practices can be integrated into the strategy formulation and strategy implementation process;

Analyse the strategic risks exposed by the business organization; Critically evaluate the use of quantitative / deductive and the qualitative / inductive

approaches in doing research relevant to the management accounting practice. Analyze the developments in management accounting to embrace the

sustainability movement/revolution Appraise the various frameworks available for reporting sustainability in an

organization Evaluate the role of management accountants (finance professionals) in driving the

sustainability strategy of an organization


1. The Transformation 1.1. cost accounting to management accounting and thereafter to strategic management

accounting based on the management accounting research agenda, 1.2. management accounting change based on the rational (Transaction Cost Theory,

Agency Theory, Contingency Theory), 1.3. Interpretive and critical perspectives 1.4. MA profession. 1.5. Diffusion of management accounting practices;

1.5.1. modes of diffusion of management accounting practices, 1.5.2. traditional management accounting practices, 1.5.3. Management accounting practices that evolved after the 1990s.

2. Management Accounting Practices Used in the Strategy Formulation Process 2.1. Strategic management and accounting analysis

2.1.1. Stakeholder Analysis 2.1.2. Corporate objectives

2.1.2.1. Primary

Curriculum -2018

54


2.1.2.2. Secondary 2.1.3. Strategic marketing analysis

2.1.3.1. Strategy and Market position 2.1.4. Target costing 2.1.5. Life cycle management and costing

2.2. Operational considerations

2.2.1. JIT operation – A management Philosophy

2.3. Balanced Score Card (BSC) 2.4. PEST Analysis

2.5. SWOT Analysis 2.6. Value Chain Analysis

2.7. Porter‘s Five Forces Analysis

2.8. BCG Matrix

2.9. Porter‘s Generic Strategies

3. Going to International and Growth Strategies 3.1. Porter‘s Diamond Theory 3.2. Ansoff Matrix 3.3. Methods of growth

3.3.1. Organic 3.3.2. Mergers and acquisitions

3.4. Innovation

4. Evolving Role of the Management Accountant in the Changing Business Environment 4.1. changes in the business environment with ERP and advanced manufacturing

technology, 4.2. Changing role of the management accountant as a scorekeeper to a valued business

partner lazing with the other functional areas.

5. Strategic Risk Management 5.1. Strategic risks

5.2. Role of the management accountant in managing risks.

6. Project Management 6.1. Stages in project management 6.2. Role of the management accountant in managing a project.

7. Quantitative/ Deductive and the Qualitative/ Inductive Approaches in Doing Research Relevant to the Management Accounting Practice 7.1. Evaluating the factors contributing to the sophistication of management accounting

practice based on the deductive approach and the inductive approaches to research.

8. Environmental Management Accounting (EMA) 8.1. Scope, applications, drivers, benefits and roadblocks 8.2. Environmental costs 8.3. Energy and materials accounting 8.4. Capital Budgeting Analysis 8.5. Accounting for Ecological, Carbon and Water foot-printing 8.6. Life Cycle Analysis/Assessment (ISO 14040 series) 8.7. Environmental audit (Environmental Impact Assessment) 8.8. Material Flow Cost Accounting (MFCA) (ISO 14051) & waste management 8.9. Design for Sustainability 8.10. Accounting for waste

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8.11. EMA and Cleaner Production (CP) 8.11.1. Cleaner production 8.11.2. Methodology 8.11.3. Support from EMA for CP

[[

9. Sustainability Management Accounting

9.1. Accounting for the social dimension in sustainability 9.1.1. Social Accounting (SA) and Social Management Accounting (SMA III) 9.1.2. Social audit 9.1.3. Socially Responsible Investing (SRI) 9.1.4. Social Return on Investment (SROI)

9.2. Integration of three pillars of sustainability 9.2.1. Sustainability Balanced Scorecard (SBSC) 9.2.2. Addressing the economic bottom line 9.2.3. The role of an accountant

9.3. Frameworks available for reporting sustainability 9.3.1. ISO 14000, 19011, 22000, 26000, 50001 standards 9.3.2. Sustainability reporting based on Global Reporting Initiative Guidelines 9.3.3. AA1000 stakeholder engagement standard & SA 8000 standard 9.3.4. Sustainability Reporting and Integrated Reporting <IR>

9.4. Sustainability Management Accounting Theory 9.4.1. Importance of having theoretical frameworks 9.4.2. Institutional theory, Stakeholder theory & Legitimacy theory

9.5. Sustainability Management Accounting: A Sri Lankan perspective in the global setting 9.5.1. The global scene 9.5.2. Sri Lankan status





40%

Final Assessment

60%

Details:


Theory

60%

Practical

Other


Cooray, S. (2013). Strategic Management Accounting and Accountants in Business. Author Publication.

Drury, Colin 2014, Cost and Management Accounting, Cenagage Learning India Hoque, Z. (2006). Strategic Management Accounting, Australia: Pearson

Education, 7th Edition Wickramasinghe, D. and Alawattage, C. (2007). Management Accounting

Change:Approaches and Perspectives. New York: Routledge. Gunarathne, A. D. N., Ranasinghe, A. B., and Peiris, S., (2014), Guidelines

on Environmental Management Accounting for Sri Lankan Enterprises, CMA, Colombo.

International Federation of Accountants (IFAC). (2005), International Guidance Document: Environmental Management Accounting, IFAC, New York, NY.

Curriculum -2018

56


Rikhardsson, P. M., Bennett, M., Bouma, J. J., and Schaltegger S., (2005), Implementing Environmental Management Accounting: Status and Challenges, (eds), Springer: Netherlands.

Schaltegger, S., Bennett, M. and Burritt, R., (2006), Sustainability Accounting and Reporting, (eds), Springer: Netherlands.

Bennett, M., Bouma, J. J., and Walters, T., (2002), Environmental Management Accounting: Informational and Institutional Developments, (eds). Kluwer: Dordrecht.

Curriculum -2018

57



Kuliyapitiya



Semester 07


Course Name: Financial Derivatives

Credit Value: 03


Hourly Breakdown


45 105


Explain the basic types of derivatives, their payoff functions, their developments, and the economic roles they play in the financial markets.

Critically Evaluate the basic risk management and trading strategies using derivatives. Analyze no-arbitrage principle and its role in pricing financial forwards and futures. Appraise the design and pricing of a forward rate agreement; understand the payoff of

a Eurodollar futures; understand the design of swaps and how to determine the swap rate by using no-arbitrage principle

Critically Analyze the put-call parity and other pricing relations between calls and puts using no-arbitrage principle.

Apply extensively the binomial approach in pricing European and American options. Apply the Black-Scholes option formula for the price of a European option and its

Greeks. Understand the idea of delta-hedging. Apply option pricing theory in the area of financial engineering and corporate finance. Analyze critically Some Practical Applications Related With The Financial Derivatives

At Corporate Level


1. Introduction to Derivatives 1.1 Exchange Traded Markets 1.2 Over the counter Markets 1.3 Types of Traders 1.4 Hedgers 1.5 Speculators 1.6 Arbitrageurs

2. Options 2.1 Mechanics of option markets 2.2 Properties of stock options 2.3 Trading strategies involving options

3. Binomial trees 3.1 No Arbitrage argument 3.2 Risk neutral valuation 3.3 One step and two step model

Curriculum -2018

58


3.4 Valuing American options 3.5 Increasing number of steps 3.6 Impact of Dividends

4. Black-Scholes-Merton Model 4.1 Weiner‘s process and Ito‘s Lemma 4.2 Lognormal property of stock prices 4.3 Volatility 4.4 Derivation of BSM differential equations 4.5 Cumulative Normal distribution function 4.6 Implied Volatilities 4.7 Dividend

5. Other Types of Options 5.1 Options on Stock indices and currencies 5.2 Futures options 5.3 Exotic Options

6. Futures and Forwards 6.1 Mechanics of Futures markets 6.2 Hedging strategies using futures 6.3 Forwards 6.4 Determinants of Forwards and Futures prices 6.5 Interest rate futures

7. Swaps 7.1 Interest Rate Swaps 7.2 Comparative Advantage Argument 7.3 Valuation of Interest Rate Swaps 7.4 Currency Swaps 7.5 Valuation of Currency Swaps 7.6 Compounding Swaps 7.7 More complex Swaps 7.8 Equity Swaps 7.9 Swaps with embedded Options 7.10 Other Swaps

8. Greek Letters and Volatility Smiles 8.1 Delta Hedging 8.2 Theta 8.3 Gamma 8.4 Relationship between delta, theta, and gamma 8.5 Vega 8.6 Rho 8.7 Applications 8.8 Volatility smiles and Applications

9. Miscellaneous 9.1 Value at Risk (VAR) 9.2 Estimating Volatilities and Correlations 9.3 Credit Risk and Credit Derivatives 9.4 Weather derivatives and energy derivatives 9.5 Interest rate derivatives 9.6 Convexity, Timing and Quanto adjustments

Curriculum -2018

59


10. Derivative Markets and lessons for users of derivatives

10.1 Derivative markets 10.2 Lessons for all users 10.3 Lessons for financial institutions 10.4 Lessons for non-financial institutions





40%

Final Assessment

60%

Details:

Quizzes, mid-term, other – 40%

Theory

60%

Practical

Other


Chance, DM & Brooks, R. (2010), An Introduction to Derivatives and Risk Management, South-Western Cengage Learning, USA. (CB), 8th Edition

John C. Hull 2008, Options Futures and Other Derivatives, New Delhi. (JH), 7th edition

Martin Baxter, Financial Calculus: An Introduction to Derivative Pricing (Hardcover)

Neil A. Chriss, The Black Scholes And Beyond Interactive Toolkit: A Step By Step Guide To In Depth Option Pricing Models

Neil A. Chriss, Black Scholes and Beyond: Option Pricing Models (Hardcover) Michael Durbin, All About Derivatives (All About Series)

https://www.goodreads.com/author/show/177273.Martin_Baxter

https://www.goodreads.com/book/show/307698.Financial_Calculus

https://www.goodreads.com/book/show/307698.Financial_Calculus

https://www.goodreads.com/author/show/33690.Neil_A_Chriss

https://www.goodreads.com/book/show/893178.The_Black_Scholes_And_Beyond_Interactive_Toolkit

https://www.goodreads.com/book/show/893178.The_Black_Scholes_And_Beyond_Interactive_Toolkit

https://www.goodreads.com/author/show/33690.Neil_A_Chriss

https://www.goodreads.com/book/show/59615.Black_Scholes_and_Beyond

https://www.goodreads.com/author/show/219478.Michael_Durbin

https://www.goodreads.com/book/show/9466905-all-about-derivatives

Curriculum -2018

60



Kuliyapitiya



Semester 07


Course Name: Applied Econometrics

Credit Value: 03


Hourly Breakdown


45 105


Perform a diagnostic test before applying a model for financial data Use computer applications in applied econometrics Get familiarize with the econometric applications in financial researches. Apply the knowledge of Econometrics in Finance and Researches


1. Introduction to Econometrics

2. The nature of Regression Analysis

3. Two Variable Regression Analysis: Basic Ideas

4. Two Variable Regression Model: The Problem of Estimation

5. Classical Normal Linear Regression Model (CNLRM)

6. Two Variable Regression : Interval Estimation and Hypothesis Testing

7. Multiple Regression Analysis : The Problem of Estimation

8. Multiple Regression Analysis : The Problem of Inference

9. Dummy Variable Regression Models

10. Multicollinearity

11. Heteroscedasticity

12. Autocorrelation

13. Qualitative Response Regression Models

14. Dynamic Econometric: Autoregressive and Distributed – Lag Models

15. Time Series Econometrics: Basic Concepts

16. Time Series Econometrics: Forecasting

17. Application of Econometrics in Finance

Teaching /Learning Methods: Lectures, Tutorials and Practical Assignments and Lab Practical


Curriculum -2018

61




40%

Final Assessment

60%

Details:


Theory

60%

Practical

Other


Gujarati et al, Basic econometrics, McGraw-Hill, 5th Edition, William H. Greene (2011), Econometric Analysis, Prentice Hall, 7th Edition Jeffrey M. Wooldridge, MIT Press (2010), Econometric Analysis of Cross Section and

Panel Data, 2nd Edition

Fumio Hayashi, (2000) Econometrics, Princeton University Press Jeffrey M. Wooldridge, (2012), Introductory Econometrics: A Modern Approach by

South-Western College Publishers, 5th Edition User Guide- E views – For software applications Journal articles

http://www.amazon.com/exec/obidos/ASIN/0131395386/metricsbook-20





Curriculum -2018

62



Kuliyapitiya



Semester 07


Course Name: Strategic Finance

Credit Value: 03


Hourly Breakdown


45 105


Demonstrate the ability of understanding the critical views about the strategic finance.

Critically analyze how Financial Mangers or Chief Financial Officers formulate long

term /short terms financial strategies of their respective organizations in order to

achieve corporate goal successfully.

Appraise the limitations of the traditional corporate performance metrics

Evaluate the overview of the Value-Based Management (VBM) concept

Examine major approaches to the firm valuation and learn their practical applicability

Examine the most widely used VBM measures and models, understand their

advantages and limitations

Examine the issues of VBM methods implementation in practice

Get acquainted with the key principles of the financial modeling to assess the firm‘s

value and make the strategic decisions


1. An Overview : 1.1. Putting Financial Strategic in Context 1.2. Corporate Financial Strategy : Setting the context 1.3. Link Corporate and Financial Strategies 1.4. Creating Shareholders Value and the context of Share Price.

2. Strategic Finance and Risk Management Strategies 2.1. Framework for risk management

3. Financial Strategies and Corporate Life Style 3.1. Start up 3.2. Growth 3.3. Mature 3.4. Declining

4. Supply chain management and Balance Score Card Techniques and their contribution to add values to Corporate Financial Strategies

Curriculum -2018

63


5. Effect of Corporate Dividend Policy to the Financial Strategies of a Company

6. Introduction to Financial instruments : A Practical Approach to Strategic Finance

7. Value-based Management (VBM) - A New Paradigm of the Financial Management 7.1. Corporate investment and financing decisions. 7.2. Formal definition of VBM. Genesis of VBM. 7.3. Major components of VBM. Corporate value management cycle. 7.4. The VBM development factors. 7.5. Value maximization as a corporate objective function: fundamental assumption of the

VBM. Corporate objective function. Value maximization theory. Stakeholders‘ theory. Definition of stakeholder. Arguments for value maximization theory.

8. Value in Strategic Financial Management 8.1. Value of the company and Importance of shareholder value creation. 8.2. Technology of contemporary firm valuation 8.3. Major approaches to firm valuation: income, market and cost approaches 8.4. Main valuation methods within market approach: transaction method, guideline

company method. 8.5. Advanced Aspects of Time value of money. 8.6. Main valuation methods within income approach. 8.7. The link between corporate strategy and firm‘s value.

9. Typology of VBM Models. Change in shareholder wealth-based models: TSR, TBR, MVA, ER 9.1. Classification of VBM models and Change in shareholder wealth-based VBM models. 9.2. Total Shareholders Return (TSR) model 9.3. Total Business Return (TBR) model. 9.4. Market Value Added (MVA) model. 9.5. Excess Return (ER) model.

10. Residual-income based VBM Models. EVA/EP 10.1. Economic Value Added (EVA) / Economic Profit (EP) model. 10.2. Genesis of the model. 10.3. Value creating/destroying criterion in EVA model. 10.4. Advantages and limitations of EVA model.

11. CFROI Model 11.1. CFROI model and Genesis of the model. 11.2. Description and calculation formula of CFROI metric. 11.3. Value creating/destroying criterion in CFROI model. 11.4. Advantages and limitations of CFROI model

12. Cash Value Added (CVA) and Modified Cash Value Added (MCVA) Models. 12.1. Specification of base CVA 12.2. Modified Cash Value Added (MCVA) model.

13. Expectations-Based Management (EBM) Model 13.1. EBM: definition, calculation formula. Major characteristics of the model.

Comparison of EVA and EBM models. Definition of TSR from EBM perspective. 13.2. Influence of EBM on firm‘s performance. Expectation management process.

Impact of market noise on firm‘s value. Investment decision analysis within EBM

Curriculum -2018

64


context. 13.3. Area of applicability. Advantages and limitations of EBM model.

14. Case Analysis and Review of Journal Articles

Teaching /Learning Methods: Lectures, Tutorials, Case Studies and Practical Assignments




40%

Final Assessment

60%

Details:


Theory

60%

Practical

Other


Ameels A., Bruggeman W., Scheipers G. (2002), Value Based Management: An Integrated Approach to Value Creation. A Literature Review

Madden B. CFROI Valuation Model. Journal of Investing, 7 (Spring 1998) Copeland T., Dolgoff A. EBM: Outperform Expectations with Expectations- Based Managemen

Ottosson E., Weissenrieder F. CVA, (1996) Cash Value Added - a New Method for Measuring Financial Performance, Gothenburg Studies in Financial Economics.

Case studies and journal articles recommended by the lecturer

Curriculum -2018

65


Department of Accountancy

Faculty of Business Studies and Finance – Wayamba University of Sri Lanka

Existing Curriculum

Year I

Semester I


MGT 1114 Principles of Management and Organizational Theory 04

BNF 1113 Microeconomics 03

MGT 1113 Business Mathematics I 03

MGT 1123 Business Environment 03

ACT 1114 Financial Accounting 04

ELT 1110 English I – Grammatical Foundation 00

Credits for Year I Semester I 17

Semester II


MGT 1224 Organization Behavior 04

BNF 1224 Macroeconomics 04

MGT 1233 Business Mathematics II 03

MGT 1243 Information Technology 03

ACT 1224 Cost and Management Accounting 04

ELT 1210 English II – Composition 00

Credits for Year I Semester II 18

Total Credits for Year I 35

Annexure 01

Curriculum -2018

66


Year II

Semester I


MGT 2114 Human Resource Management 04

MGT 2124 Business Statistics 04

MGT 2123 Computer Software and Applications 03

ACT 2114 Taxation and Auditing 04

MGT 2131 Business Communication I 01

Credits for Year II Semester I 16

Semester II


MGT 2224 Marketing Management 04

BNF 2214 Managerial Economics 04

MGT 2244 Commercial Law and Industrial Law 04

ACT 2224 Financial Management 04

MGT 2251 Business Communication II 01

Credits for Year II Semester II 17

Total Credits for Year II 33

Curriculum -2018

67


Year III

Semester I


MGT 3113 Operations Management 03

ACT 3114 Accounting Information Systems 04

ACT 3124 Decision Sciences for Accountancy 04

ACT 3134 Advanced Financial Accounting 04

ACT 3143 Corporate Law 03

Credit for Year III Semester I 18

Semester II


ACT 3254 Strategic Management Accounting 04

ACT 3263 Investment and Portfolio Management 03

ACT 3274 Sri Lanka Income Tax 04

ACT 3283 Financial Statement Analysis 03

ACT 3293 Research Methods in Accounting & Finance 03

Credit for Year III Semester II 17

Total Credit for Year III 35

Year IV

Semester I


ACT 4114 Financial Reporting & Disclosure 04

ACT 4124 Advanced Auditing & Professional Practice 04

Credit for Year IV Semester I 08

Semester II


ACT 4243 Computer Based Accounting 03

ACT 4236 Industrial Training and Dissertation 06

Credit for Year IV Semester II 09

Total Credit for Year IV 17

Total Credits for Entire Degree Programme (35+33+35+17)

120