SIDC - Module 7 Important Topics 2013

Topic 1:
1. Elements of Annual Report
2. Users of Financial Statements
3. Accounting Assumptions & Concepts ( 3-4 Questions )
4. Categories of Audit Report

Topic 2:
1. Depreciation: Straight line & Reducing balance
2. Goodwill - when recognized
3. Inventory Days, Debtor Days
4. Categories of Cash Flow sources (Operating, Investing, Financing)
5. Subsidiary & Associate (% of ownership) - scenario

Topic 3:
1. Benchmarks
2. Business life cycle - what stage, and when in x stage, what does it imply
3. Ratios - About 10-15 questions calculation and hypothetical (change in x
result in increase/decrease of x ratio)

Topic 4:
1. Risks in bond investment - reinvestment risk
2. Money market instruments - commercial paper
3. Bonds
- Pricing a bond
- Relationship between bond price, required yield and coupon rate
- inflation rate impact on interest rate and bond yield
4. Interest Rate theories - Expectation Theory
5. Time value of money
- Annuity definition, features
- Discount rate: CAPM
- Use of PV Factor tables to find answer (about 3 questions)

Topic 5:
1. CULS, RCULS, ICULS, RULS - know the difference
2. Book value per share
3. Discounted cash flow model
4. Constant growth dividend model, Gordon growth model - features and
assumptions
5. Liquidation value - definition

Topic 6:
1. Risks of ETFs ( 2 Questions )