SC Licensing Examination Revision

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SCLE Revision: Financial Statement Analysis and  Asset Valuation (Module 7)

Module 7: Financial Statement Analysis and Asset Valuation

Duration: 2.5 days
Venue: Securities Commission Malaysia

Programme Objective

This course equips participants with comprehensive understanding and knowledge based on the Module 7 Study Outline. Participants will advance their knowledge and comprehension further via an interactive teaching and learning experience while increasing their confidence in sitting for the examination.  This course will be facilitated by an experienced and qualified trainer. 

Programme Overview

This 2½ -day course is designed to match the licensing study outline for Module 7 on financial statement analysis and asset valuation. It covers the fundamental aspects of financial statements, investment analysis, relevant accounting policies and treatments for financial reporting, characteristics of fixed income and equity securities, time value of money and valuation methods.

Who Should Attend
 
  • Candidates preparing for the Module 7 SC Licensing Examination
  • New entrants to the capital market industry and staff of investment banks 

 

  • Programme Delivery

    Learning Outcomes

    Candidates are expected to have good knowledge, understanding and ability to apply in the following areas:

    • Users and uses of financial statements in financial and investment analysis
    • Important accounting policies or choices and treatment of accounting information for financial reporting purposes including explaining the reasons for usage and demonstrating the ability to deal with adjustments necessary for purposes of comparability
    • Company financial and company information or other crucial factors such as industry position and economic outlook, necessary for relevant and reliable assessment of the company’s performance
    • Limitations of the use of financial statements and related important accounting issues when interpreting financial statements for informed investment decision making
    • Elements and characteristics of fixed income and equity securities which is linked to the purposes of financial and investment planning
    • Concepts of time value of money in pricing and the valuation of fixed income and equity securities
    • Methods and indicators, including their required adjustments, to assess the company financial performance or gain greater insight into company operating results
    • Fixed income and equity securities, including derivatives based on various methods of valuation and examining the factors affecting pricing

    Candidates' Prerequisites

    Candidates are expected to have relatively strong capability in the application and analysis of information provided in this outline and its reference.

    Methodology

    This course will be delivered using effective learning methods which include presentations, discussions and review examination questions. 

  • Programme Outline

    DAY ONE

    0830am Registration
    0900am Importance of Financial Statement Analysis
    • Importance of Financial Statement Analysis
    • Financial Statement Analysis within a Wider Context
    • Relationship between Share Price and Company Profits
    • Introduction to Financial Statements
    • Pre-requisites for Drawing up Financial Statements
    • Financial Reporting Framework
    • Auditor’s Report
    • Other Information in the Annual Report 
    1045am Refreshments
    1100am Elements of Financial Statements 
    • Introduction to the Balance Sheet/Statement of Financial Position 
    • Items in the Balance Sheet/Statement of Financial Position 
    • Introduction to Income Statement/Statement of Comprehensive Income
    • Introduction to Statement of Changes in Equity or Comprehensive Income/Statement of Changes in Equity
    • Introduction to Cash Flow Statements/Statement of Cash Flows 
    • A Brief on Consolidated Financial Statements
    0100pm Lunch
    0200pm Financial Statement Analysis 
    • Using Financial Statement Analysis to Assess Performance
    • Techniques of Analysis
    • A Working Example of Ratio Analysis
    • Limitations of Ratio Analysis
    • Advantages of Ratio Analysis
    • Accounting Issues in Financial Statement Analysis
    0345pm Refreshments
    0400pm Exchange-traded Funds  
    • Introduction
    • The Structure of an Exchange-traded Fund
    • Investing in Exchange-traded Funds
    • Comparative Analysis
    • Case for Malaysia
    0530pm End of Day One

    DAY TWO

    0830am Registration
    0900am Fixed Income and Money Markets 
    • Malaysian Fixed Income Securities
    • Understanding Bonds
    • Credit Rating
    • Term Structure of Interest Rates and Yield Curves
    • Theories of Interest Rate Determination  
    • Economic Factors Affecting Interest Rates
    1045am Refreshments
    1100am Fixed Income and Money Markets 
    • Time Value of Money
    • Compounding and Discounting Techniques
    • Pricing Fixed Income Securities
    • Determining the Yield (Internal Rate of Return)
    • Valuing Money Market Securities
    • Pricing a Bond
    • Calculating Bond Yield
    0100pm Lunch
    0200pm Structured Products 
    • Introduction  
    • What is a Structured Product?
    • Issuers of Structured Products in Malaysia
    • Uses and Benefits of Using Structured Products
    • Components of a Structured Product
    • Features and Payout Structures of Structured Products
    • Risks of Investing in Structured Products  
    0345pm Refreshments
    0400pm

    Equity Markets 

    • Malaysian Equity Markets
    • Shares
    • Changes in Number of Shares Issued
    • Equity Hybrids
    • Classification of Shares for Investment Purposes 
    0530pm End of Day Two

    DAY THREE

    0900am Equity Markets (Cont’)
    • The Role of Valuation
    • The Valuation of Equities
    1030am Refreshments
    1045am Revision and Feedback Session on Set of Questions
    1230pm End of Day Three
  • Programme Fees

    For fee enquiries and registration, please contact +603-6204 8664 / 8263 / 8857, or email us at sidc@sidc.com.my